michigan state housing development authority downtown revitalization workshop community assistance...

Michigan State Housing Development Authority

Downtown Revitalization

Workshop

Community Assistance Team

(CATeam)


Goals For Today

• MSHDA?!? Aren’t you guys the “housing” people?

• What tools are available to help my downtown?

• Application Windows


Agenda

• Who is the CATeam?

• Why Downtowns are Important

• How does this fit with Cool Cities?

• Michigan Main Street- 4 Point Approach

• Blueprints for Michigan’s Downtowns and Neighborhoods

• Brownfields


Agenda

• Downtown CDBG– Infrastructure– Façade– Signature Building– Planning/Market Studies

• Other Resources for Your Downtown

• Bringing It All Together


Who is the CATeam?

• Created in 2001

• Provides Technical Assistance to Downtowns and Communities.

• Works with Communities and Developers to Package State Incentives for Downtown Projects


How It Works

Downtowns&

Communities

Partnerships:

MSHDA’s Office of Community Development & Low Income Housing Tax Credit Program

Michigan Economic Development Corp. (MEDC) – Brownfield

State Historic Preservation Office (SHPO) Historic Tax Credits & Design Services

Department of Environmental Quality (MDEQ) - Brownfield

Department of Transportation (MDOT) – Transportation Grants

MSHDA’sCommunityAssistance

Team(CATeam)


What is a Downtown?

• 20 or more contiguous commercial parcels

• Zoned, planned or used as commercial for at least 50 years

• Buildings are predominantly “zero lot line”

• Pedestrian friendly infrastructure

• Consists of substantial, multi-level historic buildings or a historic district


Why are Downtowns Important?

• State: Retaining and attracting young professionals, small businesses and entrepreneurial, high tech firms is part of the Governor’s economic development strategic plan of the state.

• SOLUTION: All three of these groups tend to seek out a fun, downtown urban lifestyle- a place to live, work and play- all in one. The Downtown can be any size. Creating Vibrant cities, towns, and villages.


Why downtowns are important…

• Downtowns reflect the quality of life image for attracting business and families to the region

• By maintaining growth in downtowns, this helps to slow unwanted greenfield growth/urban sprawl/costs

• Downtowns/traditional commercial centers tend to be where locally owned, small businesses are maintained and grow


Why downtowns are important…

• Historic significance to its region• A center to commerce and government• Provides a sense of “place” to the people of

the region• Infrastructure is already invested there• Tourism draw for the region


How does this work with Cool Cities?

• Cool Cities– Neighborhood Improvement Grants- DLEG– Michigan Main Street- MSHDA– Blueprints for Michigan’s Downtowns-

MSHDA– Blueprints for Michigan’s Neighborhoods-

MSHDA


MICHIGAN MAIN STREET


Main Street History

• The National Trust for Historic Preservation recognized the deterioration to downtowns and created the Main Street 4-Point Approach

• National Main Street Center established in 1980 in Washington DC

• Currently, 40 states and 1,200 communities are involved in the Main Street program


Holistic approach to downtown revitalization:

• DESIGN• ECONOMIC RE-STRUCTURING• PROMOTION • ORGANIZATION

What is the Main Street4-Point Approach?


What is Main Street…4-Point Approach

• Comprehensive• Incremental• Self-Help• Public/private partnership• Identifying and capitalizing on existing assets• Quality• Change• Action-oriented


Phases of Main Street

Catalyst phase 1-3 years Building volunteer & financial base Achieving highly visible improvements

Growth phase, 4-8 years Seasoned volunteer leadership Development of economic development strategies

Management phase, 8 years + Commercial district supports a broader range of uses Experienced, but fresh, and dedicated leadership in place


How Main Street Works


Program Structure

Main StreetBoard of Directors

Program Director

Design Economic Restructuring Promotion Organization

Subcommittee

Subcommittee

Subcommittee

Subcommittee

Subcommittee

Subcommittee

Subcommittee

Subcommittee


Board of Directors

• Establishes the overall vision for the downtown, the program’s mission, and drives the entire program in that direction

– Strategic Planning– Policy Administration– Financial Management– Advocacy of the Program– Personnel


Program Manager

• Facilitates and oversees the work of the program

– Administrative– Public Relations– Work Plan Coordination

• Development and Implementation

– Volunteer Management– Monitoring and Evaluation– Resource to Board and Committees


Design

• Enhances the overall character of the downtown through physical change

• Public Improvements– Signage, streetscapes, lighting,

• Historic Preservation– Façade improvements

– Historic districts & ordinances

• Design Education


Economic Re-Structuring

• Re-establishes the downtown as the commercial core of the community.

• Business Development– Retention & Expansion of Existing Businesses– Recruitment of New Business

• Market Analysis– Identify New Market Opportunities

• Real Estate Development– Building Rehabilitations– Underutilized Properties


Promotion • Re-establishes the downtown as the social

core of the community and strengthens the downtown’s image.

• Special & Retail Events– Creates Activity

• Image Building– Changes Attitudes

• Marketing– Promotes the downtown


Organization

• Ensures the health of the program and establishes it as THE leader of downtown revitalization.

• Building Coalitions & Partnerships• Promoting the Program

– Public Relations & Outreach

• Volunteer Management– Recruitment & Retention

• Fundraising


To Sum It Up…

• If Main Street were a Jet Plane

– Pilot – Board of Directors– Engines – Four Committees– Mechanic – Program Manager– Passengers – the Community


What is Michigan Main Street?

• A partnership with the National Main Street Center and State Historic Preservation Office– Other partners include Michigan Downtown Association,

Michigan Municipal League, Oakland County Main Street, City of Detroit Office of Community Revitalization

• Facilitates communities to establish and utilize the Main Street 4-Point Approach

• Provide critical technical assistance, training support and networking opportunities for communities.


What is Michigan Main Street?

• NOT a grant program

• Main Street is a minimum of five years training, technical assistance and local commitment to staff, organization and monies to operate the program.

• It is expected that the local program will continue indefinitely


Michigan Main Street Communities

• Boyne City• Calumet• Marshall• Portland• Muskegon• Niles• Clare

• Howell• Midland• Ishpeming• Grand Haven• Iron Mountain• Old Town Lansing


Michigan Main StreetServices

• First Step– Primary focus is on organizational development

• Orientation Meeting• Assistance in Hiring a Program Manager• Main Street Basics 101• Reconnaissance Visit• Manager Training• Work Plan Development• Volunteer Training• Resource Team



• Second Step– Provide professional resources

• Market Study• National Conference Registration for Manager• Design Services• Quarterly Forums• Year End Reviews



• Third Step– More Specialized Technical Assistance

• Advanced Training Workshop in Lansing• Advanced Training in Community (Accredited)


MMS selection criteria

1. Proposed Main Street Area (MSA)

– Manageable size, pre-dominantly traditional commercial downtown area

– Importance of downtown to the entire community and region

– Map boundaries of the proposed area and any DDA or other districts



2. Physical characteristics– Commitment to historic preservation– Traditional Downtown

• Contiguous grouping of 20 or more commercial parcels• Main Street Area been zoned, planned or used for

commercial purposes for 50 years+• Pedestrian friendly infrastructure• Predominantly zero lot-line development• Areas that consists of substantial, multi-level historic

districts and buildings



3. Organizational Capacity

– Five year budget

– True organizational shift to a main street community and the four approaches (ie: DDA, PSD, BID or 501 (c) 3 or 6)

– Define roles of the Board, Manager and Committees

– Must commit to hiring a full-time MMS Manager, regardless the size of a community

– How will both the public and private sectors work together to create and sustain a Main Street program?



4. Statement of community support for the MMS initiative

– How involved was the general public?

– How involved were local, downtown businesses?

– Was a committee formed, were there many press articles, town hall meetings, open invitations to attend meetings or help with the application?



• NOI Due March 2, 2007

• Applications Due May 4, 2007

• CATeam will conduct field visits and further evaluate and score all applicants

• Finalists are invited to give 45 minute presentations to the MMS Advisory Committee


Blueprints for Michigan’s Downtowns

• A Comprehensive, Market-Driven Approach to Downtown Revitalization: – Partnership with the Michigan Municipal

League (MML)

– Action-oriented

– Five-year downtown strategy

– Private Consultant

– 50/50 Grant Program


Blueprints for Michigan’s Downtowns

• Process– Kickoff Meeting– Intensive 3-4 Days in Community

• Stakeholders• Focus Groups• Key Individuals

– Public Input– Wrap Up Meeting


Blueprints for Michigan’s Neighborhoods

• A Model to Improve Neighborhoods•Assists communities with planning and implementation to revitalize residential neighborhoods that are adjacent to traditional downtown districts.

• Revitalization Tools•Neighborhood Enterprise Zone (NEZ) •Historic Tax Credits for buildings and single family homes.


Blueprints for Michigan’s Neighborhoods

• Process– Communities contract with consultant– Kickoff meeting– Intensive four to five days in community

• Neighborhood Stakeholders• Residents• Public Input

– Develop Improvement Plan using various resources


• Brownfield Incentives

– Used to assist communities in redeveloping problematic sites to assist in making these competitive with greenfields.

Brownfield Program


Brownfield Program Project Management

The CATeam works directly with Communities, Developers and Consultants to assist with Incentive Packaging regarding a project with an end use that is non-industrial. – Use of State TIF (DEQ) – Use of Local TIF– SBT Credits can be used to overcome

extraordinary expenses in projects that are Transformational.


Brownfield ProgramSingle Business Tax Credits (SBT)

Small CreditsCredits up to 10% of eligible investment.Credits cannot exceed $1 Million.

Large Credits Credits up to 10% of eligible investment.

Credits exceed $1 Million. There are 15 large credits issued per year; three of which can

exceed $10 Million, but are less than $30 Million.

Three of the 15 large credits can be in non-core communities.


Brownfield Program

• Important Note

If your Community would like to use State TIF Capture or SBT Credits your CATeam Community Specialist needs to be contacted as early as possible and the project cannot have been started.


COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG)

• Federal funds administered by the MSHDA to Michigan Non-Entitlement Communities

• Targeted at public infrastructure improvements for downtown job creation projects


CDBG Downtown

• Not a competitive process, you may apply at anytime throughout the year.

• It is for Public Infrastructure Projects:• Examples:

• Sidewalks, Curbs, Gutters, Parking Lots, Sewer, Water, Streetscapes, etc.


• All projects must be in the Downtown District.

• All projects must create private jobs and private investment. (2 to 1 ratio)

• 51% of the total jobs created must be for Low to Moderate Income persons.

CDBG Downtown


Before and After


Downtown Improvement Initiatives Program


Signature Building Initiative

• Assists communities seeking acquisition of vacant, partially vacant or substantially vacant underutilized signature buildings located in traditional downtowns

• Building must be located in a DDA, PSD or BID• Projects qualify through job creation• Local match of 25% is required• 5 year prorated resale provision• Competitive Selection Rounds


Signature Building Do’s

• Get a developer willing to create jobs and private investment

• Have an option that offers FMV based on the average of two recent appraisals

• Understand community must maintain ownership of building and any rehabilitation should be considered “leasehold improvements”


Signature Building Don’ts

• Plan on using equity from the building being purchased

• Transfer ownership of property to a third party• Sell or transfer the building back to the original

owner at end of grant• Try to “flip” the property• START ANY WORK!


Facade Improvement Initiative

• Assists communities in making physical improvements to targeted areas of traditional downtowns

• 50% local match required• Buildings must be in a DDA, PSD, BID, etc.• Projects should include a number of façade

improvements for a substantial impact to the aesthetic appeal of a downtown area (10 buildings)

• Projects can qualify through job creation or area-wide benefit


Funding Priority Levels

• High Priority– Core downtown– Front façade faces major public streets or

public spaces– Significant improvements and stabilization

made to entire façade• Examples- Removing slip covers, rehab of original material,

installing missing cornices, window replacement, and storefront rehabilitation



• Mid-Priority– Core downtown– Front or rear façade face minor public streets

or public spaces– Improvements made to partial façades

• Examples- Storefront rehab, painting, and awnings



• Low Priority– Adjacent to downtown core– Front or rear façade face minor public streets

or public spaces– Minor improvements to partial façades

• Examples- Painting, and minor replacement of materials



• Not Eligible for Funding– Buildings outside of the downtown – Improvements do not enhance overall

appearance to the downtown– Inappropriate materials or methods of rehab

are being used• Examples- Sand blasting, power-washing, vinyl siding,

plywood, and boarding up windows or doors



• Each property will be determined to be High, Mid, Low or Not Eligible

• Properties will then be “averaged” to help determine quality of overall project


Façade Do’s

• Meet with the property owners

• Have an open process to select properties

• Quality not quantity

• Budget matches estimates

• Have renderings that match estimates

• Focus on “high impact” properties


Façade Do’s

• Put matching funds in escrow

• Use a licensed contractor

• Be aware of SHPO sign off


Façade Don’ts

• Randomly decide on properties

• Over inflate need/match

• Submit properties that don’t need it

• Submit a program concept

• Use substandard or inappropriate materials

• START ANY WORK!


Check these out!


Planning & Market Studies for Downtowns

• 50/50 matching grants for communities to hire a private consultant of their choice to conduct Planning and Market Studies.

• Funded Studies typically are: • Downtown Market Study.• Planning/Building re-use.• Region-wide economic development feasibility

studies with implementable results.


Technical Assistance

• The CATeam works with communities & assists them with information concerning programs such as:– Downtown Development Authorities (DDA’s) PA 197 of 1975– Brownfield Redevelopment Authorities (BRA’s) PA 381 of

1996 – Principal Shopping Districts (PSD’s) PA 120 of 1961– Corridor Improvement Authorities (CIA’s) PA 280 of 2005– Core Community Tools

• Obsolete Property Rehabilitation Act (OPRA)• Neighborhood Enterprise Zones (NEZ)


What the CATeam looks for in a Project

• Traditional Downtown Revitalization/Improvement Projects– Commercial districts that have been in existence for 50+ years,

zero lot line construction, buildings typically are 2-4 stories.

• Building rehabilitation, rather than building demolition. (when possible)

• Historic Rehabilitation and Preservation (when possible)• Buildings renovated into mixed use projects-First Floor

Retail, Office and Residential on Upper Floors.• Projects that lend to a Pedestrian Friendly Environment.


Other Resources for Your Downtown

• MSHDA’s Office of Community Development– Rental Rehab Program– Property Improvement Program

• HAL/SHPO– 25% Historic Tax Credit

• MDOT– Transportation Enhancement


Other Resource for Your Downtown

• Travel Michigan– Promotion on michigan.org

• MDEQ– Brownfield Grants and Loans

• DCH– Trail Head Grants– Farmer’s Market TA


Bringing It All Together

• How can I use these together?

• City of Howell– Three story building downtown, all floors

vacant– Cost- $400,000– Cost to Rehab (Mixed Use)- $800,000



• City applies for, and receives, Signature Building grant

• City leases building to private developer

• Developer invests $800,000 to rehab historic office and retail space

• City designates property as blighted or functionally obsolete



• CDBG Signature Building- $300,000

• Brownfield SBT Credit- $80,000

• Historic Tax Credit- $200,000

• $580,000 of a $1,200,000 project



• City of Durand– Six old buildings need façade improvements

and owners want to convert upper floors to apartments

– Façade Cost- $200,000– Apartment Rehab for 8 units at $40,000 per

unit



• City applies for, and received, façade improvement grant of $100,000

• DDA matches $50,000 for local owners

• Façade and apartment renovations meet SHPO guidelines

• City applies for, and receives, rental rehab grant from MSHDA’s OCD



• Façade Grant- $100,000

• DDA Match- $50,000

• MSHDA Rental Rehab 8 @ $10,000 per unit- $80,000

• Historic Tax Credits- $110,000

• $340,000 of a $520,000 project


Michigan Community Guide

www.michigan.gov/mshda

Then click on: Non-Profits & Local Governments; Community Assistant Team; Downtown Revitalization Tools; Community

Guide



Questions??



Community Assistance Team(CATeam)

Joe Borgstrom, Director(517) 241-2512

michigan state housing development authority downtown revitalization workshop community assistance...

Documents

housing people

downtowns important

important downtowns

package state incentives

historic district slide

application windows

downtown projects

region infrastructure