Michigan cities might soon get some tools to help attract out-of-state and international corporations to stimulate job growth and improve the quality of life in downtown communities.
The state Senate passed a set of bills Thursday to give Michigan cities and villages the option to set up tax-based finance groups. These finance groups would use taxpayer dollars to make improvements within the community, such as adding street lighting and sidewalks.
Since the introduction of the bills on May 12, more have been initiated as part of a package of as many as 25 bills, called "CORE," which stands for Creating Opportunities for Renewed Economies.
The Senate passed four of the bills Thursday ,and they were referred to the Senate Commerce and Labor Committee.
State Sen. Jason Allen, R-Traverse City, led the initiative for the bills.
As chairman of the Senate Commerce and Labor Committee, Allen was involved in more than 10 weeks of meetings with downtown development authorities from throughout the state.
Jeremy Hendges, legislative assistant for Allen, said the introduction of the bills comes at an ideal time, given the current economic climate.
"Over the last couple years, there's been a bit of a downslide in the economy," he said. "Some corporations move out of Michigan, and we want to make sure we're as attractive of a state as any."
One of the critical ways to attract large, international corporations is to create large metropolitan commerce centers, Mike Brady, director of the Michigan Municipal League said. The League represents Michigan cities and villages and serves as their advocate.
"Commerce centers are an incredibly important piece of legislation," Brady said.
He said for a long time in Michigan, there has been a focus on status and whether a community is deemed a city, village or town, but commerce centers change that.
Brady said the kind of commerce center a community has says if it has the services to support industry.
There always are hurdles in downtown development because greenfield, or underdeveloped sites are easier to develop, said Rob Bacigalupi, deputy director of the Traverse City Downtown Development Authority. But the CORE legislation could help turn the tables.
"Generally, this legislation is helping level the playing field between greenfield sites out in suburbia and the downtown areas," he said.
"Traverse City has been fairly successful in redevelopment, but it continues to be a struggle. We're happy to have more tools in our toolbox."
Michigan already has more than 75 cities that are deemed CORE communities, including East Lansing.
Certain programs are available to recruit business or keep businesses, such as personal property tax abatements, said Jim van Ravensway, director of the city's Planning & Community Development.
"If this is a continuation of that, that's great," he said. "If it's something in addition to it, I'd like to see what it is."
