Mount Clemens opens public hearing, approves first reading to extend DDA plan to 2041

Mount Clemens commissioners opened a public hearing Oct. 5 on an amendment to extend the Downtown Development Authority’s development plan and approved the ordinance’s first reading, setting Oct. 19, 2020 for second reading and final adoption.

City staff explained the amendment changes only the plan’s duration — currently scheduled to expire June 30, 2021 — and would extend it to June 30, 2041. Mr. Murray, speaking on behalf of the DDA, said the amendment does not change boundaries or increase tax rates and is intended to allow the DDA to continue capturing tax-increment financing (TIF) revenues to fund downtown projects.

“Essentially it is changing dates — it is not changing boundaries or any kind of tax increase,” Mr. Murray said.

DDA bond counsel Jeffrey Aronoff told the commission the DDA could theoretically issue bonds secured solely by TIF revenue but that such “naked” TIF bonds are generally not marketable. “Practically speaking, the city commission would need to approve a pledge of full faith and credit,” Aronoff said, meaning any marketable bond would require city approval.

Several residents and stakeholders spoke during the hearing. George Kale asked whether the DDA’s $5 million maximum bonding capacity would require a budget submittal; Aronoff and staff said any bond or capital plan would be part of the DDA’s budget process and subject to city approval. Thomas Barn, a longtime resident, pressed for clearer evidence of what residents receive in return for TIF capture, citing downtown vacancies and limited events.

DDA representatives pointed to ongoing projects and priorities — a proposed farmers market shelter, an art space, efforts to retain the Children’s Museum, and new business openings — and said the authority has been shifting toward economic development and event support.

By roll call, the commission approved introduction and first reading of the amended ordinance and scheduled the second reading for Oct. 19. No change to the DDA’s boundaries or tax rate was approved tonight.