By Michael P. McConnell
Daily Tribune Staff Writer

Opponents cite economy as primary concern with downtown tax

Ferndale -- Despite opposition from a handful of business owners and residents, the City Council voted Monday night to extend a 1.4-mill tax to 187 businesses that are part of the expanded downtown.

Businesses in the core 14-block downtown, mostly along Nine Mile Road near Woodward, already pay the millage.

The council voted last june to expand the downtown to 26 blocks as part of the creation of a Principal Shopping District, but held off on enacting a PSD tax requested by the Downtown Development Authority.

The PSD tax, which is in limbo, would have raised more than $210,000 annualy forDDA programs, promotions and events.  The PSD tax proposal withered on the face of objections from businesses in the newly expanded downtown.

Mayor Craig Covey, who voted for the millage Monday, spoke in support of the DDA's work, which was questioned by about a dozen opponents at the meeting.

"The DDA has been extremely successful in revitalizing the downtown," Covey said, adding that the millage is a 95 percent reduction from the amount of money the PSD tax would have raised.

Councilman Mike Lennon was the only council member to vote against the millage.

Many of those who spoke out against the levey cited tough ecominc times as the basis for their opposition.  Others voiced suspiciious about the motives of the nonprofit DDA.

"I've got retail operations that are empoty," said Marlin Berg, who owns properties in the area that is part of the expanded downtown district.  Berg said more people needed to be involved in a decision to extend the millage.

Others complained that no one in the expanded area currently servies on the DDA board,k though officials countered that hose who want to serve on the DDA and its subcommittees need to fill out applications as positions open up.

"I've become a victim of this tax because of where they put the (expanded) boundary," said Tony Smith, who owns office property.

The loss of the Old Navy Store last year at Nine Mile and Woodward caused business to drop 50 percent at the American Pop nostalgia shop, said owner Will Lewis.

The millage in the expanded downtown area will generate almost $18,000 annualy, only aboput half of the $35,000 that businesses in the core downtown pay.

The average business owner in the new downtown area will pay about $174 a year under the extended millage, siad Cristina Sheppard0-Decius, executive director of the DDA.

She added the vacancy rate in the core downtown is 4 percent.

By becoming part of the expanded downtown, the business will become eligible for up to 10 downtown redevelopment liquor licenses, available through the state for downtowns purusing revitalization, Sheppard-Decius added.

The DDA can also act as a liaison between businesses and government, offer businesses listing on the DDA Web site and business guid, and gain valuable expert advice throught the Main Street Oakland County Design program, she said. 

Michael Hennus, of Howe's Bayou, spoke in support of the DDA's efforts and the millage.

"These are the costs of doing business," he said.  "The DDA is a worthwhile and reasonable expense."

Contact Michael P. McConnell at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it or at (248) 591-2571.