Meetings
The Sault Ste. Marie, Michigan Downtown Development Authority meets on the second Wednesday of each month at 8:00am. Meetings are held in the City Commission Chambers, on the third floor of City Hall, 225 E. Portage Avenue, Sault Ste. Marie, Michigan.
Meetings Dates:
February 12th, 2020
March 11th, 2020
April 8th, 2020
May 13th, 2020
June 10th, 2020 Bi-annual Public Informational Meeting
July 8th, 2020
August 12th, 2020
September 9th, 2020
October 14th, 2020
November 11th, 2020
December 9th, 2020
Duties
The Sault Ste. Marie, Michigan Downtown Development Authority was established on February 18th, 1980, pursuant to the State of Michigan’s Act 197 of the Public Acts of 1975. In creating the Authority, the city of Sault Ste. Marie recognized the dangers posed by a declining downtown area, and took the first steps in correcting them. The Sault Ste. Marie Downtown Development Authority is tasked with correcting and preventing deterioration in the downtown business district, encouraging historic preservation, implementing development plans for the future, and promoting overall economic growth.
Management
The Sault Ste. Marie Downtown Development Authority is managed by a board of directors, which is required by Act 197 to be composed of not less than eight or more than twelve members approved by the City Commission. One board position must be held by the city manager, one board position must be a held by a downtown resident, and the majority of board members must have an interest in property located in the downtown district.
Board Members
Larry Jacques, Chair Sault Tribe of Chippewa Indians
Allison Youngs, Vice Chair Downtown Resident
Debbie Jones, Treasurer Chippewa County Community Foundation
Scott Parker, Secretary Parker’s ACE Hardware
Tara Kelgar, Board Member Phat Boutique
Brian Chapman, Board Member City Manager
Les Townsend, Board Member Island Books & Crafts
Board Member, vacant
Tom Fornicola, Board Member Subway
Abby Baker, City Commission Liasion
Funding
Tax Increment Finance
The Sault Ste. Marie Downtown Development Authority oversees two “Tax Increment Finance” authorities (TIFA), which are areas within the Downtown Development Authority’s geographic boundaries selected for development. The development plans for both tax increment finance authorities outline projects recommended by the Downtown Development Authority. Both tax increment finance authorities generate revenues for downtown projects by capturing tax revenues based on the incremental increase of downtown property values over time. It is important to note that this procedure does not increase taxes in any way. Also, no other taxing body ever loses tax revenue. Other taxing bodies simply do not realize the increase in tax revenue generated by tax increment finance authority improvements. In other words, the Downtown Development Authority ensures that increases in downtown tax revenues stay sharply focused on the incredibly important downtown district.
Principal Shopping District
The Sault Ste. Marie Downtown Development Authority also manages a “Principal Shopping District,” pursuant to the state of Michigan’s Act 120 of 1961. Sault Ste. Marie’s Principal Shopping District is within the Downtown Development Authority’s geographic boundaries, and allows the Downtown Development Authority to undertake tasks such as conducting market research and public relations campaigns, developing, coordinating and conducting retail and institutional promotions, and sponsoring special events and related activities. Sault Ste. Marie’s Principal Shopping District is funded by a two mil assessment levied on properties within the geographic district. This is equivalent to two one-thousandths of a cent per dollar of assessed value. For example, if a property was worth $50,000, the two mil assessment would generate $100 for the Principal Shopping District each year.
Main Street Commitee
Design
Debbie Jones, Chair
Danna Sanderson
Danny Sarns
Dennis Merkel
Jennifer Reattoir
Justin Knepper, DDA Staff
Les Townsend
Tammy Cook
Promotion/organization
Allison Youngs, Chair
Lindsay Ellis, DDA Staff
Abby Baker
Greg Zimmerman
Kelli Jarvis-Townsend
Mary Jo DuVall
Rebecca Bolen
Scott Parker
Tim Ellis
Economic Vitality
Larry Jacques, Chair
Joshua Billington
Rebecca Bolen
Kelly Freeman
Tony Haller
Jeff Holt
Tracey Laitenen
Oliver Turner
Mark VanDoren
DDA Meeting Minutes Archives
DDA Boundary Map
Downtown Development Area Number One
Downtown Development Area Number Two
Tax Increment Financing and Development Plan Number Two Sec. 18.5-36. – Development plan and tax increment financing plan, adoption. (a) The purpose of Ordinance No. 259-86 is to approve and adopt a development plan and a tax increment financing plan, for the City of Sault Ste. Marie Downtown Area No. Two generally described as Maple/Ridge Street on the south, Bingham Avenue/the east edge of the Federal Building property on the east, the St. Mary’s River on the north and Osborn Boulevard on the west, excepting a residential area south of Water Street between Ashmun and Bingham and the Corps of Engineers Building. (b) The development plan and tax increment financing plan for the City of Sault Ste. Marie Downtown Development Area No. Two provides that the method of financing the development is feasible, and the downtown development authority has ability to arrange the necessary financing; that the proposed development is reasonable and necessary to carry out the purpose of the act; that the land included within the development area to be acquired is reasonably necessary to carry out the purpose of the development plan and the act in an efficient and economically satisfactory manner; that the development plan is in reasonable accord with the master plan of the city; that public services are adequate to protect the area; and that any changes in zoning, streets, street levels, intersections and utilities proposed are reasonably necessary for the development and for the city. (c) Improvements. Each of the improvements explained below is considered important to the welfare of downtown Sault Ste. Marie. Explanations of the general types of improvements to be constructed are followed by a detailed table which indicates the location, estimated cost, and priority level of the specific projects. The location description shows the rough area of a project, while the specific parcels to be affected are indicated on Maps 4 through 7. The estimated cost figures are based on preliminary evaluation of the proposed projects [by] the city planning and development department. Every project is assigned to one (1) of four (4) priority levels. Projects assigned a higher priority (level one being higher than level two) are expected to be undertaken before lower priority projects are begun. Each priority level also has an estimated construction time frame. Level one corresponds to the first two (2) years of the plan, level two represents the next four (4) years, level three matches the next nine (9) years, and level four encompasses the last five (5) years of the plan. These time frames indicate when the DDA estimates the projects in the levels can be constructed. It is recognized that circumstances may alter actual construction dates and affect the order in which projects may be undertaken. The DDA may undertake any project contained within the plan at any time regardless of the priority level when the DDA determines it is in the best interest of the plan to do so. However, no project can be added or deleted without amending the plan, nor can the life of the plan extend beyond twenty (20) years. It is also recognized that circumstances may require some variation in the precise location of a project or improvement. Some variation in the exact location of a project or improvement is acceptable if the DDA determines that variation is still consistent with the intent of the plan. The reason for organizing the improvements in this manner is that available financing may vary widely. While the downtown development authority considers its tax increment revenue projections for the development area to be reasonable, such figures are projected estimates only, and the actual amount of tax increment funds generated will vary from the projection to some degree. (See Area Two Tax Increment Financing Plan). It is recognized that the total estimated cost of the development projects is greater than the projected revenues in the tax increment financing plan. This overrun is deliberate and reflects the possibility that the authority may receive more funds than it projected and/or actual project costs may be less than anticipated. In the reverse case, if sufficient funds do not become available and/or costs are greater than anticipated so that all projects cannot be completed within the twenty-year life of the plan the priority level system provides that higher priority projects will be completed first. Finally, much depends on the human side of the equation. Several of the projects outlined in this plan require the help and cooperation of citizens, businesses and property owners. Such cooperation will affect the timetable and details of the projects. The DDA shall make every effort to complete the plan as outlined, although actual circumstances may dictate otherwise. In such an event, the development plan shall be amended as necessary. (Grounds for amending the plan include: dropping a project from the development plan, adding new projects, or substantially altering the nature or the location of a project. All amendments require city commission approval.) (d) The duration of the plan shall be twenty (20) years from the date of the amended Ordinance No. 491-06 adopted October 16, 2006, or until such time that all planned improvements are completed, whichever comes first. (e) Transactions between city and authority. It is the general intent of the plan that any property acquired and improvements completed as a result of the plan will become the property of the city. The city will retain full control of all improvements unless it chooses to make arrangements with other parties. The DDA, as a public entity created by the city with its own authority to own land and other property, may elect to be the purchasing or holding party. Subsequent arrangements regarding ownership of such acquired lands and facilities may be made by the city and the DDA as may be in the best interest of both the city and the development plan. In the event there is a dispute between the city and the DDA as to ownership of property, the decision of the city commission shall prevail and be final. (f) The plan provides for the preparation of a base year assessment roll; the preparation of an annual captured assessment value assessment roll; establishment of a development fund; payment of tax increments to downtown development authority; for use of monies in the development fund; an annual report; downtown development authority budget; and an annual audit. (Ord. No. 259-86, 11-17-86; Ord. No. 294-88, § 1, 9-19-88; Ord. No. 374-93, 5-3-93; Ord. No. 508-09, 6-15-09)