community development guide

COMMUNITY-BASED ECONOMIC DEVELOPMENT MANUAL

FOR GRAND RAPIDS CENTRAL CITY

NEIGHBORHOODS

MICHIGAN STATE UNIVERSITY

July 1, 1999 Community-Based Organizations Central City Neighborhoods Grand Rapids, Michigan Dear CBOs: This manual was written by three MSU Urban and Regional Planning students. They researched a number of economic development tools that have been used by government and private businesses during the 1990’s. The goal of this manual is to enable neighborhood associations and other CBOs to access these tools and then effectively utilize them in their revitalization work. Due to the effects of urban sprawl and other societal dynamics, central city neighborhoods continue to suffer from the consequences of disinvestment and abandonment. Although many revitalization strategies must be employed to make our neighborhoods viable again, community-based economic development efforts must become a strategic priority. This manual explains several tools, how to use them, and when they can be most effective. This toolbox does not include every resource that could be utilized. Hopefully, we will continue to add to the programs that can be tapped by neighborhood associations and Community Development Corporations as they increase their capacity to meet neighborhood development needs. The effective use of any of these tools is predicated upon a comprehensive, neighborhood redevelopment plan. There must be a shared vision among neighborhood stakeholders of what improvements are needed and how the neighborhood should look. Only then can the appropriate tool be selected to accomplish the needed improvement. For example, an abandoned piece of property on a block that needs to be redeveloped so that it fits with the neighborhood vision could come under the Brownfield Redevelopment Authority. The chances of the property being accepted by the Authority are greater if the applicant demonstrates how redevelopment fits into an over-all neighborhood development plan. I hope you find this manual useful as you undertake community-building activities. Sincerely, Carol L. Townsend Director MSU Center for Urban Affairs-Grand Rapids

Community-Based Economic Development For

Grand Rapids Central City Neighborhoods

MSU Urban & Regional Planning Practicuum Erin Kilpatrick Ron Malega Siew Tan

April 19, 1999

Acknowledgements We would like to recognize the efforts of the many people involved in producing this manual. Without their help this manual would not be possible. Special regards to Carol Townsend, Director, Michigan State University Center for Urban Affairs, Grand Rapids, Michigan, for all her guidance, motivation, and patience throughout the semester. We would also like to thank the City of Grand Rapids’ staff Beth Byron, Kurt Mai, Steve Pierpoint, Susan Shannon, Kenneth Schilling and Dan Oegema. Rick Chapla of The Right Place was very help-ful with information and resources. We appreciate the guidance and support received from Dr. Rex LaMore and Dr. Zenia Kot-val. Last, we wish to express our appreciation to the many Neighborhood Association Directors who took time from their schedules to meet with us: Paul Haan of the Creston Neighbor-hood Association, Danielle Bult of the Garfield Park Neighbor-hoods Association, Peggy Watson of the South East End Neighborhood Association, and Sandy Stuckhardt of the West Grand Neighborhood Organization.

This publication was funded through a grant from the Frey Founda-tion. The grant funded the “United Growth for Kent County – A Com-munity-Based Approach to Sustainable Regional Development” project. This is a joint project of MSU Extension and MSU Center for Urban Affairs. This project links urban reinvestment efforts with farmland preserva-tion and community planning efforts. For more information, contact: MSU-West 5 Lyon N.W. #110 Grand Rapids, MI 49503 (616)458-6805

Table of Contents

Executive Summary 3 Introduction 4

Who This Manual Will Help 4 How to Use the Manual 4

Capacity Building 5 The Bridge 5

What is Community Economic Development? 6

Goals of CED 6 CED Categories 6

Economic Development Toolbox 7 Matrix of Tools 8 Brownfield Redevelopment Authority 9 Homeownership and Housing Rehabilitation 11 Small Business Support 14 The Renaissance Zone 18 Business Assistance Matrix 20

Final Thoughts 21 Appendix

List of CDBG Funded Neighborhood Associations CDBG Area Map

Index

Executive Summary Community-Based Organizations (CBOs) come in a number of forms and are involved in a range of activities. These organizations in Grand Rapids have a difficult time accessing the appropriate tools to per-form community economic development. In part, neighborhood organizations lack the capacity to take on complex Community Economic Development (CED) projects. However, some CED may be achieved through the utilization of available tools. Residential Housing Development, Commercial and Industrial Development, Worker Development, and Business Ownership have been identified as areas of CED in which neighborhood organizations can play an active role. This manual explains how such or-ganizations can affect the aforementioned areas through the use of the following ‘tools’:

♦ Brownfield Redevelopment Authority ♦ Homebuyer Assistance Fund ♦ Housing Rehabilitation Programs ♦ Michigan Historic Preservation Tax Credits ♦ YouthBuild ♦ Community Development Corporations ♦ Micro Loan Programs ♦ Urban Business District ♦ Small Business Assistance Programs ♦ Business Incubators ♦ Tax Abatements ♦ Renaissance Zone

Page 3

Introduction Neighborhoods are the basic building blocks of cities. Urban neighborhoods incorporate a wide range of uses and can differ greatly in almost all measurable characteristics. Neighborhoods are dy-namic in that each experiences constant inflows and outflows of residents, materials, and money. Conse-quently, neighborhood stability is dependent upon balancing these opposite flows. Community economic development is designed to develop a sustainable, balanced community. Who This Manual Will Help This manual is targeted at Neighborhood and Community-Based Organizations (CBOs) in Community Development Block Grant (CDBG) Targeted Areas in Grand Rapids (see map in Appen-dix). It is important to recognize that this workbook can not address every aspect of Community Eco-nomic Development (CED). CED is a complex sub-ject. This manual focuses on organizational capacity building, CED, and some of the tools that commu-nity-based organizations may use to encourage CED. How to Use the Manual The manual is presented in five sections: 1 Introduction 2 Organizational Capacity Building & The Bridge 3 What is Community Economic Development 4 The Toolbox 5 Final Thoughts

Section One- Introduction includes an introduction to the manual, an explanation of who it will help, and how to use it. Section Two- Capacity Building. “The Bridge” recommends five components of capacity that are vital to enabling a CBO to perform economic development activities. While this section does discuss how to pre-pare your organization for community economic devel-opment, it does not define which organizations should attempt CED or what their role in an economic devel-opment program should be. The manual leaves this question for you to decide. Section Three- CED defines Community Economic Development and explains the goals that drive such ac-tivities. The manual breaks CED activities down into categories and briefly explains each. Section Four- Toolbox. Provides a list of tools that enable CBOs to perform Community Economic Devel-opment. Each section provides a description of the tool, how it may be accessed, and who to contact for more information. Contents of the Toolbox are indi-cated by the following symbol: Section Five- Final Thoughts. This section offers a brief wrap up of Community Based Economic Development in Grand Rapids.

Page 4

Community Based Economic Development Strategies

for Grand Rapids Central City Neighborhoods

Section 1 – Introduction

Capacity Building In order for organizations to improve their efficiency and success rate, it is important to have a good understanding of organizational capacity. Before your neighborhood or community-based organization attempts to perform CED activities, it is crucial to conduct a self-evaluation. Some important questions to answer are: ♦ What is your organization’s role in the

community? ♦ What does the organizational mission statement indi-

cate? ♦ What are your organization’s goals for the

neighborhood? If your organization determines that Community Economic Development falls within its defined role, mission, and goals, then keep reading. The next step in the process is understanding the five components of ca-pacity that are vital to CED. These five components build a “bridge” to CED and enable an or-ganization to be successful.

The Bridge – A Checklist Evaluate your organization to determine if you are able to complete all of the following steps.

Ability to Plan Effectively: CBOs need to develop a strategic plan for their geographic area and create a vision for the neighborhood. This includes gathering information from residents, neighborhood business owners, and other neighbor-hood stakeholders and involving them in the visioning process. Additionally, this means identifying assets and opportunities for programming, partnering and capacity building.

Ability to Secure Resources: CBOs need to create a relatively stable funding base without wide annual fluctuations. Most CBOs need to seek external support such as grants, loans, con-tracts, and technical assistance to accomplish their objectives as well as develop internal fund-raising ability.

Strong Internal Management: The manage-ment arm of a CBO must be able to manage re-sources, account for funds, continually commu-nicate with staff, assemble stakeholders, and re-flect sound business principles of accountability that can support multiple CED programs.

Program Delivery Capacity: This means that an organization needs to be able to see a pro-ject through from beginning to end. This in-cludes planning, development, marketing, and the ongoing management of the project. A CBO should be able to estimate program out-comes, meet expectations, and involve residents in all aspects of the project.

Ability to Network: Let other groups help you. A CBO has multiple roles and activities and it is important that you utilize the resources provided by other organizations. Both public and private entities can aid in accomplishing revitalization goals. Partner with housing builders, human re-source providers and any group that has success-fully provided services that require technical training.

Page 5 Section 2 – Capacity Building

What is Community Economic Development? Most publicly sponsored economic development activities are initiated by government agencies which tend to target broader regions than neighborhoods. Consequently, neighborhoods are not always afforded the opportunity to participate in the planning process and are easily ‘forgotten’ in the larger scheme of re-gional economic development. For this reason, par-ticipation of neighborhood-based organizations in CED is important to ensure that the benefits of such a process are real and realized by neighborhood resi-dents and stakeholders. CED is a process by which communities can initiate and generate their own solutions to their common economic problems and thereby build long term com-munity capacity and foster the integration of eco-nomic, social and environmental objectives. Goals of CED ♦ Reduce unemployment ♦ Identify and enhance the competitive

advantage of a community ♦ Develop economically viable neighborhoods ♦ Provide goods and services locally ♦ Create opportunities for local ownership and con-

trol ♦ Build leadership and empower community

residents

CED Categories There are four general types of Community Economic Development that occur in Grand Rapids and around the nation. These activities accomplish the goals of CED. 1 Residential housing development 2 Commercial/industrial development 3 Worker development 4 Business ownership and business development Most CED activities combine two or more of the above categories. For example, YouthBuild ( a tool presented in section Four) combines worker development and residential housing development. Page 8 is a matrix of community economic development tools, broken down by the four CED categories mentioned above.

“The strength of our

neighborhoods determines the

viability of Grand Rapids as a place to

live and work.” City of Grand Rapids City Limits Newslet-ter Winter 1998-99

Page 6

Goals Of CED

Section 3 – Community Economic Development

COMMUNITY ECONOMIC DEVELOPMENT

‘TOOLBOX’

♦ Tool Description ♦ Eligibility for Tool Use ♦ How is a Tool Best Used ♦ Contacts

Page 7 Section 4 – Toolbox

MATRIX OF TOOLS Residential Housing Development

Commercial/Industrial Development

Improving Job Opportunities & Training

Business Ownership & Development

Brownfield Redevelop-ment Authority

X X

Grand Rapids Homebuyer Assistance Fund

X

Grand Rapids Housing Rehabilitation Programs

X

Michigan Historic Preservation Tax Credits

X X

YouthBuild X X

Community Development Corporations

X X

Micro Loan Programs X X

Urban Business District X

Small Business Assistance Programs

X X X

Business Incubators X X X

Tax Abatements X

Renaissance Zone X X X


BROWNFIELD REDEVELOPMENT AUTHORITY (BRA) Tool Description Brownfields are “abandoned, idle, or underused industrial and commercial properties where redevelopment is complicated by real or perceived contamination” (The Department of Environmental Quality). The Grand Rapids Brownfield Redevelopment Au-thority (BRA) is authorized by the Brownfield Redevelopment Financing Act (Act 381), Public Acts of Michigan 1996. The Authority’s aim is to “promote the redevelopment of environmentally distressed properties within the Brownfield Redevelopment Zone”(Grand Rapids Brownfield Redevelopment Plan, 1998).

The BRA uses a Brownfield Plan that may be modified as necessary in order to achieve the aims of Act 381. At present the following seven properties are listed on the Grand Rapids Plan: 1) MacDonald’s Industrial Products Property 2) Prestige Awnings property 3) Franklin Metal Trading Corporation Property 4) Cherry Street Landing , L.L.C. Property 5) Johnston Coca-Cola Bottling Group, Inc. 6) American Laundry Property 7) 56 Grandville Avenue, L.L.C. Property

A potential brownfield redevelopment site may be presented to the City and BRA for consideration.

Brownfields... “Abandoned, idle or under-used industrial and commercial properties where redevelopment is complicated by real or perceived contamina-tion”.. Department of Environmental Quality

The chances of a site being considered for inclusion in the brownfield plan may be increased through the following ac-tivities: • Formulating a development proposal (to include

potential uses of sites, community need for redevelopment, benefits of redevelopment and parties interested in redeveloping the site).

• Incorporating the proposal into the community’s eco-nomic development strategy.

• Gaining community consensus and input in support of the redevelopment goals.

• Creating site profiles: collecting detailed data on specific sites, including information about ownership, past uses and suitable potential uses.

The aforementioned activities may aid the City and the local BRA to streamline projects that neighborhoods have desig-nated as redevelopment preferences.

Once a site is approved, the BRA can then establish a Tax Increment Financing (TIF) program or tap other sources of economic development grants available from a variety of government agencies for the remediation of Brownfield sites. These funding sources include:

• The Department of Environmental Quality Grants - Site Assessment Program - Site Reclamation Program

• Community Development Block Grant Funds - Commercial and Industrial Rehabilitation/ Redevelopment Initiative - Economic Development Infrastructure Program - Economic Development Planning Program - Renaissance Fund


• U.S. Economic Development Administration - Economic Adjustment Grant - Public Works and Development Facilities Program - Planning Assistance for Economic Development - Technical Assistance Program • Michigan Department of Transportation - Transportation Economic Development Fund

Funds obtained from the aforementioned sources can be used to begin the process of remediation and redevelopment. This process will include: • Environmental Assessment • Buyer/Developer-Site Matching • Financing • Negotiating • Project Implementation Eligibility The Brownfield Redevelopment Zone incorporates all brown-field sites within the City limits. Properties included in the Brownfield Plan can benefit from the facilitation of financing environmental response activities and from tax incentives made available to property owners willing to invest in the rede-velopment of brownfield sites. Unless an organization is plan-ning to clean the property themselves, they are not eligible for funding. However, CBOs may still be involved in the planning process which may enable developers to acquire funds.

How is this Tool Best Used? The Grand Rapids BRA is a relatively new entity. Properties presently included in the Brownfield Plan are in the initial stages of the remediation and redevelopment process. The BRA functions as a centralized resource and mechanism for accessing funds and expertise with regard to brownfield redevelopment. It is in this way that neighborhood associations and other CBOs should seek to utilize the BRA when their economic development strategies call for the following elements:

• Small Business Development Many small parcels that are considered brownfield sites are not suitable for large scale development, however, the remediation of a number of small parcels of land has the potential for usage by smaller businesses. This may in turn improve local job opportunities.

• Aesthetic, Health and Safety Improvements To Commercial and Residential Areas A number of city neighborhoods struggle with maintaining their physical appearance and preventing blight from becoming widespread. The redevelopment of brownfield sites can improve aesthetics and the perception of residents and out-siders of these neighborhoods, thereby providing incentives for existing residents and businesses to remain, and for new residents and businesses to locate in central city neighborhoods.


Neighborhood associations that are interested in carrying out redevelopment have the opportunity to affect the redevelopment process by attending BRA public meet-ings, which are held monthly. The meetings are a forum for the discussion of ongoing and future plans. The BRA wel-comes public participation. Involvement in this process may consequently allow neighborhoods greater access to brownfield funding and resources. In addition, it will keep neighborhoods informed about what is happening through-out the community.

Contacts Rick Chapla Brownfield Redevelopment Authority Redevelopment Specialist The Right Place Program 111 Pearl NW Grand Rapids, MI 49503 Phone: 616/771-0328 Publication: Grand Rapids Brownfield Redevelopment Plan, 1998.

Publication: Brownfield Redevelopment Guide, 1997 Consumers Renaissance Development Corporation 212 W Michigan Avenue Jackson, MI 49201 Kelly Feneley: 517/788-7201 Greg Norththrup: 517/788-2111 Bruce Rasher: 517:/788-0331

Environmental Response Division Michigan Department of Environmental Quality P.O.Box 30426, Lansing, MI 48909 Phone: 517/373-9837

HOMEOWNERSHIP AND HOUSING REHABILITATION In many central city neighborhoods the high number of rental properties negatively impacts neighborhood stability. Increased homeownership and housing reha-bilitation are strategies that may improve neighbor-hood stability. The following programs have been identified as tools designed to improve the housing stock and encourage homeownership in Grand Rap-ids’ central city neighborhoods: Grand Rapids Homebuyer Assistance Fund (HAF) Tool Description This program provides homebuyers with downpayment and closing cost assistance (up to $3,000) for the purchase of a home. Areas with the greatest share of Homebuyer Assistance Fund pur-chases include the Garfield Park and West Grand neighborhoods. The program has been very successful and further funds are being applied for by the City. Homebuyers submit their HAF application along with their mortgage application to their mortgage lender, who will forward the application to the Community Development Office at City Hall. Once approved, HAF funds are available upon closing.


Eligibility • Households must be of low or moderate income

(earnings of up to $40,000 for a family of four), and first time homebuyers.

• Properties must be 1 or 2 bedroom homes. Homebuyers must complete a home-buying education course.

How is this Tool Best Used? Neighborhoods experiencing problems of physical deterioration, crime, building code violations, a poor sense of community and other issues associated with neighborhood instability may find this tool useful. Contact City of Grand Rapids Housing and Community Development Offices 300 Monroe NW, Grand Rapids, MI 49503 Phone: 616/456-3445 Grand Rapids Housing Rehabilitation Tool Description

• THE HOUSING REHABILITATION PROGRAM pro-vides financial assistance for immediate health/safety concerns, exterior code violations, treatment of haz-ardous materials and other repairs to low and moder-ate income owners of homes in Specific Target Areas (see map in Appendix).

• THE ELDERLY/DISABLED HOMEOWNER REHABILITATION PROGRAM provides financial as-sistance for housing rehabilitation to qualifying low and moderate income elderly or disabled households in the General Target Area (see map in Appendix).

• THE RENTAL REHABILITATION PROGRAM provides financial assistance for the rehabilitation of rental properties occupied or to be occupied by low income tenants.

• THE NEIGHBORHOOD REHABILITATION PROGRAM provides one-time seed funding and capitalization of rehabilitation services to compli-ment ongoing City Code Enforcement Team ac-tivities. Applications for the programs are to be made through the City Neighborhood Improve-ment Department.

How are these Tools Best Used? These programs are of particular use in low income neighborhoods experiencing disinvestment and physical decay.

Contact City of Grand Rapids Neighborhood Improvement Department, Housing Rehabilitation Division 1120 Monroe NW, Grand Rapids, MI 49503 Phone: 616/456-3030 Michigan Historic Preservation Tax Credits Tool Description This program provides financial incentives to commercial and residential properties to rehabilitate historic property. The program covers tax years 1999, 2000, 2001 & 2002. Credit may be up to 25% of the taxpayers’ qualified rehabilitation expenditures, and applies to the Michigan Single Business Tax and Michigan Income Tax.


This tool can help prevent physical decay and also help create mixed income housing opportunities in a neighborhood. Middle income homeowners are eligi-ble for the tax credits. Lower income homeowners can use these tax credits in conjunction with other rehabilitation programs. Residents and businesses of Historic Districts, such as Wealthy S.E., can access funding to maintain and renovate their houses.

Eligibility • Projects must be certified by the State Historic

Preservation Office. • Properties need to be listed in the national or state

registers, or within a registered historic district. • Expenditures must be for work that is performed in

conformance with the Secretary of Interior’s Standards for Rehabilitation.

• Certification must be obtained from the Secretary of Interior confirming that the project’s rehabilitation plans conform to standards.

• Upon project completion, the work must be reviewed to ensure standards have been met.

How is this Tool Best Used? With regard to central city neighborhoods, this tool is appropriate for use by middle income households who are able to put up front a sum of money for home rehabilitation .

Contacts Alice Bushong City of Grand Rapids Planning Department 300 Monroe NW Grand Rapids, MI 49503 Phone: 616/456-3031

The State Historic Preservation Office Phone: 517/373-1630 http://www.sos.state.mi.us/history

Secretary of the Interior’s Standards for Rehabilitation National Park Service Heritage Preservation Services Phone: 202/343-9578 http://www.cr.nps.gov

National Trust for Historic Preservation Community Partners Program Phone: 202/588-6000 http//www.nationaltrust.org YouthBuild Tool Description This program is a method of constructing and rehabilitating homes in low income communities, while providing meaningful work opportunities and training for young people in their communities. Admin-istered by YouthBuild U.S.A., parties interested in set-ting up a program need to register with YouthBuild and will subsequently receive information on how to start a program in a specific community. HUD supplies grants to organizations taking on Youthbuild projects. For Grand Rapids information, organizations should contact the Grand Rapids HUD Office.


YouthBuild is currently not used in Grand Rapids, but has been used successfully in other urban areas in Michigan to revitalize economically distressed commu-nities through homeownership and rehabilitation strategies, as well as the provision of employment op-portunities.

Eligibility Youth in areas where YouthBuild Programs operate can take part in programs in their communities. Any organization that wishes to establish a program is eligi-ble to do so. How is this Tool Best Used? The YouthBuild Program would be applicable in most central city Grand Rapids neighborhoods to maintain and improve housing stock, and to possibly increase homeownership. Furthermore, it provides the oppor-tunity to increase community involvement (particularly among a community's youth), which is something that many neighborhood organizations are striving to achieve.

Contacts YouthBuild U.S.A. 58 Day Street, P.O.Box 440322 Somerville, MA 02144 Phone: 617/623-9900

Grand Rapids HUD Fred Washington Community Development Coordinator Phone: 616/ 456-2100

SMALL BUSINESS SUPPORT In Grand Rapid’s central city neighborhoods, small businesses play an important role in servicing local residents. Increasing the variety of services to meet the demand of the local communities may reduce the amount of local household income flowing out of these communities. The following tools are designed to support small business development in economically challenged areas:

Community Development Corporations (CDCs) Tool Description CDCs are tax-exempt non-profit organizations that generally focus on projects within a single geographical area. Residents from that geographical area usually compose a majority of the Board of Directors. CDCs can perform a variety of functions: • developing small business loan programs • small business promotion and marketing • expanding consumer markets for local foods and

products • affordable housing development • providing housing initiatives for first time

buyers

Four CDCs currently operate in Grand Rapids. They are: • Heartside Non-Profit- The Dwelling Place

339 S. Division Avenue Grand Rapids, MI 49503 Phone: 616/454-0928


• West Grand CDC 650 Stocking N.W. Grand Rapids, MI 49504 Phone: 616/431-2291

• REACH- Messiah Baptist First Church Development 331 Henry Street S.E. Grand Rapids, MI 49503 Phone: 616/235-0455

• Garfield Development Corporation 1725 S. Division Avenue Grand Rapids, MI 49507 Phone: 616/248-3235

How to access a CDC is dependent upon the organization’s goals. If an organization wishes to utilize the services of a CDC, the aforementioned CDCs may be of use. If an organization wishes to form their own CDC, the Local Initiatives Support Corporation (LISC) can be a resource.

Eligibility Non-profit organizations, community-based groups, churches and other faith-based organizations are eligi-ble to form a CDC.

How is this Tool Best Used? CDCs have become a vital tool in all areas in need of community-based housing and economic development. Contact Local Initiatives Support Corporation 33 West Fulton Grand Rapids, MI 49503

Phone: 616/459-9050 Micro Loan Programs Tool Description Micro Loan programs are nonprofit financial intermediaries targeting impoverished communities and populations. They provide small loans and technical assistance to budding businesses enabling growth and expansion. In Grand Rapids, loan amounts generally range from $500-$10,000. The Micro Loan Fund Program is administered by the Grand Rapids Urban League.

Eligibility • Funds must be used to start or expand small

businesses in the Grand Rapids central city area. • The business cannot have more than five

employees. • The enterprise must have a business plan. The

program helps applicants produce one. • Applicants must obtain technical assistance with

financial management. The program covers the cost of this help.

How is this Tool Best Used? This could be a particularly useful tool in some Grand Rapids neighborhoods where their commercial dis-tricts are experiencing increasing vacancy rates. This tool may encourage the expansion of existing busi-nesses into the vacant buildings or the attraction of new businesses into vacant spaces. Neighborhoods aiming to provide a greater variety of services in their business districts can use this tool to further their goals.

Contact Daniel Autamashih Grand Rapids Urban League Inc. 745 Eastern Ave. SE Grand Rapids, MI 49503


Phone: 616/245-2207 ext.35 Urban Business District Tool Description An “Urban Business District” Zone has re-cently been proposed by the City. The UBD re-sembles the Traditional Business District in many ways, but is less rigorous with regard to building and area regulations. UBD is a form of zoning which provides neighborhood-oriented retail and service uses. It is similar to Grand Rapid’s C2 (Community Commercial Zone). A UBD zone allows uses that are suited to the physical design of the buildings in the business district and that are compatible with adjoining uses. The district is intended to pro-tect the traditional character of the area and to encourage pedestrian access and use of the business district. The preservation and reuse of existing building stock is of primary impor-tance. Eligibility Please refer to the Grand Rapids City Code, Ar-ticle 16A, p.1735 for eligible land uses for the Zone under Traditional Business Districts.

How is this Tool Best Used? Central city neighborhoods experiencing diffi-culty maintaining their neighborhood character may find this tool of use. The differences be-tween this Zone and Grand Rapid’s C2 zone are mainly with regard to building regulations (height, width) and area regulations (lot cover-age, setback). The UBD imposes greater restric-tions in these respects and provides more con-trol over the area’s characteristics.

Contact Kenneth Schilling Assistant Planning Director City of Grand Rapids Phone: 616/456-3031

Small Business Assistance Programs Tool Description The following programs are administered by the Small Business Administration of the federal govern-ment: • SMALL BUSINESS INVESTMENT COMPANIES

(SBIC) AND MINORITY SMALL BUSINESS INVESTMENT COMPANIES (MSBIC) are privately owned and operated organizations that use capi-tal funds borrowed from the SBA to provide fi-nancing to small businesses in the form of equity securities and long term loans.

• LOAN GUARANTEES are available for business purposes. Loans are guaranteed for up to $750,000.

• WOMEN’S BUSINESS OWNERSHIP offers training and counseling in business management and ownership along with help obtaining SBA guaranteed loans.

• MINORITY ENTERPRISE DEVELOPMENT helps provide government contracts for socially and economically disadvantaged businesses.

Eligibility Specific requirements for obtaining loans vary, depending on the program, the amount of the loan and the business being established or expanded. How are these Tools Best Used?


These tools are best used to encourage the expansion and attraction of small businesses to neighborhood downtown districts that are striving to increase the usage of the district by residents through the provision of a greater variety of services.

Contact Small Business Development Center Eberhard Center 301 West Fulton Grand Rapids, Michigan Phone: 616/771-6693 Business Incubators Tool Description Business incubation is a dynamic process of business enterprise development where young firms are nurtured and supported through the start up period when they are most vulnerable. Incubators provide hands-on management assistance, access to financing and orchestrated exposure to critical business or technical support services. Shared office space, office services and flexible leases are also made available to these businesses.

Eligibility Start-up entrepreneurs are eligible for the building space and training services provided by incubators.

How is this Tool Best Used? Incubators are best used in areas where tax breaks or incentives are offered by the City. A number of incubators in Grand Rapids are currently located in

Since 1975, the City of Grand Rapids has granted $943 million in tax abatements that have resulted in 11,474 new jobs. Grand Rapids Business Journal 1998-1999

Renaissance Zones but do not have training or manage-ment support associated with the assistance.

Contact Rick Chapla Redevelopment Specialist The Right Place Program 111 Pearl NW Grand Rapids, MI 49503 Phone: 616/771-0328 A Small Business Assistance Matrix follows this Toolbox. The Matrix provides information about business assistance organizations, their service area, clientele, and type of assistance provided. Tax Abatements Tool Description Tax abatements are government sponsored tax elimination or reduction programs. This tool may be used for the expansion of industrial firms within central city neighborhoods. • An application must be submitted to the City for a

plant rehabilitation or industrial development district designation.

• Once this application is approved, a public hearing will be held where the developer presents the project to city commissioners.

• If the application is ratified by the commission, a pro-ject application is then filed to get the tax amount abated.

• Another public hearing is subsequently held. Upon ap-proval, the application is sent to the State Tax Com-mission for endorsement.

Eligibility


Available to firms that will add jobs to the workplace, meet Equal Employment Opportunity criteria, and invest at least $600,000. How is this Tool Best Used? Central city neighborhoods that are aiming to attract activity to industrial parcels of land may find tax abatements an appropriate locational incentive. Contact City of Grand Rapids Ellen James and Dorothy Knapp Equal Opportunity Department Phone: 616/456-3027 Clyde Kimball Assessor’s Office Phone: 616/456-3296

Dan Oegema Planning Department Phone: 616/456-3681

THE RENAISSANCE ZONE Tool Description Renaissance Zones are select geographic areas approved by the State of Michigan where businesses and residents are exempt from paying the Michigan Single Business Tax, Michigan Personal Income Tax and the City Income Tax. The exemptions are a powerful market-based incentive to spur new jobs and investment.

The Grand Rapids Renaissance Zone covers six areas, covering a total of 536 acres (Please see map on page 19). The tax exemptions took effect in Janu-ary of 1997 and will last until the year 2012. A grad-

ual phase-in of taxation will begin in the year 2009. Those choosing to relocate in the Zone must meet no-tification requirements laid out in the law. The Ren-aissance Zone is administered by the City and the Michigan Economic Development Corporation (formerly the Michigan Jobs Commission). Eligibility • Businesses and residents must be located within the

designated Renaissance Zone areas. • In order to receive the benefits, business must not

be delinquent in state or local taxes abated by the Renaissance Zone Law.

• Businesses need to file annual Single Business Tax Returns, City and State Income Tax returns.

• Personal property needs to have been located in the Zone at least 182 days in the calendar year immediately preceding the year in which the exemption would apply.

Contact Michigan Economic Development Corporation 201 North Washington Square Victor Center, 4th Floor Lansing, MI 48913 Phone: 517/373-9808

Michigan Department of Treasury Bureau of Revenue Individual Taxes Division Treasury Building 430 West Allegan Street Lansing, MI 48922 Phone: 517/373/1426

City of Grand Rapids, Business Advocate 300 Monroe, NW


Grand Rapids, MI 49503


Business Assistance Organizations

Service Area Clientele Technical Assistance Training

City of Grand Rapids City of Grand Rapids & Any business in the city Limited – mostly referrals None

Economic Development Foundation

Kent County & 13 other counties

Small businesses using the SBA 504 Loan Pro-

Help with loan applica-tions, referral to loan

None

Entrepreneurship Center/GVSU

West Michigan Small business owners Through students at GVSU

Topic oriented

Family Business Counsel West Michigan Family members within a family owned business

None at present Topic oriented

Grand Rapids Area Chamber of Commerce

Kent County & Eastern Ottawa

Small business owners Business Services None

Grand Rapids Opportuni-ties For Women (GROW)

West Michigan focusing on Kent County

Focus on women below median income level

Business Counseling Specific courses

Hispanic Center of West Michigan

West Michigan Open to the public Referrals None

Michigan Minority Busi-ness Development Center

616 Area code Members of MMBCD Referrals None

Neighborhood Business Specialists Program

City of Grand Rapids CDBG Target Area

Neighborhood businesses & business associations

Economic development assistance

None

The Right Place Program Kent County Primarily existing businesses

Business Counseling

Service Corp of Retired Executives (SCORE)

Kent County Start ups, existing businesses, expansions

Financial management, marketing, purchasing

Business skills workshops

Small Business Development Center

Kent, Ottawa, Muskegon Counties

Start ups and existing small businesses

Business start up & growth counseling

Market research, plan-ning, accessing capital

Grand Rapids Urban League

CDBG Target Area Target Area residents Business plan writing Business Development

Grand Rapids Business Assistance Matrix Page 20

FINAL THOUGHTS

Maintaining a neighborhood that is a good place to live takes time, energy, and resources. Neighborhood groups all over the country are thriving by strategically planning, utilizing their resources, and “building the bridge” towards economic development. Once your group has reached the necessary level of capacity, this manual should help you keep your neighborhood economically healthy and assist in revitalization. The manual is intended as a resource to support you in the Community-Based Economic De-velopment process. The longest journeys to redevelopment must begin with the first step. YOU have to take that step. Good luck!

Page 21 Section 5 – Wrap Up

CDBG Funded Neighborhood Associations Baxter Neighborhood Association 456-6033 Creston Neighborhood Association 454-7900 East Hills Neighborhood Association 454-9079 Eastown Community Association 451-3025 Garfield Park Neighbors Association 241-2443 Heritage Hill Association 459-8950 Madison Area Neighborhood Association 458-3574 Midtown Neighborhood Association 243-2489 Neighbors of Belknap Lookout 454-8413 Roosevelt Park Neighborhood Association 243-2489 South East Community Association 245-4398 South East End Neighborhood Association 247-0900 Southwest Area Neighbors 456-9190 West Grand Neighborhood Organization 451-0150

APPENDIX

Abatements 17 Acknowledgements 1 Bridge, the 5 Brownfield Redevelopment Authority (BRA) 9 Business Incubators 17 Business Improvement Matrix 20 Capacity Building 5 City of Grand Rapids Offices Business Advocate 18 Equal Opportunity Department 18 Housing Office 12 Neighborhood Improvement Department 12 Planning Department 13 Community Development Block Grant Funds 9 Community Development Corporations (CDC) 14 CDBG Neighborhoods 22 Community Economic Development (CED) 6 CED Categories 6 CED Goals 6 Department of Environmental Quality 9, 11 DEQ Grants 9 Dwelling Place 14 Elderly & Disabled Homeowner Rehab Programs 12 Executive Summary 3 Final Thoughts 21 Garfield CDC 15 Goals of CED 6 Grand Rapids Homebuyers Program 11 Grand Rapids Housing Rehab Program 12 Homeownership 11 Housing Rehab 11 How to use the Manual 4 HUD 14 Incubators 17 Introduction 4

LISC 15 Loan Guarantee 16 Matrix of Tools 8 Michigan Department of Transportation 10 Michigan Historic Preservation Tax Credit 12 Micro Loan Program 15 Minority Enterprise Development 16 MSBIC 16 National Trust for Historic Preservation 13 Neighborhood Associations 22 Neighborhood Rehab Program 12 Neighborhoods 4 Organizational Capacity Building 5 REACH 15 Renaissance Zone 18, 19 Rental Rehab Program 12 Right Place, the 11, 17 Secretary of Interior 13 Section 1 4 Section 2 5 Section 3 6 Section 4 7 Section 5 21 Small Business Association Programs 16 Small Business Development 10, 14 Small Business Support 14 SBIC 16 Table of Contents 2 Tax Abatements 17 Toolbox 7 Urban Business Districts 16 Urban League 15 US Economic Development Administration 10 West Grand CDC 15 Who this Manual Will Help 4 Women Business Ownership 16 YouthBuild 13

Index

Documents

community development guide