DDA Helped Delhi Township Grow Tax Base 3 1/2 Times in 15 Years: McFadyen

Bay City's Riverfront Development Said Gaining Recognition Around the State

March 7, 2004
By: Dave Rogers

      The philosophy of Delhi Charter Township near Lansing is to support short term sacrifice through tax increment financing (TIF) for long term benefits in development.

      That was the basis of the message delivered last week to the Bay City Rotary Club by Al McFadyen, former city development director who now heads the Delhi Township DDA (downtown development authority).

      McFadyen said he hears more and more positive comments around the state about Bay City's riverfront development, good news to local boosters pinning economic hopes on attracting investment and job-producing enterprises. "The word is out, and it's a good word," he commented about statewide perception of Bay City.

      As a debate rages on in Bay County over TIF financing, McFadyen's comments also were welcome to DDA supporters. "In Delhi we know how valuable the TIF and DDA approach to community development can be," said McFadyen.

      Delhi's population has grown to 22,000 and expects to level off at 30,000 to 35,000 by 2010, he said. Fueling the growth is a 4,000 acre DDA with annual TIF revenues of $2.6 million. That compares with the Monitor Township DDA with 220 acres and $135,000 annual revenue that is seeking township and county approval to nearly double its size. The Delhi DDA's taxable valuation went from $48 million in 1987 to about $174 million now, an increase of 3 1/2 times in 15 years.

      "Why is the township so supportive of the DDA? It gives up $500,000 but gains $2 million, a pretty good deal, especially since most of the money is reinvested," said McFadyen, adding: "this benefits the long-term growth of the township. This is growth we simply would not have otherwise."

      Delhi has worked out a long-term tax sharing agreement with Ingham County and the other taxing units for an increase in shared revenue gradually from 20 percent up to 75 percent in the future. "The need for revenue is a reality in Ingham and I suspect other jurisdictions," he said, concluding:

      "The only way to ensure our future is to continue to foster healthy non-residential growth in tax base."

      Bay County and Monitor Township officials are engaged in negotiations toward a tax sharing agreement thatwould allow expansion of the Monitor Township DDA from 220 acres to 400 acres. Cliff VanDyke, president of the Bay County Growth Alliance, which contracts to operate the Monitor DDA, says the expansion would allow more job-producing enterprises to locatehere.