Here is a list of frequently ask questions. If you "Roll over" the question
it will take you to the answer.
| What does DDA stand for? |
| What time are the meetings? |
| When did the DDA start? |
| How did the DDA get started? |
| How does the DDA get it's funding? |
| Are DDA's common? |
| If I donate to the DDA, where does it get used? |
| If I have spare time, how can I help? |
| Can the DDA be disbanded? |
| Who is in charge of the DDA? |
| Does the DDA raise my taxes? |
| I have been hearing about a TIF, what is that? |
| So the taxes that the DDA gets from the TIF no longer goes to the City? |
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What does DDA stand for?
Downtown Development Authority |
What time are the meetings?
Every month on the last Wednesday of the month at 6:00PM |
When did the DDA start?
It was formed by the Galesburg City Council in July of 2007. The Charter was signed with the State of Michigan to form the board a few months later. |
How did the DDA get started?
The Galesburg City Council at the time decided for form a Downtown Development Authority and then appointed the board members. Since the appointment members have regular term limits in an offset rotation. The Galesburg DDA is a City of Galesburg board and has all the rights and powers as any board of the City. |
How does the DDA get it's funding?
Currently 100% of our funding comes from donations from our community and businesses as well as fundraisers we do each year. |
Are DDA's common?
Yes. Most communities in Michigan, the size of Galesburg and larger, have DDA's. |
If I donate to the DDA, where does it get used?
You can donate to the DA and specify what you would like your donation to be used on or to go toward. If you make a donation without specifying, we will use it to work on our future projects for the betterment of the community. Note: Donations to the DDA do not get used for City of Galesburg general operations. |
If I have spare time, how can I help?
Best idea is to e-mail us and let us know you are willing to help and we'll let you know what we have coming up. If it works out, great, if not, we'll let you know of future projects and maybe you can get involved then. |
Can the DDA be disbanded?
Yes, by a majority vote of the entire City Council. But we may ask, why on earth would anyone want to do that? Our DDA board has one goal, to improve the City of Galesburg. It would be sad if someone out there didn't want us trying to improve the city, wouldn't you agree? |
Who is in charge of the DDA?
There is a multi-layered response for this question. Firstly, the Galesburg City Council put us in place to make improvements to the city. We are a board (extension) of the City of Galesburg, but do not answer directly to them. We work with them to accomplish the goals of the city. However, they can disband the DDA if they have a reasonable purpose for doing so. Our bylaws, how we conduct ourselves, who is on our board, etc, is governed by the State of Michigan. We get our "can" and "can't" from them, thoroughly spelled out, just as every other DDA in the State of Michigan does. |
Does the DDA raise my taxes?
NO, at no point will the DDA ever raise your taxes! |
I have been hearing about a TIF, what is that?
A Tax Increment Financing plan or TIF is the most common and effective way a DDA raises money to invest within the downtown district for improvements. When the TIF is put into place the City records the values of all taxable properties within the district. Then, as the taxes go up on their own, either from new construction or inflation, the amount between the taxable value when the TIF was put into place and the new value a year later goes to the DDA.
Example - Property A was worth $50,000.00 when the TIF was enacted. A year later the value of property A went up by $500.00. That $500 increase goes to the DDA to make improvements to the DDA District.
In fact, the DDA is able to capture taxes that would otherwise go on to different County agencies.
So without raising taxes, the DDA can generate funds in order to improve the downtown district, help businesses thrive by offering grant's, encourage new business to come to town, put on programs for children and families and much more!
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So the taxes that the DDA gets from the TIF no longer goes to the City?
Correct. The next question is usually "then the city will lose those taxes, how will they pay their bills"? The answer to that: When the DDA captures the TIF money, it does not go to the City of Galesburg, however, the DDA makes the improvments within the district thereby increasing the overall taxes within the city, in turn the City of Galesburg ends up earning more in taxes as well, within areas outside the district. You have to start somewhere, because if no one gets things started, this City is doomed to stay the way it has always been. |
