Tuesday, December 14, 2010

Change is Coming to Lansing

"If you want something different, don't keep doing things the same way," was how Doug Rothwell put it at the December 13 Summit of the Center for Michigan and the Business Leaders for Michigan. This was on the same day that Rothwell was named to be the new chair of the Michigan Economic Development Corporation (MEDC) by Governor-Elect Rick Snyder and outgoing Governor Jennifer Granholm who took the unprecedented step of jointly appointing a mostly new board to run MEDC. I was fortunate to be at the Summit, and I came away inspired and a little anxious after Rick Snyder spoke to the audience. Change is coming to Lansing, and the implications for elected officials and engaged citizens are profound.

"We are going to be bold" said the new Governor, and while he recognized that turning around the economy of Michigan will require a marathon of persistence, "our sprint will be at the beginning, not the end of the race." I have known Rick Snyder for several years now, and while he has a reputation of being cool and cerebral (i.e. a nerd), he was more fired up and passionate in this speech than I have ever seen him. "Get ready" he said, "it is time to stand up." While his speech was short on specifics, the day was filled with numerous speakers, and here are some things I think we need to prepare for:

Jobs and Economic Development were the #1 issue on everyone's mind. A first step was the remaking of the MEDC, and the Governor-elect and several Republican speakers stressed that government does not create jobs. The Michigan Business Tax (MBT) will be reformed in significant ways, but it also sounds like that specific tax incentives and other industry-targetted economic development efforts will be abandoned, or at least de-emphasized. Doug Rothwell noted that Michigan has the 48th most burdensome business income tax among states. While he said that cutting taxes is not a long-term economic development strategy, in the short term state government has limited options to spur new private investment quickly. And, a big cut in business taxes would also get Michigan international attention because it is unexpected.

A business location specialist, Ron Pallina, who is author of a new book, Selling out a Superpower, said "We need to understand that we are competing with other nations. Companies say, 'we want to stay in US, but for us to stay here we need the least cost environment.' Today business location is a case of economic survival." His top three recommendations for Michigan: lower corporate taxes, create a right-to-work state, and foster more cohesion in the economic development team of elected officials, MEDC, and local economic development teams. "Michigan is not as well coordinated or speedy in its response to the need of employers."

Doug Rothwell also called for state investment in business incubators: "We need entrepreneurialism to grow our economy, but it takes time."

Budget Reforms. Michigan faces a $1.5 billion structural budget deficit in the coming year, and there will be short-term pain in addressing it. No one talked specifics, but I fear for the impacts on local revenue sharing which represents 25% of the City of Owosso's revenues. A lot of attention was given to the cost of public employees. This is a particular challenge for local governments, where employee compensation represents a majority of their costs; for the state, labor costs are only about 10% of the budget. Legacy costs for retired workers are also a looming challenge that could "eat up the entire stream of new revenues" according to Jeff Guilfoyle of the Citizens Research Council. There are $50 billion in unfunded pension and health commitments in the State, which is equivalent to $5,000 for every Michigan resident.

Solutions for budget reforms centered around multi-year budgeting and shared services. Robert Daddow of Oakland County advocates for the State to go to a multi-year budget. This will provide more stability, certainty, and understanding, especially to local governments and school districts. Oakland County has a three year budget. It gives local leaders more time to realize savings and solve problems; it spurs long-term thinking and avoids one-time budget fixes and gimmicks. Also, he stressed the importance of local governments to provide timely accounting reports to board and the public on a monthly, quarterly, and annual basis. This year Owosso started providing detailed budget reports on a monthly basis; our budget however is an annual one.

Jack Poll, Mayor of Wyoming, the second largest city in Kent County, stated his belief that local governments can achieve cost savings and efficiencies through shared services. He cited the opportunities and challenges with doing this around firefighting services in Kent County. The primary stumbling block is reaching agreement on the desired, or acceptable, level of service. "We need an effective model and standard to measure ourselves against," he said in asking for the State to help facilitate service sharing. "We need to get the legislature to clear the decks to allow for inter-municipal cooperation."

Education. Mike Flanagan, Superintendent of Public Instruction for the State of Michigan, believes that local school districts should share services too. He does not see a need for the consolidation of local districts, but recommends that non-instructional services such as transportation be delivered by intermediate service districts. He also suggested putting in place statewide health insurance, benefits, and a salary schedule. He said that these changes would allow local boards and administration to focus on student achievement, rather than on labor issues and the delivery of services.

Beyond this discussion, there was little attention given to K-12 education. Rather, there were several calls for increased investment in early childhood education, which provides significant long-term benefits for kids. For every dollar invested in early childhood education, $17 will be returned in lower services and increased revenues. Higher education was also touted. John Austin of the Brookings Institute reported that Michigan is 50th in the relative share of state budget allocations to higher education. He recommended that we leverage our world-class institutions for economic growth, citing the positive examples of the Research Triangle in North Carolina and Austin, Texas. "Universities are engines for local economic development, the growth of the state, and our global competitiveness."

Place-Making. John Austin also called for investments in the quality of life in Michigan. He noted that the growing regions of the country have world-class cities with culture, good transportation infrastructure, and a talented workforce . He also called for investments in our natural assets as a way to retain and attract an educated workforce: "Michigan is a beautiful state, but the beaches have got to be clean and the parks need to be open; Colorado has had great influx of talented people because of its natural resources. Our youth, our college graduates want to be part of sustainable communities and work in green industries; they do not perceive Michigan as a place for this – in fact, we have been antagonistic."

Bi-Partisanship. The day ended with a call for cooperation and action. Democratic State Senator John Gleason said that it was "time to put blame aside. Now is a unique opportunity for the State of Michigan. We have been too partisan in the Legislature. We cannot put forth our best effort because of the peripheral powers and parochial interests." Republican Jase Bolger, the new Speaker of the House, said that "our problems are too profound to let partisanship get in the way." Governor-elect Rick Snyder called all legislators "my partners" after being thanked by the Democrats for his efforts to reach out to them.

The next Governor also stressed that the reform efforts were not just about government. "We all need to work together," he said. And Phil Power, the visionary force behind the Center for Michigan, called on us to be "all in for Michigan." Given these strong statements, the seriousness of the problems before us, and the passionate commitment of Governor-elect Rick Snyder, I anticipate some radical changes in government in the year ahead. Whatever our line of work or effort, private or public, we need to be clear about our own mission and look for ways to move forward with new partners. It is said that the Chinese character for crisis is the combination of chaos and opportunity. I think there will be lots of both.

Monday, November 22, 2010

Shop Downtown to Build our Local Economy

The other day Joe Borgstrom (of Michigan's Main Street program, and the first director of the Shiawassee Economic Development Program) reminded me of the leaky bucket and its role in the economic health of our community. He also shared some data that reminds us of why we need to shop locally to get our economy going strong and employment as full as possible.

Our community, like all places, has a local economy where people buy goods and services from one another. Money comes into our community (the faucet) from a variety of sources: most importantly are the wages and other earnings from companies that make things here and sell them nationally or internationally; but money also flows into individuals and businesses that provide services to other outside the community; crops grown here and sold on the market also bring income; transfer payments (e.g. private pensions, Medicare, and other government aid) are also a major inflow.

When money comes into the community, it gets spent at the grocery store or other shops, at restaurants, for services like accountants or house cleaners, in buying supplies to run other businesses, to get healthcare, and in the form of donations to local charities or to pay local taxes. And of course when the local shopowner makes a sale, then he or she uses that income to buys goods and services. This is called the multiplier effect and has long been the subject of study by academics and the focus of economic development efforts.

Of course, not all the money that flows into the economy stays here. We make purchases at stores outside our community, we buy services from national companies, we shop online, and we pay taxes to the federal government. All of these outflows are the holes in the bucket. Typically, new dollars turn over several times in the local economy, thus filling the bucket, but they eventually seep out to other places as near as the regional shopping mall and as far as China for that new celphone or other electronic gadget.

The traditional approach of many economic development efforts is to increase the flows into the bucket, and Shiawassee County has done a relatively good job in recent years in supporting the growth of income-generating manufacturing companies; we need to do more, especially supporting entrepreneurs. However, we can also promote the local economy by seeking to plug the holes in the bucket of our local economy.

At this time of year, we can plug some holes and support our local economy by shopping downtown, eating at local restaurants, and making donations to local charities. A study from West Michigan found that when a dollar was spent at a locally-owned business, 68 cents of that dollar recirculated through the local economy. For every dollar spent at a national chain store in the local market, 43 cents stayed locally. These figures vary somewhat from business to business, but several other studies from other communities confirm the economic benefit of shopping locally. What is clear is that when we shop in other counties very little economic gain accrues locally. Online shopping is the worst for the local economy, with only a penny or two coming back to the community in the wages of postal or delivery workers.

After the holidays are over, we need to take a look at our local economy and figure out what other holes we can plug by identifying what retail, entertainment, services, business support, and supplier businesses our community is lacking. When we identify the outflows in our local economy we will be identifying economic opportunities for a local entrepreneur to fill, and if we grow our local businesses, we will grow our local economy.

In the meantime, as you do your holiday shopping, take a stroll downtown, check out our local businesses before getting in your car or online, take someone out for a meal, buy a local gift certificate, or swing by the Shiawassee Arts Center or the Four Seasons gift shop at the hospital or the Steam Railroading Institute. Think too about making a donation to a local charity as a meaningful way to show someone you care (for instance you can participate in Operation Friendship at Arc Shiawassee or buy a theater seat from the Owosso Community Players). When you shop locally, not only will you be supporting the local economy, you might run into an old or new friend out and about. And relationships, whether personal or economic, are what really make our community special. Happy Holidays!

Sunday, November 7, 2010

Local Democracy is the Answer

The mid-term election is over; now what? The Republicans, conservatives, and tea party activists are happy; the Democrats, liberals, and progressives are disappointed. However, if either side thinks there will be major change, for either good or bad, in Washington they are wrong. Whether your side “won” or “lost” in this election, you will not be successful in promoting your ideology unless you become active on the local level. It is time for all of us to get busy in our community.

Republican leader John Boehner said on Tuesday night that his party’s task will be “leading the drive for a smaller, less costly, and more accountable government here in Washington DC.” While voter dissatisfaction gave Republicans more seats in Congress, the federal bureaucracy will persist unless conservatives can show Americans how to get by without it.

Americans have shown repeatedly, as they did just two years ago in the Presidential election, that they want a better country. If the Republican party desires to rule in 2012 and beyond, they need to provide a way for Americans to work together for positive change. The tea party reminds us that the Constitution limits the federal government, but that document was written in an era where people banded together in their communities to help one another and looked to state government to regulate commerce. Times have changed in two hundred years, and if we want to return to a federal government envisioned by our founding fathers, we need to increase the capacity of cities, counties and states to solve the problems of today.

The Democrats were beaten in this election, but they are not going away because what motivates them transcends any particular vote. Their commitment to public education, helping those in need, protecting the environment, or other causes gives liberals the drive to create change. Democrats are successful when they show voters how government can effectively address these big issues. They did not make that case on Tuesday.

If Democrats want to regain power, they need to convince more people of the importance of their causes. More importantly, they need to show that government has some ability to solve problems. That is not going to happen at the federal level in the next two years. Progressive-minded activists need to work in their community so that more people understand and come to share their passion for change.

The electorate is angry, cynical and increasingly non-participatory. Less than half of the registered voters in Shiawassee County chose to exercise their constitutional right to vote last week. If either Democrats, Republicans, or independents hope that our democracy will continue to be an effective form of government, we all need to work to restore faith in government and the elected officials who represent us. All politics are local said the late congressman Tip O’Neil; thus the best place to start to re-engage voters is at the local level.

So, if you are either celebrating or bemoaning the election, its time to go work in your community. You can take action at the personal, organizational, and/or governmental levels. Personally, we should all try to live out in both word and action our convictions. If you feel like the federal government has failed to stimulate the economy, then think hard about how you might start a business, become involved in the work of the Chamber of Commerce, or at least shop locally. Or if you are frustrated that Congress failed to enact climate change legislation, then commit more fully to a green lifestyle, both as a way to reduce energy use and as an example others.

American history has shown that when people come together they can accomplish great things. Our voluntary sector is better organized than any other country, but they need to step up to the real issues facing the country. If you are opposed to Obama-care, then go to work to start a free clinic for those in our community who are uninsured, or volunteer for Respite or take time off work to help your elderly neighbor who needs help. If you support the health care reform efforts, then go to work to support Memorial Healthcare as a donor or volunteer. The key to health care in our community will be our local hospital, and its independence will be challenged by the health care reforms coming down the road.

Finally, get involved with your school, township, city or county government. That can mean service in an elected or appointed capacity, or it can just mean a willingness to work on making local government more effective. I have come to learn on the Owosso City Council that seven elected officials do not create change in our community; we can only help open doors so that the community can come together to support new businesses, build a new theater, or develop a dog park. Perhaps the best opportunity locally right now is for people to become active in one of the several planning efforts underway that will help chart the future of our community.

Democracy is a participation sport, and neither Democrats nor Republicans, nor any other party, will be successful at governance unless citizens feel like they can participate effectively in government, create positive change in their community, and thus make this a better country. Get involved.

A shorter version of this appeared in the Argus Press on November 6, 2010

Wednesday, October 20, 2010

Public Art

Those of us who love Owosso, love it because it is unique (perhaps knowing and embracing the specialness of something is the definition of love). We share things in common with other small towns, but the particular mix of buildings, public spaces, and trees clustered around a north-flowing River make our community a unique place. And, according to planners and economists, it is place that will be the marketable resource that brings prosperity back to Michigan. That being so, the question then is, "What makes a place?"

You can go anywhere in Michigan--anywhere in North America for that matter--and you will find urban spaces (let's not call them places) that look and feel all the same. They have the standard mix of chain restaurants and big box retailers, they are served by--and serve--the automobile and parking lots abound. They are rarely memorable. In contrast, Downtown Owosso has a unique collection of businesses and storefronts, several areas for public gatherings, and wide sidewalks that make it pleasant to be a pedestrian. Thankfully, street trees and colorful plantings are also returning to our community. Increasingly, Owosso also has some unique artistic statements in visible spots (like the Ed Louch sculpture in front of the Chamber of Commerce; above), and this public art gives the final touch of uniqueness; it gives us character; it makes Owosso a true place.

Increasingly, sociologists and marketing experts find that consumers want something special when they shop, or make a choice about a home, or even invest in a business. In a complex, busy world of instant access and ubiquitous information, we want to find something that we can identify as our own; we want to be grounded. A true place like Owosso gives us that connection and help us to define our community and ourselves. To quote the great writer Wallace Stegner, "if you don't know where you are, you don't know who you are."

We are fortunate that our collection of historic, architecturally significant buildings in Owosso helps us know where we are. However, besides preserving and restoring our historic buildings, we can take several other steps to create a sense of place:
  1. Public Art like sculpture and murals are a contemporary statement of uniqueness;
  2. Streetscapes that provide energy, color, and pattern with decorations and flowers;
  3. Lively Arts with street musicians, and performances in public venues like the Mitchell Amphitheater, and the rebuilding Shiawassee Performing Arts Center;
  4. Galleries like the Shiawassee Arts Center and Mootzies;
  5. Unique stores and lively shop windows, which are many and on the increase.
Public art in Owosso, at this time, needs some special attention because of the difficulties in completing a planned fountain in the new park at the corner of Ball and Exchange Streets. Of course, a dynamic water feature can also be a uniqueness to a place, but only if care and attention is given to ensure that it is truly different from other fountains. This presents two challenges. First, a fountain and a sculpture are not the same thing, and combining the two into a public artpiece takes a talented hand (or two). Second, fountains can be expensive both to install and operate. The City of Owosso and its Main Street Program have solved the first problem with a unique design by local artist and metalworker Arthur Johns; the second problem is proving to be more challenging.

While some despair at the cost realities, or believe that funds should never be spent on anything so frivolous as a fountain, I believe the answer is to proceed carefully and seek out cost-effective solutions. For the reasons stated above, we need public art like fountains to help keep Owosso's sense of place alive. We want to be neither a museum of historic structures nor a sterile shopping strip defined by cars and concrete. We need to find an economical way to provide for public art; if not the fountain in question, then some other unique statement.

Who should pay for public art like fountains, sculptures, and murals? Frequently such amenities have been provided by private businesses, individual donors, or arts organizations, but I believe it is appropriate for (some) public funds to be spent on the enhancement of our community. In Owosso, municipal government has long paid for street trees, flagpoles, holiday lighting, and attractive public buildings like City Hall. They all help create that special sense of place which is important to our community pride and identity and also the health of our local economy.

The proposed funding for a fountain/sculpture in downtown Owosso is to come from the property taxes paid by downtown property owners who are part of the Downtown Development Authority (DDA) which is now part of the Owosso Main Street program. This special tax increment finance authority was set up several decades ago using a provision in state law. The revenues generated to the DDA are legally required to be spent in the downtown area and must benefit the property owners in that area. Enhancements in the form of public art that help make the downtown unique are a perfectly rational, economically desirable, expenditure of these funds. If a cost-effective engineering solution can be achieved, then a new fountain will help keep Owosso the unique place that we love.

The Wallace Stegner quote comes from an excellent piece in one of my favorite blogs (click here) put out by the Orton Family Foundation that supports true community building.

Thursday, September 2, 2010

Housing and Neighborhood Issues

On August 30 the Owosso City Council held a special meeting on housing and neighborhood issues. Below is an edited and updated e-mail I sent out. If you would like to receive regular updates by e-mail, let me know and I will put you on my list.

Three Housing Issues
1. Aging stock: about 70% of the approximately 6,700 housing units in Owosso are over 50 years old (note this correction from the first e-mail). Many of these homes are historic, affordable, and help make up a desirable neighborhood fabric. However, if these older homes are not properly maintained they may decay rapidly.
2. Vacant and blighted property: dilapidation, a weak housing market, and foreclosures have left too many houses in Owosso vacant. While there is no easy way to get a count, if 10% of the housing units are vacant that would mean close to 700 homes are empty. City staff estimates that 20 vacant homes have decayed to the point where they cannot be salvaged.
3. Health and Safety: older or poorly maintained homes can endanger both residents and neighbors. Inadequate wiring can present fire hazards, lead paint can endanger children, and blighted property can harbor criminal activity.

Code Enforcement options have been investigated by City staff and they are planning on increasing attention to compliance with the Property Maintenance Code adopted by the City in 1990. Existing building staff will be assisted by police and fire personnel to inspect the housing in the worst shape. The goal is to work with property owners and residents to ensure that homes meet some basic life safety and health requirements. This will help maintain our housing stock, prevent the further abandonment of homes, and reduce neighborhood blight and crime. We heard testimony about the necessity of ensuring quality living environments and encouraging new investment in our neighborhoods.

Rental Housing will be a focus, but there is no desire to be punitive to landlords. Rental housing is about a third of the housing stock, but about 50% of the current code enforcement issues. Several rental property owners testified and expressed general frustration with the City's attention to these issues, but they made few specific criticisms or suggestions. Owosso instituted a rental registration program last year, and there are now 1,924 units registered, which does not yet include all rental property. Fines can be assessed for non-registration, but have not yet been levied. Several landlords expressed their dislike for the $25 annual registration fee, although it was pointed out that registration fees in other cities are in the hundreds of dollars. The City's goal will be to work with landlords, and tenants, to ensure basic life safety and habitability standards.

Housing Rehabilitation Programs are now underway with a grant from the Michigan State Housing and Development Authority (MSHDA). These loans can assist both homeowners and rental property owners make improvements to their housing. In addition, City staff continue to work with housing programs from Shiawassee County, several nonprofit organizations, and private sector lenders, builders, and realtors. While we are off to a good start with these programs, it is clear that we need to look for ways to expand our efforts. In particular, I would like to be sure we are taking advantage of residential energy retrofit programs. The idea of creating new community and neighborhood organizations was also suggested, and the Mayor is currently seeking help on this endeavor.

New Housing is not a focus, as there is no general need at present to add to the overall housing stock. However, we did discuss the benefits and opportunity to provide downtown housing on upper floors and senior and other special needs housing. It was suggested we encourage new housing by rehabilitating some older non-residential properties.

City-Owned Vacant Property may become more of an issue as the City seeks to clean up blighted housing, although a lack of funding will limit these efforts. A draft policy on the disposition of city-acquired property was presented and may be acted on in the near future.

You can form a Neighborhood Watch group - we discussed the link between poor housing and crime and the positive role neighborhoods can play in promoting public safety and improving the housing stock. The Public Safety Department and Councilmember Gary Martenis have made attempts to form Neighborhood Watch groups, but have not had much interest. The Owosso Police has an interest and funding available to support the formation of such groups; please let me, any other City Councilmember or City staff know if your are interested. I believe this could be a useful tool to help improve Owosso.

A Housing Advisory Committee was suggested and the City may form a group of community residents, landlords, lenders, housing experts and others with an interest in Owosso. I volunteered to look into this option, so please let me know if you like the idea, are willing to help out, or have suggestions.

In sum, I think the City Council came away with a much better understanding of the challenges and the opportunities to improve housing and neighborhoods in Owosso. It won't be easy or quick, but I do believe we cannot ignore this issue; failure to protect and preserve quality housing will be detrimental to the community's future. I believe that our City staff has a great deal of knowledge, expertise, and commitment that will be of benefit. If we come together as a community, and not blame one another, I think we can make some positive changes that will benefit all of us who live in Owosso.

Tuesday, July 13, 2010

Bike Trails to Build Community


I just got back from a tour of three great bike trails in Michigan and I came away excited about the opportunity for Owosso to promote tourism, strengthen our downtown, provide healthy recreation, bring the region together, and even promote early childhood learning. In three days, I biked the Hart-Montague Trail, Michigan's oldest rails-to-trails conversion, the Betsie River Trail that ties Frankfort, Elberta, and Beulah together, and the TART trail that is a centerpiece in Traverse City. Besides a sore rear end, I gained an appreciation of how good design and thoughtful planning can take advantage of these regional trails to build community.

All of the trails we rode are at least 15 miles long and attract a range of users. We saw other tourists like ourselves who purposefully travelled to bike the trails, locals out for exercise, kids on their way to somewhere, moms with strollers, and maybe even a commuter. We shared the trail with other bikers, runners, in-line skaters, and walkers. We saw solo folks with headphones, families on an outing, and friends talking away as they walked. These trails are used by a wide variety of people.

As we visited with folks, everyone spoke highly of the trails and their benefit to the community. One person shared with us how the trail had been opposed initially, but was now widely supported. Increased crime, use by a "bad element," or other fears had not materialized. All of the cities, and many of the businesses, along the trail had built special paths and installed directional signs to attract users to make a detour off the trail. Clearly, the communities along the trails value the economic development opportunities the trails create.

We were impressed with how the cities of Frankfort, Montague, and Whitehall had linked the trail to their downtowns. In Hart, one end of the trail was extended to link it to a municipal park and campground. Traverse City is located at the center of the TART trail and pulls people in from multiple directions. At the south end of the Hart-Montague Trail, a new trail extension, signs, public art, and attractive plantings pulled us into downtown Whitehall where we did some shopping. As we explored further, we learned that the City had used state grants, downtown tax increment funds, and local school funds to extend the trail through town to a park, library, and the high school. They also had a special stretch of the trails where families could take along pre-schoolers and stop at special stations where they could interact with their children and aid in their development. These trails provide a wide array of benefits.

Owosso has the opportunity to replicate these community development successes. First, we have an existing and long-standing trail along our riverfront that connects to Corunna. We can build on the foresightful work of our predecessors that put the James Miner Trail in place. Second, a significant trail is being developed that will run from Ionia to St. Johns to just outside Owosso. Finally, there have been discussions about developing a trail from Corunna to Durand, that if linked to the Miner Trail could provide a trail connection between the Grand Trunk Depot and the Steam Railroading Institute. I believe there are four steps we should take as a community and a region:

1. Protect and improve the James Miner Trail between Owosso and Corunna in conjunction with Caledonia Township and the Owosso Community Airport;

2. Support the completion of the Clinton-Ionia-Shiawassee Trail and come up with a plan with Owosso Township to finish, extend, and connect the trail into downtown Owosso;

3. Work with other local governments and community groups to investigate the options for converting to a trail the abandoned rail line between Owosso, Corunna, and Durand;

4. Develop effective signage and other publicity to promote the use of the trail by both tourists and locals in the community.

None of this is easy. It will require planning, cooperation between jurisdictions, partnerships with community groups, and the raising of both private and public funds. However, if communities smaller than ours in northwest Michigan can realize the development of such great trails, I am convinced that Owosso and our neighbors could pull it off as well. In the end, it will help build our community.

Thursday, July 1, 2010

How Best to get a Public Opinion

I want to ask your opinion about asking your opinion. Since before I was elected, I have sought out public input through this blog, a facebook page, e-mail updates, and purposeful encounters with the electorate. Seven months into my tour of service I have come to appreciate the questions, suggestions, and feedback. However, the June 21 meeting of the Owosso City Council has raised some questions for me about the role of public opinion in local government.

You may have been at the meeting, or read about the big discussion of the plan of the Michigan Department of Transportation (MDOT) to convert south M-52 to a three lane highway. MDOT has proceeded with this plan because of a request from the City of Owosso several years ago, and because their experience has shown that single lane roads with a center turn lane are safer than highways with two lanes in each direction. However, there has been a large and vociferous expression of public opinion in Owosso against this plan, and the City Council voted 4-3 to request MDOT to keep M-52 a four-lane road. The final decision will be MDOT’s to make.

I voted against this recommendation, but I support the decision of the Council. Since then, I have been thinking a lot about my role as your representative and how to best consider public opinion. I think there are four key choices to be made, or balances to be achieved, and I welcome your input on any or all of them.

Expert Opinion versus Popular Opinion. The difference between these two was stark on the issue of M-52’s restriping. The meeting started with a traffic safety engineer from MDOT presenting data and analysis showing three lanes would result in 25 to 40 percent less accidents and would do so without any decline in level of service (i.e. no backups or delays. Her professional opinion from 14 years of experience was in favor of the three lane idea. Popular opinion was contrary and strong, with over 20 people making public comments against the three-lane proposal. The choice was clear: listen to the informed, expert opinion or go with the frequently expressed opinion of Owosso voters.

As a City Council representative, I find this kind of choice difficult. I believe that my job is to make decisions that are in the best interest of the City, and when a large number of people speak out against (or for) a policy, I want to heed their will. On the other hand, I know that many of the issues we face are complex, with significant financial, legal, or technical issues to consider. For this reason, I tend to give weight to comments made by informed experts, whether that be our experienced City Manager, legally trained City Attorney, or MDOT traffic engineer. Likewise, I tend to give extra attention to testimony made by members of the public when they clearly have experience with an issue. For instance, I listen closely to a youth baseball coach when upgrades to our ball fields are being considered. But how much weight should we give to one expert as opposed to the input of many interested voters?

Direct Democracy versus Representative Government. The idea that everyone has a voice is a bedrock of American democracy and the right to vote. Since we cherish the right to vote, there is a popular idea that key local issues should be put to a vote of the public. Someone suggested that the M-52 lane decision be on the ballot, there have been letters to the editor suggesting that all tax and fee increases be voted on by the public, and there is strong public opinion that any change in burning regulations be put to a vote.

What local issues should be voted on? Or, if it were possible to take a poll on every issue, how should the results be used? On the M-52 issue, it was suggested that the results of a Facebook query should guide the City Council decision. Small local governments in New England still use a town hall meeting, where all voters in attendance at an annual meeting are given a vote to approve the budget and make key decisions. If public opinion should carry the day on local decisions, what is the most effective and equitable way to measure that public opinion?

When I was younger I lived in California and was excited about the use there of ballot measures to decide matters of public policy. At the local level, the propositions on each ballot were given a letter starting with “A” and one time we got to vote on Propostions X, Y, Z, and AA. Quickly, not only did the number of decisions become overwhelming. I also learned that local and state governments had difficulties responding to changing circumstance, because laws adopted as a ballot proposition could only be modified or repealed by another vote.

Instead of lots of public votes, Michigan laws and Owosso practice tilt toward representative democracy. That is, the local electorate chooses seven City Council members who are given the job of making decisions for the entire community. As your representatives, we take the time to read a lengthy board packet of material twice a month, conduct additional research on issues, attend meetings and listen to public testimony. We take into consideration a variety of opinions, and try and make a decision that we believe to be in the best interest of the community. We are not required to poll the citizens, or give every voice equal weight, or even listen to input outside of meetings. But all of us value public input. The questions are two: how do we best get input? And what should we do with the input we get (especially when it conflicts)?

Voiced Opinion versus the Interests of the Unrepresented. I am committed to the idea that public input is desirable and necessary, but am not sure how best to determine the will of the electorate. Or do we need to seek it out at all? City Council meetings are open and the public is given the opportunity to speak both at the beginning and the end of the meeting (although State law only calls for one place on the agenda for input). In addition, certain actions require a public hearing to be held. Are these comment periods sufficient opportunity for public input, or should we seek out more?

Over 20 people spoke at the meeting when we considered the M-52 issue, and all of them spoke in favor of keeping the highway at four lanes. It was pointed out that there are thousands more residents in Owosso that did not speak; do we need to try and guess at their interests? I heard from several people who favored the three-lane proposal, but who did not speak at the meeting; should we consider their opinion? In addition, several people who spoke at the meeting reported that they did not live in Owosso, but they had businesses or owned property in the City. Should we consider their opinion more or less than an Owosso voter? What about those who do not know they have an interest in the issue or cannot speak? In this case, who is speaking for the victims of automobile accidents that might be prevented? In other cases, such as investments in our water system, who is speaking for the future residents of Owosso, who may not even be born yet?

Quantity versus Quality. The final balancing to consider is between the volume of public opinion and the content of the input provided. When a lot of people speak out on an issue, and speak out forcefully, I take notice. If people care enough about an issue to take time to come to a City Council meeting, we should listen to what they have to say. At the June 21 meeting, the Council voted to extend the 30 minutes normally allotted to public comment so that everyone would have an opportunity to be heard. On the other hand, when opinions are repeated frequently they start to become statistics, with so many “for” and so many “against.” How much public testimony is enough?

Typically, at public hearings I find myself listening for new information, novel arguments, or a perspective not yet shared. While I welcome all public input, I find a conversation with a voter more valuable than a brief comment or a long harangue. If several people are involved in the give and take of an extended dialogue on a topic, I tend to learn more about an issue. My recent invitation to “Walk and Talks” on the day of City Council meetings have produced some good discussions; interestingly the one on June 21 had people favoring a three-lane approach.

None of Us Alone is as Smart as All of Us Together. In the end, as I think about public opinion, I come back to a commitment to open, representative democracy and a belief in the wisdom of teams. I think it unworkable, and probably unwise, to put every issue up to a public vote or for the City Council to depend solely on the counting of public opinions. The democratic process that chooses seven people to make decisions for the entire City has proven to be a good method for soliciting, weighing, and evaluating public opinion. However, the process only works well if every elected official is open to receiving input from a variety of viewpoints, and if they are committed to listening with an open mind to that input. I believe that the members of the current City Council have this commitment.

Importantly, each Councilmember comes from a different background and has a unique set of acquaintances and a network of contacts. Sometimes the uniqueness of a councilmember comes through as an individual bias for or against certain public policy issues. However, with seven representatives soliciting input and measuring public attitudes, we are likely to get not only a variety of voices, but a variety of perspectives from which to evaluate the opinion of the public. Most importantly, the success of representative democracy depends on the willingness of the seven member of the City Council to honestly share their interpretations of the public interest and to debate one another on the merits of the issue. It also requires a councilmember to recognize that they are sometimes wrong in their decision, or at least be willing to accept the decision of the majority.

In the end, and most of the time, I believe the shared decision-making responsibility of our local government both reflects well on the full range of opinion and serves the best interest of Owosso. I believe that the present City Council desires to represent all of the public fairly and, most importantly, wants to serve well the future of our community.

Your Opinion Sought. On this, as with all issues, I welcome your input. I have posed several questions, and while I have tried to answer some of them, I am interested in your opinion. How should the Council best gauge the public interest?

Monday, June 14, 2010

George Hoddy's Legacy

At the age of 105, George Hoddy has passed away (you can read the Argus Press news story here), but I know his influence on our community is not over. I have known George since I returned to Owosso 15 years ago, worked with him on the Team 21 effort and other community endeavors, and met with him regularly. After encouraging me in my run for City Council, he would call me up with suggestions and I welcomed the chance to sit with him and hear the perspective of someone who came to Owosso during the Depression and who had a lifelong commitment to creating jobs, encouraging business growth, and building up our community. I learned two important lessons from George, and I believe there are two important parts of his legacy we need to continue.

Lessons Learned. When I think of what I learned from my talks with George, two main points will stay with me:

1. Care about the Institutions of the Community. George was an incredibly loyal man. He was loyal to his company and the people who worked for them, and he was loyal to the community in which he and his employees lived. He recognized that a successful business needed a successful community and he worked hard to either support, transform, or create the organizations and institutions that made this community work. He joined the hospital board to ensure there was good health care for his employees; he ran for the school board because he felt the community needed a strong education system; he recruited Baker College to Owosso because there was a vacant property and because he knew such an education institution would support both education and business. He donated, he made calls, he lobbied elected officials, and he served (for years and years) because it was the right thing to do. His was the era when commitment meant more than joining a Facebook page, when change occurred not because of a letter to the editor, and when loyalty meant sticking with people and organizations even when they were out of favor.

2. Common Sense Makes the Most Sense. It is easy to get caught up in policy debates, political posturing, personal gossip, and media spin, but George never was. He always had a no nonsense approach to issues that was borne out of his training as an engineer and his experience as a businessman. Sometimes he offended people, sometimes he was rebuffed, but you always knew where he stood; his common sense logic was always clear. Frequently, the power of his presentation was sufficient, but even when he did not gain his objective, he was never defeated. He was not ever deterred from his goal, when I knew him, of industrial development and job creation. The last time I saw him, he told me "Give 'em Hell! Don't let them give you the run-around."

The George Hoddy Legacy. We are all sad to lose George from our community, but the testament of our devotion to him will be how carry on some of his work. He was the end of an era, but we should not think of his passing as the end of a way of life. Rather, we should be committed to continuing on those things he stood for. For me, two pieces of his unfinished work will be a focus:

1. Support for Entrepreneurs. George Hoddy was a sparkplug, a risk taker, and a hard worker. He was smart, and he applied himself diligently to see his business ideas realized. This is the definition of an entrepreneur, and we should appropriately remember George in the same way we think of Henry Ford, CS Mott, and Charles Kettering (who recruited George from Ohio State). While George was part of the history of American, and notably Michigan, industrialism before, during, and after World War II, we should not think of his passing as the end of entrepreneurialism in our State or our community. The nature of business is changing: away from automobiles to health care and renewable energy, and away from manufacturing to knowledge- and service-based industries. But we still have, and need, business people (yes, women as well as men) who have good ideas and have the moxie to realize them. Our role, as a community, is to help create an environment that spawns entrepreneurs, and as public and private organizations, that provides support to those willing to start a new business. George Hoddy was brave enough to start a business in the Depression; who will be the George Hoddy of this generation in this time and place?

2. Regional Cooperation. I got to know George Hoddy late in his life when we worked together on Team 21 at the end of the 20th century. George understood clearly that new business growth depended on local government doing two things. First, cities and townships need to provide the infrastructure necessary for industry, in particular water and wastewater services. Second, local government needed to be efficient in the use of their revenues to get the most out of the taxes paid by business. George was no fan of government, and he told me several stories of his frustrating experiences at City Hall, but I never heard him suggest we could do without government; nor did I hear him complain about paying taxes. He just had a simple expectation that government should work effectively to meet the needs of local businesses.

After long years of personal experience, and then witnessing disputes between the units of local government in mid-Shiawassee County, George had a common sense solution: the Cities of Owosso and Corunna, and the Townships of Owosso and Caledonia should either merge into one local government (George liked the name "Curwood"), or at least cooperate closely in the construction of infrastructure and the provision of municipal services. Using his good name and his effective powers of persuasion, he brought a number of individuals from businesses and private organizations together with elected officials and staff from the local units of government. His logic was clear, and he was encouraged by several studies from MSU and the testimony from various experts that showed how much could be saved by combining services. What he did not anticipate, nor could he fully understand, was the level of distrust among local officials and their resistance to change. In the end, the strong attachment elected officials had to their particular units of government hampered Team 21 from achieving the objectives George hoped.

In retrospect, and ironically, George Hoddy in his nineties may have been ahead of his time. Now, as local governments are facing their own fiscal challenges, and as our economy becomes more dire, the benefits of cooperation may now be apparent to more people. But distrust and resistance persists. If we want to honor George Hoddy, we should strive to bring about regional cooperation among our units of local government. George Hoddy is gone, let's hope his good ideas, his approach to issues, and his loyalty to institutions can become his legacy to this community, a community which is not defined by policitcal boundaries.

Tuesday, June 1, 2010

Laying a Foundation for Future Growth


"The State of Michigan is beginning to experience modest economic growth," says the State Treasurer while reporting that sales and income tax revenues are now heading in a positive direction (see details here). Economist now think, and politicians now hope, that the worst is behind us. If the economy is soon to recover, the question for Owosso is "Are we ready?" A small municipality like ours cannot change the overall direction of the economy, which is largely driven by national polices and international forces. However, when the economic flow increases as the depression melts away, will Owosso be in a position to channel some of the run-off for positive growth here?

The City of Owosso has long been committed to economic development with a number of talented city staff helping out private companies that want to grow. As well, the City has supported the Shiawassee Economic Development Partnership and remains one of its largest financial supporters. SEDP, made up of both local governments and private businesses, plays a key role in helping both existing and prospective businesses grow in our community by working with developers, investors, and other government agencies like the Michigan Economic Development Corporation (MEDC).

Building on this history, there are three new steps underway that will help Owosso be in a position to take advantage of the economic recovery:
1. A new tax abatement policy
2. New infrastructure
3. Main Street program.
And there is one more step that the City needs to take to be fully ready: a new master plan.

1. Tax Abatement Policy. The City Council is scheduled on June 7 to adopt a new policy to encourage economic development in Owosso. Local government has few tools to incentivize job growth, but state law authorizes cities to grant a reduction or elimination of property taxes in several unique types of cases, such as industrial development, re-use of contaminated infill "brownfield" sites, and some other redevelopments. These tax breaks can help reduce the cost of new facilities, subsidize new equipment investments, and help improve the financial viability of a new venture. On the other hand, tax abatements cost the City precious revenue.

The City of Owosso has crafted a policy that ensures that tax abatements are given to economic development ventures that represent major investments, create jobs, and provide higher wage jobs. The formula for tax breaks is a little complex, but in sum, the more jobs created at the the highest wages get a waiver on property taxes for more years. Companies with a long history here, and/or those that hire Owosso residents are also rewarded with longer abatements. The goal is to help encourage and assist economic development and job growth in Owosso, but do so in a careful way that ensures that decisions to forego tax revenues are made in an equitable manner that provides the greatest benefit for our community. As the economy recovers and the private sector begins to look at new investments, the new tax abatement policy will hopefully attract and encourage businesses to grow in Owosso.

2. New Infrastructure. We look to private businesses to create job growth, but government has a role to play in providing a well-equipped community to support new development. This means not only good tax policies and effective public services, but also sufficient and well-designed roads, water systems, and other public infrastructure. Owosso has been putting in place several platforms for new growth. Most visibly they include new sidewalks and streetscape improvements in our downtown. Local businesses have asked for, and are contributing downtown tax dollars to, these public upgrades. As the economy recovers, and entrepreuneurs look to start or expand a business, downtown Owosso should be an attractive location. Likewise the improvements to M-52, one of our major entryways into town, will make the entire City a more appealing community.

Often overlooked, our water and wastewater systems are an important infrastructure as well to support economic development. Several industries have located here because of the quality, supply, and low cost of our water delivery system. Recent water rate restructuring made by the City Council, which will be continued in the next budget, ensure that there will be adequate investment in the upkeep of this water system (see earlier posting; click here). The City in conjunction with our partners Corunna and Owosso and Caledonia Township, have begun to look at our wastewater treatment plant, which is now more than 30 years old. We will soon need to make upgrades here to maintain this necessary economic infrastructure in our community.


3. Owosso Main Street Program. When it comes to our downtown most of the attention seems to be given to new sidewalks, building upgrades, and other visible improvements like the new flower baskets. While these are important, there are other things going on that also help lay the groundwork for economic recovery of commercial business in our community. Owosso is participating in the Main Street Program, a comprehensive local effort supported by the Michigan State Housing Development Authority (MSHDA) and linked to national expertise on downtown revitalization. While public infrastructure and urban design are an important component of this effort, the Main Street Program also focuses on the economic structure of downtown to ensure complimentary and mutually beneficial growth of retailers. Technical assistance with marketing, customer service, and promoting the right mix of businesses are all part of this effort to encourage economic development downtown. All of this helps both existing businesses to grow and new enterprises to start.

Our community is at its best when people collaborate and work to support one another. The Owosso Main Street Program is a prime example of such an effort with businesses working together with community members and local government to promote business growth. The addition of the arts community with a reconstructed Shiawassee Performing Arts Center (the Lebowsky Center) further strengthens the partnerships. The creation of a downtown historic district (see earlier posting here) will aid the Owosso Community Players in their efforts, and create further economic incentives for downtown property owners to upgrade their buildings and invest in new growth.

A Master Plan. The primary power that local government can use to help, or hinder, private economic investment is its land use authority. The zoning decision to allow for a new development of a particular kind (e.g. retail, industrial, office) in certain places can encourage, deter, or just direct growth. Likewise, particular requirements on new development that protect the public health, safety, or welfare (e.g. driveway locations, fire safety concerns) may impose some costs on a construction project. It is important that the City of Owosso use these tools in an equitable, effective, and efficient way. The policy tool that guides these important land use decisions is the Master Plan. A Master Plan also provides specific guidance on where to make important infrastructure investments in roads, utilities, and other public facilities; these decisions can also have a significant impact on growth and economic development.

Sadly, Owosso has only a 1969 plan adopted for the mid-county area. An update is needed. The City set aside funds in its 2009-10 budget for a new master plan, but the city was unable to initiate this activity. Now, planning consultants are being interviewed, the City Manager is looking for a new Community Development Director to help with the process, and the City Council is committed to seeing a new plan put into place. Under State law, the responsibility for developing the plan rests with the City's Planning Commission. The adoption of a new Master Plan for the City of Owosso will give our community a policy foundation for encouraging economic development.

In the end, economic growth comes from individual decisions to invest, expand, and grow, but local government can both set the stage for the private sector as well as play a role as a partner. With strong and clear policies--and a plan--in place, the City will be best positioned to benefit from the economic recovery we all hope is underway.

Sunday, April 25, 2010

Dog Park Effort Shows How to Do It


Our community is at its best when people come together to get things done. Such community-building can be a formal, organized effort like the Owosso Main Street program which is authorized by State law and supported with local revenues, or an informal coming together of like-minded people who want to make a change for the better. I learned more about such a grassroots effort when Jeff Selbig and I took my dog for a walk on Saturday.

Jeff and some friends have been working to create a dog park in Owosso. Such public gathering spots have become popular in other cities because they allow pets to get some exercise, and they allow for both owners and their canines to socialize with one another, which is healthy for the dogs and helps build community among humans. Dog parks can be simple fenced-in playfields of an acre in size or elaborate doggy playgrounds with toys and landscape features that allow dogs to explore and exercise. No matter what the size or design, both people and dogs have come to appreciate them. It seems like we are all busy these days and even though electronics allow us to connect to others, people increasingly seem to look for places to talk to others face to face. Dog parks offer the chance for dog owners to share their interests with one another.

The supporters of a dog park have been meeting regularly (most Monday evenings at 7:30 p.m. at Guido's Coffee Shop in the Woodard Station building) and have formed a Facebook group (click here) under the name Owosso Bark Park. They have more than 400 fans. This group has worked hard to look at locations, dog park design and operations, rules and liability issues, and community concerns. Currently, the preferred location is Adams Park on the north side of Owosso (that's Jeff in the phtoto showing off the site to my dog Rambo). Fund-raising efforts have also begun and plans are being made for a Wag'n Walk event on Sunday, June 6 to raise money and awareness. If you would like to be involved in any part of the dog park effort, send an e-mail to owossobarkpark@gmail.com.

The Role of Local Government. I believe local governments need to pay attention to the actions of its residents and be responsive when people come together to get something done. The City of Owosso has a parks plan and an active Parks & Recreation Commission, and this community body has expressed its support for a dog park. Especially given this endorsement, I believe it is the role of the City to find ways to lend its assistance to the Bark Park organizers. Of course, the City has a responsibility to solicit the opinions of the whole community, look carefully at the design and operation costs of a dog park, put in place rules, and protect the liability of the City and park users. However, the City should make sure it is not creating any unnecessary roadblocks as it carries out its duties. Even better would be for the City to find a way to support this and similar efforts.

Sometimes local officials get enamored with their own positions and plans, municipal power in general, or particular ideologies. However, while we need to bring our own experience and knowledge to bear on decisions of policy and public investment, we should keep in mind the community groups who are working hard to make improvements. I think the best strategy for moving Owosso forward is to foster, encourage, and support citizens who come together with a commitment to a cause. Communities become strong when people feel like they can be a part of things and make a difference. The Owosso Bark Park is a testament to the positive power of people.

I urge your involvement in the Bark Park effort, or other group efforts to improve our community. I welcome your feedback on the dog park idea or any other City issue.