By By JOHN EBY / Dowagiac Daily News
At its first meeting since June 30, 2005, Dowagiac's Downtown Development Authority (DDA) this morning at City Hall improved the central business district facade incentive and architectural design services program it has offered since 1989.
Incentives have resulted in the restoration of many downtown buildings.
To encourage continued renovation, the DDA expanded the facade incentive and architectural design services program to allow property owners to re-apply for funding if they have been in business for 10 or more consecutive years; amended program guidelines to allow for an incentive of $1,000 instead of $500 to be paid on a qualifying rear or side facade when 90 percent of it is visible from a major roadway (non-alley), such as Beeson and Commercial streets; and to pay up to $400 per building for architectural design services.
"Circumstances downtown have changed over time," City Manager Bill Nelson observed. "Particularly what the Design Review Committee has seen as it has considered applications for facade incentives, many of what used to be considered non-frontage facades are now frontage facades," such as Zeke's or Scissor Mill, which face both Front Street and Depot Drive.
"It really makes sense to give the same consideration to those facades as on Front Street," Nelson said.
"Another issue is architectural services, the other key change," he said. "That's been at $200 for certainly as long as I've been here (10 years) and I think well before that. Obviously, times change, prices go up and what we're finding is that we need to up that (to $400) to accommodate). That portion of the program continues to be extremely important because that allows the property owner, along with the Design Review Committee, a good architectural rendering of what you can expect once that facade is done. I think this is an important change. Frankly, in some respects, I see it as just an update that needs to be done periodically, and it's been a long time since it's been updated."
At the urging of Mayor Donald Lyons, Nelson also highlighted DDA financial restraints which have developed.
"We've seen a reduction in DDA revenues over the last number of years," the city manager explained. "The lion's share of that comes from the fact that when Ameriwood was purchased, that property was reassessed as a result of that sale. We have some fixed expenses that we can simply not walk away from, those being our debt on various projects. That debt is due to roll off in 2010-11. Those are for some streetscape and other improvements in the downtown that were undertaken back in 1996-97.
"The city has been subsidizing the DDA on a loan basis for additional operation expenses to make sure we continue to run programs like facade incentives. We're keeping a tally of that and once that debt is paid off, the DDA will be able to operate fully without that that subsidy and be able to begin to pay back the city for the loan made for that period."
"It continues to be a struggle," Nelson said, "but I think it's important to note that the council continues to be very committed to the DDA and its mission. That's why it committed to do that subsidy – to make sure operations continue in a positive way with the understanding that over time that will be paid back once those debt issues are rolled off."
Nelson estimated, "We are roughly $100,000 a year less in terms of tax capture than we were 10 years ago."
The DDA approved payment of $239,523.34 in bills dating back to July 7, 2005.