Saugatuck-Douglas Harbor Planning FAQs
When did this start and why?
Who is involved and what do they do?
What has been done so far?
Why is dredging the Saugatuck-Douglas harbor so difficult?
Is there another community we can learn from?
What is a Harbor Authority?
What is a Tax Increment Finance Authority?
What is a Water Resource Improvement TIFA?
What’s next?
When did this start and why?
On July 14, 2008, the Cities of Saugatuck and Douglas, along with Saugatuck Township officials, authorized the establishment of a harbor committee to address the increasingly serious problems associated with the Saugatuck-Douglas Harbor. Chief among these issues were the historically low water levels combined with significant amounts of soil sediment collecting at the bottom of the harbor. The combination of these two problems has made several areas of the harbor too shallow for a majority of watercraft to navigate, both large and small. Further exacerbating these issues was the lack of a central agency that is charged with providing clear markers to designate the location of the river channel. As a result, boaters who do not know our harbor well would often have a poor experience trying to navigate the shallow waters. Some of these visitors have chosen not to return to the area due to the inconvenience.
Who is involved and what do they do?
The Harbor Committee, formed in 2008, is comprised of three appointed representatives from each municipality (Saugatuck, Douglas and Saugatuck Township). The committee was initially charged with the task of reviewing, evaluating and making recommendations to each of the three municipalities regarding possible harbor dredging and maintenance issues as well as what actions could be taken to fund these activities. The committee had several tools to work with when analyzing the issue. Links to these documents can be found in the Report Archive tab above.
What has been done so far?
Following two years of investigative groundwork with state, federal and local agencies as well as multiple meetings with key individuals and organizations including the Corps of Engineers, the Great Lakes Commission, JJR & Associates, the Kalamazoo River Watershed Comission, the Detroit Port Authority, the Michigan Port Collaborative, the Great Lakes Small Harbors Commission, Congressman Bill Huisenga, Senator Patricia Birkholz and Representative Robert Genetski, the committee concluded that it needed permission to broaden is mission.
The committee’s extensive research has shown that dredging solutions and funding mechanisms in the current economic environment may be contingent on the formation of either a port authority or a harbor commission. Establishing a local agency like a port authority, with the specific charge of improving and maintaining the harbor, would streamline the decision making process and provide additional opportunities for each community to share in the costs and administration of these activities. All three municipalities were asked to draft language that would expand the Harbor Committee’s scope of work to include evaluating the formation of a harbor commission versus a port authority, acquiring or holding municipal facilities, and financing dredging and disposal operations.
Why is dredging the Saugatuck-Douglas harbor so difficult?
Dredging the Saugatuck-Douglas Harbor has presented a number of unique obstacles that do not face most other harbor communities. Specifically, the Saugatuck-Douglas Harbor is on the Environmental Protection Agency’s list of Superfund sites because of PCB contamination deposited within soil sediments stemming from paper mills located upriver from the Harbor. The community is restricted from receiving grants or Great Lakes Restoration funds until the Superfund program has addressed the contamination of up-stream sites. The Harbor Committee has spent a significant amount of time attempting to deal with this issue in some manner but it has become clear that it is highly likely that Superfund monies will dry up long before any cleanup efforts can be conducted to benefit our harbor. The EPA has also informed the committee that Superfund restoration efforts will not take place in our harbor at any time in the foreseeable future.
Is there another community we can learn from?
During the summer of 2011, the harbor committee learned that Sheboygan, Wisconsin’s harbor – also a Superfund site facing a similar situation – had managed to get permission to blend Superfund and Great Lakes Restoration monies to obtain $40 million to dredge their contaminated harbor. Energized by this news, the Saugatuck-Douglas Harbor Committee initiated meetings with key state and federal officials to explore the possibility of following suit. In addition, the committee recently learned that in order to apply for assistance or grants from most programs their projects must first be endorsed by the Kalamazoo River Watershed Commission (KRWC). To that end, the Committee has met with the KRWC Board of Directors to discuss how the efforts fo the two organizations may be coordinated to achieve their mutual goals. The KRWC has endorsed the need for a further study of the harbor including obtaining an up-to-date harbor sediment sample at a potential cost of over $100,000.
Members of the Saugatuck-Douglas Harbor Committee also continue to be engaged in state and national organizations devoted to small harbors in an effort to learn from the experiences of others and to build on the existing body of knowledge regarding best practices for harbor maintenance.
Who will be involved in a future Harbor Authority?
In December of 2010 the Cities of Saugatuck and Douglas approved an intergovernmental agreement to expand the work scope of the Harbor Committee and explore the establishment of a Harbor Authority. Saugatuck Township postponed signing the agreement at its March 2, 2011 meeting, citing concerns about making any future monetary commitments at that time. Given the situation facing Saugatuck Township, the Harbor Committee decided at its March 15, 2011 meeting to allow Saugatuck and Douglas to move ahead without the Township to negotiate an agreement to form a Harbor Commission or Harbor Authority. The Township has continued to be involved in the meetings and planning stages since that time but does not have specific voting power. The ability of the Township to rejoin in the future has been reserved.
What is a Harbor Authority?
The State of Michigan legislature has created a couple of mechanisms for local communities to establish a specific authority deal with water related issues. The most popular of these is Public Act 639 of 1978, known as the Port Authority Act. The second is Public Act 94 of 2008, known as the Water Resource Improvement District Tax Increment Finance Authority Act. The latter of these two is currently being proposed by the cities of Saugatuck and Douglas.
Essentially, the approval of a Water Resource Improvement District would give the City Councils of Saugatuck and Douglas the ability to enter into an inter-local cooperative agreement which establishes a shared Harbor Authority. The Harbor Authority would be governed by both the inter-local cooperative agreement and the standards of Public Act 94. The Harbor Authority would be accountable to each City Council respectively and would be assigned duties, responsibilities and authorities as deemed appropriate. The primary task of this authority will be to correct deterioration of the Kalamazoo Lake Harbor and to maintain the harbor over time.
What is a Tax Increment Finance Authority (TIFA)?
A tax increment finance authority (TIFA) is a local agency given the powers to perform some of the same tasks as a government agency. Depending upon which type of TIFA, these powers may range from buying and selling property to issuing bonds for public improvement projects.
The primary component of a TIFA is the ability to capture a portion of the existing tax base within a defined district. The local community or communities responsible for establishing a TIFA must first establish the district boundaries which will be included. The authority would then be required to establish a very specific plan which outlines all public improvement projects proposed within the district and the estimated cost for each project and timeline for completing the projects. Upon approval of the State Tax Commission, the authority may then begin to capture a portion of the existing property taxes within the defined district.
Property taxes in a TIFA do not result in an increase in taxes. Instead, a portion of taxes currently paid will be captured by the authority rather than going directly to the local city or county government agencies. Property taxes captured by a TIFA are defined by the year in which the TIFA is established, also referred to as the base year. As property values increase over time, the increment between the base year property taxes and the tax revenue collected in future years will result in revenue for the authority.
What is a Water Resource Improvement TIFA?
A Water Resource Improvement TIFA is a specific type of tax increment finance authority which is charged with the protection and maintenance of one or more water resources. In the case of Saugatuck and Douglas, this resource would be our shared harbor and waterfront properties. This authority could have the power to buy or sell property, create development plans and redevelopment areas, issue bonds, and authorize the use of tax increment financing. The authority is given the ability to perform each of these functions although some of them may prove to be unnecessary or inappropriate for the community.
What’s next?
Ongoing scheduled public meeting regarding the TIF initiative and other important topics will be held. Please watch the website for updated information and meeting schedules.
