REED CITY GENERAL DEVELOPMENT PLAN CHAPTER 8

Economic development is important to Reed City in order to accomplish successful future growth. It is vital that jobs and adequate housing are available so that high school graduates do not have to leave the city. At this point, many young people graduating from high school are leaving the city rather than staying to raise families because there is a shortage of jobs and housing.

In addition, increased tax revenues resulting from commercial and industrial investment will help ensure a higher quality of life for city residents and supplement current revenues without overburdening existing local taxpayers. A strong economy is a key ingredient to a high quality of life, and quality of life is an important determinant of successful economic growth.

Economic development should be accomplished in cooperation with business and industry. It is typically accomplished by one of the following techniques:

- Providing or improving land and services.

- Providing public financing or incentives to make projects attractive, feasible, and competitive.

- Marketing and promoting the community.

- Improving the community's business climate, reputation, and receptivity to business.

- Removing or limiting governmental impediments to development.

The City of Reed City has already accomplished significant economic development projects. It has a very successful DDA that will use tax increment financing monies to provide needed infrastructure improvements in the city for continued economic expansion. The city should establish a closer working relationship with the Michigan Department of Commerce (MDOC) in many areas of economic development. The Community Development Block Grant (CDBG) Program has specific categories or "pools" of set-aside monies for various purposes. One of them is for downtown improvements in communities that have DDAs. Another is for economic growth and could include planning and/or development monies for the creation of an industrial park. The MDOC also encourages communities to create "certified industrial parks" and has developed criteria and standards to assist local units in this effort. The MDOC also sponsors the Communities of Economic Excellence Program," rewarding communities by recognizing their efforts. Grants for construction and physical improvements are generally tied to providing jobs and additional tax revenue.

This chapter will discuss methods by which the city can expand on its achievements to help ensure continued economic growth. An important component of this will be to provide adequate land to meet the housing needs for those employed in area business and industry and in maintaining the quiet and tranquil quality of life to which the residents of the community are accustomed.

LAND AREA NEEDS

One of the most effective means of encouraging economic growth is to provide ample land for development. This can be in the form of providing needed public improvements (i.e., sewer, water, and roads), land grants, appropriate zoning, and annexation or more recently P.A. Act 425 land transfer agreements. The future land use map identifies the most appropriate areas for future development and establishes public improvement priorities for these areas. Not all of these areas are within the current city limits. This infers a need to communicate and coordinate future development and land use regulations with Richmond Township. Areas intended for commercial, industrial, and higher-density residential should be provided with adequate public services to enable and encourage growth.

As documented previously, there may be a need for additional industrial land within the city. The future land use map provides for incorporating much of the existing industrially used land as the future industrial park location. This area should be provided with complete public services to ensure that it is attractive to new industry. The planning for these services should be done in conjunction with a community wide capital improvement program to determine if other higher-priority projects should be funded first. Future industrial park improvements may be funded through CDBG funds. Additional land area needs may also be provided through P.A. 425 agreements.

Future housing needs within the planning period may also include land areas outside the current city limits. Some vacant land exists adjacent to existing residential areas in limited quantities. The large tract of land in city ownership west of US-131 is a sizable portion of land appropriate for residential use in the city. The demand for housing currently exceeds the supply, while future growth will create an even greater housing shortage. Currently, there are approximately 22 vacant lots within the residential areas of the city. However, few if any of these are available for residential use. Most are owned by adjacent homeowners desiring double lots, while others are unbuildable due to wetlands, size, or lack of access.

Population projections indicate a population of 2,650 by the year 2010, representing an increase of nearly 225 persons from the existing population. This will require approximately 94 additional dwelling units in the city during the next 16 years.

The future land use map indicates three areas set aside for residential usage. The large 80-acre area west of US-131 could provide housing for well over 100 units, however, and would be most appropriate for higher-density housing, including duplexes, apartments, townhouses, or any combination of these housing types in the form of PUD. One limitation of this site is the presence of a gas well and its immediate proximity to the highway. Favorable conditions for development should be established, or this area may not be converted to residential use in the near future to meet the city's housing needs. For example, the city may be able to sell the land at less than market value in exchange for favorable site restrictions and design criteria. The site is not currently serviced by utilities but two large casings have been placed under US-131 at about the midpoint of this large parcel.

FUTURE GROWTH AREAS

The plan recommends future land development in three areas. The first areas is located northwest of the city, at the US-10/US-131 interchange. This area is high and dry, is presently growing commercially, and would be ideal for continued commercial use. The sanitary sewer collection system in this area has adequate capacity. The intended area for growth is approximately 80 acres.

The second areas is located in the southwest quadrant of the city, along Patterson Road. This area would be appropriate for residential use, and would provide excellent housing opportunities. The area is approximately 80 acres in size.

The third area, also for residential growth, is in the southeast quadrant of the city. This areas has good potential for lower density residential home sites.

The rationale for annexation is based upon the need of the city to acquire additional land for future economic growth and housing. It is also based on the fact that the city has the ability to provide higher-quality public infrastructure, such as sewer, water, and roads, and can regulate growth when land is incorporated. The city has the existing capacity for both sewer and water and has the staff to ensure adequate maintenance of any improvements. Annexations may be accomplished through purchase agreements, petition, or the local legislative body, depending on what body is initiating the annexation action and the amount of local support.

MARKETING THE COMMUNITY