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Health & Fitness

The purported success of DDAs in Michigan is a mixed bag.

At the bottom of that mixed bag was Pontiac with millions wasted on the original Phoenix Center and millions more on the roof, the brickwork all without regard that the elevator was inadequate to move musical equipment for the concerts for which it was designed. Later millions more blown on the attempted rejuvenation of the Strand Theater until someone vandalized a hydrant washing away tons of an ancient sand foundation creating a zombie building.
Still the fall of Pontiac was not entirely the fault of its basically one man DDA I place that on a corrupt inept school system and widespread violent crime and embezzlement which ultimately led to bankruptcy and an efm.
Detroit said it all by taking the cake- need I say more.
Royal Oak starting in the late seventies began to attract counter culture youth which in turn attracted small businesses slowly beginning to rent space on a decimated Main.
The use of TIF and brownfield credits mean't to stimulate stagnant inner city downtowns encouraged a small avalanche of interest in a comparatively safe compared to Detroit Royal Oak. Naturally other small cities took interest in these programs again mean't originally to lure investment into economic train wrecks such as Pontiac, Detroit and to a lesser extent other Michigan cities such as Grand Rapids, Lansing and Bay City as well as a sleepy Royal Oak.   
As the article goes on to state just one of the ways a DDA is funded is through tax increment financing or in other words by capturing tax increases and reserving them for the sole use of the DDA in our CBD. Now  lets look at how Royal Oak allows its DDA to open the floodgates for non resident owned mega bars as well as for luring developers who purchase distressed downtown property and use city taxes diverted from libraries, the general fund, and parks  for just three general examples. Landlords are happy using taxes that should have gone to pay Royal Oak's debts to improve their facade and streetscape and renting to a mega bar can mean a difference of rent income from sixteen dollars a square foot to forty two dollars a square foot.
With only bars able to profit by selling gallons an hour of alcohol compared to retail shops you can easily see how the diversity of businesses in Royal Oak can be destroyed. Ironically the more bars the less business each bar can attract and so a downward spiral begins not only for the downtown but for the neighborhoods as more cops needed to patrol our so called life in play, or life on tap bar district increases exponentially.
Realizing what is happening the city starts to grab at straws and is actually planning to give a twelve year abatement for a small hotel in the downtown bar district (poor choice of location for many reasons including a lack of parking) just to distract from the fact they just allowed Hamlin Pub to double its size despite its not so perfect record involving police calls. A strong city with a strong mayor would have recognized the need to hire a downtown city planner. No doubt that planner would have sought to encourage a substantially larger hotel to be built at the 696 gateway where interest by developers has mushroomed due to its being next to not only a world class zoo which recently added many new attractions, not only because the property is close to a still perceived vibrant downtown, it is also close to a downtown Detroit renaissance via a soon to be constructed Woodward Corridor and light rail. If you look at Troy and other medium large cities you will see a major hotel next to a major artery such as I 75-Marriot in their case and 696 in ours. Add that this is no doubt the last location of its kind in Oakland County. 
Our DDA is too quick on the trigger to give out abatements and it does not cost them one thin dime to do it. The only losers are the libraries and no matter how they deny it, indirectly the schools, as well as roads, public safety services and county services every city uses.
It has become so bad that if TIFs become the rule rather than the exception in Royal Oak and yes even in Rochester, unfettered substandard ill planned development can crowd out all the careful planning done in the past. Just as we do not need a McDonalds with a drive through on every corner we do not need entire blocks of nothing but bars necessitating more police, nor do we need dense development where there are no parking structures to accommodate the circling cars resulting in fumes and gridlock (400 Main). 
This is why Lansing in its wisdom is presenting a bill (from a Republican no less) giving cities the power to opt out of TIF when its citizens object for aforementioned good reasons. TIF instead of benefiting cities that are struggling to pay debts presently is doing exactly the reverse by placing the next generation in hock with twelve year abatements. It has degenerated into welfare for the wealthy looking for a quick buck and willing to take everyone of importance out to lunch to get their way. AB&E ditto! Just as too much water can drown an individual, too much TIF can easily drown Royal Oak in debt.

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