You are viewing this article in the AnnArbor.com archives. For the latest breaking news and updates in Ann Arbor and the surrounding area, see MLive.com/ann-arbor
Posted on Sun, Mar 14, 2010 : 5:17 a.m.

Ann Arbor BIZ tax is an investment in a vibrant downtown

By Tony Dearing

It’s easy to take for granted what we have here in Ann Arbor, and that’s particularly true of our vibrant downtown.

While cities across the country have been struggling to revitalize their dead or dying downtowns since the 1970s, we have been fortunate to maintain a healthy mix of dining, entertainment, retail and living space in our central city.

Thumbnail image for downtownwalkers.jpg
But keeping our downtown healthy requires an ongoing effort, not just by policymakers, but by merchants and property owners, who have recently taken the unlikely step of raising their own taxes.


By an overwhelming margin, property owners have created the city’s first Business Improvement Zone along a three-block stretch of Main Street in the heart of downtown. The additional tax on property in the zone will generate about $118,000 this year for services that will help keep downtown an attractive place to visit. The planning for this self-assessment zone began well over a year ago, with the support of the Downtown Development Authority.

The services that this new tax will pay for are pretty basic - removing snow on sidewalks, planting flowerbeds and keeping litter picked up. But these simple things are not the responsibility of city government, any more than it is the city’s responsibility to plow your driveway or mow your front lawn. These are things that property owners are expected to take care of on their own. The people who make their living downtown understand that. They also understand that sharing the responsibility is more cost-effective and promotes a clean, attractive and accessible environment across the entire business district being served.

Often, business interests see new taxes as an unaffordable burden, and that’s understandable in these hard economic times. But when downtown property owners were asked to vote on the creation of the Business Improvement Zone, almost 60 percent of those who were eligible voted and the margin of approval was more than 90 percent. Obviously, these landowners saw this new tax as an investment - an opportunity to keep downtown viable.


Listen in 

BIZ Director Ellie Serras and DDA Executive Director Susan Pollay talk to WEMU about the new downtown business zone


As fortunate as we are to have a downtown that is the envy of most other cities, the business environment right now is more tenuous that it appears when one walks down Main Street on a summer evening and sees throngs of people crowding the sidewalks or dining at outdoor tables.

People have a choice about whether to come downtown, and many considerations can affect that decision, including parking, convenience, price and ambiance. As difficult as it is for businesses to put a new tax on themselves right now, the decision to form an improvement zone is a collective one that can help downtown retain its special appeal at a time when shoppers and diners have so many other options.

And while downtown property owners are acting within their own interests here, the broader community has an interest in this, too. When people talk about why they live in Ann Arbor or why they like to visit Ann Arbor, our lively downtown is a big part of the attraction, so the larger community will always have a stake in how downtown is faring.

For that matter, the willingness of property owners to invest in downtown could have another benefit. While they are doing their own part, they continually need the cooperation and support of city government as well. Public policies on such issues as parking, street maintenance, parks and taxes can greatly influence the fortunes of downtown.

When elected officials face decisions that could affect downtown for better or worse, we trust that they will keep in mind the steps that downtown businesses have taken to help themselves and give them the full and fair consideration they deserve. Ultimately, a strong downtown strengthens the entire community.

(The editorial was published in today's newspaper and reflects the viewpoint of the Editorial Board at AnnArbor.com.)