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City awaits funding answers at meeting
Of The Daily Oakland Press

The fate of the partially finished downtown Streetscape and the Strand Theater were hot topics at a meeting of the Committee of 50 Tuesday.

The projects - both seen as key to downtown revitalization - will be before the Downtown Development Authority at tonight's meeting. It starts at 5:30 p.m. in the Pontiac Growth Group building at 8 S. Saginaw next to the Strand, where construction work is on hold.

The Committee of 50, consisting of business and community leaders, had the biggest turnout of the past several months because of concern over the city's financial crisis and how it will affect downtown revitalization. They are asking Mayor Willie Payne and Finance Director Ed Hannan to give a status report at the April meeting.

The nonprofit Strand Theater group has already been informed it will not receive the final $2.5 million-$2.9 million expected from the Pontiac Growth Group because of shortages in funds there. The group is now looking for state and historic tax breaks and grants to finish the $10 million project. The group is also conducting fund-raising for equipment and operations.

In addition, the committee was told the completion of the $6.3 million Streetscape is on hold until it can be determined whether funds for the Downtown Development Authority project will be available. Expected new tax revenue generated by the Tax Increment Finance Authority and the DDA are less than expected. An audit is under way.

However, a news bulletin was distributed from Payne's office Tuesday afternoon that informed businesses the Streetscape project will resume this spring with construction of curbs and sidewalks on South Saginaw between Huron Street and the Phoenix Plaza.

Funding of the Streetscape has caused confusion. Last year, the council voted unanimously to withdraw $8 million from a Silverdome/Detroit Lions settlement, which can only be used for recreation. Of that, $4 million went to help complete the Strand Theater, $2 million went to make a payment on the debt on the Phoenix Plaza and $2 million went to parks and recreation.

Making the payment on the Plaza freed up Tax Increment Finance Authority funds so the authority could take over the DDA's annual $1.4 million payment on the original construction debt of the Phoenix Plaza for the remaining three years of the 30-year debt.

In turn, this was to free up DDA tax increment money to be used for the Streetscape and start a loan fund for businesses. There was also a proposal that TIFA, not the DDA, would make payments on the $10 million in 2004 Phoenix Center repairs to give the DDA time to do projects and increase its tax revenue.

Now, it is unclear how much tax increment money is available.

The Streetscape on both North and South Saginaw was a promise made to businesses who have remained downtown during slow economic times waiting for revitalization.

All street and sidewalk construction work was done last year on North Saginaw and street lamps were recently installed. When weather improves, trees and plants, and matching benches, trash containers and news boxes are to be put in.

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