State Questions Downtown Development Procedures

WARREN, MI-City councilman Dan Fouts is challenging a Downtown development plan through the Michigan Department of Treasury. The State Tax Commission has sent a request to the city for several pieces of information regarding the Downtown Development Authority, which is working on creating the Downtown on land along Van Dyke Avenue.

Among other information, the request by Dennis Platte, executive secretary of the State Tax Commission, asks for:

* A map that shows the boundaries of the district.

* A differentiation between the locations and values of the DDA parcels when it was formed in 1993, then amended in March 2002.

* Documentation that shows required public notices were made in 1993 and 2002.

* The names of the voting members.

Warren is required to provide the answers to the request questions no later than June 24.

Terry Stanton, spokesman for the Department of Treasury, says Warren has notresponded yet to the request. He tells GlobeSt.com the request does not indicate that the city is under any sort of serious investigation.

“This is just an issue that Fouts brought to the Tax Commission, and we’re looking for information,” Stanton says.

In Michigan, DDA’s are set up to collect increases in tax revenue from businesses along the authority’s borders and to use those funds to improve the DDA area.

Stanton says other Michigan city DDA’s are being asked questions.

“There are more than two other cities that are facing a similar situation, but I’m not able to say right now where they are,” Stanton says.

The General Motors Corp. was also planning a private Downtown project on Mound Road on about 300 acres, near the $1-billion renovation of its Warren Tech Center. The plan is on hold.