About the Downtown Development Authority (DDA)

The Allen Park DDA was formed by a resolution of the Allen Park Mayor and City Council in 1991. The Authority was created to increase property values, halt property value deterioration, and promote economic growth. The DDA exists to improve the financial and physical integrity of the business district. The DDA district is comprised of the commercial areas along Allen Road, Southfield Road, Ecorse Road, and Park Avenue.

Since its inception, the DDA has completed many projects, including several consolidated parking lots and a major streetscape along Park Avenue. Additionally, the DDA offers development programs like the Façade Improvement Program and Site Improvement Program to assist local business owners. The DDA is also the proud sponsor of a downtown Classic Car Show in June of each year.

DDA 101: The Board of Directors – Your Neighbors and Colleagues

DDA 101: The Powers of the Authority

The general powers of a Downtown Development Authority deal primarily with the planning and economic development of the downtown district, as authorized by State legislation.

The State Act delineates the powers in detail, including, but not limited to:

• Prepare an analysis of economic changes taking place in the downtown,

• Plan or propose the construction or renovation of a public facility, existing building or multiple-family dwelling,

• Plan, propose or implement an improvement to a public facility within the development area,

• Develop long-range plans designed to halt deterioration of property values and to promote economic growth,

• Acquire and dispose of, by purchase or otherwise, land or other property or rights or interests in property, which achieves the purposes of the development plan,

• Improve land and construct, renovate, equip, repair and operate any building and/or necessary appurtenances within the downtown district,

• Employ and compensate an Executive Director and professional staff.

(More information about the DDA enabling legislation can be found on-line at www.legislature.mi.gov or by reading the City of Allen Park Downtown Development Authority Ordinance.)

DDA 101: DDA Funding Mechanisms

DDA legislation provides several financial mechanisms that can be utilized to implement DDA program, including donations, ad valorem taxes, revenue bonds, other revenues (i.e. proceeds from the lease or sale of a building) and tax increment financing. The Allen Park DDA’s main budget source is tax increment financing.

Tax increment financing revenues are based upon the concept of "captured taxable value," which means simply, the increase in taxable valuation of the downtown district, or TIF district, in any given year over the valuation of the district at the time the development plan was adopted.

For example, if the base year taxable value was $10,000 and the total millage is 50, the total taxes would be $500.00. If the taxable value increases the next year to $11,000, the tax revenue generated from the incremental increase of $1,000 would be "captured" by the DDA to fund its projects and programs. The usual taxing jurisdictions would continue to receive tax revenue from the base year amount. In this example, the total taxes would be $550.00, $50.00 of which would go to the DDA.

The Authority typically uses the revenue collected from tax increment financing in the DDA district toward operating expenses and toward the issuance of bonds, which are a means to finance the development plan.

DDA 101: The District

The DDA district is comprised of properties in the following areas: Southfield Road, from I-94 south to the east city limits; Allen Road, from the north city limit to Englewood; Enterprise Drive, from Southfield to Outer Drive; Park Avenue, from Southfield to Regina; Ecorse Road and Roosevelt Road.

DDA 101: The Main Street Four-Point Approach™

The Allen Park Downtown Development Authority follows the Main Street Four-Point Approach™, a preservation-based method of downtown revitalization advocated by the National Main Street Center, a division of the National Trust for Historic Preservation in Washington, D.C.

The Approach consists of four activities which, when accomplished in conjunction with each other, are an effective strategy for redeveloping distressed downtown areas. For each point, a working committee exists which formulates and implements plans and programs that fall under its area of responsibility:

• The Organization Committee exists to establish and structure the organization through administration, volunteer development and fund-raising,

• The Design Committee discusses and advances façade rehabilitation, streetscape improvements, business appearance and architectural style,

• The Marketing and Promotions Committee engages in activities to define the district’s image and to sponsor promotional events,

• The Economic Restructuring Committee conducts retail market analyses, business recruitment and retention efforts and real estate and community-initiated development.

DDA 101: Our Projects and Programs – Past, Present & Future

For more information about the Allen Park DDA, please Email Us.