|A downtown development authority (DDA) is a type of community-level economic development tool. In Chesaning, the DDA is funded through the "capture" of taxes within the district's boundaries. This concept of tax capture is called tax increment financing. Under tax increment financing, an authority captures a defined portion of the property tax revenues in a designated area.
Typically, a DDA captures the growth in tax revenue within a designated development area for use in financing a variety of public improvements in the area, often through the issuance of bonds. The Public Act 197 of 1975 states that a municipality can create a DDA by resolution in order “to halt property value deterioration and increase property tax valuation where possible in its business district, to halt the causes of that deterioration, and to promote economic growth.” (State of Michigan legal definition of DDA)
The Chesaning Downtown Development Authority, formed in 1986 with the adoption of Village Ordinance 1986-2 under the authority granted in Public Act No. 197 of 1975, works to serve, strengthen and support local businesses and encourage new business opportunities in the Village of Chesaning.
The DDA mission is to assist in the enhancement and revitalization of the downtown district by creating and implementing a developmental plan, promoting economic growth and encouraging historic preservation and restoration of the historically significant buildings in the downtown and surrounding area. The DDA has been at the Associate Level in the Main Street Project since 2009.
The DDA also works closely with the Village Council and the Chesaning Chamber of Commerce to promote community activities to assist the downtown property owners and businesses in developing a viable downtown for the citizens of Chesaning and Saginaw County.