Welcome Message
from the
DDA Director
Lee Brown
Welcome to the City of Sault Ste. Marie’s Downtown Development Authority’s Website. This website was recently established to help visitors discover the assets that Downtown Sault Ste. Marie (often referred to as just “Sault”) has to offer. Sault Ste. Marie is the oldest city in Michigan, and the third oldest city West of Allegheny Mountains. The city was established in 1668. But, the area was inhabited for many years prior by the Ojibway Indians, and the French Voyagers who were the first Europeans to set foot on the banks of the St. Mary’s River. The Sault is full of a rich cultural and historic past and visitors and historical researchers could spend many years researching all of the Sault’s past history.
The Downtown is a thriving community full of independent business owners who provide excellent shopping and dining experiences, and pride themselves on customer service. A destination for entrepreneurs and tourists, downtown Sault is the commercial hub for the Eastern Upper Peninsula. The downtown has experienced significant growth over the last decade, and it now offers more than 130 retail businesses to satisfy all your shopping needs.
This website is designed to offer immediate information to all of its visitors. The downtown event’s calendar will keep visitors updated as to what is happening in historic downtown Sault. The site also lists all the businesses in the downtown, and it provides needed contact information to help you stay in touch with your favorite store. This site will also assist with the economic development by displaying all the available rental and purchase properties in the downtown. And, it will host pictures of the downtown from our historical past to present day.
On behalf of the Downtown
Development Authority and Downtown Business Owners, thank you for visiting our
site and best wishes with your future travels.
Your friend,
Lee Brown
Sault Ste. Marie
Downtown
Development Authority
Information
Sheet regarding our Tax Increment Finance Authority District II
What is a TIFA or Tax Increment Finance Authority
TIF is a means by which the City of Sault Ste. Marie can redistribute tax revenue to an area of special need, for the purpose of revitalizing it. In 1984, the City of Sault Ste. Marie established TIFA I & 1986 II to help finance the revitalization of the downtown.
How does a TIFA collect revenue?
A specific area within the DDA boundaries is selected for development. A development plan is written which outlines the projects that the DDA recommends should be constructed. When a TIF plan is used to raise money for downtown projects, the Authority measures the total assessed value of all the real and personal property within the development area boundaries. This total is the initial assess value (baseline assessment) of the development area. Each year, thereafter, the assessed value of the development area is re-totaled. If the new total is larger than the initial assessed value (first year of the plan), the difference between the two is called the captured assessed value of the downtown area. The captured assessed value is very important, because when it is multiplied by the local tax rate, the resulting tax revenues are transmitted to the DDA for its development plan. These tax revenues are called the tax increment for that year.
Example, When the TIFA II plan was created in 1986, the total assessed value of all properties in the development area was $1,000,000 then the initial assessed value (baseline) is $1,000,000. Let us assume that in 1987, the owners of properties within the boundaries construct several improvements, which brings the total assessed value of the area to $1,500,000. In this year, then, the captured assessed value is ($1,500,000 - $1,000,000) = $500,000. Now if we apply the local tax rate of 59 (2006) mills, then the tax increment revenue for that year will be ($500,000 x .059) = $29,500. This $29,500 is transmitted to the DDA, which then uses the funds for the public projects it has outlined in its development plan. Tax increment revenues are dependent upon growth in the development area. Growth must come first, but once it has occurred, the property owners will be rewarded by seeing their tax dollars go to improving their surroundings, helping them to grow.
It’s important to note that the procedure does not increase taxes in any way. Also, no taxing body ever loses tax revenue. It simply does not get the increase in tax revenue that the improvements generated. There are two taxing jurisdictions that are affected by this procedure – The City of Sault Ste. Marie and Chippewa County. Since, the downtown development area is itself within the City; the City is merely seeing its tax revenues more sharply focused on an important district.
Upcoming Events
Farmer's Market May - October
Wednesdays from 4p - 7p
Music in the Park Wednesdays June 16 - August 25 @ 7p
For more details click here
Our Office
Phone: 906-635-6973
Fax: 906-635-6974
Email: saultdda@sault.com