LANSING — Majority Floor Leader Steve Tobocman (D-Detroit) and State Representatives Ed Clemente (D-Lincoln Park), Jeff Mayes (D-Bay City) and Bill Huizenga (R-Zeeland) today introduced an innovative, bipartisan economic revitalization package. Michigan Cultural Redevelopment Districts would create a new tool to leverage arts and culture for the purposes of economic development.
"Communities with strong neighborhoods where the arts and cultural activities flourish attract visitors, residents and businesses, and promote vibrant local economies," Tobocman said. "Studies show that every dollar invested in the Michigan Council for Arts and Cultural Development generates approximately $10 in in-state spending. It's time for Michigan to take bold steps to create jobs and bolster our communities by using arts and culture as an economic development tool."
The Michigan Cultural Redevelopment Districts package is modeled after successful initiatives in states like Iowa, New York, Maryland and Rhode Island, which have searched for ways to rejuvenate neighborhoods and communities through the creation of special districts or incentives.
"Michigan can't afford to be left behind as other states attract residents thanks in part to investing in arts and culture," Clemente said. "One way to redevelop older neighborhoods is to harness the power of the arts and other cultural activities."
Michigan's Cultural Redevelopment District program will establish a competitive process for Michigan communities to apply for district designation, based on arts- and culture-centered neighborhood redevelopment plans. Districts would be able to take advantage of any combination of incentives based on their particular community's needs, including:
- Income tax deductions of up to $25,000 for working artists who live in the district.
- Income tax and Michigan Business Tax (MBT) incentives for property taxes incurred for properties rented or used for artist housing, gallery space, or other arts and culture uses.
- A philanthropic state tax credit for individuals and businesses who donate to nonprofit organizations operating within cultural redevelopment districts.
- A special MBT incentive for development projects within cultural redevelopment districts.
- A sales tax exemption for art work or artists' materials sold within a cultural redevelopment district.
"To attract new jobs and new people, Michigan needs to do everything possible to increase the quality of life in its communities," Mayes said. "The Michigan Cultural Redevelopment District package invests in arts and culture, and, in turn, invests in the future of our communities."
"By offering these incentives, we will be able to further encourage investment and diversify our economy," said Huizenga.
Also on hand to announce the Michigan Cultural Redevelopment District package were members of ArtServe, an arts and culture advocacy group dedicated to enhancing Michigan communities. Previously the bills were supported by the Bay City Chamber of Commerce, Michigan Council for Arts and Cultural Affairs, Community Economic Development Association of Michigan, and the Michigan Cultural Alliance.