League Backs Transit Plan to Stimulate the Economy

June 13, 2008

House Committee Considers Transit-Oriented Development Legislation

LANSING, Mich.—Today the House Transportation Subcommittee considered a plan introduced by Rep. Marie Donigan (R-Royal Oak) and supported by the Michigan Municipal League (MML) to revive the economy and create jobs by establishing "Transit Revitalization Investment Zones" (TRIZ).

The nation's most sought-after resource—talented young professionals—are driving the new economy. A 2006 CEOs for Cities survey shows two-thirds of these college-educated 25-34 year olds choose where to live, and then look for employment.

"Michigan needs to update the way it develops or, in some cases, redevelops urban cores to reflect the changing times," MML Executive Director Dan Gilmartin said. "Public transit is essential to attracting the millennial generation because it drives the activities, business climate and quality of life they demand."

TRIZ would be a form of tax increment financing (TIF)—a tool widely used by communities to stimulate redevelopment and finance public improvements—and a transit-oriented development (TOD) approach to revitalization.

In the House Transit Subcommittee's recent report, HB 6114 sponsor Rep. Marie Donigan highlighted the positive impacts of TOD throughout the U.S., citing the unprecedented private investment witnessed in automobile-dependent cities like Dallas.

A TOD approach would provide: a sense of place, economic development, environmental stewardship, healthier citizens, greater mobility, increased transit ridership, opportunities for public/private partnerships, reduced congestion, and improved quality of life.

"This would be a great way to urge urban cores such as Grand Rapids and Detroit to use TOD—give them a new, yet familiar economic tool," MML Legislative Associate Dave Worthams said. "Zones strategically set around transit hubs, facilities, and routes would raise capital funds for new transit development, bringing people to businesses and more businesses to Michigan."

The Michigan Municipal League advocates on behalf of its member communities in Lansing, Washington DC and the courts; provides educational opportunities for elected and appointed municipal officials; and assists municipal leaders in administering services to their communities through League programs and services.