A Season of Peace?

This is the season of peace on earth and goodwill towards all, but it does not feel that way to me.  On my mind as a parent has been the tragedy in Connecticut; on my mind as an elected official has been the public discourse that has followed the tragedy.  There is important substance in the exchange of ideas about what to do about school shootings, but the mean quality and negative attitude of some of the public conversations have me again thinking about how we relate to one another, how public policy depends on public opinion, and how a representative democracy solves problems.

Can We Talk? Before the violence at Sandy Hook Elementary School, I was depressed by a spectacle in our State Capitol, where a group of elected officials raced through legislation without discussion, and a group of citizens raced the Capitol doors without decorum.  There was no dialogue, only shouting and name-calling.  People who are my friends compared our popularly-elected Governor to a genocidal dictator; other of my friends used despicable terms of body waste to refer to the people who teach our children and build our cars.  There was no holiday cheer in Lansing, and very little goodwill in the public exchange of opinion that accompanied the process.

Perhaps it's the speed and shortness of response offered by Facebook and Twitter, but my online reading strongly suggests that people have lost the ability to respect one another.  Rather than engage in conversation, or even write a message to a legislator, the favorite form of expression these days is a  angry, snide, or rude posting that demeans those who hold a contrary opinion.  Anger can be useful to move us toward action, and certainly history shows righteousness to be a motivating force for positive change.  However, I fear we are moving to anger not based on the disruption of a truth we hold dear, but because of our failings as a people to talk to one another.

Representative Democracy.  I ran for public office, as I believe most people do, because I want to help my fellow citizens, strengthen my community, and serve in what I believe is the best form of government.  The idealism contained in the previous sentence has been put to the test in my three years as a City Councilmember.  I have been called an anti-constitutionalist, godless, a shill for business interests, a communist, financially self-serving, and a criminal (among other things).  Most of it is so ridiculous as to not be worth recounting, and I don't do so to seek sympathy. I know criticism comes with the job, but I worry what such language does to the public dialogue that is necessary for our democracy to work.

We elect people to represent our interests, our point of view, our concerns. We hold public hearings, and enshrine this process with rules and procedures, so that people can share their opinions and expertise with those who must make decisions.  We make provisions so that the deliberations and actions of our representatives are open to all and can be easily shared through the media.  As an elected official, I value public input and seek it out through both formal and informal means, both at Council meetings and at the supermarket, and in handwritten letters and on my Facebook page.  I especially enjoy longer conversations and group meetings where there is a chance for true dialogue.

Good Conversation is hard to have when people are calling one another names, distorting the truth, and attacking the motives of their opponents.  I worry that when the State Capitol, or City Hall, or an on-line venue is dominated by extreme points of view, those with more moderate perspectives choose not to participate.  And when one side makes an outrageous attack against the other, the emotional response is also one of anger.  When I am criticized in extreme terms, I certainly don't hear well what the other person is trying to say.  That is not only unfortunate, it also reduces the input I get as a decision-maker.

Democracy depends on getting out the most information as possible; verbal assaults reduce our collective knowledge.  Like a nozzled hose, an angry protest may increase the power of the flow of information, but it also limits how widely that knowledge may be shared.  If democracy is a garden, wide conversation, not a narrow stream of insults, will make it grow.

A House Divided Cannot Stand.  I worry that extreme voices, harsh language, and a lack of respect will paralyze local, state, and federal government.  Perhaps it already has. If there was anything that could bring us together, one would think it would be the death of innocent children. "This is our first task--caring for our children," said the President of the United States. "It's our first job.  If we don't get that right, we don't get anything right." Yet, even during this speech, people were criticizing the President, with racial epithets, for interrupting a football game.

Constitutional rights and civil rights are all serious topics where one might expect emotions to be high.  But I now hear outrage, and read the "F" word online, when the City Council discusses water fees, building codes, or snow shoveling.  These are all important issues, to me at least, but are they so visceral that only strong emotion is the only viable form of expression?

So What to Do?  Maybe the issues that face us, such as the inexplicable use of assault weapons by those with a history of mental illness, are too difficult for government to address. I don't think so, but the answers are not easy. I think people feel disenfranchised from, and distrustful of, government, even at the local level.  Those of us involved in government, especially those who are elected to represent the public, need to work harder to welcome people into the process, to value their presence, to truly hear them, and to engage in conversation.  We need to work harder to find a common language, to speak the truth, and to listen boldly.  We need to stop the shouting, so we can hear.

For all of us involved in our democracy, at any level, whatever in our role as citizen or official, here are five things we can do to begin to restore meaningful dialogue (and I need to remind myself frequently of these goals):

1. Take a deep breath, stay calm, think before we speak, and don't overreact.
2. Value all voices; start with the assumption that the other guy has good intentions, even if they are mistaken in their position; show respect.
3. Listen first, speak second; ask questions; or as Stephen Covey said "Seek first to understand, then to be understood."  
4. Be truthful in all that you say and do; rely on data; base your argument on facts, not insults.
5. Be comfortable with ambiguity; there may be more than one right answer, and you probably don't have it.  

I am fortunate to be part of a City Council where the men and women who serve on it seriously strive to reach these standards.

What I have (re)learned in the past week is that we cannot control everything, we cannot prevent bad things from happening.  We need each other to get through the tough times.  And as much as we may want to, we can't solve every problem; but that doesn't mean we shouldn't try.  We need each other to find the best solution.  None of us alone is as smart as all of us together.  But for us to rely on one another, to help one another, we need to be able to talk to one another.

A Master Plan for Owosso

Updated November 18, 2012
Where is the City of Owosso going in the future?  Will we be in a reactive mode, waiting for good things to happen and working to counteract the negative impacts on our community?  Not if we can adopt a Master Plan, a blueprint for pro-active effort to guide the future growth of the City.  In all its history, Owosso has lacked a plan.  While in the past there have been successful efforts to influence and direct private investment and public actions, there has been no overall set of plans, policies, and goals that are forward looking. That is about to change.

In 2008, then Mayor Mike Bruff appointed Cindy Popovitch (now a fellow council member) and me to a Blue Ribbon Committee to define some future goals for the development of the City of Owosso.  Now, we have seen the promise of that work realized in a new Master Plan.  This achievement is thanks mostly to the expertise and effort of Owosso's Community Development Director Adam Zettel, the persistent work of the Planning Commission (which included the chairmanship of Burton Fox, who is now on the Council) and the input and interest of many citizens.  This 18 month effort involved a pubic survey, focus group meetings, and several public hearings.  The plan was put together by staff without the use of public dollars to hire consultants or other professionals (a group of Michigan State University students also provided valuable baseline research).

Why a Plan?
A Master Plan is an articulated set of policies and programs to guide the future development of a City. While there is much focus on, and legal weight, in the map of Future Land Uses (see above), the greatest value in a plan is the direction it sets for the future, the policy statements it contains, and the actions it will direct.  The vision statement for the new Owosso Master Plan states that "The City of Owosso will provide superior municipal services and implement guiding principles that continually enhance the quality of life.  Owosso will be the proud home of numerous creative entrepreneurial leaders and will function as the heart of Shiawassee County.  The community will be a vibrant, progressive, knowledge-based community, which promotes the highest quality of life."

A cynic might dismiss such a vision as wishful thinking, and a realist recognizes that Owosso faces severe economic challenge and other deficits.  However, the adoption of a Master Plan is a conscious effort to try to control, or at least manage, the many forces shaping the community, rather than be a passive observer or victim of larger trends.  At a minimum, the plan helps provide the City Council, City Manager and his staff with a work plan to apply the tools within our control.  Where should the City invest its limited dollars?  Where should roads, water lines and other infrastructure improvements be made?  How can we inspire community efforts to improve parks or other public spaces?  How do we use zoning and other development regulations to direct private investment?  How do we talk about ourselves as a community and what image do we present to those who come to Owosso?  Answering these questions will have a profound impact on our quality of life, and a Master Plan gives us the ability to define and present ourselves in the best light possible.


Community Goals
The draft Master Plan sets forth these goals for the future of the Owosso:

• Create safe, tranquil, clean and healthy neighborhoods with enduring character
• Increase and maintain the mobility of of Owosso citizens through a comprehensive and well-planned transportation system
• Deliver urban development and management that strives to preserve and include the natural environment
• Support well planned, quality and sustainable growth
• Enhance and promote historical community resources
• Develop and maintain quality, cost-effective community facilities, infrastructure and services with ensure our city is cohesive and well connected
• Pro-actively create new educational and economic opportunities for all citizens
• Create more youth activities and amenities that service the community and neighborhoods
• Make Owosso a center for culture and entertainment in Mid-Michigan
• Ensure Owosso provides a lifestyle that accommodates the aging population
• Make Owosso a regional center of health care service excellence
• Be known as a community that delivers healthy and active lifestyles

The Planning Commission recommended the draft Master Plan to the City Council.  At its meeting on August 6, the Council will voted on a proposal to officially accept this Plan.  The Plan then was  distributed for review.  The Plan became a public document and a copy sent to surrounding jurisdictions and other governmental bodies for their review and input.  After public input and further review by the Planning Commission, the Council formally adopted the Plan on November 19.  

The important next steps after adoption will be to begin work on the many implementation steps outlined in the Plan (Chapter 8).  This will require the City to set some priorities, but a review and update of the City's Zoning Ordinance, which legally controls the location and standards of development, will be an important first action.  Specific action plans also need to be adopted for Westown, the highway gateways to the City, the Shiawassee River, and other critical areas.  The primary emphases of the Plan are on encouraging entrepreneurial activity and economic development, place-making and the adding of recreational and cultural amenities, and promoting Owosso's quality of life for families, seniors, and all who would call us home.  Promoting equity and encouraging diversity are specific aims of the Plan.

Adam Zettel recommended that the City Council, City staff, and the community "develop a culture of unity" behind the plan as our guidepost and touchstone.  Several members of the Council stated their desire to have the community work together to take care of one another, improve Owosso, and move us positively forward into the future.  A new master plan gives us the opportunity to do just that. 

What To Do About the Dams on the Shiawassee?

The Shiawassee River has always been a special river to me and more than 15 years ago I came together with others to form the Friends of the Shiawassee River.  I grew up canoeing on the Shiawassee River, and when a teen I participated in several clean-ups. My grandfather, Don Cook, who took me on my first Shiawassee canoe trips, helped Jim Miner with the Shiawassee River Improvement Association, the group that first sponsored clean-ups and got a trail built between Owosso and Corunna. The Friends picked up on Jim's work, and have put on more than 20 river clean-ups and tree plantings, helped promote recreational use of the River, and organized several hundred people to care for, share, and enjoy the river that gives our County it's name. (In my blog Tom's Travels you can read my personal observations about the River).

Dams. In the City of Owosso, there are three small dams that impede the River. In Corunna, there is a somewhat larger former mill dam and a partial dam upstream at a brick plant. The largest dam is the former hydroelectric facility at Shiatown. And just above Byron there is a dam where two forks of the River come together. All of these dams are old, and none are actively used for the purposes for which they were constructed.

For the last several years, the dams on the Shiawassee have become a concern, mostly because of their age. The deterioration of these dams makes it clear that some action is necessary. Also, national awareness about the negative impacts of dams has resulted in an increase in technical and financial assistance for dam removals from both public and private bodies. The safety hazards of dams has again become apparent, most recently with the death of a 12-year old girl at the Shiatown Dam. For these reasons, the Friends of the Shiawassee River as well as state and local governments have given considerable thought and study to the future of the dams in our community.

Dam Facts: There are three key things to keep in mind when discussing the dams on the Shiawassee River:

1. Rivers are healthier without dams. Rivers are naturally occurring features that pre-date human settlement. Dams were built to control water flows and levels, usually to serve economic interests such as power generation. While rivers and their inhabitants have adapted to the unnatural intrusion of dams, aquatic biologists and other scientists have come to learn that rivers are healthier without them. Dams block the movement of fish up and down the river, isolate species populations and hamper reproduction of all types of creatures. While anecdotes and folk wisdom abound about the Shiawassee, all of the research shows that the River and its fish and other inhabitants will be better without dams (read this study on the ecology of dam removal).
2. The existing dams do not control water levels on the River. While this may seem counterintuitive, we need to realize that none of the dams are currently managed. Without the operation of control gates, the opening or closing of sluiceways, or the insertion of boards into openings, none of the dams impact water levels. When it rains, the River goes up; when we get a drought, the River becomes shallow and in places muddy. Several of the dams have impoundments behind them, but the level of these wide, slow spots go up and down just as the River does.
3. Rivers are ever-changing; doing nothing is not an option. With time, the flow of water defeats rock and concrete, and rivers constantly move sediment and thus their banks. If a dam is not maintained, it will decay and begin to fall apart, as we are now witnessing. As well, the area behind a dam fills in with eroded soil and the impoundment shrinks. The good news is that life on the River is also ever-changing, and plants and animals move into new shallows and fill in exposed shoreline. If we do nothing with the dams on the Shiawassee, nature will have its way and remove or overrun them, but it will take time and the process may not be pretty nor best serve the interests of human residents of the local watershed.

Dam Removal. If the dams on the Shiawassee still served an economic purpose, private investments would be made to repair them and make them operational for flow control. With no private ownership of the dams, it falls to the public sector (state, county, and city governments) to determine proper action. A decision to "leave the dams alone" is a decision to promote deterioration and invite uncontrolled consequences to both human and natural communities. Some people have expressed a desire to restore the dams to their former size and function, but it is clear that local governments alone will have to bear this cost. State and federal funding is available for dam removal, not dam repair. As well, regulatory agencies that ensure dam safety, monitor water flows, and protect fish and wildlife will give any dam rebuilding scheme a high degree of scrutiny, at best.

Given these realities, it is prudent for our community to investigate the options for complete or partial dam removal. While costlier, there is also the option for the replacement of dams with rock rapids that allow for fish passage. This has been done successfully downstream at Chesaning (learn more and see photos here). Obviously, each dam and its location on the River is unique, and any specific removal or replacement would require careful study and good engineering. Whatever specific design, in general there are three benefits of dam removal on the Shiawassee:

1. Increased recreational use of the River by both boaters and anglers. While some kayakers enjoying the challenge of the existing dams in Owosso, most boaters find the dams a hindrance or a danger. The dams in Corunna and Shiatown cannot be safely negotiated: a few years ago, a kayaker died trying to go over the Corunna dam. Removal of the dams would make the Shiawassee more open to recreational canoers and kayakers, and might encourage private canoe rental facilities to make greater use of more of the River, especially between and through Corunna and Owosso. As well, removal of the dams in Owosso and those upstreams would allow for greater upriver migration of walleye, a popular gamefish, from Saginaw Bay.
2. Elimination of safety hazards would the primary benefit of dam removal. Over the years, there have been several drownings at dams on the Shiawassee.  Flowing water can be an attractive hazard, especially to the young or the uninformed.  However, the flow of water over and below dams can be deceptive, and all of the dams in the County have the potential to kill.  This is true of even small dams, especially in high water (see this video that explains the hydraulic flow over low dams).  
3. Using our River heritage for our future should guide our thinking and actions about dams. Our communities grew up where they are because of the Shiawassee, and we have had an evolving relationship with the River ever since. Over time, we have used the River for transportation, power, waste disposal, and recreation. What is the best role for the River today? As we move to a future built on the quality of life of our communities, we should think of the waterway flowing through town as an amenity. What would make the River most attractive to those on adjacent walkways, fishing its banks, paddling downstream, or just sitting along its banks? Importantly, what will attract businesses to make investments in our River-centered downtown? Decaying concrete that is unsightly and dangerous is not an attraction. Rather, let's use the challenge of dam removal as an opportunity to invest in the creation of a healthy, scenic, and usable River. As the Friends of the River mission statement says, let's "care, share, and enjoy" the Shiawassee.

The City of Owosso has not yet made any specific decisions about the three dams within the City limits. The Friends of the Shiawassee River did commission a study to look at options for the future of the dams (A copy is available at the City's website). The result of this work by an engineering firm and an aquatic biologist showed that the current dams are deteriorating, do hinder fish passage, limit recreational options, and create minor upstream impoundments that are less than when originally constructed. The study showed the dams could be removed with a minor impact on the character of the River. The River would be slightly narrower and shallower for a short distance upstream of two of the dams, but in a few years new banks would be established and vegetation would move in. Deliberate restoration activities would hasten this process.

What the City Council did decide to do was to work with the Friends of the Shiawassee River to look at options for dam removal and replacement. Currently, there is funding available from a variety of sources for taking out dams; there is no funding available for dam repair or reconstruction. The City is faced with two choices: 1) Do nothing, and let the dams slowly deteriorate; or 2) Investigate options and define some potential projects that maintain what we like about the dams and enhance what makes the Shiawassee special. In several public meetings, people mentioned what they liked about the dams: the sight and sound of rushing water and an attractive location to enjoy the River. It is possible to achieve these objectives while removing the dams as barriers and safety hazards.

Change is Difficult and no one involved in planning for the future of the dams in Owosso is acting precipitously. In fact, analysis and discussion has been spread out over time to allow people to think about what they value about the dams and what role they want the Shiawassee River to play in our community. In the short term, there is no need to act and the dams could probably stay in their present state for several years. However, funding opportunities may pass and eventually the dams in Owosso will fall apart. We can try and ignore time and the facts of the situation, or we can move ahead deliberately and consider options. Then, with community input and a sober look at costs and funding, we can make decisions that will best serve the City and continue to make the Shiawassee River an asset to our community.


Additional Resources can be found at these two websites

1. A "Dams Overview" from the Michigan Department of Natural Resources that covers the regulation of dams, their environmental impact, and their history in our state. The website also lists examples of dam removals in Michigan as well as providing resources
2. "Dams and Dam Removal" information from American Rivers, the premier national resource and advocacy group on rivers in America. While most of their specific projects have occurred on larger dams on the east and west coasts, the site does provide some good educational material.

Optimistic Persistence

This past week, the City of Owosso achieved two long-awaited milestones, and the journey to them offers several lessons for those of us engaged in local government and community change.  The first piece of good news was for the Owosso Community Players who received construction loan approval from Chemical Bank for the rebuild of the Lebowsky Theater.  Now, with State assistance, long-term federal financing, and lots of hard-earned private support, the Shiawassee Performing Arts Center will begin its final phase of construction in the next few months.  Second, the members of the City's Park and Recreation Commission realized a three-year goal with the construction of a large playscape at Bentley Park.  This project, the result of a City investment and community donations of time, labor, and money, is the first of several steps in remaking this park into a gateway for Owosso.

Positive Change Takes Time we are reminded by both of these projects.  We live in an era of quick communication and amidst a constant stream of up-to-the-minute news.  Social media makes it possible to share photos, provide updates, and offer opinions in real time.  But reporting is not the same as achieving, and frequently local government does not move as fast as we would like.  We expect results quickly, and the bold step of announcing a goal (e.g. "Rebuild the theater") is sometimes forgotten when it takes months, or years, to achieve the objective.  The typical narrative of news stories leads us to expect a speedy progression of problem statement, resolution, and completion.  Our local newspaper headlined the playscape story with the modifier "finally" reflecting this impatience to get results.

However, it takes time to achieve real progress or make change.  Frequently, the problems are complex, and putting together the right plan of action requires both technical and political analysis.  Upon determination of a solution, the alignment of partners and the assembly of resources takes both skill and time.  Frequently, a project is started without having defined an exact path forward.  For example, the City started the playscape with a commitment of $15,000 several years ago knowing that this amount of funding was insufficient.  It took months before Kiwanis and other service clubs were fully on board, business sponsors had to be approached slowly, and the many fundraising efforts took lots of time and effort to initiate, coordinate and promote.  In the end, close to $100,000 was raised for the project, most of it from local, private donations..

Risk is Inherent to any community improvement effort, especially when not every detail is arranged or known in advance.  Things can, and probably will, go wrong and critics will be quick to point out the shortcomings of any plan that requires modification or is delayed.  Champions of change have to be flexible and be open to hearing the suggestions, or requirements, of other partners as they join in.  Most importantly, as obstacles are encountered, proponents have to be patient while finding additional sources of funds, coming up with an alternative design, or suffering through political attacks.  In both the playscape and the theater projects there were setbacks, and it is a testament to the organizations behind them that people kept moving forward, even when it required a step or two sideways, or backwards, before the goals could be achieved.

Optimistic Persistence may be the most necessary ingredient for any change effort.  I marvel at the people involved with these community improvement initiatives.  Some people had a vision, and would not abandon that dream despite being mocked or criticized.  Other people had the tenacity to keep to their task, whether that be asking for funds or shoveling wood chips.  Several people accepted the challenge to rework the plan and seek out an alternative options. And all of them had persistent optimism, a belief that things would get better if they were willing to stick to it.  Sadly, there are too few people with such an attitude, but I have come to appreciate how important they are to moving our community forward.  (I would add that news of these projects occurred as Governor Rick Snyder announced a cooperative plan with Canada to build a new bridge to support economic growth in Michigan; here too is a leader with optimistic persistence).

Long-Term Perspective is essential in our community if it is to weather the current economic crisis.  We need to look past today's tough times and recognize that the changes we are making now may not show results for several years, perhaps after our terms of service are over.  Policy choices can be distorted when we look for a quick return on our political investments. If creating an entrepreneurial culture in Owosso will take time to take hold, if gaining regional cooperation takes repeated outreach to build trust, if building community facilities requires waiting for the right grant, then we can not be afraid  to pursue such goals. If we avoid the long-term issues, then we might only adopt empty ordinances and resolutions, hire (or fire) staff people to show some sort of action, or take only the most careful and smallest of steps forward.  I am inspired by the examples of those who show optimistic persistence to keep the long-term view in sight.

The Worth of Woodard

In the continuing efforts at the state and local level to rework Michigan's economy, much attention is given to creative genius, the role of entrepreneurs, and the skill level of our workforce.  A new show at the Shiawassee Arts Center provides a fascinating historical view of how these economic development factors combine in a family, a company, and a community.  This record of lessons, 146 years old and still going, offers guidance to our economic development goals of today.

Woodard Furntiure is world-renowned for its hand-crafted, wrought-iron construction.   Examples can be found in the White House Rose Garden, in the Smithsonian, and in other museums of design, art, and history.  The furniture is still made in Owosso, and the history of the company is entwined with that of the City.  Started in 1866, the company began when Lyman Woodward moved from upstate New York and bought a mill on the banks of the Shiawassee River at the site of the present City Hall.  At first, the company relied on the abundance of wood, water power, and rail transport to make and distribute furniture. His wife, parents, and brothers also moved to Owosso, setting the pattern of a true family business that would persist for the next 100 years.

When we talk today about the types of companies we want to grow, we talk about those that rely on creative talent, can adapt to changing conditions, and employ skilled workers.  These have been the  hallmarks of Woodard Furniture since its beginning.  After surviving the setbacks of several fires to establish the means to produce wooden furniture, a second company was created to take advantage of the assembled assets. The Owosso Casket Company was one of the foremost manufacturers in the early 20th Century, producing 150 caskets a day, including those for two presidents (McKinley and Harrison).  The company closed during World War II, but the factory building still stands on S. Elm Street in Owosso.

Creativity. Versatility.  In 1934, the Woodards produced their first metal furniture, a result of the depletion of wood, the changing labor force, and the design genius of Lee Woodard, son of the founder.  The Depression did in Woodward Furniture, but a new company, Lee L. Woodard and Sons was formed in 1938, and was run a cooperative basis where sons Joe ran engineering and production, Russ finance, and Lyman design and marketing.  Lee's wife Sadie summed up their business style when she wrote "the ingredients of the soil for the Lee L. Woodard and Sons planting were faith, courage, creativity, versatility, business ability, integrity and many other divine qualities."  

During World War II, the Woodards developed their metal working skills through several military contracts.  The company played an important role in training arc welders at night through a government contract to supply workers to war production plants in surrounding metropolitan areas.  Thanks to Baker College, Owosso continues to train people in a variety of trades today.

After the War, Woodard Furniture became the producer of premier outdoor patio furniture, with unique designs based on European motifs as well as setting trends, and winning awards, with modern designs.  The combination of creative design with solid engineering, long-term employment of craftsmen, and sound management led to success and worldwide recognition.  As David Vaughn, one of the first non-family members in management notes, "Woodard hired and encouraged an outstanding staff.  They selected good brains and gave them the freedom to experiment for betterment."  In Michigan we have been concerned with reducing labor costs, but as we prepare for the future it is perhaps useful to recall the past when a skilled workforce was a true asset.

Woodard today persists as an Owosso-based manufacturer, employing 170 people, the most in over five years.  As Woodard generations passed away, and corporate America evolved, the company changed hands through various mergers and acquisitions.  But the worth of its products has remained. Today the company is owned by Texas-based Litex, whose CEO, Jean Liu, observed that "furniture is art."  As value-based products again gain consumer recognition, the future of Woodard Furniture is again looking bright.  The photo at left is of the new Jax Collection, which received a 2011 design excellence award.

A final economic development note:  in 1995, Woodard Furniture faced a dilemma.  It valued its highly competent workforce and their craft skills.  However, it was hampered by its outmoded, five-story brick building in downtown Owosso.   At risk of losing this heritage employer, the City of Owosso worked with Owosso Township and various state and local economic development entities to create a PA 425 property tax sharing agreement to enable the company to relocate to the Township's industrial park.  There, with municipal services, the company was able to build a 332,000 square foot facility.  This is the home of Woodard Furniture today.  The City of Owosso agreed to acquire the former plant for redevelopment.  The City turned its economic development skill set to the project, and through the use of state tax credits, other public assistance, and private capital, Woodard Station was constructed, a mixed-use development of condominiums, student housing, office, retail, and the well-received Wrought Iron Grill.

The history of Owosso and Woodard Furniture progressed together, with the company and the City helping each other in turn.  The lessons learned from this experience should help shape our future in Owosso and Shiawassee County, as well as offering useful inspiration to the rest of Michigan as it seeks to inspire artistry and support the companies that turn creative genius into economic growth. 

To see the show:  "The Worth of Woodard" is on display through July 29 at the Shiawassee Arts Center, located at 206 Curwood Castle Drive on the banks of the Shiawassee River in downtown Owosso.  The gallery is open Tuesday through Sunday from 1 to 5 p.m.   Visit the website to learn more.  

Much of the material in this blog is drawn from the publication "The Worth of Woodard" which is available at the Shiawassee Arts Center.

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.