Mike McGonegal for the Michigan House

Mike McGonegal is running for the Michigan House of Representatives from the 66th District, and this is his official campaign blog. It is monitored and posted b y his Communications Director.

10/19/2006

A blast from the not-so-distant-past: Ward’s $5.5 million gift to a developer from the taxpayers

This is from today’s Daily Press & Argus. To answer the question in the lead, “Would the dual roundabout at Lee Road and U.S. 23 have looked any different if a tax-capturing downtown development authority would have been approved for the area, providing more money for the reconfiguration of the interchange? “

I don’t know. However, what I do know is that it would have cost you and I, the taxpayers, $5.5 million. It’s time Mr. Ward stopped representing rich developers like Wixom-based Quadrants and started representing the 66th District.

The DDA law was established in 1975 to halt the decline of property tax values and deterioration in downtowns. It was also intended to give downtowns a weapon to fight huge shopping malls, like the $100 million Village Place Mall, that were just coming on line in 1975 that had uniform hours, lots of free parking and everything within walking distance. In other words, the law was made to combat the very thing Mr. Ward wanted to pervert the law to benefit.

In 2004 Mr. Ward changed the law – for just one person mind you – that allowed a DDA to expand its boundaries if it was a $100 million project and it did away with the requirement that the property had to have declining property values.

The end result would have been a 20-year bond would have been sold, and the rest of the $5.5 million – not including interest – would have been paid for by the taxpayers.
Only when Brighton City officials found out about the stealth amendment and complained and after the resulting bad publicity did he changed the law back.

When was the last time you had the opportunity to talk to a legislator one-on-one let alone get one to pass a law just for you that would have gotten the taxpayers to help for your project out to the tune of $5.5 million? I’m guessing never.

Mike Craine said 17 other highway interchanges in this county do not work as they should. Why aren’t these getting any money and this one would have?

These are the so-called “missteps” the newspaper skips over. Good job here by Dan Meisler. Mr. Ward’s supporters do not want you to remember these $5.5 million missteps. They will again, cry that we are using dirty politics and personally attacking Mr. Ward because they want voters to forget these missteps. And again I challenge them to show a personnel attack and to refute what has been written on this blog.

I’m still waiting.

Would the dual roundabout at Lee Road and U.S. 23 have looked any different if a tax-capturing downtown development authority would have been approved for the area, providing more money for the reconfiguration of the interchange?
The issue has come up in the campaign between Republican incumbent state Rep. Chris Ward, R-Brighton Township, and Democratic challenger Mike McGonegal of Green Oak Township, but there's no clear answer to how the hypothetical DDA-funded interchange would have looked.
Bill Clark — CEO of Quadrants Inc., the developer of the nearby Green Oak Village Place mall and funder of the road upgrades — said a new off-ramp from northbound U.S. 23 would have been built, and the two roundabouts on the west side of the highway would have been farther apart.
Mike Craine, managing director of the Road Commission, said there may have been enough money to widen the bridge taking Lee Road over U.S. 23, which is potentially a bottleneck point.
Regardless, McGonegal is sticking with his criticism of Ward for pushing through a bill to allow the DDA, and then getting other legislation passed nullifying the original bill once the Livingston County Board of Commissioners nixed the DDA.
McGonegal said Ward used "surreptitious, stealthy and sneaky" methods to get the original bill through, and that it would have cost the county and townships a lot of revenue that is used for police and fire services.
"It was put in there in kind of a way that nobody would be able to know what was going on. That's what a lot of people were angry about," McGonegal said. "It was not a small amount of money. That would have been a lot of money for a lot of years that would not have been available to the township or county."
But Ward said the extramoney — over and above the $6 million Quadrants spent — would have allowed a "full interchange" to be built.
Does he still think that would have been a good idea?
"Absolutely," Ward said. "If the county commissioners had decided to move forward with it, there would have been additional money available to create a better interchange there."
As it is, the roundabouts are very close together, making for tougher navigation; and the original off-ramp is still there, which takes motorists in a 180-degree loop into the interchange instead of going straight in as the new one would have.
Clark said the additional work on the off-ramp and roundabouts would have cost about $2 million more.
Ward said one of the reasons he rewrote the statute with the second bill was to ease tensions between the city of Brighton and Green Oak Township.
"One of the things I felt bad about at the time was the bad feeling between the township and the city," he said.
But he added that he would have kept the language intact had the Livingston County Board of Commissioners approved the DDA.
McGonegal said the episode is one of several times Ward has tried to sneak bills through, and then reversed himself. McGonegal cited a bill allowing a land swap at the Island Lake State Recreation Area as another example.
"He's got a history of doing this," McGonegal said. "It's a pattern of this stuff."
Ward said he was led to believe that the county board would approve the DDA, and that's why he introduced the original bill in the first place.

9 Comments:

At 9:06 AM, Blogger Communications guru said...

You coulden't be more wrong on this on. You need to do your homework. Once you have done that come back and make your best case on why it's OK for Mr. Ward to give a developer my, and your, money.

 
At 11:08 AM, Anonymous Anonymous said...

No. Townships can do it provided they meet the requirments, such as depressed and falling property values and an actual downtown, commerical center or centeral busines district. Urban Townships, such as Brownstown Township in Wayne County did it to build a new police station, even though it was intended for tradatinal downtowns, like downtown Howell, Brighton, Fowlerville and Pinckney. Green Oak Township met none of those above requirments

 
At 5:12 PM, Anonymous Anonymous said...

Still don't understand why Ward has not been indicted. He would if this were presented to a Grand Jury.

 
At 12:48 PM, Blogger Communications guru said...

Unfortunately, not all unethical behavior is illegal, as in this case, nor is lying always against the law, as in this case. However, I have no idea why people keep voting for him after all these “missteps.” This is just one incident in a pattern of unethical and questionable behavior. These are only the ones where he was actually caught and it was brought to light. You have to wonder how many other gifts to rich developers and other questionable stuff got through without anyone catching it.

 
At 10:07 PM, Anonymous Anonymous said...

'So, it's ok to do it in the city but not in the townships'?

If those who live in the city want to give developers $6 million tax subsidies with their money, let them. I live in the township, in fact less than a mile from that interchange, and I want those developers with their $100 million investments to pay their own damn way and not have some two-bit politician get extra campaign contributions because of it on my dime.

 
At 7:43 AM, Anonymous Anonymous said...

big kahuna: there is no way Ward can win this contest not with an indictment looming. you admit his wrong doing by arguing a double standard in order to ignore chris's attempted criminal legislation in the land swap.

 
At 10:55 AM, Blogger Communications guru said...

I hate to speak for someone else. But as I said before, not all unethical behavior is illegal and not all lies are criminal. That being said our opponent is, of course, is not under indictment and it’s wrong to even say that.

But I disagree with the rest of your post, Kahuna. Mr. Ward may win, but it will not be because he’s the best candidate because he simplify is not. With the structural economic problems facing our state why do you believe a man who has never, ever had a job in the private sector has more insight and expertise over a man who has worked in the automotive industry for 30 years?

Errors are one thing, and I have no problem with honest mistakes. But these are not honest mistakes that Mr. Ward made. They are deliberate attempts to help wealthy lobbyists, developers and contributors at our monetary expense. The only mistake is that he was caught.

With all due respect, you are 100 percent wrong when you claim Mike “has been unable to articulate any ideas that resonate with the voters.” Not only is that not true, but how would you even know that to make such a broad statement? What is it based on? Mike is the one going out every single week night and weekend knocking on doors talking to voters. Have you ever even met Mike?

You are again 100 percent wrong when you say I don’t like Mr. Ward. He’s a great guy, but he’s simply not doing the job he was elected to do.

I agree with you when you say the land swap and DDA swindle had nothing to do with one another, although the end result for both would be a rich developer would benefit from tax dollars.

There is no DDA double standard. Townships can and do use the DDA law. However, it was intended to help traditional downtowns compete against huge, sprawling shopping malls, fight widespread vacancies and boarded up windows and spur economic development that will benefit all residents, nit just city residents. Downtowns are gems, and they are such gems that municipalities have gone out of their way to try and artificially create them. Take a look at Novi and Oceola Township.

What you are missing is that the law was changed to benefit one person, just one person. You don’t have a problem with that? It would have cost you and me the taxpayers up to $9 million in capital and an additional $200,000 a year in interest. The developer wanted us to pay for the improvements that would have helped his business, and he had no intention to put up any money.

When Mr. Ward said in the debate there would have been a better interchange at Lee Road if the legislation he tried to pass were approved. That’s simply not true. We would have had the same interchange, but we and not the developer would have paid for it.

To say the “City got its nose bent out of shape because they saw that another municipality was going to have the same economic advantages afforded to them” is simply not true. A township can use the DDA anytime it wants and many have. They do so even thought it violates the spirit and intention of the original act. As I said before, to form a DDA there has to be declining property values, but the standard is so low that only two parcels in the district have to have declining property values. Also, why didn’t they use a Local Development Finance Authority (LDFA) or another similar method? Why make a law for one person? I think you know why.

 
At 5:51 PM, Blogger Communications guru said...

Anonymous is more than welcome to answer for themselves, and, as always, this is a free speech zone and we welcome anyone’s comments. You were just putting out some incorrect information that needed to be corrected, and you did not understand what a DDA is for or how it works.

 
At 10:21 PM, Blogger Communications guru said...

I get that you don't understand what a DDA is, and that it doesn't bother you that his bill was going to give a rich developer a mult-millon dollar gift at taxpayer expense. I never said you were "lacking" anything, and what is it that I'm lacking? You're right, I don't get it. I don't get why you're saying I'm wrong or don't get it when you have not presented any facts to back up any of your position.

 

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