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Michigan State Housing Development Authority Downtown Revitalization Workshop Community Assistance Team (CATeam)

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Presentation on theme: "Michigan State Housing Development Authority Downtown Revitalization Workshop Community Assistance Team (CATeam)"— Presentation transcript:

1 Michigan State Housing Development Authority Downtown Revitalization Workshop Community Assistance Team (CATeam)

2 Michigan State Housing Development Authority Goals For Today MSHDA?!? Arent you guys the housing people? What tools are available to help my downtown? Application Windows

3 Michigan State Housing Development Authority Agenda Who is the CATeam? Why Downtowns are Important How does this fit with Cool Cities? Michigan Main Street- 4 Point Approach Blueprints for Michigans Downtowns and Neighborhoods Brownfields

4 Michigan State Housing Development Authority Agenda Downtown CDBG –Infrastructure –Façade –Signature Building –Planning/Market Studies Other Resources for Your Downtown Bringing It All Together

5 Michigan State Housing Development Authority 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

6 Michigan State Housing Development Authority How It Works Downtowns & Communities Partnerships: MSHDAs 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 MSHDAs Community Assistance Team (CATeam)

7 Michigan State Housing Development Authority 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

8 Michigan State Housing Development Authority Why are Downtowns Important? State: Retaining and attracting young professionals, small businesses and entrepreneurial, high tech firms is part of the Governors 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.

9 Michigan State Housing Development Authority 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

10 Michigan State Housing Development Authority 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

11 Michigan State Housing Development Authority How does this work with Cool Cities? Cool Cities –Neighborhood Improvement Grants- DLEG –Michigan Main Street- MSHDA –Blueprints for Michigans Downtowns- MSHDA –Blueprints for Michigans Neighborhoods- MSHDA

12 Michigan State Housing Development Authority MICHIGAN MAIN STREET

13 Michigan State Housing Development Authority 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

14 Michigan State Housing Development Authority Holistic approach to downtown revitalization: DESIGN ECONOMIC RE-STRUCTURING PROMOTION ORGANIZATION What is the Main Street 4-Point Approach?

15 Michigan State Housing Development Authority What is Main Street… 4-Point Approach Comprehensive Incremental Self-Help Public/private partnership Identifying and capitalizing on existing assets Quality Change Action-oriented

16 Michigan State Housing Development Authority 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

17 Michigan State Housing Development Authority How Main Street Works

18 Michigan State Housing Development Authority Program Structure Main Street Board of Directors Design Subcommittee Economic Restructuring Subcommittee Promotion Subcommittee Organization Subcommittee Program Director

19 Michigan State Housing Development Authority Board of Directors Establishes the overall vision for the downtown, the programs mission, and drives the entire program in that direction –Strategic Planning –Policy Administration –Financial Management –Advocacy of the Program –Personnel

20 Michigan State Housing Development Authority 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

21 Michigan State Housing Development Authority 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

22 Michigan State Housing Development Authority 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

23 Michigan State Housing Development Authority Promotion Re-establishes the downtown as the social core of the community and strengthens the downtowns image. Special & Retail Events –Creates Activity Image Building –Changes Attitudes Marketing –Promotes the downtown

24 Michigan State Housing Development Authority 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

25 Michigan State Housing Development Authority To Sum It Up… If Main Street were a Jet Plane –Pilot – Board of Directors –Engines – Four Committees –Mechanic – Program Manager –Passengers – the Community

26 Michigan State Housing Development Authority 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.

27 Michigan State Housing Development Authority 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

28 Michigan State Housing Development Authority Michigan Main Street Communities Boyne City Calumet Marshall Portland Muskegon Niles Clare Howell Midland Ishpeming Grand Haven Iron Mountain Old Town Lansing

29 Michigan State Housing Development Authority Michigan Main Street Services 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

30 Michigan State Housing Development Authority Michigan Main Street Services Second Step –Provide professional resources Market Study National Conference Registration for Manager Design Services Quarterly Forums Year End Reviews

31 Michigan State Housing Development Authority Michigan Main Street Services Third Step –More Specialized Technical Assistance Advanced Training Workshop in Lansing Advanced Training in Community (Accredited)

32 Michigan State Housing Development Authority 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

33 Michigan State Housing Development Authority MMS selection criteria 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

34 Michigan State Housing Development Authority MMS selection criteria 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?

35 Michigan State Housing Development Authority MMS selection criteria 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?

36 Michigan State Housing Development Authority MMS selection criteria 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

37 Michigan State Housing Development Authority Blueprints for Michigans 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

38 Michigan State Housing Development Authority Blueprints for Michigans Downtowns Process –Kickoff Meeting –Intensive 3-4 Days in Community Stakeholders Focus Groups Key Individuals –Public Input –Wrap Up Meeting

39 Michigan State Housing Development Authority Blueprints for Michigans 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.

40 Michigan State Housing Development Authority Blueprints for Michigans 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

41 Michigan State Housing Development Authority Brownfield Incentives –Used to assist communities in redeveloping problematic sites to assist in making these competitive with greenfields. Brownfield Program

42 Michigan State Housing Development Authority 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.

43 Michigan State Housing Development Authority Brownfield Program Single Business Tax Credits (SBT) Small Credits Credits 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.

44 Michigan State Housing Development Authority 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.

45 Michigan State Housing Development Authority 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

46 Michigan State Housing Development Authority 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.

47 Michigan State Housing Development Authority 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

48 Michigan State Housing Development Authority Before and After

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55 Downtown Improvement Initiatives Program

56 Michigan State Housing Development Authority 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

57 Michigan State Housing Development Authority Signature Building Dos 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

58 Michigan State Housing Development Authority Signature Building Donts 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!

59 Michigan State Housing Development Authority 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

60 Michigan State Housing Development Authority 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

61 Michigan State Housing Development Authority Funding Priority Levels 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

62 Michigan State Housing Development Authority Funding Priority Levels 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

63 Michigan State Housing Development Authority Funding Priority Levels 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

64 Michigan State Housing Development Authority Funding Priority Levels 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

65 Michigan State Housing Development Authority Façade Dos 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

66 Michigan State Housing Development Authority Façade Dos Put matching funds in escrow Use a licensed contractor Be aware of SHPO sign off

67 Michigan State Housing Development Authority Façade Donts Randomly decide on properties Over inflate need/match Submit properties that dont need it Submit a program concept Use substandard or inappropriate materials START ANY WORK!

68 Michigan State Housing Development Authority Check these out!

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73 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.

74 Michigan State Housing Development Authority Technical Assistance The CATeam works with communities & assists them with information concerning programs such as: –Downtown Development Authorities (DDAs) PA 197 of 1975 –Brownfield Redevelopment Authorities (BRAs) PA 381 of 1996 –Principal Shopping Districts (PSDs) PA 120 of 1961 –Corridor Improvement Authorities (CIAs) PA 280 of 2005 –Core Community Tools Obsolete Property Rehabilitation Act (OPRA) Neighborhood Enterprise Zones (NEZ)

75 Michigan State Housing Development Authority 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.

76 Michigan State Housing Development Authority Other Resources for Your Downtown MSHDAs Office of Community Development –Rental Rehab Program –Property Improvement Program HAL/SHPO –25% Historic Tax Credit MDOT –Transportation Enhancement

77 Michigan State Housing Development Authority Other Resource for Your Downtown Travel Michigan –Promotion on michigan.org MDEQ –Brownfield Grants and Loans DCH –Trail Head Grants –Farmers Market TA

78 Michigan State Housing Development Authority 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

79 Michigan State Housing Development Authority Bringing It All Together 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

80 Michigan State Housing Development Authority Bringing It All Together CDBG Signature Building- $300,000 Brownfield SBT Credit- $80,000 Historic Tax Credit- $200,000 $580,000 of a $1,200,000 project

81 Michigan State Housing Development Authority Bringing It All Together 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

82 Michigan State Housing Development Authority Bringing It All Together 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 MSHDAs OCD

83 Michigan State Housing Development Authority Bringing It All Together 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

84 Michigan State Housing Development Authority Michigan Community Guide www.michigan.gov/mshda Then click on: Non-Profits & Local Governments; Community Assistant Team; Downtown Revitalization Tools; Community Guide

85 Michigan State Housing Development Authority Questions??

86 Michigan State Housing Development Authority Michigan State Housing Development Authority Community Assistance Team (CATeam) Joe Borgstrom, Director (517) 241-2512


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