DDA News 1

Downtown Development Authority
News & Comments


DDA audience tutored
Retaining and recruiting downtown businesses

Business managers and property owners recently heard what other cities have done to retain or expand existing downtown businesses and to recruit new businesses, and how Royal Oak might apply other cities' experiences.

Lecturing to and interacting with his audience during a 4-hour session held in City Commission Chambers, Scott Day, of San Antonio-based Urban Development Services, drew from existing DDA-conducted marketing studies to add substantive Royal Oak-focused specificity to round out his generic information. In no particular order, here are examples of what Day told his audience.

  • One way or another, develop an overlay of your downtown and color code the major locations by type of activity: retail, professional, vacant, whatever. Then "Match your wish-list against available locations.

  • Many cities would envy Royal Oak's downtown density and its vertical growth.

  • Quantify downtown-area residential in terms of 5-minute and10-minute walks to specific retailers.

  • Dynamic downtowns can benefit from recent changes in consumer retail behavior. Between 1980 and 2000: The number of trips to malls per month dropped from 3.1 to 1.6. ... Stores per trip have decreased from 7 to 3.3. ... Average hours spent in malls declined from 10-plus to 1.6. It is not coincidental that malls are renovating themselves to look more like downtown.

  • Only about 3% of retail sales is via Internet. ( The audience's guesses ranged from a low of 25% to a high of 50%.) The Internet is used much for pre-shopping and as the new format for catalog shopping.

  • Help existing businesses round out their management and marketing skills.Offer group seminars and in-house tutoring.

  • The DDA website should tout such things as "20 Award-winning Restaurants" and the number and style of clothing stores, and  the like.

  • Take advantage of Royal Oak's "Bike Nights" to attract a Harley Cafe or equivalent.

  • Develop retail clusters which bring compatible offerings close to each other.

Day stressed that the DDA/Main Street Manager must hit the streets daily to stay in touch and to learn the specific needs of existing businesses. [The DDA has recently filled the Manager position: Stephanie McIntyre.] He repeatedly praised the DDA's market study and suggested that although it appears on the city's website, it should also appear on the DDA website, at least in easily accessed topical segments. -- 19 Mar 08

20 Feb 08
DDA approves 3-year contract for downtown maintenance
Highly praised for its first-year performance in maintaining Downtown Royal Oak -- including rave notices for the summer-long freshness of flowers, both planted and in hanging pots -- Worry Free has been granted a 3-year contract by the Downtown Development Authority. The new contract includes the use of a vacuum "instead of tweezers" to pick up cigarette butts; power-washing in selected areas as needed; rather than everywhere each time; special attention to not removing, or replacing, bricks during power-washing; and a winter cleanup.

With DDA directors Bill Harrison and Jim Domanski and Chairman Kevin Kalcynski doing most the the talking in this meeting, "maintaining the streets" was stressed as "an important DDA responsibility." Other business conducted:

□ Responding to a DDA phone call, City Engineer Elden Danielson came from his office to discuss progress relative to seeking bids for renovating the Center Street Parking Structure. Some conditions which may be imposed during private sector bidding cannot be demanded when seeking public sector bids, the DDA was told by Staff. Among the options to be employed to reduce parking shortages during construction are ways to encourage long-term parkers to use other parking locations, especially the under-used structure on Lafayette, which is frequently mistaken to be the private parking for the adjacent bank.

□ Responding to concerns expressed by retailers during Public Comment, the DDA agreed to recommend that CITCOM address the issue of sidewalk sandwich signs. The signs bring in business, the board heard, and there were questions about why the ordinance is now being rigorously enforced and about why Valet Services seem to be allowed to use such signs, "even in the street. Our sidewalk signs don't interrupt pedestrian traffic." Director Shirley Smith worked on creating the existing ban and agrees that the time has come to reconsider, with appropriate attention to specifications about size and the like.

[In separate conversations, retailers have told VersagiVoice that it would make no sense to use sidewalk sandwich signs if the signs inconvenienced or irritated potential shoppers.]

□ During the review of the DDA's website, being redesigned and updated, it was announced a coming feature will be a listing of available properties.

□ The recent adoption of the new DDA logo, prominently introduced on the DDA calendar mailed to all residents and businesses, has generated the need to print new stationery and to redesign the light-post-mounted banners and some signs which direct traffic to public buildings.

□ The pending newly retained Downtown Manager will not have a contract directly with the city. Instead, apparently after legal advice, the DDA decided to use the services of a third party.

□ On the recommendation of City Manager Tom Hoover, the DDA decided not to send the new Downtown Manager to the 2008 National Main Street Conference. During the discussion someone commented (paraphrased): "She's just coming on-board and needs to spend time getting acquainted with people and places in Royal Oak, not attending a national conference." Alluding to the less-than-successful integration of Main Street Oakland's programs in Royal Oak, someone else said, "We need to mold her in our image, not in the Main Street Image."

[Coincidentally, VersagiVoice had recent occasion to chat about something completely unrelated to Main Street or DDA with an individual who happens also to be Main Street Oakland source. The source asked, "Encourage your DDA to talk to us."]

As happens at CITCOM meetings, DDA deliberations occasionally become unfocused as individuals attempt to provide explanatory detail to their fellow-members or to use camera time to educate the viewing public. A director, becoming aware that he was beating one point to death, asked aloud, "Am I double-talking?" He was.

That said, this particular session was easily the most straightforward and productive DDA meeting in years. Kudos to Kalcynski.

12 Feb 08
Special Meeting to address Court Debt Service issue
In quiet-yet-contentious debate, the DDA:

  • Rejected City Hall recommendations and voted to hire independent counsel -- but not the firm about which conflict-of-interest concerns had been raised.

  • For the second time, postponed making a decision about whether or how to grant the City's request to pay the annual debt service of the 44th District Court.

The overall tone of the meeting was worrisome, with almost tangible ill-will being exhibited by some of the same individuals who were cordially joshing each other during the half-hour wait for Chairman Kevin Kalcynski to fight his way through the snow storm.

City Manager Tom Hoover, who did not attend the 23 January meeting (see below), opened with a review of the overall situation as seen by the Administration and the City Commission. Hoover suggested that there is no need for spending money on independent counsel, since the city's long-time bonding counsel had reviewed the legalities concerning the Court and agreed with City Attorney Dave Gillam that the DDA has authority to fund the court's debt service.

Kalcynski countered that he had (a) checked with the Tomkiw Daltonfirm and that Dalton assured him that there would be no conflict-of-interest in Dalton's serving as independent counsel. However, Kalcynski continued, given the public expression of concern about the issue, he reached out to yet another attorney, whose hourly rate is $120 and who offered a not-to-exceed fee of $1,000 after hearing what would be required of him.

DDA Director Pete Webster vigorously discounted Hoover's suggestion that the city's bond counsel would be appropriate, asserting that both the bonding counsel and the city attorney are representing and speaking for the City.

The Board voted to retain the Kalcynski-recommended attorney, with Hoover voting no.

Webster then guided the group into a discussion of whether and how the DDA should take on the court's debt service, in the event that the independent counsel agrees with the findings of Royal Oak's city attorney and  the city's bonding counsel.

Once again, the recitation of dozens of dollar amounts and the references to multiple sheets containing spreadsheets and tabulations led to (1) the glazing over of many eyes and (2)  vigorous expressions of doubt, bordering -- from an outsider's viewpoint --on the suspicion that the Administration's financial information was less than straightforward. Director Bill Harrison led the charge, joined after a while by Kalcynski and finally by an admission of remaining confusion by Director Jim Domanski.

Planning Director Tim Thwing, who serves as the DDA's executive director, had brought the extensive documentation requested during the 23 January meeting. During the hard-to-follow exchanges with the questioning directors, Thwing contained the exasperation he must have felt, and he made the mistake of over-explaining when asked to clarify. So convoluted and contentious was the dialogue that even I found myself unsure what the question really was and whether it had been answered satisfactorily.

At issue through all this was -- assuming that the final legal opinion is that the DDA has the authority to pay the court's debt service -- can the DDA financially afford that obligation? If so, for how long, for how many years at a time? Agree to only this fiscal year? To a year and a half? To 3 years? To the year 2024?

The debate closed with another request from the DDA for more financial information from the Administration and with the motion to postpone making any decision.

23 January 08
DDA Meets

Despite a thorough introductory review of spending priorities and a suggested plan of action by Chairman Kevin Kalcynski, the Downtown Development Authority could not come to agreement on how -- or whether -- to accommodate the City Commission's request for the DDA to pay the annual debt service of the 44th District Court. A decision was postponed at least until the group's February meeting. In the meantime, Staff was directed to come up with a potpourri of information and spreadsheets to aid in making the decision.

Watching the lengthy dialogue -- unavoidably convoluted and rambling because dollars and allocations and eligibility were involved -- one could not help noticing the anti-CITCOM mood among some of the members. It went so far that the DDA will seek outside legal counsel to review a pertinent memo from the City Attorney. (Another clue: Long-time observers of the DDA have alerted me to some uneasiness about the consistent use of the same firm as outside counsel. Coincidentally or not, a possible conflict-of-interest was raised by one Director, and passed over, about the proposed outside counsel.)

A Downtown Consultant has been selected from the applicants, and Staff expects to have a proposed contract to present to the Board at its February meeting. The only discussion of the person -- later identified in a news report as an Ann Arbor-based events planner -- was a question about whether she has "business attraction-skills, as well as event-planning skills."

As the meeting ended, Director Bill Harrison suggested the need for a facilitated joint DDA/CITCOM meeting during which the enabling legislation and amendments re the role of a DDA will be reviewed and explained.

Former city commissioner and former county commissioner Peter Webster was welcomed as a new director. Kalcynski and Harrison were re-elected Chairman and Vice Chairman, respectively.

26 December 07
DDA closer to retaining downtown consultant

The Downtown Development Authority committee responsible for screening applicants for the vacant Downtown Manager/Consultant position has interviewed eight persons, all of them "first-time applicants." At the December DDA meeting, committee chairman Jim Domanski reported that the committee had decided on one person for the full DDA Board to interview, but the other directors made it clear they wish to interview more than one applicant, preferably three. Domanski, who normally speaks rapidly, was deliberate and cautious while touting the committee's unnamed choice. Using terms like "this person" and "this individual", instead of conventional personal pronouns, the chairman seemed to be concerned with withholding the gender of the committee's choice.

The full Board plans to conduct its interviews on one day after getting three recommendations from the committee.

The DDA also:

  • Heard about developments/improvements for its website, which among other things will promote Royal Oak's "creative culture."

  • Received Marketing Consultant Peggy Goodwin's report re the 2008 Calendar and the Holiday Magic Parade.

  • Approved the final designs of stationery, banners, business cards which use the new logo, about which some say it looks like a realtor's promotion and about which DDA chairman Kevin Kalcynski said, "It has grown on me."

  • Took a first look at whether to paint or replace specified street lampposts.

  • Approved the $2,000-plus cost of repairing/replacing a portion of railroad fencing.

  • Reacted to City Manager Tom Hoover's relay of CITCOM's wish for a "centralized valet parking policy" by vigorously pointing out that the issue is on the DDA's To-Do list, but that the body has other priorities -- like the Parking Study. "We'll get to it."

  • Extended for the next three months its Sales Agency Agreement with Huntington Real Estate Group.

  • Postponed action relative to a performance review by Main Street Oakland County. Asked to expand a bit on the significance of the performance review, Chairman Kalcynski provided this comment:

    • The MSOC year-end evaluation has five primary objectives:  (1) to review the progress the DDA/Main Street program has made toward meeting the annual objectives set forth in the work plan, (2) to recognize DDA/Main Street program successes during the year in review; (3) to identify obstacles in meeting work plan objectives; (4) to develop strategies to address changes in environment, opportunities and threats facing the local DDA/Main Street program, and (5) to determine whether or not Royal Oak is meeting the National Main Street Community Criteria as interpreted by Main Street Oakland County. The evaluation takes one day.

An observation: Chairman Kalcynski runs a friendly but tight ship. Most important, he quickly refocuses the group when any of the directors begin to wander or to repeat themselves.

16 May 07
Main Street Oakland and Downtown Manager not on DDA Agenda

DDA observers came away for the group's April meeting confident that the Downtown Development Authority was finally coming to grips with this troublesome double-matter. Didn't happen. Not even a "lack-of-progress" report was on the May agenda. There was a lack-of-progress report about the months-long effort to decide about the color for a proposed promotional logo. And they discussed the design of hanging flower baskets. President Kevin Kalcynski normally runs a friendly-but-tight ship, but once or twice this meeting dissolved into multiple side conversations, always a sign of a lack of focus.

There were bright spots before the group went into closed session to discuss land acquisition: During Public Comment, a spokesman for the Dobie Jewelers building said they will be restoring the facade to its 1920's appearance. . . . Marketing Consultant Peggy Goodwin showed extensive examples of successful television and radio promotion of downtown and of specific participating retailers. . . . Goodwin indicated that she is working to establish an across-the-border win-win relationship with civic promotional groups from Windsor.

21 Feb 2007
DDA reviews police bicycle patrol

It takes two weeks' training to certify a bicycle patrol officer, and the training includes riding the bike down a set of steps.

That dollop of information added a light touch to the pretty heavy February meeting of the Downtown Development Authority. It came while Police Chief Ted Quisenberry was requesting the DDA to pay for two new bikes needed for the downtown-serving bicycle patrol. When they questioned why the two bikes would cost more than $2,000, the DDA directors learned that standard police bicycles used by certified police officers "are not something you can pick up at the local bike shop"  and, yes, the bikes have to be able to take a few steps during their workday! The new bikes will be used for patrol duty and not for training, Quisenberry assured the DDA.

When the directors asked whether DDA-funded downtown cops -- on bikes or not -- can be taken out of downtown to serve elsewhere, Quisenberry said yes, if they are needed for a situation, but City Manager Tom Hoover quickly pointed out that it happens many more times -- "100-to-1," the Chief interjected -- that patrol officers serving neighborhoods and other areas of the city are required downtown.

I had to leave the, televised, DDA meeting before they got to DDA budget matters. Before I left: The directors elected Kevin Kalcynski chairman and Bill Harrison vice chairman. . . . One Public Comment speaker chided the DDA for still not acting to hire a Downtown Manager and asked whether labor union objections prevent saving money by using Auxiliary Police downtown; another speaker complained at in the future having to pay for parking to come to a DDA meeting and offered the advice that the DDA pay more attention  to development and parking "south of Fourth Street." . . .Quisenberry was praised for following up on issuing multiple parking tickets, in separate envelopes, to chronic scofflaws. . . . Marketing Consultant Peggy Goodwin said she prefers to speak of "88% occupancy" rather than of "12% vacancies" when describing the city's downtown retail population. . . . The directors seem poised to stand back and review some of their programs and expenditures, to "take a look at what we get for our money."

As part of that last item, there was just a bit of tension when the respective role of the City and of the DDA about such matters as maintaining grass and shrubs along the railroad tracks was discussed. At one point, Hoover said "I respectfully disagree that you don't have the money" about an item I failed to identify in my notes. -- FJV

17 January 2007: DDA catching its breath
The Downtown Development Authority seemed to be taking a breather during its 17 January 2007 meeting. Director Jim Domanski set the tone when he briefly reviewed the hit the DDA's image seemed to take during the very public Parking Study dialogue with the City Commission, asking, in essence, "Are we or are we not the City's Parking Committee?."

A subdued Domanski, who usually projects quiet optimism, suggested the board should wait until the next round of City Commission appointments to the board before conducting elections. Domanski said he could not vote for a Chair to replace term-limited Barbara Bos. There was a quorum present, which elected Kevin Kalcyznski vice-chairman, (5-1), but the vote for Bill Harrison for Chair was 4 yes, 1 no, and 1 abstention (watching on TV, I was unable to identify the individual voice-votes). DDA Executive Director Tim Thwing explained that DDA bylaws require a majority of votes (5 for the 9-person board) to elect officers.

I discussed this turn of events with others. Some of us thought we saw a dejected Domanski hoping that a change in board membership might help rejuvenate the DDA; others of us thought that his decision not to vote; the, convenient, absence of one board member; and the immediate readiness of Thwing with his bylaws-ruling suggested a planned minority-move to abort the election of the Chair.

That tone of uneasiness remained as the board addressed their approach to resolving differences with Main Street Oakland County. At issue is the publicly acknowledged overall unsatisfactory performance, of the four Main Street Committees mandated by the Main Street Program. Is Royal Oak's downtown development the responsibility of "Main Street/DDA "or of "DDA/Main Street" for Royal Oak?

Apparently Royal Oak is not alone in examining its relationship with Main Street. That organization has sent a letter of clarification to all its member-cities, and some statements in that letter are said to raise contentious issues (demands?). Royal Oak's DDA and Main Street Oakland are attempting schedule a work session to reach consensus before Royal Oak will sign a continuing agreement. 

When I had to stop watching, the group was just beginning a tentative approach to addressing leftover parking matters. I later asked Bill Harrison for a summary, and he provided the following:

The conclusion was to focus on three aspects of parking, namely the Center Street Structure   expansion/repair/replacement, angle parking (possibly on Center between 6th and 7th) and the possible opening of 7th between Main and Center. We will have two work sessions. One to discuss the Center Street structure and the other to discuss angle parking and the opening of 7th street. The Center Street Structure issue includes the physical concept and the DDA's financial ability to contribute to additional parking. It is certain that the DDA cannot fund the project alone. Once we have a proposed plan, we will have meetings with the CBD merchants (restaurant and retail) to hear their comments before proceeding.
 
We are also going to monitor Parking Enforcement of overtime at a meter in order to increase turnover. Overtime at a meter means the person has occupied the space longer than the 2 hour time limit (was 3 hours), not just an expired meter. The fine for over time at a meter is $10. Our specific target is the chronics that have been parking all day and only getting a $5 ticket for an expired meter. Once it starts costing $15 to $25 a day, they will move to the long term parking lots or structures. Parking Enforcement has been asked to use separate envelopes for each ticket so others can see that one can get more than one ticket. Parking enforcement is a much more effective way of encouraging the offenders to park in long term parking than raising the on street meter rates that penalizes everyone.
 
Enforcing turnover will dramatically increase the effective number of available on street parking spaces.There are 1,500 on street parking spaces. Over 86% of the people stay less than 2 hours in an on street parking space.  Hence the change from the 3 hour to 2 hour time limit. If we can discourage the chronics that stay 3 hours or more we can effectively increase the on street parking availability by 15% to 20%. The effective increase is 235 to 335 spaces. Turnover at the meters will increase parking revenue, while ticketing the chronics will increase the fines revenue, and we will effectively increase our parking availability for free.

One bright spot during the DDA meeting was the marketing presentation by marketing consultant Peggy Goodwin, whose report included uplifting video clips from network TV coverage of Royal Oak. A second bright spot would be Kevin Kalcyznski 's competent chairing of the session.

City Commission "studies" the DDA
CITCOM spent several hours in a Saturday morning work session, reviewing the purpose and performance of t he Downtown Development Authority. See a lengthy report .

DDA meeting in Room 309 had a short agenda
VersagiVoice chided DDA Chairwoman Barbara Bos for turning out the lights and holding the August meeting without TV coverage. A look at the minutes from that meeting suggests that the agenda was so short -- in substance as well as length -- that the suspicious among us can rest easy!
-- 04 Oct 06

DDA meets in Room 309, out of TV view
Those citizens sitting in front of their TV set at 4 p.m. on 16 August waiting for the meeting of the Downtown Development Authority to begin saw an empty commission chamber. Then the lights went out, and WROK began showing the July 2006 DDA meeting.

Following up, one heard two explanations: First, the public agenda was really short, and it was followed by the legally appropriate executive session where land acquisition issues are addressed. So, rather than move to the commission chamber, Chairwomen Barbara Bos opted to conduct the entire meeting in Room 309. Second, since the executive session was the last item on the agenda, there was no need to begin the meeting elsewhere than in the commission chamber, and Bos prefers to conduct all discussion out of the public eye when she can.

Proponents of both explanations are waiting to see if the corporate culture of the DDA changes after Bos's term ends in December. Street talk has it that she intends to leave the Chair after more than a decade of service. -- 23 Aug 06

Downtown Development Authorities in other cities
In Royal Oak, there has for several years been vigorous dialogue about the pluses and minuses of the DDA. Other cities have similar debates:

  • Clawson
    Voter objection to what they perceived to be an intended unauthorized transfer of city funds to that city's DDA generated enough heat to cause some to press the recall-button. The funds would come from a pending bond proposal.  To "set the record straight," the Clawson DDA has created web postings -- wwwdowntownclawson.com -- intended to counter what the agency considers misinformation.

  • Pontiac
    Police presence, preferably foot patrols, are needed in downtown Pontiac to reduce problems with panhandlers. The city is cash-strapped and has reduced Police staffing. The DDA agrees that at least drive-by police presence is needed, but published reports leave citizens unsure what the DDA's role is in funding any requested police activity which would primarily benefit business owners. The business community reminds everyone that customers and the general public are also inconvenienced and irritated by panhandlers.

Micromanaging or Transparency?
DDA meetings go into a lot of detail
You ain't seen no micromanaging until you've covered a meeting of the Downtown Development Authority.*

Despite several attempts by Chairwoman Barbara Bos to bring them back in focus, several trustees insisted on exploring:
slanted vs. flat vs. curved tops . . . who's going to pick the color?. . . color should stand out . . . no, color should be understated . . . need to move that garbage can a few feet to the east . . . why is the City paying, instead of the publications? . . . why are we not getting more bids? . . . we should be able to add a single unit if we want to . . . that is too close to the road . . . that narrows the sidewalk too much . . .

Three of the speakers preceded their comments with, "I don't mean to micromanage, but . . . "!

All this after a detailed and comprehensive presentation by the Planning Department in response to a 2-year-old directive by the DDA to come up with an ordinance, then a buy/install plan to replace the haphazard and unsightly newspaper racks throughout the Central Business District. That presentation covered: pluses and minuses of the curve/slanted/flat racks . . . the number of racks, and number of units within the racks . . . specific changes to specific locations . . . the fact that prior to the ordinance the City had no control over the news racks and with control comes administrative expense, which the publications will pay and then buying and maintaining expenses, which are characteristically assumed by other cities, in this case by the DDA . . . the racks come in modules of 2, 4, and 6 . . . space assignment priorities are established by frequency of publication -- daily, weekly, monthly -- not by whether the publication is paid or free.

Finally, Bos, understandably irritated, asked in effect, "Do you want us to go through this entire cycle again, which means we won't have the new racks in place for another 18 months or two years?" The group voted unanimously to proceed. If all goes well, the project will be completed by Fall.

Other items on the DDA agenda:

  • Bos reported receiving frequent praise of the appearance of downtown: flowers, sidewalks, trees.

  • Marketing Consultant Peggy Goodwin reviewed and reported about: promotional activities and accomplishments and plans. . . . that the recent very hot weather had a dampening effect on attendance at the recent Garage & Sidewalk Sale . . . that the combination of the weather and the construction-caused closing of the Fifth Street walkway between Lafayette and Washington discouraged foot traffic between the parking structure and Washington (the former Center Street location of the Garage Sale was "more centrally located.") . . . Retailers and office workers prefer different times of day for DDA-sponsored information-exchange meetings.

  • The Design Committee is looking to develop an attractive and consistent Downtown "brand," stepping back from "just banners" to integrate printed matter and media graphics into the brand.

  • The revised Service Agreement with the Police Department was approved. It establishes payment by DDA of an increased number of police hours downtown.

  • Concerning replacing the former downtown manager, a redefined job description still needs a little tweaking, Staff reported.

  • Concerning Parking, a 5-year, cashflow-focused budget is being prepared which will make it easier to evaluate the performance of individual parking lots.

  • Bos expanded on her hope that two new Parking Study-related DDA/City subcommittees will move quickly to generate proposals for approval by the DDA and the City Commission. [See]

  • A tentative executive (closed) session was aborted when Staff, which had requested the session, said needed information was not available.

*Sandy Johnson considers such attention to detail as, not micromanagement or dysfunctional, but as responsible "transparency." [See]

Briefly

  • Add Garden City to those cities which are looking at changing the operation or structure of their Downtown Development Authority, primarily to redirect some of  the DDA's revenue to the city's operational needs.

  • In the1990s, Clawson had a tiff with its DDA and disbanded it. Reactivated in 2002, Clawson's DDA is looking to expand its boundaries.

Reading your articles about the DDA makes my blood boil! 
I was in charge of the Main Street Design Committee for a few years from its conception. The one thing that really bothered me was the involvement with the DDA in that they rarely ever participated in any events themselves! How can the DDA function without being involved and really understanding the needs of its own jurisdiction?

The members of the DDA are supposedly business owners within the Central Business District but what I don't understand is how they could care so little about the CBD and the issues that matter.  Are their own personal businesses thriving? Is that the reason they couldn't care less? The only DDA members that I believe are truly valuable are Jim Domanski, Shirley Smith and Ilene Hill. They are the only ones I have ever witnessed getting involved in community service in past events such as "We Dig" and really getting involved in Main Street.

I believe it is time for a new DDA.
Do not dissolve it but reorganize it. Get some fresh blood in there to see things in a new light! That being said, Barbara Bos must go. Her need for control has done nothing but stall this group and about the only thing she can do anymore is run a good meeting. I have yet to see her ever getting her hands dirty and same for many of the other members of the DDA. Yet what is funny is how this group continues to nominate her for chair. Probably because no one else really wants to put forth the effort.  How sad.

I am a major advocate for a Downtown Manager. The one thing that Jerry Detloff had right was his involvement with the retailers and business owners. He not only knew them all by name at one point, but could tell you things about them as individuals that always fascinated me. This man believed in the possibilities in Royal Oak. He made anyone working with Main Street believe it as well. He played a major role in orchestrating Main Street and coordinating it with the DDA.  Why is he gone?  Because the DDA does as it pleases including stalling development of anything, be it property development or Main Street development. They cast a shadow over everything which does nothing but stall anything they touch.

Royal Oak needs another Jerry Detloff.  Royal Oak needs a new DDA. -- Brandon Becker

DDA cancels decision to hire Downtown Manager
The Downtown Development Authority, during its 17 August 2005 meeting, reversed its decision to hire their previously selected candidate for Downtown Manager. Passage of the rescinding motion was subdued, probably reflecting the uneasiness generated by the tardy discovery of (a) problems in the candidate's background and (b) an apparent city hall misstep in the hiring process. -- 21 August 2005

Another dimension has been added to the DDA/Downtown Retailer dialogue
One result of the recent to-ing and fro-ing about the DDA/Main Street/Retailers/Downtown Manager/Marketing Coordinator/City Hall imbroglio is that the city's Planning Department has asked to hire another full-time employee, Planner II.

That addition to the city's payroll is a) justified or b) the usual bureaucratic power-grab, Voice has been told.

Those who oppose adding a full-time employee say, "DDA talks a lot but does very little." Some of them add, "Planning Director Tim Thwing also serves as DDA's chief executive manager or CEO or whatever. He's using that DDA position to generate make-work for Planning . . . "

Just as vehement are those, also mainly business owners or managers who watch city hall and maintain, "Even if DDA didn't exist, so much development is going on in Royal Oak these days that the Planning Department is overwhelmed.

Both camps are waiting to learn about the practical impact of proposed restructuring of DDA/Main Street.

DDA continues to dawdle about working with downtown retailers
Even as the Downtown Development Authority takes positive steps to improve its operation (see immediately below), the group seems unable or unwilling to address its relationship with assertive downtown retailers who (a) complain about what they see as a lack of planning and activity by DDA's Promotions Committee and (b) offer to meet with that committee or with the DDA to suggest improvements reminiscent of the old DROA days. That was when independent retailers, generating their own funds as a subgroup in the Chamber of Commerce, mounted multiple promotional events for several years. For internal political reasons, the Chamber dissolved the DROA and absorbed its funds.

VersagiVoice sat in on at least one meeting of the Promotions Committee and separately worked with a group of frustrated retailers. Simply, the committee spent too much time in rambling talk about plans and possibilities. In contrast, the retailers defined specific projects and events and only need official approval and funds to implement them. Here, paraphrased, is the picture as seen by several retailers:

  • The inability of DDA's Promotions Committee even to gather a quorum month after month suggests its members are not focused on, or have no interest in, what needs doing to improve the retailing environment in downtown Royal Oak.

  • The root cause of DDA's inactivity may very well be that it is a government-operated activity, so -- from dynamic retailers' perspective -- "moves at a snail's pace." One easily identified retailer who served in government suggests that government "often moves no faster than a dead animal."

  • That same point was made in another conversation when someone pointed out that "It took six months for DDA to hire someone to power-wash the streets last year."

  • Funding, if and when it is available, is very, very slow. The DROA was able to move quickly and flexibly to fund small, spontaneous promotions. "Now, there is no DROA, and getting money through a government-run program like Main Street is like trying to run a race through muck."

The retailers are getting discouraged. Publicly and privately, retailers -- and now restaurants -- are closing, on the ropes, or for sale. The retailers took a flyer at forming another independent association, unaffiliated with either the Chamber or with the DDA, but it didn't get off the ground.

As a management consultant who knows and respects many of the individuals involved -- DDAers and retailers -- I remain puzzled by what strikes me as a lack of force, of enthusiasm, of commitment from DDA simply to meet formally with the closely knit retailers and get a few things going.  Personality conflicts may play a role, but I suspect that the multi-layered structure of the DDA (being reconsidered, see below) is the problem: You have the DDA doing a lot of its own committee work; you have/had/will again have a Downtown Manager; you have a contractor serving as Marketing Coordinator; you have apparently mandated, volunteer-staffed, Main Street Committees, including the much maligned Promotions Committee. Bureaucracy, Red Tape, anyone? -- FJV 28 February 2005

DDA Meeting: 23 February 2005
*
The downtown holiday lights will be left in place as long as is operationally feasible, given the city's current and coming workload. At the same time as the lights are taken down, all the pole-mounted promotional banners will be taken down.

* There remains a bit of fine-tuning to do on the 696/Fresard/Schostak development agreement, but the final document for DDA approval should be ready for the group's March meeting.

* A new job description for Downtown Manager was approved. Once cleared for ultimate legality by Human Resources, advertising and electronic distribution of Royal Oak's search for filling the position is expected to generate numerous applications.

* Tim Thwing, Royal Oak Planning Director who serves as DDA's executive officer, introduced a restructuring plan for the DDA's review. A major focus of the proposed restructuring is to reduce the number of committees and subcommittees. Instead, ad hoc tasks will be assigned to the four basic Main Street Committees.

* Mailing lists are never perfect, but work is being done to assure that property owners, as well as tenants and owner-occupied premises receive appropriate informational mailings and surveys.

* Before any large informational meeting is held concerning a proposal to establish a Principal Shopping District (PSD) in Royal Oak, the Organization Committee will meet with interested and concerned DDA members to address such practical questions as whether unused basements or second floors used for storage would be assessed any related PSD fee.

Permitting extended dialogue about each matter as it arose, DDA chairwoman Barbara Bos several times reigned in the participants and summarized the discussion to a point of conclusion or formal resolution. And there was confusion or contention about some matters which Bos acknowledged but kept from getting out of hand.

One bit of confusion had a happy and funny ending. Apparently listening over a loudspeaker in his office across the hall, Deputy City Manager Tom Trice bounded into the City Commission Room to explain  that while unionized city workers can appropriately take down all pole-mounted promotional banners at the same time as they remove the holiday lights, it would not be appropriate for them to get involved in selectively taking down some banners and moving some to other locations.

Listening to the questions and answers about why and for how long certain expenses are being charged to DDA left VersagiVoice uncertain about the the problems are. In fairness, though, it must be stated that VersagiVoice made no effort to seek clarification.

Perhaps the most serious issue which seems to be hanging in the air s the suspicion that the proposal to explore a PSD, which apparently was not mentioned when an approved survey was designed, was being presented at the meeting as a fait accompli. That uneasiness led to questions about who and how the participants in related focus groups were selected.

And there was uneasiness expressed about possible local impact of the State's attempt to provide municipalities with more flexibility in granting liquor licenses.

Other topics of discussion at the DDA meeting were: interfacing more effectively and timely with the Farmers Market Committee; finding out what other cities are doing to create pedestrian friendly downtowns; parking; the risk of informal breakfast sessions legally becoming meetings because a quorum is present; the need to involve interested retailers informed about, involved in, the work of the Main Street Promotions Committee, about which dissatisfaction continues to be expressed.

All in all, a substantive two hours.

21 December 2005 Meeting

The meeting opened with three Public Comment speakers urging the DDA not to put parking meters in the Farmer's Market parking lot. As it developed, the Parking Study summary presented by a consultant suggested techniques for using that lot for paid parking without obstructing it with parking meters: Gate access or several "multi-stall" stations located strategically and relatively unobtrusively.

Minutes for special and regular DDA meetings, May through October 2005, were approved.

Chairwoman Barbara Bos mentioned doing some downtown Royal Oak shopping and encouraged others to promote more downtown shopping. As the meeting progressed, a couple of the directors felt it necessary to apologize for having shopped in Birmingham or Troy.

Despite the inevitable small glitches which seem to accompany all electronic presentations, Marketing Consultant Peggy Goodwin showed clips of extensive coverage by the major TV channels of Royal Oak's Holiday Magic Parade. Among proposed improvements for next year will be more music and volunteer training.

The first pass at the Parking Study was impressive. The consultant touched on everything from  color-coding parking meters to tearing down and replacing the Center Street parking structure, from issuing increasing parking fines (from $5 to $8) through issuing "courtesy tickets" made possible by computerized hand-held devices which make it possible to track license plates.

Director Bill Harrison, who had apparently spent time reviewing the report, asked questions and made suggestions for perhaps 35 minutes and presented some of his concerns in writing to the consultant. Bos commented that Harrison had done the homework for the entire DDA, who had only scanned the report, and they will have the consultant return for a longer, detailed, dialogue.

The DDA hopes to conduct two or three work sessions early in 2006 to address such issues as the empty Downtown Manager slot, the Parking Study, a Market Analysis, and a Master Plan.

DDA News 2

CITCOM spends hours on a Saturday morning studying the DDA

Dissolve the DDA

DO NOT dissolve the DDA

Conversation with Barbara Bos

23 Feb 2005 meeting

21 Dec 2005 Meeting

Working with Retailers

Downtown Manager

The following counterargument to VersagiVoice's recommendation to dissolve the Downtown Development Authority is written by Sandy Johnson. In contrast to the extensive detail which Johnson presents in her paper, she provided the following laconic reply to a request for a biographical sketch.
Chamber - 1990 - 2002 - Treasurer; DROA - Mid 80's thru early 90's - President; DDA - Member - 4 years - Late 90's; DTRO Business Owner - 1982 to 1996; Parking Committee - 90's; Trolley Committee - 90's; Commercial Real Estate - Almost 10 years at Huntington Real Estate Group.
[Rearrangement into columns and colored headlines are the only changes to Johnson's document.]

Also see Restructuring    

DO NOT DISSOLVE THE DDA

While I agree that the DDA is occasionally dysfunctional, as seems true of all public bodies, I disagree that the solution is dissolution.  There is absolutely no valid reason to dissolve a body that has and continues to make so many beneficial contributions.  As a self-proclaimed management consultant, I think we should trace the root causes of any dysfunction and then implement necessary changes. 

There have been various reasons for its occasional dysfunction, many of which they had little control of.  During the first years of its existence, few tax revenues were flowing in because property values were declining, ergo declining tax revenues.  Then for more than a dozen years, the tax revenues were diverted to repay Woodward / 696 debt and toward other politically favored projects.  When the DDA finally saw a return on its investment at Woodward / 696, sale proceeds were diverted to shore up the City’s budget.  Of late, the uncertainty of availability of future funds has stifled meaningful planning efforts. 

The DDA was created as a separate legal entity, in part to remove ‘the politics’, which admittedly hasn’t happened. Too bad the Legislature didn’t have the foresight to allow the Board to be nominated and /or selected by its stakeholders.  Its charge differs in scope from other City committees.  It’s unlike Traffic, Planning and ZBA committees, whose primary function is to analyze petitioner and staff provided data, and after careful and thoughtful review, vote yes or no on a petitioner’s request.  The DDA on the other hand, creates programs, initiatives, policies, etc., a labor-intensive, time-consuming endeavor for a volunteer Board with full-time jobs.  

Functional

As a ‘working’ Board, it is appropriate, not dysfunctional, for the DDA to discuss the details of streetscaping, banners, benches, events, committees, policies and everything else at the table.  This “transparency” is welcome and valuable to the tax-paying public, versus discussion of these topics at off-camera meetings.  In fact, I strongly recommend Podcasts of DDA meetings.  Most of their constituency does not have Royal Oak cable and this would make meetings available to many more, plus the benefit of 24 / 7 access.

Streetscaping

The DDA was criticized for having lengthy discussions at the table on this topic.  This remains a contentious issue, not just cost allocation, but also which streets are selected.  There was consensus that the DDA should pay 100% of the costs to streetscape around City owned properties, but they parted ways when deciding how much the DDA should contribute to the cost for privately owned properties.  Much of what the DDA undertakes is precedent setting and requires research and discussion by the Board and not just a yes or no vote.  Contentious policy issues deserve extra review. 

Main Street Committees

The DDA was criticized for it’s handling of the Main Street Committees, in particular the Promotion Committee.  I believe as a ‘working’ Board, they are too few in number.  The experiment of a nine-member Board has slowed down their accomplishments, evidenced by recent discussions to start meeting twice a month to stay on top of the many items on their plate.  As a solution, I recommend that they immediately fill the four vacant seats with downtown retailers.  Have them oversee the Promotions Committee.  They have not only the insight on which events and promotions are beneficial, but also the execution experience.  Give them a budget to work with.  Create and fill the position of a contract events coordinator to assist them.  The DDA’s purpose for years was primarily brick and mortar projects, and it is true their transition into other endeavors has proven challenging, but it is not something they’re unable to conquer with a little more time to adapt to their ever-growing role.

Financial

Parking

In 1967, the City created the CBD zoning classification to promote economic growth by having the City assume the responsibility of furnishing necessary parking facilities.  This provided the opportunity to achieve the more compact private development deemed necessary to generate the intensive pedestrian activity desired downtown.  For 20 +/- years, the lions share of parking acquisition costs have been paid for by the DDA.

The DDA paid 85% of the cost for the parking structure at 3rd & Lafayette.  Last payment in 2004.

The DDA pays 50% (currently 100%) of the debt for the parking structure at 6th & Lafayette.

The DDA paid 100% of the cost of the parking lot behind Bastones.

The DDA has fulfilled most of the City’s financial obligation to supply parking, and flush parking revenues have provided a steady stream of cash to help the City out during recent budget deficits.  The results of the new Parking Study aren’t back yet, but if it calls for more parking, which I expect, who would pay for that if the DDA were dissolved?  Who would pay the cost to replace the 30 +/- year-old Center St. Structure when that is necessary if the DDA were dissolved?  The City is in no position to live up to its obligations right now.

Washington Square Plaza

In the early 80’s, the DDA agreed to lease one floor of the Washington Square Building so that financing could be secured for renovation, although the DDA never had to follow through on that commitment.  Many people point to this renovation as one of the catalysts for the rebirth of downtown RO.

Baldwin Theatre

In the early 80’s, the DDA purchased what remained of some fire-damaged buildings.  There was great concern who would purchase these blighted buildings, and for what use. This acquisition and subsequent sale to Stagecrafters was another win for RO.

Woodward / I-696

In the mid 80’s the City Commission decided to capitalize on the coming I-696 expressway.  They instructed the Planning Commission to explore possibilities.  After collaboration with Oakland County, the concept of clearing 18 acres that bordered the planned expressway for a new development emerged.  The City utilized HUD loans, ULAL loans and CDBG money to acquire the properties. A Woodward / 696 DDA, Development Plan and a TIF were created.  Eventually, control was turned over to the DDA. It was believed that the TIF would capture the new tax revenues from the planned development to repay the loans.  Unfortunately, principle and interest came due before any new tax revenues were available, because no development occurred and City owned properties are tax-exempt.  It was believed that the Barton / Lafayette DDA (the downtown DDA) could loan money to the Woodward / 696 DDA to temporarily pay the debt, but that was not legally possible.  In 1992, they blended the districts so the downtown DDA could repay the debt.  Downtown TIF revenues were diverted for the next 12 years, the final payment occurring in FY 2004/05.   

Farmers Market / Courthouse

In the 90’s, Oakland County agreed to sell the Farmers Market to RO and the Courthouse wanted a new home.  The downtown DDA boundaries were expanded to include this new ‘Civic Center’ area to allow TIF revenues to be utilized for property acquisition costs.  TEA-21 grants and TIF revenue were used for streetscaping.  Counting their $500,000 contribution in 2005, the DDA has contributed $1,500,000 +/- to this endeavor.  Many in RO consider this a “jewel” and the DDA has played a significant role.

Some Additional Contributions

The DDA pays $8,000 a year for maintenance of the Star Dream statue and $20,000 a year to DTE for downtown lights.  They gave $4,000 to fund the annual Tree Lighting at City Hall and also contributed to the relocation of the War Memorials.  Also costs of: streetscaping, trash receptacles, planter boxes, flowers, banners, holiday lights, a downtown guide, event funding, marketing, downtown maintenance, etc. 

Other Financial Considerations

Since its inception, the DDA has returned far more tax dollars to RO than the City would have otherwise collected, even if you only count the ‘physical’ items.  The dollar value of the other benefits of having the DDA aren’t as easily quantifiable but equally valuable: helping to create an environment that has led to significant private investment in the downtown, Woodward / 696 and contiguous areas.  To a certain extent, property values throughout the entire community flourish when a downtown is vibrant and successful.

If you dissolve the DDA, essentially you are stating that the purposes for which it was created are accomplished.  The TIF lives on until it repays all bonded indebtedness, but none of the TIF revenue can be used for other purposes such as advertising, marketing, events, maintenance, wages etc. once you dissolve the DDA.  Then when the debts are paid off, the TIF is also dissolved.  The tax dollars now flow back to the City and all the other taxing jurisdictions.  While at first glance that might appear to be a good thing, the City is ineligible to continue to collect the $577,000 (in 2005/06 dollars) that the DDA was entitled to collect and utilize.  So total income available for whatever purpose in RO will be reduced by $577,000+ yearly.

To reduce budget confusion, maybe Don Johnson can find a way to show only the net proceeds from the school tax revenues in the DDA’s budget.  A note at the bottom could show how that number was derived.

It was cited that some resent what they see as a preferential diversion of taxes to the business community.  But it must not be forgotten that commercial properties, and passed on through lease agreements, the businesses, currently pay 13 to 15 mils more in taxes than homeowners, thanks to Proposal A.

Human

If the DDA is dissolved, many at City Hall will be affected.  The DDA currently contributes to the wages and fringes of 3 people in Planning, 2+ at the DPS, 2 police officers and the City Attorney, totaling $371,400 in the 2005/06 DDA budgets.  Plus it pays $52,000 for the Downtown Manager position.  Total - $423,400 yearly.  No DDA, no need for these positions.  The human toll is considerable.

Misc.

While the DDA has been criticized for not having a Master Plan, in fact it does.  It is called the ‘Development Plan’, and it is available on the City’s website.  The difference is really just a matter of semantics.

While many brick and mortar projects have been accomplished, there was little funding available in the past to “promote economic growth” downtown, another reason the DDA and TIF were created.  The Government felt strongly enough about this to enact PA 196 of 2004.  In short, this amendment allows TIF revenues to be spent to create, operate, and fund marketing initiatives that benefit only retail and general marketing of the downtown district.  Even the Government came to the realization that brick and mortar projects alone weren’t enough to foster economic growth.

In closing, the contributions and benefits of the DDA are enormous and we need to continue to capitalize on these opportunities.  Any dysfunction is easily rectified.  The DDA isn’t in “maintenance mode”, there is still much to do.  Its responsibilities cannot be directly met by City Hall and weren’t intended to be by legislation.  Dissolution of the DDA would cost, not save jobs.  The City would also be ineligible to collect $577,000+ in tax revenues.  Utilizing the FFH matrix, I can find NO compelling reason to dissolve the DDA, just the need to implement a few changes.  As missions are completed, sections of the DDA can be returned to the various taxing jurisdictions, so that everyone can enjoy the benefits of the increase in tax revenues.

Sandy Johnson