WHAT THE CITY OF BUCHANAN CAN EXPECT FROM ITS NEW DDA

By Kate Gassman

While the City has been fairly tight-lipped about the re-formed DDA after its disastrous end five years ago, it’s likely they will follow Michigan guidelines and the example set forth by other local communities. The city struggled to find common ground with its last DDA, and the group was officially dissolved in July of 2020. Designed to curb declining property values and encourage economic growth, DDAs can invest in public facilities, infrastructure, marketing, and even business incubators.

As far as funding goes, authorized by Public Act 57 of 2018, DDAs allow municipalities to establish special downtown districts and fund public improvements through tax increment financing (TIF), millages, bonds, grants, and donations.

While the city refused to support the Michigan Main Street Program as recently as last fall, this DDA will be allowed to use funds set aside that the last DDA left in the coffers. Funds may also come from the Southwest Michigan Regional Chamber, which has no plans to use CGA grant money in Buchanan, but may attempt to help the new DDA achieve the Main Street Designation.

There are many resources available to help DDAs on the right path, including an informative PDF from the Michigan Economic Development Corporation, an organization that recently presented at City Hall. The Michigan Municipal League also published a similar document, one that the newly-formed DDA hopefully is using to help guide their actions this time around.

Local governments across Michigan are turning to Downtown Development Authorities as a key tool to revitalize struggling business districts. Their tools and guidelines are available for the public, like those in St. Joseph and Ann Arbor, to name just a few. New reporting requirements, effective since 2019, mandate DDAs to hold biannual informational meetings, maintain public transparency through detailed online records, and submit annual financial reports to the state.

Buchanan should expect similar transparency from this new organization and require accountability. While powerful, DDAs may only operate in areas zoned for business and must avoid benefiting private individuals or corporations directly. The city stated at their last commission meeting that while they planned a first meeting as early as last week, they would not start making any changes or acting on behalf of the city until November.