Rohan Jaitley: Central Gov't Standing Counsel for Justice
2008-09 Economic Development Report Summary
1. MEMORANDUM
TO: CLAY J PEARSON, CITY MANAGER
FROM: ARA TOPOUZIAN, ECONOMIC DEVELOPMENT DIRECTOR
SUBJECT: 2008-09 ECONOMIC DEVELOPMENT REPORT
DATE: JUNE 25, 2009
This report is a mid-year summary of the economic development activities as adopted by City
Council on January 5, 2009.
The City of Novi continues to move in the right direction as it pertains to economic development. It
is important to pay attention to maintaining property tax base as well as continuing to treat the
business community as our partners.
2009 has been an unpredictable year for our local economy. In my communication with the
business community, it is easily understandable that retail and small businesses are the first to
struggle. This is a difficult problem to resolve as there is a lack of economic development tools
available to us to assist small businesses during these times. However, the Novi Chamber of
Commerce, since its reorganization, has focused on helping the Novi small business community
with their seminars and events. From the city’s perspective, this was an important element missing
from our community (a component the City of Novi led in many ways prior to the “re-merger”).
Linda Daly and her staff have done an excellent job organizing seminars and networking events
which have had a positive impact on the small business community.
There are more substantial economic development tools at our disposal to assist with attraction
and retention of Novi's larger tax base--our major corporations (more than 50 employees). Loan
financing, workforce training funds, and MEGA are just a few of the tools available to assist larger
businesses. Whereas small business will continue to struggle, corporate business growth still
occurs in Novi and in the metro Detroit area. The speed of growth has naturally slowed down, but
in order to survive in this environment, companies are diversifying their disciplines.
Since we cannot help everyone in the Novi business community, we can make a difference and
help our larger business community. A recent report (see Addendum #5) from Taubman indicates
that the trend will be to move in a positive direction starting in 2010. As a hub for research and
development, concentration in these sectors may prove beneficial for Novi in the long term.
2. Expansion, Attraction, and Retention, Strategy #1.0
Economic development within the City of Novi is still an important and vital component to overall
sustainability. Continuation of retention, expansion, and attraction efforts must be an ongoing
process.
1. Focus on major employers in Novi with personal retention visits and support
(linking to resources) to our existing Novi businesses. Results will be tabulated in
ACT! software and quarterly report to be provided.
Retention visits have focused on the major employers in Novi. To date, 20 personal
retentions visits have been made to large firms (See addendum #2).
2. Utilization of a new marketing package for use in attraction efforts.
a.) In June, 2009, the marketing package was mailed to 20 award recipients of the
Telematics conference held on June 2nd in Novi.
b.) Marketing kit has been used on various potential new businesses coming to Novi.
c.) Marketing package utilized during City Manager trip to Germany and United
Kingdom.
3. Attraction efforts opportunities in intelligent transport systems (ITS) & logistics
(capitalizing upon Aerotropolis initiative) firms.
a.) Established a connection with the Connected Vehicle Proving Center (CVPC) in
order to learn more about ITS standards and potential partnerships. Through these
conversations (CVPC and UMTRI), the conclusion has been made that there needs to
be more education of what ITS within the region before substantial attraction to the area
can occur. California is a hub for ITS firms and until legislation is passed allowing federal
funding for the ITS industry, attraction to our area may be difficult. Further work from
Novi can be used to assist in promoting of the ITS industry in order to spark additional
interests.
b.) We were instrumental in having the Novi Chamber of Commerce adopt a resolution
in support of Aerotropolis. City Council also adopted a similar resolution.
a) Capitalize and promote the ITS-Michigan Annual Meeting at Rock
Financial Showplace.
Hosted a meeting on May 15th for over 30 economic developers from
Oakland County to educate on ITS. The speaker was Dave Acton, a
member of the IntelliDrive Task Force for ITS-America, a Board member
of Convergence, the ITS representative for the IEEE Vehicular
Technology Society Board. Received sponsorship from DTE Energy and
partnered with the CVPC and CARHS. (See addendum #4)
b) Facilitate meetings between economic development expertise with
the educational/technical expertise ITS-MI, U of M Transportation
Institute.
Upon several conversations with both ITS-MI, CVPC, and the UofM
Transportation Institute (UMTRI), the conclusion is that each group is still
in the research stage of ITS and therefore there would be difficulty in
creating/forming joint partnerships with other economic developers.
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3. c) Quantify and identify the talent advantage of the region for
engineers and separately for engineers with ITS experience. Build
an education and awareness program for existing engineers to gain
ITS experience.
This process has not yet been approached; as the ITS is still in the
research stage, it is unclear if building such an awareness program for
engineers is premature.
4. The City of Novi is committed to a mini-corridor study of 1-96 (from 1-275 to Wixom
Road). The study warrants serious consideration to use ITS techniques. As the
application rises to list of early possibilities as expensive widening options are not
realistic. More appropriate will be signage, signals, timing, and targeted work to move
traffic more quietly and safely.
The I-96 Area Transportation Study selection team met in May to recommend a
consultant to perform the study. The team determined that the proposal submitted by
The Corradino Group would best meet project goals and objectives. The State
Administrative Board will consider the team's recommendation in August, and it is
expected that Corradino will be under contract by September/October.
Incentives, Strategy #2.0
On July 28, 2008, Council adopted a strategy for participating in Hi-Tech MEGA projects. Funds
will be allocated for public infrastructure improvements such as drive approach, road curb-cuts,
pervious asphalt, traffic signage and/or bioswale/rain garden, to be determined upon submission
of a final site plan. Review of MEGA projects with status on businesses that received local
contribution.
Updated report on MEGA projects/status to be submitted in December, 2009. Currently, one
MEGA project for 2009 (Patrick Energy Services) has located in Novi.
Internal Structure of Neighborhood and Business Relations Group, Strategy #3.0
a) It is recommended that a yearly meeting (at the end of the mainstream construction
season) between Community Development and local developers take place to allow for
continued evaluation of Novi’s plan review process and to obtain feedback and
suggestions for continued improvements.
Preliminary discussion has taken place with Interim Community Development Director
Charles Boulard, looking to organize a meeting shortly after the construction season has
ended to yield better attendance.
b) Participant survey is important to Community Development and to understand and
recognize the issues concerning the 1,600 local businesses in Novi. Creation of an
online survey and allowing for businesses to identify issues they face on a normal basis
will help identify future goals for the Business Relations Group.
This survey may roll into the above (a) goal for consistency.
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4. Marketing, Strategy
a) Promoting investnovi.org website, Strategy #4.0
Investnovi.org was created as both a search engine for site selectors to learn more
about the Novi business climate and also for the local business community to
communicate its accomplishments. Visibility of this site is vital for its usefulness.
a.) eBiz was formed as not only a tool to help promote what local business is doing, but
to also drive interest to InvestNovi.org.
b.) A 7ft banner was created earlier in the year for the purpose of promoting the website
and since has been used at Walsh College, Novi Chamber expo and also the Oakland
County Economic Forecast lunch. Presence of banner and information will be at the
upcoming (July 22nd) regional International Council of Shopping Centers show at Rock
Financial Showplace. Additional venues will be targeted for this placement.
c.) Since it is costly to place ads in magazines or websites promoting InvestNovi.org,
inexpensive forms of media (Ch. 13, cable shows, LinkedIn, etc.) are being used until
research is complete (by August, 2009) and an action plan can be devised.
Currently, other avenues of promoting the website are being investigated.
b) Distribution of Why Novi? DVD and Marketing Package, Strategy #4.1
Promotional visits to the local large realtor/broker firms including CB Richard Ellis,
Friedman Real Estate Group, Grubb & Ellis, Signature Group and Colliers International
will be conducted. Visits will include distributing the DVD and marketing package to
these firms.
Ara has visited Grubb & Ellis, CB Richard Ellis and Signature Associates to date. Most
brokerage firms are not interested in meeting and have indicated poor economic
conditions have slowed their business. All communications have encouraged promoting
their properties on InvestNovi.org
c) Advertising, Strategy #4.2
Advertise and promote InvestNovi.org in a national publication, SITE Selection. The
magazine is mailed to over 44,000 high level site selectors around the globe and this
issue (January/February, 2009) will focus on Michigan with additional distribution to four
trade shows, three of which are overseas.
Advertisement was placed in SITE Selection magazine (through cooperative program
with City and larger property developers). Measurable results are unclear. Looking into
specialized advertising opportunities as they pertain to pertinent trade shows and
airline/airport publications.
d) Business Recognition Awards, Strategy #4.3
The Business Recognition Awards program will continue into 2009 with a small task
force consisting of members from the EDC, Chamber, and local media (Novi News).
Awards will be given to five local (small and large) businesses with a reception and
special awards presentation form City Council.
Currently in the process of adapting a new process for the awards program this year,
taking into account that 2008 was the first year of these awards.
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5. Business Assistance Teams (BAT), Strategy #5.0
BAT visits have been very successful in Novi with a total of 57 visits since inception. New goals
for future visits involve restructuring and creating specialized business visits to the small
business community.
1. Increase BAT visits to monthly with a minimum of 50 visits in 2009.
2. Create additional BAT teams that will allow for the ability to increase involvement of local
business professionals and targeted industries. It is suggested that each BAT team
contain a certified public accountant.
3. Prior to any BAT visit, a biography sheet of BAT professionals will be furnished to the
business along with advance questions that will be discussed in order to make the most
of each visit.
4. Notifications of all future BAT visits will be done via email.
5. Measure results by compiling information that would include business name, type of
business, issues that a business faces, recommendations given, and feedback from the
business.
To date, two BAT visits for mid-July.
Retail Signage Issues for Ordinance Review, Strategy #6.0
Retail businesses have indicated difficulties with Novi’s sign ordinance, such as the ability to
allow additional signage promoting an event or special offer from the store. It is proposed that
“Sandwich Saturday,” the first Saturday of the month, businesses will be allowed to have a
sandwich board in front of their business.
To date, this goal has not been approached.
Coffee & Conversations, Strategy #7.0
Focus on five future seminars will carry the thinking locally theme and pertain to present day
issues businesses are experiencing. Programming will include sessions on updating a resume’,
marketing your company on the Internet, and understanding unemployment (co-sponsor with
Michigan Works!)
Initial seminars were set up in January and then reconfigured this past May. Speakers are being
arranged by the Novi Chamber of Commerce and will be held at the Novi Civic Center.
The schedule is as follows:
August 19, 2009 (Michigan Works! Representative)
October 20, 2009 (Social Media)
February 16, 2010 (Marketing Your Business)
May 18, 2010 – To be determined
Economic Development Certification CEcD, Strategy #8.0
Through the Michigan Economic Development Association (MEDA), courses and testing to
become a Certified Economic Developer (CEcD) will become available for 2009-2010. This will
reduce the overall cost of travel expenses and speed up the overall process of becoming
certified. Expenses would be over a two-year period. There are 5 remaining courses. Courses
range from two to three days in length and there is a written and oral exam at the end of the
process. The cost will be at a discounted rate of $2500 per person for the remaining courses.
(This is a $600 savings due to IEDC membership).
Classes have been made available through MEDA allowing a savings in travel expenses.
Ara has signed up for all five remaining courses to be completed by 2010.
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6. Film Office, Strategy, #9.0
As film companies utilize Novi as a location shoot, a compiled list of Novi business resources
will be available on the Novi Film Office website (www.investnovi.org/film) and available as a
PDF download.
A complete list of Novi-based resources is now available on the InvestNovi.org website under
the Novi Film Office link. To date, no films have submitted application to film in Novi; however
two still photography shoots took place earlier in the year.
Small Business Expo, Strategy #10.0
The City of Novi and the Novi Chamber will partner to host and organize a small business to
business expo.
This was the first time the Novi Chamber has held a business-to-business expo and the City of
Novi co-sponsored the event held in April, 2009. A successful event with over 200 attendees,
held at the Hotel Baronette.
Additional Economic Development Projects (Not specified in January, ’09 adopted goals)
Redevelopment Survey
City Council’s ordinance review committee identified certain properties within Novi which were
felt ripe for redevelopment. Realizing that these are difficult current economic times, we asked
these questions expressing best-case scenarios. Neighborhood & Business Relations
conducted the survey of the telephone to each property owner in order to answer and compile
the following questions:
1. Please list in order of importance what features (i.e., landscaping, parking, façade, etc.),
if any, you would like to update on your property.
2. What is preventing you from updating the features mentioned above?
3. What could the City do to better assist you with any renovations you wish to make?
4. Please list any other concerns you have regarding redevelopment or renovation of
existing building sites.
The compiled data is attached as Addendum #1.
Council of Local Authorities for International Relations (CLAIR) Visit to Novi
In April, organized a week-long program for ten Japanese governmental officials as they visited
Novi.
Local Auto Supplier Survey
Currently in the process of compiling a database of Novi based automotive suppliers in order to
contact each of them to inquire how their business has been affected by the Big Three auto
industry.
To be completed by end of August, 2009
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7. Trade Mission
In order to be proactive in business attraction practices, developing a trade mission or actively
participating in an existing trade mission has become essential. Currently in the process of
researching trade shows/conferences that take place around the USA and overseas.
Focus of the trade shows will center on industries: alternative energy, automotive, medical
devices, and Intelligent Transportation Systems (ITS – car connectivity). Shows will have wide
appeal (large attendance/diversified audience) for potential leads for business attraction.
One trade show in particular, Hannover, Messe held in Hannover, Germany,
(http://www.hannovermesse.de/homepage_e) is being seriously considered as this is a show
which features eight different industries under one event. (ie. Automotive, energy, hi-tech, and
more). Oakland County and the Detroit Regional Partnership has participated in this show for
several years and highly recommends participation in it.
As we look to diversify our marketing, it is becoming increasing apparent that lead generation
will come from personal retention visits and participation in global networking opportunities.
(See addendum #4)
To be completed by end of August, 2009
Novi Technology DVD
Novi has a rich abundance of high technology firms that would be featured in this DVD for
business attraction and promotion. Firms such as Autodesk, Harman/Becker, Carcoustics, ITC,
Vector CANTech all have unique aspects in their business that integrate the latest in
technology. The DVD would focus only on the hi-tech businesses in Novi and promoted at trade
shows, YouTube and InvestNovi.org.
To be completed by end of October, 2009
c. Pam Antil, Assistant City Manager
Cindy Uglow, Small Business Manager
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8. Addendum #1: Results of Staff interviews with property owners of Potential
Redevelopment Areas identified by City Council Ordinance Review Committee
SE Corner Grand River and Novi; 43381 Grand River Left three voicemails and no return phone call as
of yet.
Oak Pointe Plaza; 22240 Novi Rd
• Would like to update façade, followed by parking lot updates; followed by landscaping
• Lack of money is preventing the developer from updating the property
• The only way the city could assist is by lowering taxes
• Not prepared to comment on concerns with renovation or redevelopment of existing building
sites.
NW Corner of 10 Mile and Meadowbrook; 41600 10 Mile
• Number one priority is to add another free-standing structure to the current property. Second
most important feature is to update the parking lot with expansion and improvement.
• Money is a limitation, “absolutely the issue” preventing the property owner from updating and
renovating
• Finding another tenant for the new building is also a limitation.
• Facing no major issues from the city at this time. In the past the only issues have been in regards
to regulation requirements. Money is the major issue at the moment because banks aren’t
lending.
• No concerns regarding redevelopment or renovation of existing building sites at this time.
SW Corner of 10 Mile and Meadowbrook/10 Mile and Haggerty; 41563,41431,39415 10 Mile
• Would really like to update the façade and improve the exterior image of the buildings
• Would also like to improve the parking lots with striping and paving
• Limited by rent going backwards and vacancy rates, which are increasing
• Doesn’t see how the city can help without giving money away. Thinks the city would have to do a
tax assessment and that would be the only way the developers would be able to update
properties. There is no cash flow in order to be able to renovate and update.
• Primary concern with other sites in Novi is the new buildings that are coming up. Interested to
know how the sites are being financed and who is renting the renovated buildings.
• Thinks this path could be damaging because there are no tenants in the market. It’s a risky time
and buildings need secure, strong tenants in order to flourish.
NW Corner of 13 Mile and Old Novi; 2219,2215,2213,2205 Novi
• All of his properties are listed for sale
• Would like to see the city do something with the corner where the old amusement park used to
be. Thinks it would increase traffic flow. It was supposed to be a hotel or a bandshell but that plan
was changed, but he thinks the site needs to be updated.
• The city is tough on everybody. It needs to focus on filling up empty buildings and get them
rented by companies rather than encourage the building of new buildings. It is very important to
rent what we already have.
NW Corner of 13 Mile and Old Novi; 2150 Novi
• Would like to reseal and stripe the parking lot, followed by a complete replacement of wooden
siding with vinyl siding that doesn’t need to be painted.
• Business has been down for three years with a 5-10% monthly loss. The company has reduced
from 83 to 52 employees and pay cuts have been made in order to stay afloat. Bad times for
renovations.
• Didn’t think the city could do much. Would like to see the city give out interest-free loans for 3-5
years. Any time period less than that would not be beneficial.
• Has no major concerns with existing building and renovation. The loss in the lawsuit with the
builders was upsetting. Would really like to see more development on the corner of 13 and Old
Novi. The empty gas station and lots need new businesses in order to up traffic in the area. Also,
business has been hurt by Decker connecter.
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9. 14 Mile and East Lake (Ole Ole)
• Would like to update the landscaping, but is limited by the lack of maintenance of property across
the street
o Would be more encouraged to update her property if the city would intervene and
encourage the property owner across the street to take care of weeds and grass
• Would also like to pave the parking lot, but water from lake runs downhill into the parking lot
• Owner sees no incentive in updating own property because the conditions of the property
surrounding her are so “trashy”
• City could assist by helping to renovate the surrounding area to make it more appealing
• No other concerns at this time
K & S Plaza, 30900 Beck Rd
• Not looking for much renovation at the time, but would like to update landscaping
• Always looking to do things, but the time isn’t right for renovations
• Lack of money and bad economic conditions are limiting any plans for renovation
• Nothing city can do at this time
SE Corner Taft and Grand River; 26444 Taft
• Left three voicemails but no return phone call as of yet.
SE Corner Taft and Grand River; 26560 Taft
• Contact information for listed owners, is unlisted
NE and NW Corner of Taft and Grand River Ave.; 45390 Grand River
• Did not have anything to say in regards to updates on property because the property is currently
listed for sale.
South Side of Grand River from Novi to Beck; 43755 Grand River
• Would like to renovate the building (interior and exterior) to make it look nicer
o Would like to start with exterior of the building
• Limited by the difficulty of dealing with the City of Novi
o Not from personal experience; heard of troubles with other small business owners in the
area
• Dealing with the city and the tough economic times are the major limiting factors preventing the
property owner from updating the property
• Has no other concerns at this time
South Side of Grand River from Novi to Beck; 44311 Grand River
• Left two voicemails with receptionist and received voicemail back
• Does not seem to be interested in answering questions but will try to contact again
Novi Rd. from Grand River to 10 Mile; 24800 Novi
• Because of the impending Novi Rd. expansion, XXX absolutely has to do certain updates and
renovations, despite that, their “wish list” is as follows
o 1) Warehouse expansion
o 2) Landscaping (required by road expansion)
o 3) Building Access (required by road expansion)
• The economic conditions are currently the largest barrier to renovation. Also, the expansion of the
warehouse is inhibited because it would eliminate the grandfather clauses on the property. They
need to expand but the cost of meeting city codes and determining what new codes need to be
met is limiting them
• XXX understands that codes are necessary but they would be interested in help with the code
compliance process. Also, they would like to see more relaxed interpretation of codes by the city.
• Due to the expansion of Novi Rd., neighboring businesses will be negatively affected by the steep
road that will be built. This will be detrimental to business because trucks leaving the XXX will
cause the congestion of traffic and the road itself could reduce business traffic.
• Liked the Brownfield redevelopment project; thinks it’s a positive thing and would like to see more
of it.
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10. Novi Rd. from Grand River to 10 Mile; 24259 Novi
• Left two voicemails, waiting for call back.
SE Corner Grand River & Novi Rd.; 4338114 Grand River;
• Would like to update the façade (has been in this process for over a year now)
• Would also like to improve exterior lighting. There is hardly any lighting and the one public light on
the corner does not work, it’s always off.
• Has difficulty dealing with the city, “it’s a hassle to do anything with the City of Novi”
• Even after submitting prints, drawings and reviews, it “takes forever to do something simple”
• The building is a historical building (over 100 years old) and the owner would like to upgrade and
renovate with city compliance, but sometimes feels that he is being asked to do things that he
shouldn’t have to do.
o In past, he spent $60,000 on exterior electric renovation which he feels that he shouldn’t
have to do, but he did it anyway
o The building is old and upgrades will take forever, so he’s looking for more support from
the city.
• Current state of the economy is also limiting renovations
• Bottom line, however, is a need for more cooperation from the city to better work with him. It is a
two-way street between businesses and the city and working together will be better for everyone.
• The owner hopes that the city is truly invested in increasing commercial properties in the city
because of the increased revenue it will bring. The city of Novi is one of the best cities in
Michigan but when speaking to other people, the owner has seen that the perception is that the
city is difficult to deal with and people are afraid of the process of getting something done.
• The owner is happy to own property in the city and wants more people to move in commercially
but he really believes that the city needs to help property owners better understand rules and
codes so it is easier to comply with them.
(The above represents a ’web cloud’ which visualizes word frequencies throughout a block of text.)
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11. Addendum #2: Retention Visits for Major Employers (50 and more) January
through June 2009
Retention visits have been made to the following major employers in Novi:
Alcan
Autodesk
Caparo
Comau
CVS of Michigan
Eberspacher
Fox Run
Frank W. Kerr
Freescale
Harman/Becker Automotive
Intier/Magna
Michigan CAT
Molecular Innovations
Numatics
Rock Financial Showplace
Ryder System
St. John/Providence Hospital
SunGlo
TATA
Vector CANTech
Addendum #3: The International Economic Development Council (IEDC) chart on
marketing on a global scale
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13. Addendum #5
This knowledge base is solidified by a tight network of R&D and
engineering know-how
Creates an
Creates an
indisplaceable
indisplaceable
network where
network where
scientists,
scientists,
engineers and
engineers and
technologists
technologists
create ideas,
create ideas,
exchange
exchange
knowledge
knowledge
and prove
and prove
concepts
concepts
Source: Center for Automotive Research
14
14. Not your Grandfather’s car – Detroit’s Knowledge Base
Aerospace Engineering
Telematics Artificial Intelligence
Supply Chain Management Bio-Mechanical Engineering
Robotics Chemical Engineering
Nanotechnology Computer Graphics
Metrology and Instrumentation Electronics
Mechanical Engineering Energy Research
Material Science Engineering Ergonomics and Safety
Marketing Science Human Factor and Cognitive Engineering
Intelligent Highway System
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15. Putting all these challenges and progress into perspective,
current signs point to an economic turnaround in 2010
Moody’s Economy.com GDP Growth Positive Signs
Positive Signs
Forecast for S.E. Michigan (April 2009) •• Housing becoming stabilized in Metro Detroit
Housing becoming stabilized in Metro Detroit
◦ Foreclosure rate decline 6% year-over-year in the first
◦ Foreclosure rate decline 6% year-over-year in the first
2.0% quarter of 2009
quarter of 2009
◦ One in every 275 housing units face foreclosure in Metro
◦ One in every 275 housing units face foreclosure in Metro
Sequential Real GDP Change (Chained 2000 $)
1.5%
Detroit compared to one in every 159 nationally
Detroit compared to one in every 159 nationally
1.0%
•• Pent-up demand for autos
Pent-up demand for autos
◦ Larry Summers, top White House economic adviser,
◦ Larry Summers, top White House economic adviser,
0.5% noted that the current annualized sales of nine million is
noted that the current annualized sales of nine million is
well below the 14 million necessary for replacement and
well below the 14 million necessary for replacement and
0.0%
rising population
rising population
'09 '09 '09 '09 '10 '10 '10 '10 '11 '11 '11 '11
-0.5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
•• Positive impacts from potential policy changes
Positive impacts from potential policy changes
◦ Expansion of stem cell research guidelines – Univ. of
◦ Expansion of stem cell research guidelines – Univ. of
-1.0% Michigan has already received two donations in excess
Michigan has already received two donations in excess
of $20 million to expand stem cell research
of $20 million to expand stem cell research
-1.5% ◦ “Cash-for-clunkers” – likely to spur auto sales, benefiting
◦ “Cash-for-clunkers” – likely to spur auto sales, benefiting
the entire industry
the entire industry
-2.0%
◦ Climate control regulations – may boost area’s efforts in
◦ Climate control regulations – may boost area’s efforts in
-2.5% clean technologies (e.g., renewable energy sources like
clean technologies (e.g., renewable energy sources like
wind and solar power, electric car batteries)
wind and solar power, electric car batteries)
-3.0% -- Federal level – e.g., EPA regulation of carbon
Federal level – e.g., EPA regulation of carbon
dioxide emissions (through new legislation or Clean
dioxide emissions (through new legislation or Clean
-3.5%
Air Act), cap-and-trade programs
Air Act), cap-and-trade programs
-- State level – e.g., California regulation of
State level – e.g., California regulation of
greenhouse gas emissions, Michigan requiring 10%
greenhouse gas emissions, Michigan requiring 10%
of the state’s electricity be generated from renewable
of the state’s electricity be generated from renewable
energy by 2015
energy by 2015
Sources: The Detroit News (Apr. 10, 2009, Apr. 16, 2009), The Economist (Apr. 4, 2009), Los Angeles Times (Apr. 24, 2009), Moody’s Economy.com (GDP forecasts), The Wall Street
Journal (Apr. 18, 2009), Taubman analysis
28
16. 2009 STATE EQUALIZED VALUES VS. TAXABLE VALUES
67,858
2009
62,416
74,491
2008
64,745
77,331
2007
64,720
76,439
2006 62,133
73,459
2005 58,862
70,296
2004 55,986
67,085
2003 SEV
53,179
TV
62,829
2002 50,688
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
(Millions of Dollars)
Page 6
17. 2009 TOTAL STATE EQUALIZED VALUE 2009 TOTAL TAXABLE VALUE
67,858,986,149 62,416,676,895
Agricultural Agricultural
Personal Commercial
0.2% Personal 0.1%
5.8% Commercial 17.5%
6.3%
19.0%
Industrial Industrial
6.3% 6.2%
Developmental
0.0%
Developmental
Residential
0.0%
68.7%
Residential
69.9%
Page 7
18. 2009 REAL PROPERTY STATE EQUALIZED VALUE 2009 PERSONAL PROPERTY STATE EQUALIZED VALUE
63,909,419,815 94.18% 3,949,566,334 5.82%
Agricultural Utility
0.2% Commercial
18.5%
20.1%
Industrial
6.7%
Commercial
Developmental 52.8%
0.0%
Residential
Industrial
73.0%
28.7%
Page 8
19. 2009 REAL PROPERTY TAXABLE VALUE 2009 PERSONAL PROPERTY TAXABLE VALUE
58,471,419,235 93.7% 3,945,257,660 6.3%
Agricultural Utility
0.1% Commercial
18.5%
18.7%
Industrial
6.6%
Commercial
Developmental 52.8%
0.0%
Residential Industrial
74.6% 28.7%
Page 9
22. OAKLAND COUNTY
2009 DISTRIBUTION OF ASSESSED AND EQUALIZED VALUES
BY CITIES
REAL / PERSONAL
ASSESSING NUMBER ASSESSED EQUALIZED % of TAXABLE % of
DISTRICT OF ACRES VALUE VALUE COUNTY VALUE COUNTY
AUBURN HILLS CITY 10,655.97 2,377,102,620 2,377,102,620 3.50% 2,222,364,040 3.56%
BERKLEY CITY 1,652.78 595,450,680 595,450,680 0.88% 524,179,820 0.84%
BIRMINGHAM CITY 3,074.81 2,370,175,765 2,370,175,765 3.49% 2,024,142,830 3.24%
BLOOMFIELD HILLS CITY 3,210.98 947,655,860 947,655,860 1.40% 849,145,070 1.36%
CLARKSTON VILLAGE CITY 323.50 55,526,240 55,526,240 0.08% 48,029,340 0.08%
CLAWSON CITY 1,403.04 440,690,250 440,690,250 0.65% 400,519,920 0.64%
FARMINGTON CITY 1,700.58 414,589,100 414,589,100 0.61% 406,024,900 0.65%
FARMINGTON HILLS CITY 21,312.98 4,297,748,050 4,297,748,050 6.33% 4,165,008,570 6.67%
FENTON CITY 11.00 227,300 227,300 0.00% 130,100 0.00%
FERNDALE CITY 2,498.28 795,225,850 795,225,850 1.17% 648,326,070 1.04%
HAZEL PARK CITY 1,799.66 369,089,000 369,089,000 0.54% 320,742,860 0.51%
HUNTINGTON WOODS CITY 929.67 394,081,030 394,081,030 0.58% 325,711,090 0.52%
KEEGO HARBOR CITY 350.69 119,847,840 119,847,840 0.18% 108,400,370 0.17%
LAKE ANGELUS CITY 1,041.83 93,949,840 93,949,840 0.14% 69,674,610 0.11%
LATHRUP VILLAGE CITY 969.91 173,890,140 173,890,140 0.26% 167,739,650 0.27%
MADISON HEIGHTS CITY 4,534.88 1,270,336,750 1,270,336,750 1.87% 1,192,371,700 1.91%
NORTHVILLE CITY 640.85 159,348,880 159,348,880 0.23% 157,668,013 0.25%
NOVI CITY 20,018.57 3,742,061,910 3,742,061,910 5.51% 3,554,943,630 5.70%
OAK PARK CITY 3,253.18 814,775,470 814,775,470 1.20% 714,687,650 1.15%
ORCHARD LAKE CITY 2,635.05 417,149,560 417,149,560 0.61% 382,286,720 0.61%
PLEASANT RIDGE CITY 363.74 162,966,800 162,966,800 0.24% 133,742,860 0.21%
PONTIAC CITY 12,919.62 1,674,413,280 1,674,413,280 2.47% 1,377,212,650 2.21%
ROCHESTER CITY 2,447.62 807,486,870 807,486,870 1.19% 742,062,730 1.19%
ROCHESTER HILLS CITY 21,060.12 3,728,995,735 3,728,995,735 5.50% 3,600,917,135 5.77%
ROYAL OAK CITY 7,573.62 2,808,167,535 2,808,167,535 4.14% 2,441,787,175 3.91%
SOUTHFIELD CITY 16,824.81 3,965,507,832 3,965,507,832 5.84% 3,656,625,252 5.86%
SOUTH LYON CITY 2,208.81 387,587,240 387,587,240 0.57% 362,812,480 0.58%
SYLVAN LAKE CITY 527.09 118,116,520 118,116,520 0.17% 103,625,050 0.17%
TROY CITY 21,407.94 5,838,889,239 5,838,889,239 8.60% 5,459,779,936 8.75%
WALLED LAKE CITY 1,513.69 265,643,560 265,643,560 0.39% 239,842,670 0.38%
WIXOM CITY 5,985.62 888,942,310 888,942,310 1.31% 853,931,820 1.37%
TOTAL CITIES 174,850.89 40,495,639,056 40,495,639,056 59.68% 37,254,436,711 59.69%
TOTAL TOWNSHIPS 405,695.14 27,363,347,093 27,363,347,093 40.32% 25,162,240,184 40.31%
TOTAL COUNTY 580,546.03 67,858,986,149 67,858,986,149 100.00% 62,416,676,895 100.00%
Page 19
23. OAKLAND COUNTY
2009 ANALYSIS BY CLASS OF REAL PROPERTY VALUATIONS BY CITIES
(1) ASSESSED VALUES BY CLASS (2) EQUALIZATION FACTOR
(3) EQUALIZED VALUES BY CLASS (4) PARCEL COUNT
(5) TAXABLE VALUE
ASSESSING AGRICULTURAL COMMERCIAL INDUSTRIAL RESIDENTIAL TIMBER DEVELOPMENTAL TOTAL REAL
DISTRICT REAL REAL REAL REAL CUT OVER REAL PROPERTY
LATHRUP VILLAGE CITY 1 0 33,605,020 0 136,022,920 0 0 169,627,940
2 1.0000 1.0000 1.0000
3 0 33,605,020 0 136,022,920 0 169,627,940
4 105 1,764 1,869
5 0 29,205,630 0 134,283,600 0 163,489,230
MADISON HEIGHTS CITY 1 0 299,810,930 247,232,390 580,826,790 0 0 1,127,870,110
2 1.0000 1.0000 1.0000 1.0000
3 0 299,810,930 247,232,390 580,826,790 0 1,127,870,110
4 708 557 10,257 11,522
5 0 276,390,960 238,193,150 535,320,950 0 1,049,905,060
NORTHVILLE CITY 1 0 4,909,160 749,650 150,918,880 0 0 156,577,690
2 1.0000 1.0000 1.0000 1.0000
3 0 4,909,160 749,650 150,918,880 0 156,577,690
4 26 1 1,349 1,376
5 0 4,670,548 643,007 149,583,268 0 154,896,823
NOVI CITY 1 0 1,026,015,100 287,881,000 2,194,995,650 0 0 3,508,891,750
2 1.0000 1.0000 1.0000 1.0000
3 0 1,026,015,100 287,881,000 2,194,995,650 0 3,508,891,750
4 623 461 17,316 18,400
5 0 934,816,000 268,208,590 2,118,748,880 0 3,321,773,470
OAK PARK CITY 1 0 120,136,850 72,058,300 585,045,280 0 0 777,240,430
2 1.0000 1.0000 1.0000 1.0000
3 0 120,136,850 72,058,300 585,045,280 0 777,240,430
4 351 293 9,920 10,564
5 0 110,469,460 69,924,120 496,759,030 0 677,152,610
ORCHARD LAKE CITY 1 0 15,286,190 216,690 397,862,030 0 0 413,364,910
2 1.0000 1.0000 1.0000 1.0000
3 0 15,286,190 216,690 397,862,030 0 413,364,910
4 22 3 1,020 1,045
5 0 14,254,940 197,830 364,049,300 0 378,502,070
PLEASANT RIDGE CITY 1 0 5,863,610 2,940,320 150,064,800 0 0 158,868,730
2 1.0000 1.0000 1.0000 1.0000
3 0 5,863,610 2,940,320 150,064,800 0 158,868,730
4 30 4 1,226 1,260
5 0 4,135,240 1,224,260 124,285,290 0 129,644,790
Page 26
24. OAKLAND COUNTY
2009 ANALYSIS BY CLASS OF PERSONAL PROPERTY VALUATIONS BY CITIES
(1) ASSESSED VALUES BY CLASS (2) EQUALIZATION FACTOR
(3) EQUALIZED VALUES BY CLASS (4) PARCEL COUNT
(5) TAXABLE VALUE
ASSESSING AGRICULTURAL COMMERCIAL INDUSTRIAL RESIDENTIAL UTILITIES TOTAL PERSONAL
DISTRICT PERSONAL PERSONAL PERSONAL PERSONAL PERSONAL PROPERTY
LATHRUP VILLAGE CITY 1 0 3,295,350 0 0 966,850 4,262,200
2 1.0000
3 4,262,200
4 0 308 0 0 3 311
5 0 3,295,350 0 0 955,070 4,250,420
MADISON HEIGHTS CITY 1 0 65,630,690 65,398,550 0 11,437,400 142,466,640
2 1.0000
3 142,466,640
4 0 1,426 324 0 8 1,758
5 0 65,630,690 65,398,550 0 11,437,400 142,466,640
NORTHVILLE CITY 1 0 1,642,350 0 0 1,128,840 2,771,190
2 1.0000
3 2,771,190
4 0 84 0 0 2 86
5 0 1,642,350 0 0 1,128,840 2,771,190
NOVI CITY 1 0 174,907,270 19,270,340 0 38,992,550 233,170,160
2 1.0000
3 233,170,160
4 0 2,479 59 0 15 2,553
5 0 174,907,270 19,270,340 0 38,992,550 233,170,160
OAK PARK CITY 1 0 20,048,730 11,894,020 0 5,592,290 37,535,040
2 1.0000
3 37,535,040
4 0 1,325 96 0 7 1,428
5 0 20,048,730 11,894,020 0 5,592,290 37,535,040
ORCHARD LAKE CITY 1 0 2,024,580 0 0 1,760,070 3,784,650
2 1.0000
3 3,784,650
4 0 120 0 0 7 127
5 0 2,024,580 0 0 1,760,070 3,784,650
PLEASANT RIDGE CITY 1 0 3,164,000 0 0 934,070 4,098,070
2 1.0000
3 4,098,070
4 0 105 0 0 3 108
5 0 3,164,000 0 0 934,070 4,098,070
Page 35
