Scio Township Is Looking To The DDA For Some Help

The Scio Township Board of Trustees has a proposal for the township’s Downtown Development Authority (DDA). The hope and plan is to partnership with the DDA to better leverage funds to support township fire services, bus service, open space preservation, and parks and pathways.

To get the ball rolling, the township board at its July 8 meeting approved a resolution to appoint Township Trustees David Read and Kathleen Brant to represent the Board of Trustees to present and discuss a proposal to the Downtown Development Authority, and to return to the Board of Trustees with a recommendation of next steps for the Board of Trustees.

This proposed agreement would have the DDA return to the Township the captured assessed values of taxes for these four special millages for the term of each of these millages: Parks and Pathways, Fire Protection, Transportation, Farmland, and Open Space Land Preservation.

According to the township, Scio’s DDA defined its downtown district as properties along Jackson Road, parts of Wagner Road, and a short section of North Zeeb Road.  The DDA assists in keeping the downtown area clean, reducing blight, and assisting with public projects. 

The origins of DDAs come from Michigan Public Act 57 of 2018, which according to Scio “enables all Michigan municipal entities to constitute development authorities with fundraising capabilities for major projects. Via this Act, funds can be raised through a mechanism called Tax Increment Funding (TIF), and those funds can be used to make improvements to downtown districts in order to enhance economic viability, stimulate private investment, and increase property values.”

With the proposal put forth, township clerk Jessica Flintoft said in her report to the township board, “The Township would agree to dedicate these returned funds to each the special revenue funds established for these respective voted millages: Parks Fund 208, Fire Fund 206, Public Transit Fund 230, and Open Space Fund 233.”

“Further, the Township would agree to publicly acknowledge the Downtown Development Authority on any Township plaque or sign on any major capital projects made possible through this agreement, including but not limited to, Fire Station #2, a new Preserved Open Space, a new Park, or any acknowledgement on public transit,” Flintoft said in the recommendation report.

The township board’s approval of the recommendation follows the logic that if also supported by the DDA then this “agreement would allow the Township to invest more into Parks initiatives; invest more into the second fire station which would allow the Township to borrow less when we go out to bond later this year; reduce the projected deficit in the Public Transit Fund; and increase local investment in Open Space funding as our federal resources dwindle.”

“We all recognize that the federal government has largely ended its investment in open space preservation and the establishment of preserves,” Flintoft said in her report. “At this time, we need to be more efficient than ever, to meet our goals. This agreement centralizes administration of these efforts under the advice of each the Fire Chief, Parks Director, Land Preservation Commission, and public transit agency heads.”

In the recommendation report it was noted that the township’s Interim Finance Director “finds that under the agreement, the DDA would have no financial trouble in giving up the capture from these four millages; that it is essential for Fire Fund; positive for Public Transit Fund but not the solution for long term viability; positive for Parks Fund but not materially impactful; positive for Open Space Fund especially in light of federal cuts but not materially impactful.”

The township DDA is expected meet at noon on Monday, July 14.