It's the ultimate paradox of urban planning that "downtown" belongs to everyone and no one. Almost every city has a commercial district that is considered the heart of social and retail activity; a place where everyone goes to run errands, enjoy a meal, take a stroll, sit and watch people, and invariably take visitors from other towns. But the psychology of collective responsibility holds that no one resident is likely to feel obligated to personally care for a space that every resident uses. People take excellent care of their own properties and are prone to pitch in around their block or neighborhood, but for the most part they assume "downtown" is being looked after by "the city."
DDA 101
The problem is that "the city," or more accurately city leaders, have to spread their resources over an entire municipality, which encompasses not just commercial zones but residential areas, rights of ways, parks and public buildings. If the heart of your town is well manicured, well developed, safe and routinely host to free or low-cost events, there's most likely another party at play: a Downtown Development Authority.
DDAs, as they're called, were conceived nationwide to help downtowns grapple with the empty buildings, increased crime and shrinking tax bases resulting from the widespread suburbanization that began in the 1950s.
In 1975, the State of Michigan passed the Downtown Development Authority Act to authorize cities to create these public bodies, which use taxed collected through a Tax Increment Financing District. Put simply, DDAs capture some of the incremental portion of the tax levy on the assessed value of real and personal property located in the DDA District that is due to new construction. This means the money that comes from the downtown goes right back into it.
Phil Hansen, DDA/economic development director for the city of St. Louis, MI, is the head of the Michigan Downtown Association, which brings DDA directors and their counterparts in Principal Shopping Districts (PSDs) together four times a year for conferences in various Michigan cities. He estimates there are roughly 400 DDAs or PSDs in the state, each of which is working to maintain and strengthen core commercial districts.
"It's important to have a specific organization working on just downtown issues and projects because of the importance of downtown in general," Hansen says. "Think of any town you've been to, and the downtown is probably the first thing you think of."
Ann Arbor
In southeast Michigan, one of the most mature and robust examples of these public bodies is in Ann Arbor, the state's seventh largest city with a population of 112,000. The city's DDA is comprised of 12 volunteer members, including Mayor John Hieftje, representing downtown property owners, residents and employees. Each serves a four-year term.
Ann Arbor DDA Executive Susan Pollay says the city's DDA, created in 1982, has since its inception been focused on making the town "one of the most walkable and pedestrian-friendly cities of its size."
Much of its strategy has been eliminating traffic congestion, which makes the town safer for those on foot and bike. To this end, the DDA has sponsored 6,000 free bus passes for city employees (it pays 90%; city employers just 10%) and, with the help of the University of Michigan and the Ann Arbor Transportation Authority, created a free "circulator" bus downtown. It has repaired or replaced seven parking structures and set to work beautifying the central district through lighting, seating, brickwork and trees. It also provides grants for downtown projects, provides low-interest loans for historic façade repairs, and provides grants for affordable housing projects.
While the DDA's budget must be approved by the city council, the city cannot revoke its funding, which gives Ann Arbor's DDA and others like it an important measure of autonomy.
"We go to the city council often because our goals of a successful downtown are their goals too," says Pollay. "But many of the choices we need to make have long-term benefits and often can't be made in a political environment. When you're running for office every two years you're always thinking about how citizens are responding, so it can be tough to make decisions."
Pollay gives as an example the Ann Arbor DDA's decision to take over the city's public parking system in the mid-1990s. Fear of political repercussions had led city leaders to drag their feet on expensive renovations, resulting in rundown structures. Relatively insulated from political pressure, the DDA raised parking rates — a perilous decision for leaders picked at the polls — as part of a ten-year plan to pay for infrastructure improvements that has had excellent results.
The history of Ann Arbor's DDA mirrors that of many others in the state and elsewhere. The construction of the Arborland and Briarwood shopping malls threatened the health of Ann Arbor's downtown and prompted the city to create a DDA in 1982. Pollay says the malls had created enormous competition for shoppers, offering better hours and better prices. With the help of the DDA, Ann Arbor's downtown was able to evolve in the direction of services, with a crop of coffee shops and restaurants, hair and nail salons, day spas, and yoga studios. But there are still hurdles facing retailers.
"Today there are different challenges than there were when our DDA was created," says Pollay, who hails from San Francisco but "adopted" Ann Arbor after attending graduate school at the University of Michigan. "Ebay, Internet Shopping and outlet malls are presenting retailers with new challenges, and it's pushing us to continually create opportunities for new businesses and for the evolution of existing business." Pollays says downtowns are now seeing an increase in stores, such as boutiques and art galleries, that offer one-of-a-kind items. The emphasis has become "on the experience of shopping" rather than on the items themselves, she says.
These days, Ann Arbor's DDA is developing a $50 million underground parking structure on South 5th Avenue near the city library, which will create at least 500 new parking spots and support above-ground construction. The project will also provide the city with an opportunity to build on the water system and extend the sanitary system, which Pollay calls "unsexy but fundamental work." The DDA is also busy working on a wayfinding system to help motorists leave the freeway and find whatever location they're seeking.
Having a prestigious and generous university within its DDA District has been a boon to the city of Ann Arbor, Pollay says, because U of M brings to the core area events, concerts, world-class museums and a host of other cultural amenities. The university also shares a number of objectives with the city, Pollay notes, such as safe streets, efficient, reliable transportation, and a bustling commercial center for students and employees. The school brings many of its resources to DDA-sponsored projects, not the least of which is a list of the zip codes of all its employees, which has proven invaluable in planning commuter routes.
Going forward, the Ann Arbor DDA is focusing on a comprehensive transportation system, including a north-south commuter corridor between Howell and Ann Arbor and an east-west system between Chelsea and Detroit. Pollay says both of these, which would ease congestion by bringing workers in via rail, will require collaborative partnerships with several counties but could be a reality within a few years.
Royal Oak
While all Michigan DDAs have a similar mission and formation under Michigan law, their priorities can be significantly different based on the location, size and industries of the town they serve. With its 60,000 residents, the Detroit suburb of Royal Oak is much smaller and thus has different priorities than Ann Arbor. According to Royal Oak DDA Downtown Manager Stephanie McIntyre, Michigan’s 18th largest city is less concerned with transportation and more focused on infrastructure, beautification, and activities that draw visitors from the densely populated and culturally competitive cities nearby.
The city of Royal Oak formed its DDA in 1976 and has set about promoting growth and development downtown by improving and maintaining its infrastructure, marketing the area to consumers and businesses; and encouraging preservation. Its nine board members include City Manager Tom Hoover.
"Whether your town is established or being revitalized, the downtown area is a central point of activity," Stephanie McIntyre, the DDA's downtown manager. "It's great to have an organization that focuses on maintaining the downtown area, which is so vital to so many people."
The Royal Oak DDA gives considerable attention to the aesthetics of their city, says McIntyre. It has long pursued beautification projects involving brick pavers, hanging flower baskets, landscaping, benches and lampposts, while providing low-interest loans to help building owners improve facades. This sensitivity to aesthetics extends even to administrative and marketing efforts, she explains, where a comprehensive rebranding effort, complete with new logo, is nearly complete.
Given downtown Royal Oak's role as a major west side shopping and dining center, the DDA is particularly watchful for opportunities to bring additional parking to the city. Says DDA Chairman Kevin Kalczynski, "Surface parking doesn't really cut it, because it's hard to put in a surface lot that's large enough to handle the amount of parking necessary without damaging the things that make a downtown a downtown. We spend a lot of time dealing with how to make parking in our downtown" while maintaining close-set buildings and a walkable environment.
Kalczynski, a partner with the law firm Barris, Sott, Denn & Driker, said the DDA is close to procuring a lot on Main and 6th Street that will bring an additional 220 parking spots to visitors. Meanwhile, it’s outfitting the existing three parking structures downtown with surveillance cameras to help protect restaurant and other service workers walking to their cars with cash late at night.
Living space downtown is key, McIntyre says, adding that the DDA helped bring three buildings to the downtown area during the "loft craze" five years ago. More and more communities are adopting the idea of the 24-hour downtown, one where locals live, work and play in a walkable environment. The result has been a slew of redevelopment projects and ambitious residential projects like The Fifth, an 18 story condominium that has attracted both local and international residents.
But of paramount importance are Royal Oak's social and community-based events. McIntyre points to a host of events the DDA has planned for the fall. Whether it’s partnering with Detroit Fashion Week to bring a fashion runway show to Fourth Street (Sept. 26-27) or sponsoring an Oktoberfest celebration (Oct. 11), or planning a Holiday Magic Parade in November, these events help to build Royal Oak's identity as community while drawing people to its distinct core.
Kalczynski says Royal Oak's proximity to other urban centers is both a boon and a challenge. The city is fortunate, he says, to have millions of people living within a half hour of it. "It’s in the middle of everything as far as metro Detroit is considered, and we have a great mix of merchants downtown that's attractive and draws people to the area." At the same time, he said, the DDA must be constantly mindful that Royal Oak competes with other downtowns.
As he points out, "people have limited money for shopping and entertainment."
Lucy Ament is a freelance writer and regular contributor to Metromode living in Grosse Pointe. Her last article for Metromode was An Appetite For Atmosphere.
Photos:
The Link, a
free "circulator" bus passes through State St. - Ann Arborpedestrian-friendly State St. - Ann ArborRecycling bins dot downtown Ann Arbor
Ann Arbor street maps promote walking downtown and are available as you enter the Maynard St. parking garage
Ann Arbor DDA Executive, Susan Pollay enjoys a free ride on the Link
Fifth & William parking lot is paved with a porous surface; allows stormwater to percolate from the surface, into the earth
New Royal Oak logo on Center St. garage
All photographs by Marvin Shaouni
Marvin Shaouni is the managing photographer for Metromode & Model D.