TIF Extension Fuels 20 More Years of Development Downtown
(Crystal A. Proxmire, Ferndale 115 News, March 15, 2012 ed.)
“The City is making an investment in our Downtown…and the results have spoken for themselves,” said Ferndale Mayor Dave Coulter when he and members of City Council voted 4-0 to lengthen the term of the TIF [Tax Increment Financing] District which allocates tax revenue to the DDA [Downtown Development Authority] for another 20 years.
Originally set to expire in 2013, the TIF has existed since 1981 and it is one of the main reasons Downtown Ferndale was able to be revitalized. From the 1970s through the mid-90s, shopping malls sucked vibrancy away from core communities, and Downtowns like the one in Ferndale suffered.
In 1980 the Ferndale City Council created the DDA and in 1981 they enacted the taxing district to fund marketing and revitalization strategies. Now Ferndale is a nationally-recognized model, having won a Great American Main Street USA designation in 2010.
Councilperson Melanie Piana supported the extension of time, saying “It’s worked for the past twenty, especially the past ten.” Jason Bower of the Woodward Avenue Action Association came out to give his support, saying that activities done with TIF funds by the DDA are “integral to efforts on the Woodward Avenue corridor.”
Cristina Sheppard-Decius, Executive Director of the DDA, gave a presentation about what the TIF has enabled her organization to do. Over the years Downtown Ferndale has gone from a 30% vacancy rate to less than 5%. In the past ten years there has been $57.5 million and reinvestment and 172 buildings have been remodeled.
She shared that the DDA used TIF funds for improvements such as landscape, maintenance, pocket parks, benches, banners, and holiday lights. The DDA also puts on festivals and offers resources for business owners such as networking events, advising, marketing opportunities and classes. 
While the DDA operates along Woodward Avenue and Nine Mile, the TIF area is not as large. On Woodward it goes from Saratoga to Breckenridge, and on Nine Mile from Livernois to Bermuda. Within the next year or so, the DDA hopes to propose expanding the area to stretch development further in each direction, so they can provide the same services for businesses that are outside the current TIF area. There have been several community input sessions to discuss this idea and other Downtown needs. Monday’s vote deals with the current TIF area, which is expected to remain until 2033.
The vote does not increase taxes, it only continues to capture taxes generated by increases in property values and directs them to the DDA instead of to other various funding entities, including Oakland County and the City of Ferndale. Mayor Coulter acknowledged that this takes some future revenue away from the General Fund, yet keeps it in the city with the DDA activities.
In a prior interview, Chris Hughes, Communications Director for the DDA, said “What’s important to understand is that when people think of Ferndale, they think about Downtown, the atmosphere, the events we have here. That image attracts business, investment and people who want to live here. Having a strong Downtown benefits everybody in the city. It’s the core that drives people here.”
The DDA has many projects on the horizon, including parking plans, addressing clear pathways, further ways to market the Downtown area, and creating public/private partnerships to facilitate development.
To learn more about the DDA and Downtown Ferndale, go to www.downtownferndale.com. For more on the City of Ferndale council meeting, go to http://www.ferndale-mi.com/.
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