The 2010 CITCOM--DDA brouhaha

Disclosure
Some VersagiVoice readers -- both those who generally agree with me and those who don't -- have asked that I make clear where I stand on all this. Details aside and
keeping separate the individuals and the institution on which they serve:

I continue to believe that the DDA should be dissolved.
I shall continue to criticize CITCOM's ingrained habit of micromanaging.
I consider the attempt to make the DDA equivalent to the Traffic Committee an egregious excess of micromanagement. It matters not whether the motives are institutional or personal.

So I have no choice but to oppose any effort to emasculate the Downtown Development Authority so long as it exists as a tax-gathering entity.

CITCOM moves to limit DDA's power
Part 1

With a 5-2 vote, the Royal Oak City Commission approved the First Reading of a proposed ordinance revision which will emasculate the Downtown Development Authority.

Opponents of the amendment hope for a higher level legal opinion which will challenge the validity of the change or at least the method of change.

The DDA's $300,000 arrangement re the Emagine Project served as a focal point for the majority. That arrangement was repeatedly cited, even on the separate issue of the DDA's second request for approval of its $170,000 final phase streetscaping repair. Those commissioners who favor the ordinance revision insisted on tying all DDA matters to their intention to cut the Authority's power.

The tone of the deliberations was emotional but subdued. Both the anger and the sadness were expressed quietly. Mayor Ellison and Commissioner Rasor were The Two. Commissioners Andrzejak Capello, Drinkwine, Poulton, and Semchena were The Five. Their fundamental points:

The Five

  • Andrzejak: Sees the issue as an "accountability matter." Financial philosophy is set at CITCOM. When taxpayers complain, they communicate with the commission, not the DDA. This is "not a punitive" reaction to the DDA's Emagine action. Re the streetscaping request: "This is my last approval" until long-term issues are settled.

  • Capello: Capello left her DDA seat when she was elected. In a very few, rather muted, words she offered support for the proposed amendment.

  • Drinkwine: This proposal treats the DDA as the Traffic Committee is treated. -- an advisory body whose recommendations come before us. (Andrzejak added that it would be more like the Farmer's Market Committee.)

  • Poulton: There is case law showing that other cities have been successful with the approach being proposed. "This provides additional safeguards for the taxpayer."

  • Semchena: DDA was "non-responsive" to CITCOM's request for more information [about diverse matters, including Emagine]. This proposal makes CITCOM "ultimately accountable," as it should be. The streetscaping decision, even though for a small amount and based on existing budget, should be reconsidered in terms of long-term financial needs of both the City and the DDA.

The Two

  • Ellison: This move is "retribution, not accountability." It's "micromanaging." Our accountability is to appoint members to the DDA and to remove them if necessary. It's not about money. The DDA continues to properly and successfully serve the city with its use of funds dedicated to downtown development. "This [proposal] may be illegal."

  • Rasor: This is obviously a reaction to the DDA's Emagine work. The lack of communication seems to be a failure of both parties. Let's hold off and meet with each other. This makes it seem as though we don't trust our appointees.

The Rest of the Story
Those capsule summaries of the basic arguments provide readers with the substance of the debate and a hint of the tone of the meeting. Not mentioned was comment from two DDA spokesmen. Next week, VersagiVoice will expand on the points, describe the rest of the meeting (which resulted in almost all unanimous decisions), and I'll pontificate a bit.

In the meantime, readers will benefit from reading the Group Discussion, below, which was written before the CITCOM meeting but reports thoughts and opinions which relate to the DDA/CITCOM brouhaha.

Group Discussion
The people speak.

Last week's comment that seemingly separate civic/political matters are often interconnected during CITCOM deliberations resulted in interconnected questions about (1) the benefit, or not, to the City of attracting giant crowds; (2) the wisdom of subsidizing selected businesses; (3) confusion over financial terminology; and (4) concern and irritation about the relationship between City Hall and the DDA. The many points of view come in random fragments.

The Woodward Dream Cruise draws a million people, over 200,000 of whom gather in Royal Oak. . . . The restaurants on Woodward benefit; most other Woodward businesses suffer (just ask them) . . . The City breaks even in covering its expenses . . .  A successful Arts, Beats & Eats is expected to attract 100-200,000 people . . .  Again, the restaurants will benefit; most retailers are likely to be disappointed.

The City? Unless parking income is outstanding, the City is going to lose money. . . . The City is advancing the owner/promoter, what, $100,000 for the privilege of disturbing the lives of downtown residents and businesses for four days.

Royal Oak is already a "destination" and that is not a derogatory characterization . . . 20-30,000 people come downtown to celebrate some Detroit team's victory or championship . . . This or that group has a parade . . . Hundreds come weekly to the Baldwin, the Music Theatre . . . to our many restaurants . . . All of this adds (or detracts?) from our quality of life. . . . But the City doesn't make a penny.

Advancing the Emagine project $300,000 or Arts, Beats & Eats $100,000 strikes residents as not at all the same thing as granting a tax abatement to Saab. . . . And for DDA to subsidize in advance not a business but an event? . . . [The Emagine transaction is variously referred to as a gift, a loan, a tax abatement, an advance, a reimbursement] . . . "Don't give me that  bull that 'It's not the city's money; it's the DDA's.'"

The really dubious among VersagiVoice readers challenge: "Those new [DDA] members shouldn't have been allowed to vote. They can't possibly have known enough to vote responsibly [on the Emagine request], so they must have been told how to vote." [THE NEWBIES DIDN'T VOTE. VersagiVoice erred in reporting 3-4 and  4-3 splits. The approval came on a 3-1 vote, with Bill Harrison voting No.]

CITCOM moves to limit DDA's power
Part 2: The Rest of the Story

This will be a long one, Readers, to be skimmed or studied according to your interest or concern.

This recent bout began in DDA's March meeting. VersagiVoice's report out of that meeting began:

If we were living in the Middle Ages, there would be duels fought between some members of the Downtown Development Authority and some commissioners. That is how tangible the institutional animosity between the DDA and CITCOM was during the Authority's March 2010 meeting.

Within a few days, the DDA held a Special Meeting at which it discussed budget and conducted an orientation for its three new directors.  About the same time, CITCOM counterattacked by adding a proposed amendment to the DDA Ordinance to the commission's agenda for the commission's first meeting in April. I commented that my mixed reaction to that announcement was (1) CITCOM insists on micromanaging everything and would soon be debating "which species of tree should be planted on Fourth Street." (2) "This hopefully is the first step toward ultimately dissolving the Downtown Development Authority."

I concluded, "Let's see what happens Monday."

What happened was a 5-2  vote approving the First Reading of the amendment which I maintain is intended to "emasculate the Downtown Development Authority." And, indeed, there was discussion about the color of bricks used in streetscaping. VersagiVoice's first report out of that CITCOM meeting summarized the basic debating points stressed by each member of the commission: The Five: Andrzejak, Capello, Drinkwine, Poulton, and Semchena. The Two: Ellison and Rasor.

Somehow, the DDA's $300,000 deal with Emagine became the reference point for much of the debate. Jim Rasor has submitted a Guest Column addressing that point. Although I supported the Emagine project from the beginning, I would have voted against the deal were I serving on the DDA.

The tone of CITCOM's deliberations was emotional but subdued. Both the anger and the sadness were expressed quietly.

The sadness first showed during Public Comment. Jim Domanski, newly elected DDA Chair and co-owner of the popular Pronto! restaurant, wondered aloud why the DDA hadn't been notified about CITCOM's intention to place an amendment to the DDA Ordinance on the agenda. His disappointment obvious, Jim used such language as (paraphrased), "All of you know  me . . . We've known each other for 20 years . . . You know where I live, where I work . . . No one called me . . .  I heard not one word."

The DDA Chair said downtown merchants are "scared." He repeated a long-time DDA complaint that CITCOM, now complaining of unacceptable response from DDA, has not responded to the Authority's repeated requests for a joint meeting. He urged CITCOM, "Talk to me. We don't need a line drawn in the sand."

Later in the meeting, Andrzejak, alluding to the DDA's past complaints of not being kept informed about matters affecting downtown, said, in effect, "This is a role reversal."

Also during Public Comment, Vice Chair Bill Harrison showed both disappointment and anger, as he described the financial advantage that the DDA provides to the City and detailed several major transactions and developments over the years. He urged CITCOM , "Do not take flexibility away from the DDA." Harrison suggested that Planning Director Tim Thwing, mandated to serve as the DDA's ceo, is occasionally put into situations where his dual duties pose a conflict-of-interest.

Harrison coined the phrase "Three Horsemen" to describe DDA's cooperation with the City with payments toward (1) Court debt, (2) Parking Structure Debt, and (3) for three police officers dedicated to downtown. His shorthand term was used several times during the formal debate. (The 07 April Royal Oak Review has published an informative review of those payments.)

Commissioner Semchena led the charge against the DDA's independence. Chuck began the attack during consideration of the DDA's return-request for approval of a $170,000 Change Order needed to complete the last phase of a multi-phase streetscaping plan. Leaning forward and scowling much of the time, he spoke quietly as he sought to connect the Emagine decision to that long-budgeted streetscaping cost. Making his case to tie together long-range financial decisions of the Authority and the City, Semchena spoke at great length and with quiet fervor.

As a matter of procedure, Mayor Ellison tried to bring Semchena back to the streetscaping issue, but the commissioner continued to talk for several minutes. I infer that Ellison, aware that the coming vote on the DDA Ordinance would go against his preference, wanted to avoid any suspicion that he was trying to shut down the proponents in advance. I also infer that Semchena is skilled enough in debate procedures to recognize and take advantage of Ellison's hesitation.

About that, I am left wondering why Ellison or Rasor or even the City Attorney (via a whisper in the mayor's ear) did not call Semchena out of order then follow with a suggestion to combine Agenda Items 13 (DDA Streetscaping) and 16 (the DDA Ordinance) into a single, but 2-part motion. That would accommodate Semchena's concern that everything relates to every thing else, yet sharpen the focus of the debate. As it was, it was often difficult for observers to be sure whether some arguments were focused on the ordinance or the streetscaping.

Last week's VersagiVoice report out of this meeting reported the substance of each voter's position. What I've written here adds my interpretation of the flavor of the debate as inferred from tone of voice, facial expressions, and body language.

It is almost certain that there will be two or three opportunities for either side to initiate or respond to legal challenges, as is true about Health Care Reform. However that works out, Royal Oak governance is faced with the possibility that this specific DDA/CITCOM brouhaha will destroy collegial institutional and personal relationships between between CITCOM and the DDA --and between CITCOM and volunteers serving on other city panels.

At this same meeting 05 April 2010 meeting, CITCOM:

  • Postponed approving nonprofit status for BD Group, 6-1, Rasor voting No. The group's newness and its interest in seeking permission to conduct gambling events were at issue.

  • Unanimously approved a Memo of Understanding with SEMCOG concerning a long-term Access Management Plan for Rochester Road.

  • Unanimously approved a formal agreement with the Memorial Day Parade Committee, after adding a clause regarding approved driver's licenses and proof of insurance.

  • Approved 3 routine recommendations of the Traffic Committee.

  • Approved 3 dates for Budget Meetings: May 10, 12, and 20.

  • Approved, 6-1, with Semchena voting No, the DDA's second request for a streetscaping change order.

  • Approved 6-0, with Rasor abstaining,, a license to Rasor Law firm which allows landscaping and covering window wells on its property at 321 S Williams.

  • Approved the First Reading of the Planning Commission's recommendation to amend the Zoning Ordinance to allow farming ("Community and Market Gardens"). There was discussion of existing law which bans farming in a developed community.

  • Approved 6-1, with Semchena voting No, the First Reading of a proposed Noise and Vibration amendment to the Zoning Ordinance. There was some legalistic discussion of grandfathering and seasonality (noisy bars in summer).

  • Approved 5-2, with Ellison and Rasor voting No, amending the DDA Ordinance to require CITCOM approval of all DDA recommendations.

  • Requested Staff to bring forth amendments to the Fence Ordinance requested by Poulton and residents.
    See the tabulation of Split Votes.

Public Comment
In addition to the DDA-related comments mentioned earlier:
§ Resident and business owner Jim Thienel spoke of the need for the city to pay attention to the development of Eleven Mile Road, east and west of Main, where there are 30-some empty storefronts. He has begun an organization called 11 Mile Has It All to address the problem and to work with city hall. About local government, Thienel repeated the often heard complaint that the bureaucracy seems to discourage, rather that encourage, business development. (The 07 April Royal Oak Review has an informative article about this effort.)

§ Resident Pat Franz charged that the city is too accommodating to developers. About the now famous/notorious Emagine Theatre and Bowling Alley, she complained the city seems to be "begging for 1,700 more drinkers on weekends." That led Franz to advise CITCOM to "get a handle on that DDA money."

DDA vs. CITCOM
Does it matter who wins this fight?

That DDA/CITCOM brouhaha seems to be one of those political disputes which, although important, is of intense interest only to really serious city hall watchers and of mere curiosity or of no interest at all to most others. Whether or not CITCOM at its 19 April  meeting approves the Second Reading of the proposed amendment to curtail DDA's power -- it ain't over. Yet, there already observers suggesting that to residents-at-large this may be a non-event -- as was the inside city hall furor over Commissioner Millers on-again off-again resignation last year.

Emotions are high among those who care, though, making more worrisome the lack of understanding about the financial and procedural dimensions of the debate. The split DDA decision not to seek independent counsel to challenge CITCOM's threat, for example, is read by some as the first step toward dissolving the agency and by others as merely a minor battle in a long war.

Not lost in the minds of enough observers to matter is recognition that among the DDA volunteers are individuals who are susceptible to retaliation from city hall. That's how potentially nasty the arguments may become. But indifferent to or hostile about the fate of downtown, other citizens are already asking, "Who cares who wins that fight?"

 

 

 

Related Material
on this and other Pages


Does it matter who wins  the DDA/CITCOM fight?

CITCOM vs. DDA: Part 2

Group Discussion:
The People speak

Jim Rasor re: that $300,000 DDA/Emagine deal

Several years of DDA News