Issue of the Month: County Economic Development Policy

Over the years the Commission has encouraged economic development activity in the county. The more economic growth, the more property tax revenue we will receive— and that helps us perform our mission of enhancing quality of life for our citizens. We have taken an active role in funding the Right Place Program which aids development, funded the VanAndel and DeVos buildings, and partially fund Experience Grand Rapids which brings visitors and conventions to our area. The Downtown Development Authority Act of 1975 authorized formation of geographic districts that could receive partial property tax exemptions with the stipulation these funds would be used to enhance economic development activities. Over the years this practice has begun to negatively effect county revenue. The Commission adopted a policy in 2007 that set limits on how much of our county’s taxes could be siphoned off for such activities. We have set limits on the amount of taxes allowed to be ‘captured’ in each municipality, and we have begun to exercise our right to ‘opt-out’ of allowing complete capture of all taxes in some districts. While this may mean less money for the DDA, it does mean the County can control its future revenue stream a bit more by deciding how much and how long the capture of its taxes is allowed. This practice is often criticized as the county not favoring economic development, but just the opposite is intended.