Ann Arbor DDA chairman not reappointed to board, leaves citing philosophical differences with mayor
Gary Boren is stepping down from his seat on the Ann Arbor Downtown Development Authority, but he's not leaving voluntarily.
Mayor John Hieftje, who makes appointments to the DDA board, announced at Monday's Ann Arbor City Council meeting his intention to replace Boren with attorney Nader Nassif starting next month. Nassif will serve a three-year term expiring Sept. 6, 2014.
Hieftje also announced his intention to reappoint two DDA board members for three more years: John Mouat and Joan Lowenstein, who served as chairwoman until last month.
Ann Arbor DDA board chairman Gary Boren is leaving the board after not being reappointed.
File photo | AnnArbor.com
It's likely a new chair will be elected by the board in September and some are speculating it could be Bob Guenzel, the former Washtenaw County administrator who is now the DDA's vice chairman.
Hieftje didn't say Monday night why he's not reappointing Boren to the DDA, but he told AnnArbor.com Tuesday that Boren has worked hard on the DDA and he appreciates his service. He said he'd be happy to appoint Boren to another city board, but Boren has served two terms on the DDA now and Hieftje thinks it's time to give someone new an opportunity to serve.
In an e-mail to AnnArbor.com, Boren chalked it up as philosophical differences between him and the mayor and said he's disappointed.
"I am disappointed, but not surprised — and not at all bitter," Boren said. "Quite apart from the fact that I disagree with the mayor's particular policies regarding DDA, there is really nothing inappropriate about his taking policy into account when making appointments. This is a failing of the DDA creating statute and not his exercise of his ex-officio duties."
Boren said he had a frank but cordial meeting with Hieftje a few weeks ago where he was informed the mayor wasn't inclined to reappoint him.
"First, he acknowledged our philosophical differences vis a vis DDA and the city," Boren said. "But he also said that there was an unwritten practice of rotating every two terms. Indeed, I believe only Leah Gunn has served more than two terms in the history of DDA."
Boren said he can't say disagreements over a new parking agreement between the city and the DDA was the only factor in the decision, but he knows he was at odds with the mayor.
Boren said he feels strongly the new parking agreement — which includes a broad transfer of powers from the city to the DDA in exchange for a transfer of parking revenues from the DDA to the city — will severely limit the DDA's ability to take on meaningful projects.
Boren said he also thinks the new agreement will place upward pressure on parking rates at the expense of downtown merchants and landlords — and to the benefit of the neighborhoods and the Briarwood and Arborland shopping malls, which are well outside the downtown.
"In effect, we have agreed to fund urban sprawl," he said. "We are facilitating a significant flow of resources in exactly the opposite direction that we were created to foster."
Hieftje acknowledged his differences with Boren.
"I have spoken about philosophical differences at DDA meetings," Hieftje said. "Gary believes in a more autonomous, separate DDA, while I believe DDAs exist to serve their cities and that is why the state created them."
Boren said the mayor has made clear his opinion that the DDA is more like a city department that should cooperate with the city at large to solve larger city problems.
Unfortunately, Boren said, he doesn't think the nature of the DDA and its mission are well understood by the City Council or the public, but he hopes his tenure will have made a difference.
"I have always felt that DDA is legally an independent agency which was actually set up to represent downtown interests," he said. "DDA is not uncaring or oblivious of the city's general financial problems, but we need to advocate that the downtown stakeholders should not 'pay' a disproportionate share in solving the city's general financial problems."
Ali Ramlawi, owner of the Jerusalem Garden restaurant in downtown Ann Arbor, addressed the City Council at Monday's meeting and called for a review of the DDA, which was described by one council member earlier this month as a "hotbed of political cronyism."
"I'm coming here and calling for a complete review of the DDA and the appointment process to the DDA," Ramlawi said. "These are non-elected officials making pretty important decisions, and I really call on the city right now to do a complete review of the DDA, where they're spending their money, where they're getting their money, who's being appointed."
Ramlawi said the DDA often is given too much credit for the success of downtown Ann Arbor, which he said "is like giving Al Gore the credit for inventing the Internet."
Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529. You also can follow him on Twitter or subscribe to AnnArbor.com's e-mail newsletters.
Comments
15crown00
Thu, Aug 25, 2011 : 2:53 a.m.
maybe Hieftje is the one who should resign.
Patrick Connor
Thu, Aug 18, 2011 : 2:10 p.m.
Shouldn't the mayor be appointing people that have solid connections to the city and downtown area? I'm not sure that is accomplished by appointing Nassif. I like the fact that he's young but from what I can tell he really has no connection to Ann Arbor, doesn't live in the city, and is not familiar with local business at all besides maybe patronizing a few locations... Someone on here keeps saying he works for Lorandos law firm, but I only know him as an attorney that does criminal defense for Model Cities Legal Services, who contracts directly with the city of Ann Arbor for all misdemeanor work. I've heard he's a good criminal defense attorney but I'm not sure how that translates into a DDA nomination. If the mayor was looking for someone young to nominate to the DDA and he wanted another attorney, there are plenty of young attorneys that actually represent local businesses, not to mention all the young business owners like Ramlawi that would be far a better fit..
Tom Wieder
Wed, Aug 17, 2011 : 9:50 p.m.
@Joan Lowenstein – "There is no advocate for the downtown in Ann Arbor other than the DDA." Utter nonsense. There are many advocates for the downtown – the State St. and Main St. merchants associations, the Chamber of Commerce, the Mayor and individual members of City Council, thousands of private citizens and individual business owners. I am an advocate for the downtown, as well as a regular user of it. Many of the staunchest critics of the DDA are strong advocates for the downtown. Being against the way the DDA operates is not to be against the downtown. "Ann Arbor's DDA does not capture taxes from the schools…" Correct. The DDA "only" captures revenues from the County, the library and the Community College, which doesn't diminish my argument one iota. "The other taxing authorities, including the schools, benefit from the overall increase in the value of downtown property." Unfortunately, this is a belief, not a fact. It has never been clearly demonstrated that the increase in the value of downtown property is result of the DDA's efforts, or that any increase in tax revenue it may have generated has actually exceeded the tax revenues that it has consumed. "The idea that there would be something beneficial to the downtown but not to the city is just silly. I can't think of any situation where their interests would 'diverge.'" Really, Joan? Then, I guess you can't think very broadly. What if the DDA spent $1 million in tax dollars on public art which increased retail sales in downtown by $250,000 per year, but only increased tax revenue through increased property taxes of $25,000? That would be beneficial to downtown, but not to the city, at least, not financially. These are hypothetical numbers, but many people feel that real numbers for some DDA projects are just as bad.
Bob Carlin
Thu, Aug 18, 2011 : 12:36 a.m.
Thanks Tom. This isn't the first time Joan put her foot in her mouth.
Alan Goldsmith
Wed, Aug 17, 2011 : 7:53 p.m.
"There are examples of other places where the downtown is not considered important -- Manchester, Flint, Pinkney." This is a perfect example of the condencending and arrogance that makes lots of Ann Arbor taxpayers want to see the DDA abolished. And the exact reason, Ms. Lowenstein, the Mayor keeps appointing you.
Joan Lowenstein
Wed, Aug 17, 2011 : 4:48 p.m.
Actually, DDAs are set up to focus infrastructure spending in the downtown because of its importance to the life of a city. There is no advocate for the downtown in Ann Arbor other than the DDA. There are examples of other places where the downtown is not considered important -- Manchester, Flint, Pinkney. Ann Arbor's DDA does not capture taxes from the schools and, unlike every other DDA in Michigan, captures only the incremental tax from new construction. The other taxing authorities, including the schools, benefit from the overall increase in the value of downtown property. All the DDA board members actually live in the city of Ann Arbor and include owners of downtown businesses (Roger Hewitt, John Splitt, Sandi Smith, John Mouat, & Keith Orr), people who live downtown (Gary Boren, Newcombe Clark), and people who live in Ann Arbor and work downtown (Bob Guenzel, Leah Gunn, John Hieftje, Russ Collins, and me). The idea that there would be something beneficial to the downtown but not to the city is just silly. I can't think of any situation where their interests would "diverge."
racerx
Wed, Aug 17, 2011 : 5:14 p.m.
Former council person Lowenstein, thanks for the clarification of the members who are actually business owners. Again, you're a former council person, and, not to be disrespectful, but other than your close ties to the mayor, and a attorney, what do you actually bring to the DDA that another non-political appointee who is invested in the downtown would bring? Is all it takes to be appointed is living downtown? Where are the students if that's a requirement? The issues that most people have in this post is that the members are political appointees who typically rubber stamp whatever the mayor requests of the DDA. The issue of how money is spent between the DDA and the city is questionable at best. I understand that you're trying to defend your appointment, however, the practices between the city and the DDA is very questionable in how tax dollars are used. Regardless if they come from schools. It is still the tax payers of Ann Arbor who is footing the bill(s) of the DDA without any representation, other than Lord Hiefte.
Tom Wieder
Wed, Aug 17, 2011 : 3:30 p.m.
I applaud the Mayor's decision not to reappoint Gary Boren to the DDA, assuming that the story's characterization of Boren's viewpoint is correct. DDAs are created by cities to help cities, not as charities or subsidies to downtown businesses. The idea is that a successful downtown strengthens a city and bolsters its tax base. The DDA should not be "independent" of the city government that created it to benefit the city. Elected officials, directly accountable to voters, should be deciding the direction of the DDA, and the approach of the DDA board members is a proper part of that decision-making. If the interests of downtown businesses and the larger city align, that's great. If they diverge, the interests of the larger city must control. There is another element to keep in mind. DDAs also take revenue away from the other units of government – schools, county, library. The city's elected officials have a responsibility to insure that the DDA is truly serving the broader community, not just downtown businesses – and their profits.
racerx
Wed, Aug 17, 2011 : 2:56 p.m.
Are there any local business owners on the DDA's board? I mean, these are the people who've invested in the community with their businesses, has business experience, hears from their customers daily, and would probably have a better understanding about what would work in growing their business and what wouldn't. Instead, the board is made up of a bunch of political cronies of the mayor, and seemingly, are elected/appointed to the DDA's board out of political favors. One, of course, is agreeing with the mayor! Dissent? Not welcomed here!
Stephen Landes
Wed, Aug 17, 2011 : 2:47 p.m.
Interesting time to choose to not reappoint Mr. Boren -- immediately after his fellow DDA members elect him as chair. Is this the Mayor's way of nullifying DDA actions he doesn't like?
Goofus
Wed, Aug 17, 2011 : 2:46 p.m.
The mayor should be required to appoint actual downtown business owners like Ali Ramlawi to the DDA --- not career city politicans and cronies like joan Lowenstein, who seems to have made a lifestyle of working as a quasi city adminstrator on boards .
Alan Goldsmith
Wed, Aug 17, 2011 : 1:50 p.m.
"But he also said that there was an unwritten practice of rotating every two terms. Indeed, I believe only Leah Gunn has served more than two terms in the history of DDA." So when will Ms. Gunn be leaving?
Carole
Wed, Aug 17, 2011 : 1:31 p.m.
Don't know if comment is true that the sate recommended DDA's in cities or not, but I believe very strongly this this DDA should be shut down and all the funds should go into the city's buckets with the hope that the new administrator will have some common sense as to appropriations. The mayor and most council members surely do not. Again, shut down DDA -- if there was free parking downtown, the downtown would be booming with business -- ever think of that.
Goober
Wed, Aug 17, 2011 : 1:31 p.m.
If we keep re-electing the mayor and all city council members, then we will continue to see the same results. They have a track record of wasteful spending, following the wrong priorities and enacting policies and ordinances not connected to reality. Either support what they do, support what we know they will do or replace them. They seem to be deaf to anything that we say on these and related issues. Our opinions do not seem to count for anything other than our own entertainment.
Doug
Wed, Aug 17, 2011 : 8:09 p.m.
Try voting Republican for a change!
Bertha Venation
Wed, Aug 17, 2011 : 2:44 p.m.
I can't wait until the next election when we can clean house and replace city council AND the mayor!
Alan Goldsmith
Wed, Aug 17, 2011 : 1:25 p.m.
It's time for term limits for Council and the Mayor's office.
Bertha Venation
Wed, Aug 17, 2011 : 1 p.m.
All Hail, King John! (I wish he would leave).
Alan Goldsmith
Wed, Aug 17, 2011 : 10:57 a.m.
"Mayor John Hieftje, who makes appointments to the DDA board..." The sign of weak political leadership is being a wimp when it comes to hearing opinions other than your own. By his repeated actions of The Mayor, it's clear he is afraid of that and continues to reappoint members of the DDA who are in lockstep with his own views. He needs to work on his inferiority complex when it comes to bouncing volunteers off of City Boards.
yohan
Wed, Aug 17, 2011 : 5:40 a.m.
Recall Hieftje!
Maxwell
Wed, Aug 17, 2011 : 4:13 a.m.
"I have always felt that DDA is legally an independent agency which was actually set up to represent downtown interests," he said. "DDA is not uncaring or oblivious of the city's general financial problems, but we need to advocate that the downtown stakeholders should not 'pay' a disproportionate share in solving the city's general financial problems." Translation - We like corporate welfare
nittanylion
Wed, Aug 17, 2011 : 1:28 a.m.
If our Mayor thinks two terms are too much for a position on the DDA, what does he have to say about his many terms as Mayor. Seems to me he speaks out of both sides of his mouth!! What's the real reason? Did the poor ex-chair dare to disagree with our long time Mayor on some issue?????
Terrin Bell
Wed, Aug 17, 2011 : 3:04 a.m.
The difference seems to be obvious. The mayor is popular and has been reelected. Further, the mayor gave two reasons for the changing things up. One, the unwritten rule that the unelected appoints generally only last for two terms. Two, he had serious disagreements with the Mayor. Now it seem like an appointed person should actually have the same values as the elected person as the elected person is accountable for the appointment.
amlive
Wed, Aug 17, 2011 : 12:44 a.m.
"but Boren has served two terms on the DDA now and Hieftje thinks it's time to give someone new an opportunity to serve." Great philosophy, all for it. And since you brought it up, how many terms have you served as mayor?
free
Wed, Aug 17, 2011 : 1:16 a.m.
Nice.
free
Wed, Aug 17, 2011 : 12:37 a.m.
See what happens when you don't agree with the chairman in a one-party system?
Roadman
Tue, Aug 16, 2011 : 11:45 p.m.
The appointment of Nader Nassif, a fairly recent law school graduate, is a step in the right direction. He is not an insider, but is well known in the legal community through his service with the Lorandos Law Firm.
Patrick Connor
Sun, Aug 21, 2011 : 4:05 p.m.
Oh excuse me Roadman, I didn't realize Linked in was the final authority, guess I should buy some of their stock. The Lorandos website lists him as "Of Counsel", not an associate. Do you know the distinction? You can also check Nader's website and see that he lists himself as attorney/partner of model cities. And if you don't believe that, walk into 15th district court any day of the week and you'll see him representing misdemeanor defendants with another attorney (Brandt Funkhouser) on BEHALF OF MODEL CITIES. You're missing the point and making baseless conclusory statements. You also seem to think this is some type of personal attack against Nader, which it is not. The point is that the mayor should be electing someone that is familiar with downtown, lives there, has ties to or runs a business, etc..., not someone that drives in everyday, has never had any ties to the city (outside of the past year or so), and has never represented local businesses.
Roadman
Fri, Aug 19, 2011 : 2:32 a.m.
Uhh, Patrick.... Nader's "Linked In" page confirms that he is associated with the Lorandos Firm.
Patrick Connor
Thu, Aug 18, 2011 : 2:17 p.m.
Shouldn't the mayor be appointing people that have solid connections to the city and downtown area? I'm not sure that is accomplished by appointing Nassif. I like the fact that he's young but from what I can tell he really has no connection to Ann Arbor, doesn't live in the city, and is not familiar with local business at all besides maybe patronizing a few locations... Someone on here keeps saying he works for Lorandos law firm, but I only know him as an attorney that does criminal defense for Model Cities Legal Services, who contracts directly with the city of Ann Arbor for all misdemeanor work. I've heard he's a good criminal defense attorney but I'm not sure how that translates into a DDA nomination. If the mayor was looking for someone young to nominate to the DDA and he wanted another attorney, there are plenty of young attorneys that actually represent local businesses, not to mention all the young business owners like Ramlawi that would be far a better fit..
Patrick Connor
Thu, Aug 18, 2011 : 2:11 p.m.
Shouldn't the mayor be appointing people that have solid connections to the city and downtown area? I'm not sure that is accomplished by appointing Nassif. I like the fact that he's young but from what I can tell he really has no connection to Ann Arbor, doesn't live in the city, and is not familiar with local business at all besides maybe patronizing a few locations... Someone on here keeps saying he works for Lorandos law firm, but I only know him as an attorney that does criminal defense for Model Cities Legal Services, who contracts directly with the city of Ann Arbor for all misdemeanor work. I've heard he's a good criminal defense attorney but I'm not sure how that translates into a DDA nomination. If the mayor was looking for someone young to nominate to the DDA and he wanted another attorney, there are plenty of young attorneys that actually represent local businesses, not to mention all the young business owners like Ramlawi that would be far a better fit..
demistify
Thu, Aug 18, 2011 : 2 a.m.
Roadman, I am gratified that you have developed (apparently very recently) an aversion to junk science. A few months ago, when annarbor.com reported a study (with a local author) that drew scathing comments, you found nothing wrong with it. To refresh your memory, the paper alleged that there was an incidence of birth defects in Fallujah caused by US anti-tank ammunition (with no evidence). It turned out that there was no tank battle within 200 miles of Fallujah (in either Gulf War), so no such ammunition ever came near there. The story originated with Saddam Hussein after the first Gulf War, and this was one of a series of recyclings of it.
demistify
Thu, Aug 18, 2011 : 1:35 a.m.
Roadman, The subtlety of your reasoning overwhelms me. As best I can figure it out, you are saying that you expect Joan Lowenstein to attain a judgeship soon, so there is need for another lawyer at the DDA, a greener one who will stick around.
bedrog
Thu, Aug 18, 2011 : 12:46 a.m.
so roadman...you don't like "junk" analyses??? coulda fooled me ( and alot of others).
Roadman
Wed, Aug 17, 2011 : 11 p.m.
Joan Lowenstein has been a media attorney that works with the Jaffe Snyder law firm; prior to this she worked for E. Edward Hood, a longtime attorney with the Dykema Gossett firm. Joan Lowenstein has unsuccessfuly sought a appointment to the Washtenaw County Probate Court that was filled by Darlene O'Brien. In 2008 she ran for Ann Arbor's 15th District Court and finished a distant fourth place. I have been long acquainted with Dr. Lorandos, a psychologist-attorney, who was successful in getting "junk science" disallowed from evidence in court cases. The attorneys in his firm have been active and visible in the court system throughout Metro Detroit. Nader Nassif has built an impressive reputation in his three years out of law school. There will be an opening in the circuit court soon, however, due to the impending retirement of Judge Melinda Morris. I suspect if Joan Lowenstein ran she would likely get huge campaign support from the local and county Democratic parties she is associated with as well as support from her husband's cohorts in the local medical community; she received substantial campaign funding in 2008 from local health care professionals. She could possibly capture the Morris vacancy if she ran in 2012 for that seat.
demistify
Wed, Aug 17, 2011 : 4:34 p.m.
"...a fairly recent law school graduate...is well known in the legal community..." Which of these somewhat contradictory statements makes him desirable for the job? For that matter, why does the DDA need another lawyer? It already has a more experienced one, Joan Lowenstein. I seem to recall that you disapprove of her. And of the mayor. Is there another unstated agenda in play here?
Megan Greene
Tue, Aug 16, 2011 : 11:34 p.m.
The DDA will never be abandoned because it's like a private foundation run by the Mayor. Didn't the DDA recently give the City millions to make up a budget deficit? It's a safety valve for the city, the goose that keeps laying golden eggs. Asking hard questions such as who benefits from it and how are its members selected will not be answered any time soon.
Edward R Murrow's Ghost
Wed, Aug 17, 2011 : 10:25 a.m.
Because of mismanagement, the DDA's piggybank is just about empty. And that piggybank consists of funds (primarily from parking fees) that belong to the taxpayer. The money it gives to A2 (taxpayer money!!!) is a pittance when compared to the money it spends on its pet projects. Take a look at the DDA's budget. It's a stunner. Good Night and Good Luck
Edward R Murrow's Ghost
Tue, Aug 16, 2011 : 11:07 p.m.
Absolutely correct, a2grateful. Time to disband the un-elected and unaccountable DDA. Good Night and Good Luck
a2grateful
Tue, Aug 16, 2011 : 10:28 p.m.
The DDA may have been a great 1970s idea . . . booming and burgeoning economy and all . . . Now, it's an unaccountable tax draw from deserving entities, that promotes sprawl outside of the downtown? Who needs this?