Detroit committee pauses Rivertown business improvement zone after mixed public reaction

The Planning and Economic Development Standing Committee on Thursday recessed the public hearing on a proposed Rivertown business improvement zone after extended public comment and questions from council members.

The proposal, brought by local property and nonprofit stakeholders and modeled on Detroit’s downtown business improvement zone, would create a special-assessment district to fund “clean, safe and welcoming” services in the Rivertown area. Proponents say the district would create a stable revenue stream for litter removal, safety patrols, hospitality/wayfinding services and marketing; opponents said the assessment would be another tax burden for small, marginal businesses and vacant parcels.

Why it matters: Rivertown’s waterfront, Riverwalk and new businesses have raised demand for public maintenance and safety services, stakeholders said; the business improvement zone (BIZ) would levy a special assessment on commercial parcels that proponents estimate would raise about $859,000 a year under the proposed formula. Opponents said many adjacent property owners (nonprofits, parks and some institutional owners) would benefit without paying, and small operators would shoulder disproportionate costs.

Committee discussion and public testimony

Josh Helling, executive director of Jefferson East Inc., which helped organize the effort, described the BIZ as “a way to come up with a stable funding source to expand services throughout the…