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DDA and city agree new cost‑share, sets $50,000 DDA cap for I‑696 maintenance; board previews FY27 budget
Summary
The DDA approved an updated five‑year cost‑share with the city that places a $50,000 annual cap on DDA responsibility for I‑696 maintenance, raises the planning consultant cap, and adjusts insurance and technology allocations. Staff also presented a FY27 draft budget projecting $533,500 in revenue and proposed converting a part‑time projects coordinator to full time.
The Lathrup Village Downtown Development Authority on March 20 voted to approve an updated DDA–city cost‑share agreement running toward FY31 that adjusts line items and places a cap on several categories of DDA obligation.
Staff presented the principal changes: the proposed agreement would set a $50,000 annual cap on DDA contributions for I‑696 corridor maintenance (lawn care, snow removal and debris clearing) and increase the planning consultant cap from $15,300 to $20,000 to reflect higher industry retainer costs. Liability insurance and technology allocations were also adjusted upward in the proposed contract.
Austin said the cap was intended to limit the DDA’s year‑to‑year exposure while the city would cover costs that exceed the cap. He noted the DDA had paid roughly $110,936 for I‑696 related costs from July 2021 through March 19, 2026, and that heavier snow years and fewer contractors have increased snow‑removal expenses.
Board members discussed alternatives — including contracting with Oakland County for snow removal in the future — and asked for clarity on the split of responsibilities. Staff said the new agreement formalizes a pattern under which the DDA pays the capped amount and the city absorbs overruns or construction costs.
On the FY27 draft budget, staff presented projected total revenues of $533,500 (tax increment capture projected at $422,500) and proposed expenditures of $490,030. Staff proposed converting the current part‑time special projects coordinator to a full‑time position charged to the DDA (staff said grant funding for projects, including a $20,000 Recast cohort award, would offset some costs). Staff proposed a $20,000 facade grant program and $10,000 sign grant program to incentivize business reinvestment.
The board approved the cost‑share agreement by voice vote and deferred the FY27 budget vote to the next meeting to allow members additional review time.
Why it matters: The cost‑share changes change the DDA’s fiscal exposure for corridor maintenance and consulting and set the budgetary framework for projects and staffing in FY27. The cap for I‑696 maintenance is a notable policy choice that will shape how routine maintenance and seasonal costs are budgeted and managed between the DDA and the city.
Follow up: Staff will provide final contract language and supporting line‑item detail; the FY27 budget will return for final approval after member review.
