Wither the State-Local Partnership for Economic Development?

Jobs and economic development are the first and second goals of policy makers in Michigan, at both the state and local levels and in both the public and private sectors.  In the last few years the State of Michigan has mounted a successful program to reform its tax code to promote economic growth.  The dramatic shift has been away from relying on tax breaks targeted to specific companies to a more general approach to reduce taxes on all forms of economic activity.  The next step in this reform is a proposal to eliminate the Personal Property Tax (PPT) which falls largely on industrial equipment used in manufacturing.  Michigan is one of only a few states in the Midwest to have such a tax, and Governor Rick Snyder correctly points out that eliminating this tax will provide a financial boost to both existing and new companies.

The challenge to local governments, including schools, is that they rely on the revenues from these property taxes to provide the services with which they are responsible to provide.  While the City of Owosso is not as dependent on these revenues as some local governments, we do receive more than $218,000 annually in personal property taxes.  This represents about 3.4% of our estimated revenues of $6.38 million in the coming fiscal year.  Of course, in a time when the City is extremely conscious of every dollar in our budget, any six-figure cut is difficult to deal with.

Because of the potential impacts on local government budgets, several organizations have called on the Michigan Legislature to "Replace Don't Erase" the personal property tax (there is even a website with that  name that provides background information).  Current proposals in the legislature would phase in the elimination of the PPT by starting with only small businesses, and postponing future cuts.  If enacted, this would limit Owosso's hit to only $32,000 in 2012-13 (about what the City invested in Bentley Park and Kiwanis Ballfield improvements).  Future impacts are hard to gauge because most of the current proposals involve complex calculations and record-keeping (that would impose a burden on the City and/or the State Treasurer to administer), but no clear replacement scheme has yet to be adopted by any legislative body.

What role for local government in economic development? is the bigger question raised by the reforms that the State is pursuing.  Traditionally, local governments like Owosso have worked in partnership with the State in promoting specific projects to create new jobs, encourage the expansion of local businesses, or make infrastructure or downtown improvements to boost the attractiveness of a market for new private investment.  With Governor Snyder's first budget, several tools used in these economic developments ventures were eliminated (see my earlier post on the loss of tax credits and my post on state budget changes), along with several hundred thousand dollars in revenue sharing the State formerly passed on to Owosso.  While both the State and local governments as a whole may likely end up enjoying more economic growth, and accompanying increases in tax revenues, from the total package of tax reforms, the immediate effect was to end lots of local specific projects (such as the rehabilitation of historic structure in downtown Owosso) and put a strain on our ability to deliver services.

The elimination of the personal property tax would take away another local economic development tool: the use of tax abatements on new investments in manufacturing equipment or building renovations.  Owosso has long used these provisions in state law to provide incentives to private job providers.  In the last two years, we have used this program to assist a major manufacturer in the County expand into a new facility in Owosso, help a software security firm add to its employment, and subsidize a new company to move into an abandoned downtown building and create new jobs.  Importantly, the City of Owosso has adopted its own policy in the use of PPT abatements that gives preferences to companies that create higher paying jobs, employ Owosso residents, and/or have been in business in the community for several years or more.  State legislation which would end the PPT would negate the effect of this state-local economic development incentive.

Small Places are Important.  Recently, we in Owosso were proud when the Director of the Michigan Economic Development Corporation (MEDC) visited our community (see news coverage here).  Mike Finney made the case for the State's tilt toward "economic gardening" with cogent arguments, powerful statistics, and specific anecdotes.  In response to my question about the role of local government he also gave an effective answer about the State's support for regional economic development efforts, something the City of Owosso has formally chosen to participate in.  However, he was not able to identify what region Shiawassee County was part of . "Are you in the Lansing region?  Or Genessee County? or with Saginaw?" (In fact, we are part of the five-county I-69 corridor effort which stretches from Shiawassee to St. Clair Counties).  I am not critical of the lack of geographic knowledge, but it does feed into my fear that small places like Owosso are easily forgotten by State agencies that are trying to capitalize on research driven growth, save struggling urban centers, and respond to demands from more populated areas.

There have been repeated statements from the Snyder administration and some Republican legislators about their preference to directly invest state dollars, rather than use tax breaks, for specific economic development endeavors, including place-making efforts in downtowns.  Again, they make a strong intellectual case for the wisdom of this approach, but we have yet to see any of these limited dollars.  In a state with pressing needs, it may be hard for Owosso to make the case that we deserve a share (though I would like to have the chance to try).  However, it tough to lose the few local economic development tools we have so that incentives can be directed to large companies and large cities in areas that will not likely directly benefit our local economy.

Local economic development efforts, especially those that involve both the private sector and local government, are unique in their ability to understand the particular needs of local companies, to direct private investments that further public objectives (such as maximizing use of local infrastructure),  and to support local entrepreneurial efforts.  The State needs to take a large-scale perspective that compares Michigan's tax structure to competing states; local governments need to be involved in the specific development projects where jobs actually are created.   While the Legislature and the Governor are attentive to the former, they also need to be cognizant of the important functions that local governments play in economic development.

Replace, and Reward.  I support the proposal to eliminate the Personal Property Tax to the degree that it will encourage further private investment and growth.  However, I believe two things are necessary to keep local governments like the City of Owosso as partners in economic development efforts.  First, we need to have our lost revenue replaced.  The proposed first year hit may seem small, but it happens to be just about what we invest annually in the Shiawassee Economic Development Partnership (SEDP), the public-private body that represents us in regional efforts, works with MEDC, and assists local companies grow.  In order to accommodate the loss in tax revenues, should Owosso step back from its role of being the largest supporter of  SEDP?  A larger reduction in local revenue will surely necessitate more painful cuts in services and higher taxes and fees. (Note: the City of Owosso has managed its finances very well. Despite cuts in State support, we have maintained a reserve fund, have no large unfunded pension liabilities, and employees make significant contributions to their health care payments; we cooperate financially with neighboring units of government)

Secondly, if the PPT is done away with or not, I would like the State to reward or encourage local governments to be active in economic development.  Because we believe the development of our local community and our regional and state economy go hand-in-hand, the City of Owosso has not only invested in the SEDP, we have hired professionals to assist and promote economic growth.  As well, we scratch at our budget annually to find a few dollars to make investments in roads, parks, and other infrastructure necessary for a healthy community. We have managed this level of emphasis for the last several years through difficult budget decisions; further cuts will make it even more difficult to maintain our momentum.  As the State takes an appropriate big picture view of the economy, it would be nice if some of the small places and small players be recognized and rewarded for their commitment to Michigan's future.

Shiawassee In Motion 1.0

Leadership can come from government, but more likely the initiative, commitment, and team effort that defines community leadership comes from citizens and the groups they are a part of. We have seen that in Owosso around the creation of a dog park, historic preservation of downtown, several community actions to promote bicycling, and many other initiatives (click on links to learn some of the specifics). Local government can play a role in convening citizen groups, adopting plans and policies to provide guidance, and by employing certain tools (ordinances, financing, grants) for community change. However, the leadership typically comes from residents with a passion for a cause, local organizations with the capacity to carry out a mission, and from change agents young and old, wise or brash.

Sub-Regional Planning is perhaps the most recent, comprehensive effort to coalesce leadership for community improvement. Championed by the Shiawassee Regional Chamber of Commerce and using the expertise of the the Land Policy Institute of Michigan State University, a group of citizens and leaders from throughout Shiawassee County have been meeting for the last year to learn more about our changing economy, to identify the assets and challenges of our County, and to develop a plan to guide local actions and advocacy. While governments, including the City of Owosso, were involved in this work, it was largely driven by leaders of local organizations and businesses and by interested and engaged citizens. As such, the final plan, entitled Shiawassee In Motion 1.0, is a well-articulated, and informed, statement of community desires.

Shiawassee In Motion 1.0 identifies six focus areas for action and lists several potential initiatives that can be undertaken by the public and/or private sector working in conjunction with local citizens. The focus areas are:

1. Improve Collaboration, Cooperation and Communication between Governments. This has been a goal of several of us on the Owosso City Council and this plan may open up avenues by which we might work with our neighbors and other local governments in Shiawassee County. We need to find ways to better, and more cost-effectively, provide municipal services, spur economic growth, and improve the quality of life for all residents of the County. The first step is the proposed creation of a Shiawassee Intergovernmental Collaborative to bring cities, villages, townships, and County government together.
2. Assist, Accelerate, and Attract Business and Support Innovation and Entrepreneurs. This goal builds on the work of the Shiawassee Economic Development Partnership (SEDP) and the Shiawassee Regional Chamber of Commerce. Our educational institutions, including Baker College, will also be involved in this effort. An initial goal is to build one or more business incubators in Owosso and other cities.
3. Support, Develop, and Leverage our Green Infrastructure. Our natural resources, working agricultural lands, and several rivers form the basis of our green infrastructure that we as a community should use to promote recreation and a higher quality of life, build on our historic--but ever-evolving-- agricultural economy, and help define us a place. The City of Owosso has taken a first step by convening local governments to see where we might collaborate on parks and recreation.
4. Talent Creation and Retention is key to the New Economy of the 21st Century. We have strong schools, but we need to add components that help students develop technical and other career-related skills. Early childhood education is an important component.
5. Placemaking also helps recruit and retain talented individuals of all ages, but particular attention need to be paid to creating a place that appeals to those in their 20s and those starting young families. Specific placemaking initiatives include strengthening arts and entertainment opportunities, celebrating our train history to promote tourism, expanding mobility options not based on the automobile, and building youth activity centers including aquatic recreation facilities.
6. Market, Brand, and Promote the County as a Region with one Voice. Several participants in the process repeatedly identified the need for all of us in Shiawassee County to speak with a unified voice and to work with one another, and not against each other. A first step is to expand the role of the Shiawassee Convention and Visitors Bureau.

Owosso , other communities, and the County as a whole need to position themselves to take advantage of the New Economy that depends on talent, innovation, a global perspective, and entrepreneurialism. Mark Wyckoff, the planning guru from the Land Policy Institute, congratulated the citizen leaders of Shiawassee County on the cooperation and foresight shown by being just the fourth region in the state to adopt such a community-based plan. He noted our many assets, from the Shiawassee River to strong educational institutions, and stated that we as a community need to be forward thinking, welcoming of newcomers and talented immigrants, commit to lifelong learning, and create interesting places in which to live, work, and play.

As a local elected official, I feel compelled to read and respond to the recommendations of our citizens and community activists. This is where we will find leadership for, and to, the future. You to need to be involved. Call the Shiawassee Regional Chamber of Commerce (989-725-1621) to get a copy of the plan and to volunteer to be a part of moving our community forward. More information also at www.shiawassee.chamber.org

Disclosure: the planning process that led to the creation of Shiawassee In Motion 1.o was funded by the Cook Family Foundation, my employer.

Older Housing and Regulation

One of Owosso's defining features are the unique older homes that make up its neighbor-hoods. In many cases, these historic homes grace our streets and provide a wide range of housing opportunities, from restored Victorian single-family homes to affordable multi-family rentals. Unfortunately, a few of the older houses in our community have not been well-maintained, and these homes have become eyesores in the neighborhood and endanger the health and safety of their occupants. The challenge to the City of Owosso is how to prevent houses and apartments from becoming blighted. In doing so, local government must work with private property owners and establish an effective partnership with the housing industry (real estate agents, contractors, investors and financers) who of course are the engines for the rehabilitation and maintenance of housing in our community. A year and a half ago, the City Council held a special session to discuss housing (see summary here).

Aging Housing Stock. About three-quarters of the housing units in Owosso are more than 50 years old, which makes Owosso's housing stock much more like urban areas in Michigan than the rural areas and subdivisions surrounding the City (52% of the houses in Shiawassee County were built since 1960, while only 28% of Owosso's housing is less than 5o years old). Older homes go through changes as owners make repairs and upgrades, repaint, and remodel; sometimes they convert owner-occupied single-family homes to one or more rental units , or vice-versa. The role of buildings change as they age. However, older housing if not maintained begins to decay, and if electrical or plumbing systems fail, or if roof and windows begin to leak, the integrity of the structure can be compromised and the home can become dangerous or uninhabitable. Sadly, in recent years several homes in Owosso have become so dilapidated that they had to be demolished, a cost born by taxpayers and/or property owners.

Property Values. With care and attention, Owosso's older homes become historic points of pride; with uninterrupted time and neglect they become a blight on our neighborhoods. Because of Owosso's traditional town design of homes sitting forward on small lots along narrow streets, it is hard to ignore a residential structure at either extreme of condition. A recently renovated, or even painted, house can make a neighborhood look better and inspire property owners to make similar upgrades. Alternatively, a decaying house creates an atmosphere of decline that can make other homes look sad and may deter a homeowner from making new investments.

The property value of any particular home reflects, in part, the quality of homes surrounding it. Thus, many existing homeowners seek both formal and informal opportunities to urge neighbors to maintain their properties. City-administered building codes, nuisance laws, and zoning rules are among the ways that the community seeks to maintain housing quality. With the majority of homes owner-occupied in Owosso, it should be no surprise a very large majority of people in a recent survey feel that the City should take a strong position on enforcing regulations which seek to maintain the the housing stock.

Weak Housing Market contributes to our housing problems. The financial crisis of 2008-09 devastated the housing market locally and nationally, and we continue to see the results of that collapse of home prices: slow sales, a high number of foreclosures, a cautious mortgage market, and thus difficulties for those wishing to sell or buy homes. In Owosso, the collapse of the housing market is immediately apparent in three ways:

1. Decreased property values resulting in a decline in tax revenues for the City (see this earlier blog post for a description of that problem);
2. An increase in demand for rental properties, as people with less income and/or financing challenges are not able to buy;
3. Decaying older homes as foreclosed or for-sale homes sit vacant and time and neglect takes it toll.

The best remedy for these housing challenges would be an economic recovery and a stronger housing market. However, without such a recovery (and predictions that sustained and strong growth is several years away), the City must take action in an attempt to preserve Owosso's housing stock and ensure that neighborhoods maintain some stability.

Two Regulatory Efforts. Over the last two years, the City of Owosso has taken several steps to seek to maintain housing quality. First has been an effort to inspect rental homes to ensure they meet health and safety standards. This protects the occupants from living in homes that lack a furnace, that have electrical or other fire hazards, or where there are not two effective ways to exit an apartment (these and other code violations have all been discovered--and corrected--through inspections). Code enforcement also helps maintain the appearance and quality of homes for the benefit of the neighborhood and the long-term viability of our housing stock.

The second, more recent effort, is an attempt to deal with the many vacant, foreclosed, and sometimes abandoned houses in Owosso. A proposed ordinance, modeled on one in place in more than 50 cities in Michigan and elsewhere, would require that any foreclosed property that becomes vacant, or any home vacant for more than 180 days, be registered with the City. This enables that City to know who the owner of record is on a property, something that can be difficult when a house is foreclosed and changes hands several times between banks, investors, and homeowners. This allows the City to more effectively enforce ordinances that require lawns to be mowed and trash and other nuisances removed, as well as contact an owner when a home has been vandalized or may present a hazard to the neighborhood (on one bank-owned home the fence around a pool with water had fallen down). It is important to note that this registration, which carries with a $100 annual fee, is not imposed on homeowners who are in foreclosure, but on the institution or investor that comes into ownership of vacant property.

The proposed ordinance would also require that some form of home inspection take place before a vacant, foreclosed property is re-occupied. After sitting vacant as the foreclosure process plays out (an owner typically has six months to redeem a foreclosed home), many of these homes have suffered from the elements, decay which may result in mold, or vandalism of wiring, appliances, or plumbing. The inspection requirement helps a potential buyer know what they are getting into, and deters unscrupulous (or uninformed) speculators from buying, and then reselling, substandard property.

Working with the Private Sector. Some in the real estate industry have criticized the City for pursuing these modest regulatory approaches. They rightly point out that the private market very effectively provides a wide range of housing for residents of diverse incomes, family size, and residential need. They also point out that most real estate agents, investors and contractors live in our community and have a self-interest in improving the quality of our neighborhoods. However, the City has an important role to play in ensuring that all those in the housing industry interact fairly and not take advantage of the situation of depressed home prices and financially stressed residents. Housing is a capital good, and economic theory says there are two ways to make money off capital: 1) invest in it so that it produces income over time either through rents or future resale; or 2) exploit the the resource by taking income for a short period until the capital (i.e. the real estate) is run down. The existing residents of Owosso have a legitimate role in trying to push the housing market more to the former rather than the latter.

Keys to Success. The City of Owosso seeks to establish a partnership with the local housing industry to ensure that the housing available to our residents is safe, and to protect and promote the character of our neighborhoods. There are three keys to establishing such a successful partnership:

1. Clear rules so that everyone involved with housing--owners and sellers, landlords and tenants, and investors, real estate agents, and contractors--knows what to expect when doing business in Owosso. This also helps avoids anyone being taken by surprise or from any party taking advantage of another.
2. Professional Staff to be knowledgeable and available to work with all segments of the real estate industry and housing consumers. Recently, the City has hired a full-time building official to enforce housing codes (among other duties) and serve as resource person. He joins a professional planner and an experienced housing program staff. Finally, the City has used community policing grant funds to augment its public safety staff who also works to ensure that housing is safe and resident behavior legal.
3. Partnership depends on helping the private sector best serve the public good. Regulatory tools are the most easy for most local governments to reach for, but Owosso has been cautious in enacting ordinances, careful in applying them, and always open to feedback from residents and the real estate industry in how best to apply them. The other tools available to government are financial, and the City has received some State funds to operate programs to assist homeowners rehabilitate their homes and investors develop downtown housing. Hopefully, we can look for other useful tools to help rebuild Owosso.

The residents of Owosso have strongly voiced their concern about maintaining the quality of housing in our community and making our neighborhoods safe and desirable places to live. To achieve this objective, we rely on the private housing market. The City has a responsibility to prevent the worst abuses and excesses in the housing market. It also has a role in working with those members of the housing industry that share the goals of the community in making Owosso a great place to live for all its residents.

Social Media, Social Capital

Is the internet good for society? For those of us who work to build up a particular place, should we be online or on the streets? Owosso has a new online social network designed to specifically strengthen community, and it seems off to a promising start.

Social Capital. Owosso, like most small towns, works as a community because of the many personal connections and relationships that underlie almost any business, governmental, or nonprofit endeavor. Things happen because people trust one another, or at least they know one another, and thus they know who to call on when they want to get something done. This basic aspect of community has been called "social capital." And just as a place can be evaluated by its economic capital (i.e. monetary wealth) and physical capital (i.e. buildings and infrastructure), we can measure the health of a community by the number and strength of personal connections that exist.

Historically, Owosso's social capital was built almost exclusively on personal encounters that occurred in coffee shops, on downtown sidewalks, and across backyard fences. Read Thomas Mallon's excellent novel "Dewey Defeats Truman," set in Owosso in 1948, to get a feel for how the casual gatherings in peoples homes, face-to-face business transactions, and political rallies in front of City Hall all helped citizens make new connections or deepen existing relationships. Today, we still run into one another in the supermarket parking lot, but people seem so busy and self-absorbed that sometimes weeks go by before I run into certain colleagues or friends.

Electronic Media: Good or Bad? Is the celphone, email, and the World Wide Web to blame for us being isolated from one another? Robert Putnam wrote a book called "Bowling Alone: The Collapse and Revival of American Community" that noted the decline in social capital. The title comes from the odd statistical fact that the number of people who go bowling has increased over the last several decades, but the number of people who bowl in leagues has declined. His book recounts how the number of, and participation in, service clubs, organized social functions, and civic events have decreased. Our social capital seems to be eroding.

Among several causes he identifies, one is the rise in electronic communication avenues. He writes, "No sector of American society will have more influence on the future state of our social capital than the electronic mass media and especially the internet." He is not alone in decrying the potential isolating forces of the personal computer. We have a vision of the reclusive geek surfing, alone, through the waves of information and images provided by the internet. Of course, it does put limitless knowledge and worldwide connections on our desktop and now on our smartphones. But, as we participate in chat rooms about our favorite TV shows (or whatever), or conduct business in Asia (or wherever), are we losing connection with our neighbors? Do we know more about what is going on with Grammy Awards (the #1 trending issue on Twitter as I write) than we do with our own community?

CommonPlace. A new effort to use the internet to help people in a place-based community connect with one another has been started by some socially-minded entrepreneurs. Called CommonPlace (you can find our local version at www.ourcommonplace.com/OwossoCorunna), this initiative is now underway in several communities in the US to provide an internet tool for local residents and organizations to share information. Interactions include postings about lost dogs, parade announcements, new business openings, and formation of a community flute choir. Participants have used the service to find someone to practice sign language with, get rid of old equipment, and raise donations for a food pantry.

The idea is to replicate online the social sharing that occurs person-to-person in a community where people see one another regularly. "CommonPlace is designed to encourage users to engage with their neighbors," says organizer Heather Rivard, an Owosso native who returned home after graduating from college and took on the job of initiating this service. CommonPlace financially supported her work along with that of another community organizer. They have in 10 weeks worked signed up more than 900 participants.

Avoiding the Flames. CommonPlace is not unlike other social networks such as Facebook, the comment section of the online newspaper, or email services in that it provides a forum for sharing of information and events. However, it has avoided the negative comments, personal attacks, and rumor-mongering that sometimes dominates online systems. A positive tone has been maintained due to monitoring of posts, the clear delineation of the various forums on CommonPlace, and by limiting users to actual residents of Owosso and Corunna. One is required to provide a street address to sign up, although it is never listed online. This not only diminishes spam and other internet junk, it helps neighborhood posts to be targeted to geographically defined areas.

Social Media and Civic Life. CommonPlace serves primarily to connect neighbors to neighbors, using electronic rather than face-to-face communication. As a City Council representative, I have used it as another platform to provide information to constituents. For more than two years I have been providing a bi-weekly email to several hundred people with news from every Council meeting (if you would like to receive these updates you can sign up here). I have started to post a copy of this update on CommonPlace as a way to further dialogue. It is unclear yet whether this is reaching a new audience or otherwise facilitating the civic life in Owosso.

The City of Owosso, like other local governments, is trying to use the internet and social media as a way to engage citizens. With a limited budget, the City has yet to re-design its official website, but it still provides a static way to disseminate information. Recently, the City established a Facebook presence, something our neighbor Corunna has successfully promoted. In addition, Owosso has made use of online survey tools to garner citizen opinion on street light designs, park improvements, and the updating of its Master Plan. Still, a recent broad survey using both online and hard-copy options discovered that most residents still prefer something they can touch and write on as a way to exchange information and opinions.

Social Media, Social Capital. CommonPlace seems to be an interesting and positive step forward in building social capital in our community. If you have not joined, I would urge you to do so. If you do belong, then you need to not only read the daily updates that are sent out, but also post news, ask questions, or otherwise create opportunities for interaction. The internet is a tool, and it can be used for good or ill, but if it is not used to build community connections it will isolate us further. "Using social media without changing how we think about social change will create only more noise," says Allison Fine in her book "Momentum: Igniting Social Change in the Connected Age." Interestingly, this 2005 book does not mention Facebook, a sign that the electronic landscape changes rapidly around us.

Recommendations for using social media to build social capital:

1. Get online, but use the tools that work for you. CommonPlace is intriguing, but you may find Facebook, Twitter, or other tools a great way to get connected. Don't feel it necessary to use them all, but try something out.

2. Use social media to reinforce, not replace personal interactions. It's extremely efficient to share information online, but take advantage of the tool to say thank you for the coffee just shared, or to post photos from a community gathering, or to organize another face-to-face meeting.

3. Be nice, be responsible. It seems that the disembodied voice a keyboard provides encourages people to say/write/post some mean things. Likewise, sometimes we are quick to read into someone else's 140 character a bad intention that may not be there. Don't type out anything you wouldn't say in person to someone, and seek to clarify what others say before you react. Realize whatever you write online can show up somewhere other than you may have intended. Be transparent.

4. Invite others to join in. A frequent criticism of small towns is that while friendly at first, they are not always open to those who didn't grow up in the place. Social media can be a good way to reach out and create groups and gatherings that are welcoming to newcomers.

Books Mentioned:

Thomas Mallon, "Dewey Defeats Truman"

Robert Putnam, "Bowling Alone"

Allison Fine "Momentum"

Stay the Course: Four for City Council

City Council of Owosso accepts recognition as a "Tree City."

Left to right: Gary Martenis, DNR rep, Mayor Ben Frederick, Tom Cook, Joni Forster, Cindy Popovitch, and Chris Eveleth.

On November 8, voters in Owosso will conduct a performance review of City government. If they like the work being done, they will return Ben Frederick and Chris Eveleth to the City Council. I believe we should stay the course of progress that has been set the past two years. In addition, two newcomers will be added to the Council. Personally, I know Lori Bailey and Richard Crutts well and I believe they will be effective additions to local government. Other candidates bring other strengths and I believe they have good intentions in running for City Council; I pledge to work with whomever is elected.

Much has been accomplished in the last two years since the last election, and I believe Owosso can make further improvements if we continue with the policies and programs now underway. Owosso's unique City Charter allows for a majority turnover in the Council, as occurred in 2010. The top three vote-getters in the election (Cindy Popovitch, Mike Erfourth and myself in 2010) are elected to four year terms (and thus we are not up for election at this time); the fourth place finisher (Chris Eveleth) is elected to a two-year term, and must run for re-election again. By having an election every two years, voters are able to create change, but the staggered terms also provide for a continuity in experience. I would argue that the experience that Ben Frederick and Chris Eveleth have gained is too valuable to lose from the City at this time of fiscal challenges and growth opportunity.

Here are five important accomplishments of the last two years:

1. New City Manager and Community Development Director. The City Council sets policies, adopts a budget, and passes local ordinances; it is the City Manager's responsibility to run local government. Hiring a City Manager is arguably the most important decision a Council makes, and I believe the current Council carried out both a responsible process and made an excellent decision in hiring Don Crawford. In turn, Don hired Adam Zettel, a professional city planner. Along with several other existing talented staff, they have made much progress in improved budgeting, cost-cutting and fiscal management, and development of Owosso. Importantly, the Council has been clear in setting goals for the work of the City Manager and for the first time in my knowledge, has incorporated these goals into the performance evaluation of his work.
2. Economic Development has been the top priority of the City Council, and continuing this direction is probably the best reason to stay the course. Early on we adopted a new policy on tax abatements that has not only supported new economic development (e.g. the expansion of Machine Tool & Gear, the renovation of the old Owosso Dry Cleaners as a home for a new employer), it has ensured that the policy is carried out equitably, and with an emphasis on the creation of good-paying jobs; existing companies and those who hire local people also get extra incentives. In addition, the City has built a strong working relationship with the Shiawassee Economic Development Partnership.
3. Housing Improvement has been a personal point of emphasis for Mayor Frederick, and the Council has supported his initiatives to continue with the registering and inspection of rental housing. In addition, the City has secured several state/federal grant and loan programs to support housing rehabilitation. These efforts both improve the quality of life for those who live in our community and help protect neighborhood property values. Given foreclosures and the poor economy, much more work needs to be done; we need to not only stay the course, but also expand our partnerships with property owners.
4. Downtown Development was begun several years ago with the receipt of several grants, but the current City Council has continued to emphasize downtown improvements. Most notably, the Council adopted a historic district in the downtown and this has financially aided the redevelopment and expansion of several downtown businesses (for example, Freddie's and Hankerd's Sportwear). Importantly, the historic district has enabled the rehabilitation of the Lebowsky Center. One of the reasons I ran two years ago was because the previous Council was antagonistic to this effort (Mike Cline, currently running for office, called for its demolition). The creation of the new Shiawassee Performing Arts Center is not yet complete, and its important to have a supportive Council. Both Ben (Owosso Community Players) and Chris (Main Street Glow Parade) have volunteered their personal time to promote downtown.
5. Parks and Recreation are still a significant need in Owosso, and our financial picture has slowed progress. But for the first time in some years, the City has actually appropriated funds to match volunteer efforts to make capital improvements we will see in the spring (Kiwanis baseball fields and Bentley Park). In addition, the update of the City's Parks Plan as a step in the adoption of a new Master Plan has the potential to further enhance the quality of life in Owosso. The City Council will miss the advocacy that retiring councilmembers Gary Martenis and Joni Forster have brought to our parks; I hope the newly elected council members will carry on this work

There are several other accomplishments that I could cite, but the list above shows that the current Council has been a productive governing body. I believe it would be unfortunate to reverse course on any of these initiatives, and I am voting for the two incumbents on the Council to help ensure we continue to move forward in these areas.

Newcomers. In addition to Ben Frederick and Chris Eveleth, there are several other people running for the City Council. To me, it's important that the electorate choose two people with the experience and temperament to contribute to the current work of the City. Several of the candidates have served on the Council in the past, including Richard Crutts, who served during the Gregg Guetschow era, a time when several wise fiscal decisions were made. I personally know Dick and have confidence that he will serve with the best of intentions, be responsive to residents, and be open-minded in Council discussions. Of the newcomers, I worked with Lori Bailey when she was principal of Central School. She has a first-hand knowledge of the importance of Owosso as a place for families, and currently works doing small business promotion with the Chamber of Commerce. Both of these perspectives will be useful on the Council.

Cooperation and Leadership. Beyond the issues, the ability to get along with members of the public, City staff, and the other Councilmembers is a critical quality to consider when deciding whom to vote for. In our hyper-partisan political climate, we seem to think that our elected leaders should be at the head of protests, loudly pushing their ideology, and denigrating points of view that are not their own. Sadly, that attitude seems to creep into local government, even though City Council is a non-partisan office. The old-time small town rumor mill, and the new electronic forums of the internet, seem to feed off such controversy.

I think some members of the Owosso electorate perceive a lack of personal pyrotechnics as a sign of weak leadership or slow progress. But just because we are not calling each other names, or attacking City employees in public, does not mean that the current Council is not vigorously engaged in the issues. Attendance at a City Council meeting would reveal that we do not all agree with each other, and a close reading of Council minutes shows that our votes are often 5-2 or 4-3. However, we do not attack each other and while this leaves less for the media to cover, it does enable us to work together on the next issue, and the issue after that. It is important that the new members of the City Council contribute to such a positive working atmosphere.

A word about the leadership of our Mayor, Ben Frederick. The Mayor is elected to this post by the Council, and even though I was nominated for this post, I am happy that I voted for his selection as Mayor two years ago. Ben and I do not agree on all political issues, but we agree on the importance of effective local democracy. I have come to be quite impressed with his commitment and skill at having the Council work together, to honor the efforts of public servants, and to invite public participation. To achieve these aims, I have seen him subvert his own goals to support the common effort. Many times he could have grandstanded or obstructed the process to score political points; he has chosen instead to champion the democratic process. To me, this is the true definition of leadership: to bring together diverse points of view to work toward common goals.

For the reasons outline above, to continue the positive attitude of our local government, and to stay the course toward further economic growth in the City of Owosso, I am supporting Lori Bailey, Richard Crutts, Chris Eveleth and Ben Frederick for City Council on November 8.

I welcome your comments and your arguments in support of these or other candidates. Again, I am strong believer in the power of local democracy and am committed to working with whomever the electorate chooses to represent them.

Bike City

To guide the work of the City of Owosso, the City Council has adopted goals for 2011-12. One of them is to make our community a Bike City: “Make Owosso a center for bicycle activity with new bike trails and other actions to promote biking in the community.” Bicycling is an important recreational activity that increases transportation options, improves the health of local residents, and makes our community a more attractive place to live for people of all ages.

On Friday, June 17, eighteen people gathered at Owosso City Hall to share information about current and potential initiatives to promote biking in the greater Owosso area. Although there may be other efforts also going on, twelve projects have been identified:

1. Bike Racks – the Design Committee of Owosso Main Street has identified eleven locations for new bike racks in downtown. These will have unique designs that replicate historic bicycles; they are being produced locally through Baker College. To learn more or be involved contact Dave Acton: dacton@chartermi.net

2. City of Owosso Master Plan – the City is in the process of putting together a new plan to guide development. It will reflect a recently adopted City Council resolution on Complete Streets, and will contain plans for new bike paths and routes, including a connection to the CIS Trail (see below), one end of which will be a few miles west of Owosso. In addition, the City is updating its Park and Recreation Plan. To provide input contact Community Development Director Adam Zettel at adam.zettel@ci.owosso.mi.us

3. The Live Healthy Coalition is a partnership of 14 organizations headed up by the Shiawassee Family Y, who is the recipient of a Robert Wood Johnson Foundation. The goal is to make policy, systems, and design changes to promote active lifestyles. For more information contact Dawn Reha at dreha@shiawasseeymca.org

4. SATA Bike Racks – the Shiawassee Area Transportation Agency has installed bike racks on the front of its busses and is now providing rides to those who want to bring a bike, either for short trips upon reaching their destination or to provide for a one-way bike trip. For more information contact sata@tir.com

5. Tuesday night bike rides leave from the Shiawassee Family Y at around 6:15. This is one of several informally organized community bicycling opportunities. For more information contact Rick Morris at houseofwheelsinc@gmail.com

6. Shiawassee CVB (Convention and Visitors Bureau) is always looking to do more to promote tourism in Owosso and Shiawassee. They are looking into putting together a website to outline biking routes and otherwise promote organized and individual bike visits to the community. Contact Kim Springsdorf at kspringsdorf@shiawassee.org

7. CIS Trail (Clinton-Ionia-Shiawassee) hopes to begin formal development next year on a trail that will run from just west of Owosso to Ionia through St. Johns. The right of way is secure and in conjunction with the Michigan DNR, Meijer Foundation, and others improvements will be made. Fundraising is currently underway with the receipt of a $15,000 grant from the DALMAC group. To become involved contact Avery Weaver at adweaver@charter.net

8. Mountain Biking at Collamer Park is being promoted with the development of trails and the recent hosting of the Curwood Fat Tire Race. For more information contact Jason Roka at rojas613@yahoo.com

9. The James Miner Trail continues to provide positive biking opportunities between Owosso and Corunna, though there is a need to improve and maintain the trail and provide better signage. To express your interest contact Owosso City Council member Joni Forster at joni.forster@ci.owosso.mi.us

10. BMX Park for bicycles is nearing completion by the City of Owosso along South Gould Street. Dirt is needed. Please contact Adam Zettel at adam.zettel@ci.owosso.mi.us

11. Share the Road signs are being offered through the Shiawassee-Owosso Kiwanis Club. This is part of an overall effort to provide education and support to bikers and drivers to respect the use of public roads by both forms of transportation. To seek a sign for installation contact Doug Cornell at mailto:doug@cornelltech.net

12. Owosso Bike Fest on August 14 brings a number of enthusiasts out to share their antique and specialty bicycles in the City parking lot in Westown (between Bradley and Cedar). For more information, contact Rick Morris at houseofwheelsinc@gmail.com

Shiawassee Bike City Network. It was agreed to establish an internet-based system to connect and inform bicycle supporters throughout the communities of Shiawassee County. Another meeting will be held in about six months to again share information. To become part of this network, or for more information, contact Owosso City Council member Tom Cook at citycouncilcook@gmail.com

Words Matter

Talk may be cheap, but good communication supports healthy relationships in our families, effective workplaces, successful community organizations, and our democratic form of government. Sadly, when words are chosen poorly, or misused, or even abused, we all suffer.

When is it OK to call local officials criminals?

Recently, an online posting asked this question: "is destruction without vote to historic Owosso landmark a crime?" and went on to suggest that local officials acted illegally in allowing for the demolition of Holman Pool. Now, my purpose here is not to review the demise of this 50 year old recreational facility that was no longer financially viable to operate, maintain, or even renovate. Nor do I want to discuss the profound nature of a legal designation on the National Register of Historic Places (e.g Curwood Castle) and the unsupportable assertion that an old pool is such a landmark. Nor do I want to enter into a long explanation of the legislative role of the City Council versus the administrative role of the City Manager (the former is responsible for policy and budget, the latter for operations; in this case the budget clearly calls for pool demolition). Nor do I want to discredit any community member that has worked hard to provide for aquatic recreation in Owosso, for I hope they continue their efforts.

Rather, I want to make a point about public discourse in the process of government at all levels. Democracy depends on getting the best information, hearing the best policy proposals, and seeking the best solutions. Being open to public input, and allowing for public debate including vigorous argument, are essential to this process. I would go so far as to say that we need criticism, at least when founded on fact or an honest difference on policy direction. However, political debate at the national, state, and sadly even the local level has degenerated to name calling, the negative painting of an opponent's view, and harsh criticism of difficult decisions. Labeling someone a criminal (or a Communist, or a Nazi) is not likely to lead to reasonable debate and effective problem solving.

Complex Problems Require Trust to Resolve

It's not that such personal attacks sting, the issue of concern is what ad hominem arguments do to the ability of deliberative bodies to solve problems. Despite how the media and some political operatives behave, many of the problems facing representative government bodies cannot be reduced to a simple black-and-white, right-or-wrong definition. Issues like Holman Pool involve difficult fiscal decisions, regulatory requirements, and strong personal attachments. Other issues have unclear legal boundaries (e.g. medical marijuana) , or involve people's interpretation of their personal rights and responsibilities to neighbors (e.g. burning). Sorting through these complex issues requires a public body like the City Council to ask questions, try out potential solutions, and listen with an open-mind to various viewpoints. When someone has been calling you names, it is hard to engage in the give and take required to identify a solution that accommodates all points of view.

When faced with complex issues, as an elected official I have to trust that my fellow councilmembers, the media, and the public are willing to listen to a variety of ideas, fairly praise or criticize them, and suggest alternatives. However, solutions to complex problems tend to be complex as well, and opponents now quickly find a narrow angle of attack and exploit it. Take Holman Pool, rather than accepting the work of engineers and the careful recommendation of two different citizen committees headed up by a pool champion (Gary Martenis), opponents prefer to say the Council is anti-children and that City staff are engaging in illegal actions. Such attacks gain more comments on an online forum than a discussion of the decay of pipes or a cost-benefit analysis of aquatic recreation options, but they don't help democratic bodies make good decisions.

As an elected official criticized in this fashion, one can either fight back (and this makes you look combative and mean) or you can choose not to respond (and then appear snobbish or dismissive). What you would like to do is engage in a discussion, share some mutual education, and seek out common ground solutions. However, to do so, you have to trust you won't be attacked or called names. Without this trust, you can't communicate. If you can't communicate, you can't understand other viewpoints. If you can't understand, you can't change.

A Local, State, and National Problem

Perhaps I shouldn't complain, because the local attacks are minor compared to what occurs on the state and federal level. During the national health care debate, some opponents of the President's proposals were quick to label him a socialist, even though his plan depends on the private health care industry. It is valid to oppose to President Obama's initiative, but unfair and unhelpful to depict him as Adolph Hitler. Likewise at the state level, when Governor Rick Snyder supported new provisions to strengthen the role of Emergency Financial Managers he came under fierce personal attack. One law professor (!) even compared our popularly elected Governor with the despot King George III. Maybe such attacks garner media attention and campaign donations (or why else do they persist?), but it sure makes it hard for differing political parties to come together on the next difficult policy issues (witness the current name-calling and fear-mongering on Medicare reform).

Words Matter

Perhaps our democratic system is broken, though I hope not. Perhaps people feel so disenfranchised that they feel they have nothing to lose, or can't get any attention, unless they resort to screaming, derogatory personal comments, or outrageous claims. Fortunately, my experience in Owosso is that most people want to trust one another, find the good, and support solutions to the problems facing the community. However, one or two misplaced words can turn a conversation into an argument, corrode public trust, and lead to democratic paralysis. On the other hand, starting conversations with a question, listening to the full answer, and saying a few words of respect or even kindness can strengthen the relationships we all depend on.