Number 44: Sept. 3, 2003
In this edition:
1) City passes on Quarton Lake grant
2) PSD gets initial funding OK
3) Opinion: Local economy must be promoted
4) Letters to the Eccentric
5) Eatery cracks down on serving liquor
6) Amid recession, some positive signs for business
7) Government battles own form of recession
8) Opinion: Keep Mr. J trotting
9) BID may be viable alternative to PSD
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Number 44: Sept. 3, 2003
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THE BIRMINGHAM BUZZ
"It's the 2016 Plan, stupid."
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Buzz # 44 -- March 20, 2003
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In this edition:
1) City passes on Quarton Lake grant
2) PSD gets initial funding OK
3) Opinion: Local economy must be promoted
4) Letters to the Eccentric
5) Eatery cracks down on serving liquor
6) Amid recession, some positive signs for business
7) Government battles own form of recession
8) Opinion: Keep Mr. J trotting
9) BID may be viable alternative to PSD
1) City passes on Quarton Lake grant
March 20, 2003
>From the Birmingham Eccentric
By Larry Ruehlen
Residents who expected Quarton Lake Park to be improved this year won't be disappointed after all.
"I have visions of Quarton Lake Park being like Booth Park where it's full of puddles and the kids can't get to the playground equipment," said Denise McKewan, president of the Mill Pond neighborhood association. "Is it really worth $250,000 when the residents voted to have the bond money restore our parks?"
In November 2001, voters approved $25 million in bonds for park improvements. Since then, the city purchased what will become a new community center and also planned improvements for several parks. McKewan wanted to know if the city was prepared to wait a year to make improvements that were supposed to happen by September.
No was the answer Monday as the Birmingham City Commission rejected a plan to delay improvements to Quarton Lake Park.
"We can't dredge the lake then let it sit there for a year while we wait for a possible grant," said Birmingham Mayor Seth Chafetz.
"I don't like to walk away from funding sources but this comes too late," said City Commissioner Donald Carney.
Bob Fox, assistant director of public works, was prepared to submit an application for a $250,000 state grant to improve the park through the Michigan Natural Resources Trust Fund and Land and Water Conservation Fund. He said the city stood a good chance to get the grant because the project would improve the wetland habitat.
Birmingham City Manager Tom Markus said delaying park improvements would give the city time to complete $1.3 million in repairs to the dam at Quarton Lake - repairs that were unexpectedly ordered by the Michigan Department of Environmental Quality.
Delaying the park improvements would also make the logistics easier because it would negate the chance of two different construction crews interfering with each other. Members of the commission, however, said progress was more important because residents need access to the lake this year rather than next.
Last year, the city applied for a similar grant for Booth Park and was turned down. In that case, 90 grant applications were submitted and 21 were approved. Grants are awarded based on factors that include population, household incomes and how much local money the city is willing to spend on a project. Birmingham was willing to provide $342,000 in local funds for the Quarton project but there were no guarantees the grant would be approved.
The commission's vote means the city will pay the entire $694,000 for the project, with $102,000 going to engineering and design work. It will also mean park improvements will begin this year and should conclude this fall.
Planned improvements include a walking trail, pedestrian bridge, native prairie grasses, a dam overlook and improved fishing banks.
Parking is still unresolved in the latest design. A small parking lot on Maple has been removed but the issue of how much perimeter parking should be included remains. Several residents have said they want more parking but people near the park are generally against it.
The city spent some $3,000 on the grant application and will now not send it in.
2) PSD gets initial funding OK
March 20, 2003
>From the Birmingham Eccentric
By Larry Ruehlen
The city's Principal Shopping District is one step closer to surviving.
"I have lived in Birmingham since 1950 and sold real estate for 30 years," said resident Carol Frick. "And I can tell you the value of this community, both as residents and investors in our homes ... is the health and vibrancy of the downtown community. It's what makes my life worthwhile and my property very valuable."
Frick urged the Birmingham City Commission to approve continued funding for the PSD. The first step in the process was declaring a necessity to continue the special assessment tax. PSD Director John Heiney asked for a 3.5 percent across-the-board increase, which is allowed under state law to make up for increases in the cost of living, said Heiney.
Initial reaction was mixed. Two letters objecting to the raise were filed with the city and one person spoke out Monday at the public hearing. Others, mostly merchants, said Monday that they favored the continuation of the PSD. Talk then shifted to the commission.
"The fact that more people aren't here protesting is an indication that the businesses are supportive of the increase," said City Commissioner Rackeline Hoff.
"I don't want to create a false impression that I'm not in favor of renewing the funding for the PSD," said City Commissioner Donald Carney. "But I'd like a budget in hand before I do so."
The city's budget process takes place in April and Carney wanted to see the PSD budget before voting - something that wasn't possible.
Carney also wanted to know if the across-the-board raise was legal - a question that is to be researched by legal staff before next week's commission meeting.
"I'm concerned with the many increases that the businesses are dealing with and the revenues that they aren't getting right now," said City Commissioner Gordon Thorsby. "The least we can do is help them out."
Thorsby wanted a tax cut, not an increase but a 4-2 majority of council disagreed.
"My first concern was what we are doing to people in this downturn in the economy," said Birmingham Mayor Seth Chafetz. "I had a concern with increasing costs. But at the same time it is important to continue marketing the downtown."
The PSD is a city department that is funded by special assessment districts. At next week's meeting, the commission will vote on whether to confirm the tax rolls - a must for the city to assess and collect taxes. The new rates are 38 cents per square foot for businesses on the first floor and 15 cents for businesses located on other floors. Businesses outside the primary area downtown are taxed at half the rates.
Most small-business owners pay less than $1,000 per year to the PSD and the typical increase is less than $50 per merchant. The maximum PSD tax is capped at $11,998.
The PSD was formed 10 years ago in response to the then-planned opening of Troy's Somerset Collection mall. Its primary duty is recruiting businesses and marketing downtown. Heiney outlined how the department spends nearly $900,000 per year.
"Close to $300,000 goes to maintenance and capital improvements," Heiney said. "That includes anything from sidewalk cleaning, to flowers downtown to snow removal ... the idea is to keep the streets clean and looking good. To enhance what the commercial district is already doing."
He also said some $250,000 goes to marketing and $156,000 to hosting special events.
If the tax rolls are confirmed next week, the PSD will have funding for another year.
The department also faces the possibility of changes recommended by Carney. He wants the mayor to make future appointments to the board, the size of the board reduced from 12 members to nine and for longtime members to resign. Those issues remain unresolved.
3) Opinion: Local economy must be promoted
March 20, 2003
>From the Birmingham Eccentric
Even as the last hopes for peace in the Middle East were fading, persons attending the Birmingham Bloomfield Chamber annual real estate luncheon Thursday got some good news about the local economy.
Downtown Birmingham is still a strong shopping district, despite the national recession and economic uncertainty fueled by the threat of war with Iraq.
Joan Primo delivered the encouraging news. She is founder of Strategic Edge, a Southfield-based marketing company. Strategic Edge conducted a survey of downtown Birmingham last year, and among the findings were:
More than 70 percent of Birmingham residents shop downtown at least once a week.
Downtown shoppers stay an average of 1.5 hours per visit.
More than half of the patrons come to town to eat rather than shop.
Birmingham rated equal or better than the Somerset Collection in nine of 12 categories considered.
In a related area, commercial and home building continues at a steady pace throughout the Birmingham-Bloomfield area. New construction is going up around the township, including construction of a new mall at Long Lake and Telegraph.
This area remains a prime site for development. That gives us some insulation from the downturns in the economy. But just some.
The city must follow a steady course of fiscal responsibility and do everything it can to promote the downtown shopping district. It needs to encourage the Principal Shopping District, not dilute it. The city needs to ease the way for new businesses and watch all spending.
Birmingham needs to continue to build on its strengths and never assume that conditions won't change.
4) Letters to the Eccentric
March 20, 2003
Whi is biased?
I find it more than interesting that City Commissioner Don Carney chose to defend his continuing attack on the PSD by writing a Letter to the Editor in the very same paper he canceled Nov. 4, 2001, (Sunday Perspectives, "Cancel Our Subscriptions").
Mr. Carney chose to cancel his subscription stating that the Eccentric was "clearly not supportive of the interests of the residents." He further states the reason for his cancellation is the Eccentric's endorsement of three candidates for city commission (none of which were him).
He now seeks support for his attack on the PSD using the same "media organization" he admonished as having a "bias toward business interests." Mr. Carney seems to have quite a "bias" himself.
Christopher J. Longe
Birmingham
Usurping the PSD
It is said that all politics is local. Let's take a look at ours.
Commissioner (Don) Carney has decided the Principal Shopping District charter should be changed to relieve city manager, Tom Marcus, of conflicts of interest in appointing of PSD candidates. Senate Bill 582, which established the criteria for the board in 1992, is specific in its language. It states that the "Chief Executive Officer of the City shall appoint candidates with the concurrence of the governing body of the City." The charter also requires that one member of city government sit on the board. The Michigan legislature did not view this as a conflict of interest but rather an efficient, objective method of providing representation of parties to the board.
The spirit of Senate Bill No. 582 was to provide a representative, independent body of commercial and residential property owners and business owners the ability to "promote economic activity" and enhance the retail experience in Birmingham. Short of a Downtown Development Authority, this independent board could determine an assessment method of collection and direction of the disbursement to meet the ultimate objective of tenant recruitment.
This bill was embraced by our city to counter the impending threat of the Somerset Collection to our retail businesses. In the 10 years the PSD has functioned such amenities as snow removal and gardens have been added. What is less visible is the tireless effort of the PSD to assess and improve signage ordinances, state liquor licensing, parking, pedestrian traffic, appropriate advertising and promotion and, of course, tenant recruitment. This volunteer commitment by the PSD board members translates into increased revenue for the city, keeping our property in high demand.
Today, the PSD faces a challenge by the city commission to usurp its independence. By decreasing the number of board members the commission, through attrition can quickly change the constitution of the board. Enabling the mayor to appoint candidates reduces the pool to the usual suspects. In less time than it takes to say "too tall" we will have another city body in place to do the commission's bidding.
As with most issues that continue to confront us, everyone involved here is probably just a little bit right. That is why healthy debate flourishes. To get the best results we must all pay attention to what is really on the table here. Some feel that the PSD should be controlled by the city commission to enhance its power and influence. Others feel that professionals and business owners have a right to representation in city government as a means to grow their investment in a better community.
Connie Lovell, ASID
Birmingham
City owns the pipes
In each and every article that I have read in the Eccentric pertaining to the collapsing of the lateral sewer pipes, there are two statements that consistently arise which deem to be false and provoke my writing this letter.
It seems as though the city needs to lead us into believing that these collapsing "Orangeburg" sections of sewer pipes are on "private property"; also, that we, as homeowners, have questionably been provided with a 30-year warranty from the city. False. The city did not provide, but instead was provided with a 30-year warranty on these pipes that they say are on "private property." Sorry, Birmingham, but it is your warranty that has expired, not ours.
These "Orangeburg" pipe sections start at and run ONLY under the city's sidewalks then proceed down to the street where they are connected to the sewer main. The main runs underneath the center of the city's streets. The sewer pipe, usually crock, that is in fact on "private property" is the pipe that connects from our homes to this Orangeburg pipe.
There is no one who is as stupid as you must believe who thinks this Orangeburg pipe is on private property or is privately owned. From prior viewed excavations and replacements of these pipes, it is obvious that they are entirely on city property. Are we to believe that the sidewalk and the trees that are growing between the sidewalk and the street are also on private property?
I suppose it would be logical to say that the pipe sections in question do belong to each property owner but only in the same respect that we also own City Hall, Baldwin Library, etc. What's yours in all reality is by definition also ours. Birmingham is Our City and we love it! It's supported, run and held together in conjunction with our tax dollars. We are by no means asking the city for any favors. Let it be that our tax dollars will be used for the pipe replacement and indirectly we will be paying for these sections of pipe. How rude that the powers invested within our city's government would even consider refusing to correct this city maintenance problem.
Our city needs to take on the liability of replacing them and the responsibility of compensating those in our community who have already been forced to replace the non-optimally working Orangeburg pipes, at their own expense, that have disintegrated within the vicinity of their private property.
Alice Dinan-Thimm
Birmingham
5) Eatery cracks down on serving liquor
March 20, 2003
>From the Birmingham Eccentric
By Larry Ruehlen
Faced with the possibility of losing its liquor license, Buca Di Beppo fired several employees and now checks every customer's identification before pouring a drink.
"To my knowledge, this is the first time in our history that any of our restaurants has received two violations," said Greg Gadel, executive vice president of Buca. "... We take the privilege of serving of alcohol very seriously, and we will not let the city of Birmingham down."
The Italian restaurant, at 250 N. Old Woodward, is noted for serving bountiful plates of pasta but it was the eatery's past instances of serving alcohol to minors that got it in trouble. Buca Di Beppo was busted twice for serving alcohol to minors in 2002.
Several Buca officials flew to Birmingham this week from Minnesota to appear before the Birmingham City Commission. At stake was the commission's approval of Buca's Class C liquor license renewal. Without the approval, the eatery would have to take its chances with the Michigan Liquor Control Commission, which could have approved the renewal without Birmingham's consent.
Gadel said Buca has nearly 100 restaurants in 21 states and all the others had never had this type of trouble before. He also said the restaurant will chance alienating patrons rather than risk losing its liquor license. No matter how old a person looks, identification will be checked in all instances, said Gadel.
He passed out a recent letter from an irate 60-year-old customer who was denied alcohol because he didn't have proper identification.
"We check everyone," said Gadel. "That's the policy."
The restaurant installed a machine that checks identifications and retrained staff to make sure alcohol isn't served to minors in the future, said Gadel.
Gadel's presentation convinced local officials.
"I feel encouraged that obviously, you are taking the situation seriously," said Birmingham City Commissioner Gordon Thorsby. "Especially considering the environment you are in ... an area where there are a lot of young people who congregate."
The commission voted 6-0 to renew the license.
Birmingham Police Chief Richard Patterson said earlier that Buca sold to minors on June 18 and again on Dec. 18. Police carry out annual sting operations on every establishment that sells liquor in Birmingham.
Midtown Cafe was the only other establishment charged with serving to a minor, but it was only busted once, on June 18, and paid an $1,200 fine. Buca was fined $900 for the first violation and the second charge is still pending before the MLCC.
6) Amid recession, some positive signs for business
>From the Birmingham Eccentric
By Larry Ruehlen
March 16, 2003
Flexibility is key in a shrinking economy, but advantages can be gained with the right approach, said Peter Burton, president of Burton-Katzman Development.
"We went into a hunker-down mode," said Burton. "We paid down debt and watched every penny."
Burton was one of three speakers at the Birmingham Bloomfield Chamber's annual real estate forecast luncheon at the Townsend Hotel Thursday.
He and partners Robert Katzman and Laurence Goss formed a new company, BKG, Birmingham LLC, and bid $4.3 million for the former Jacobson's men's store at 325 N. Old Woodward Ave.
They are expected to close on the deal in a few weeks and many in the crowd wanted to know what would become of the site.
"We plan to raze the building," said Burton. "We believe it's functionally obsolete. It has six or seven different additions. It's like a Rubik's Cube and we can't make any sense of it."
Burton said he didn't want to reveal too many details before making a proposal to city officials. But affordable housing, retail and office could all play a role in the planned three-story development. When asked what passes for affordable housing in Birmingham, Burton said the $350,000 range. He also said he expects the entire redevelopment process to take three years.
Burton said the former Jacobson's site was a "market rate deal" -- meaning he was able to get prime property at a price that was too attractive to pass up.
The focus of Burton's presentation was how to flourish in a recession. Getting rid of debt and unloading undesirable property is key, he said, as well as shifting marketing and production strategies. Offering smaller tenant spaces and affordable housing is the way to go, he said.
"It's not that the market goes away in a recession," said Burton. "It just becomes smaller. You have to find a way to capitalize on that."
THE RETAIL SCENE
Joan Primo, founder of Strategic Edge, a Southfield-based marketing company, gave a presentation on the extensive survey her company conducted last year on Birmingham's retail scene. Despite a downturn in the economy, said Primo, the area is ripe for success.
"Downtown Birmingham has an expansive trade area," said Primo. "This is truly an embarrassment of riches if you will."
Among Primo's findings were:
* Over 70 percent of Birmingham residents shop downtown at least once a week.
* Downtown shoppers stay an average of 1.5 hours per visit.
* More than half of the patrons come to town to eat rather than shop .
* Nearly 14 percent of Birmingham residents consider downtown their core shopping area.
* Downtown rated equal to or better than Troy's Somerset Collection in nine of 12 categories.
Surveyors were positioned outside 32 Birmingham establishments, and they interviewed 437 people on the street in May and June -- before Jacobson's went bankrupt.
Primo said the city is fairing well considering the close proximity to Somerset. Most people who were surveyed didn't identify any specific additional stores, restaurants or services that were needed in Birmingham. Parking was listed as the biggest problem, but Primo was upbeat about that too.
"If you don't have parking concerns, you don't have customers," said Primo.
BLOOMFIELD PARK
Dan Devine, treasurer and interim supervisor of Bloomfield Township, spoke on the settlement that paved the way for the controversial $1 billion Bloomfield Park development to proceed at Square Lake and Telegraph roads.
"We had many signs that we weren't going to prevail in court," said Devine. "If we had gone to the Supreme Court and lost, we would have lost the property forever."
Devine said he still doesn't know what hotels, retailers or businesses will come to the area because the developer is being less than open.
He said the township did what it could to ensure whatever gets built there will complement downtown Birmingham and not compete with it. Developer Craig Schubiner, of the Harbor Companies, has said the project will bring some 4 million square feet of office, hotel, retail shopping and residential space to the region.
It was once planned to be a $2 billion development with 9 million square feet of new space and buildings as high as 20 stories. Controversy erupted when township officials objected to the density and scale of Schubiner's first development proposal. The plans didn't conform to existing zoning laws and several lawsuits followed. Schubiner then took his proposal to the city of Pontiac, which set out to annex the site. All sides eventually settled the dispute and plans are proceeding.
"We want a quality development," said Devine. "And we are going to work hard to make sure it happens sooner rather than later."
7) Government battles own form of recession
March 16, 2003
>From the Birmingham Eccentric
By Chuck Moss
What's going on with all the state and local budget problems? The best way to describe the current situation is to call it a "Government Recession." We all know about slowdowns. In a business recession, demand slows and income drops. When income falls, a business or family cuts expenses to balance the budget, which lowers someone else's income so the effects ripple onward. GM cuts, so suppliers lay off, families don't spend.
The government recession works in a different way. It's not caused by a drop in demand for services, but a drop in income. Fundamentally, though, the effect is the same. Government finance is at heart really simple. Like any balance sheet, you have income and expenses. When income is greater than expense, everything's fine. When expense is bigger than income, you have problems. That gap between income and expense is called the deficit. The State of Michigan's deficit is estimated to be $1.7 billion for 2004.
Let's take the income side first. Michigan gets its income by three main sources: sales tax, income tax, and the Single Business Tax. All three are declining. The sales tax is down because people aren't buying things. Income tax is down because people aren't working - but there's more. Michigan has decided to cut taxes. The personal income tax is being rolled back, and that will forego 8 percent of General Fund Revenue. So, one-third of Michigan's General Fund/General Purpose account - the state's main checkbook - is going away.
Now Michigan is one of America's highest-taxed states, so tax cuts are good, right? Let's look at the other side of the balance: spending. Eighty percent of General Fund spending occurs in four areas: Higher Education; Community Health, including Medicaid; Corrections, and the Family Independence Agency.
Keep in mind that 62 percent of revenues end of flowing down to counties, cities, townships, school districts and universities. Also keep your eye on Medicaid. That state/federal program accounts for roughly 25 percent of the State budget and grows about 20 percent per year. Left alone, it will swallow up the rest of the budget.
Imagine the state of Michigan as our governmental GM. (California is Enron.) When the big guys cut, effects ripple down. This means both revenue sharing and payments for programs get cut. Local and county governments get most of their revenue from property taxes, which also drop during an economic slowdown. This income is even more dicey, as both Proposition A and the Headlee Amendment limit what you can assess and charge. Local government's income is potentially as squeezed as the state's.
So that's the public sector recession. Be prepared to see government programs you like get cut. But recessions have a good side: They temper, test and transform organizations. They weed out the weak and inefficient. Now government can't be totally "run like a business." Kmart could drop Martha Stewart towels if they lose money, but Oakland County can't quit funding the sheriff's department. Still, governments have fattened up during the good years. Benefit programs have expanded. Costs have risen.
Now the Government Recession will force public bodies to refocus on their core missions, make their operations more productive, and put programs on a fiscally sound basis. Recessions are the hard but necessary and inevitable days of reckoning and renewal. The public sector tends to lag the general economy by about a year-and-a-half, so when times get good, governments will come out of these hard times as well, chastened and wiser, as better and more effective stewards of the public's tax dollars. Then they can slowly backslide again, like everybody else does, until the next recession comes.
Chuck Moss is an Oakland County commissioner representing Birmingham, and is a former Birmingham city commissioner.
8) Opinion: Keep Mr. J trotting
March 13, 2003
>From the Birmingham Eccentric
Given the emotional response that already is rising over the possible termination of the services of Mr. J, the city might want to rethink its budget priorities.
Mr. J is the city's police horse. Some folks around town are mighty upset the police department might have to stop using the horse because it costs a lot to keep him in oats. Exactly just how much isn't clear yet as the numbers are still buried in the police department budget.
And Birmingham, like just about every other city in Michigan, is facing a budget crunch.
Even though there are no plans yet to send Mr. J packing, the mere hint that that might happen already has people circulating petitions to keep him in service.
OK, as far as we know he hasn't solved a single crime. In fact, he seems blitheringly unaware of the fact that he even is a police horse. But people like him. He's friendly and has a certain charm that endures him with the public.
If it comes down to laying off police officers or Mr. J, we'll opt to retain the officers. But let's try to not let it get to that point.
9) BID may be viable alternative to PSD
March 16, 2003
>From Our Discussion Forum
Posted by michael: Mar. 16 2003,12:15
Perhaps Birmingham City Commissioner Donald Carney has a point. Maybe the downtown business and property owners should consider creating a business improvement district (BID) in Birmingham.
In the last hours of the 2001 Michigan Legislative session, Public Act 260 of 2001, the enabling legislation for Business Improvement Districts throughout the state, passed the House and Senate by a wide majority.
The beauty of Michigan's PA 260 of 2001 is that it is a "bottom up process" that allows eligible property owners to be masters of their own destiny. In short, the BID Legislation provides that a 60% majority of eligible commercial and/or industrial property owners must want the district, develop boundaries, identify eligible property, win the support of their fellow property owners, detail a scope of services and corresponding budget to satisfy all concerned and then win the support of the city's governing body.
Owners in the district retain direct control of the budgeted services, elect a board of directors made up of property owners to serve as fiduciaries, and oversee the daily operations of district services and amenities. The board may contract with a non-profit entity to act as managers on its behalf.
A BID provides enhanced improvements and activities, such as security, maintenance, marketing, events, and business recruitment, in addition to those provided by local government.
It is designed and created by those who will pay the assessment.
It is governed by those who pay through a property and business owner advisory board that supervises operations and submits a yearly service plan.
It is implemented by those who pay through a nonprofit, private sector, management organization.
It is established through petition support from property owners who will pay the proposed property assessments.
BIDs are established for a set term determined by those who pay the assessment and must be reestablished by those who pay through a new petition process.
To establish private-sector control and accountability, an advisory board consisting of downtown property and business owners manages the district. Annual management district work plans and budgets are developed by the advisory board, ensuring that the district will be accountable to those who pay the assessment. Security, maintenance, and marketing programs are subject to private-sector performance standards and controls.
BIDs have been used in other cities and states since the 80's. Michigan adopted it in 2001. Perhaps it is something to look into as our city commission prepares to dismantle to PSD.
For more information, visit:
The Citizens Research Council of Michigan at http://www.crcmich.org/EDSurvey/financg-taxauthorities/bid.html.
The Main Street Group at http://www.mainstreetgrp.com/bids1.html.
The Grand Rapids Downtown Alliance at http://www.downtowngr.org/purpose.htm.
Detroit Downtown Inc. at http://www.detroitdowntowninc.org/Gateway/.
Posted by on 09/03 at 11:54 AM
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