SSMID scrutinized
Municipal improvement district discussed among local building owners
Could a Self Supporting Municipal Improvement District, or SSMID, be beneficial for the city of Marshalltown?
Members of the Marshalltown Central Business District (MCBD) believe so, and the organization held a presentation Thursday evening to explain what the SSMID and the potential impacts it could have locally.
“What bonds us together, along with our past volunteers, why we serve this organization is our common, fundamental belief that a vibrant and robust downtown district is vital to the health and well-being of the city and the community at large,” said MCBD member Mike McCarty, who led the night’s proceedings.
Among those to speak during the presentation was Marshalltown City Administrator Jessica Kinser. She said the SSMID is “a funding mechanism that’s been created through Iowa Code” to create a source of funding for downtown projects and improvements.
“The city gets involved because this is actually levying a tax,” she said. “It has to go through a process, the city’s budgeting process, to be implemented.”
The SSMID would be levied against commercial building owners within the district, not to the general population of Marshalltown. The rates would be a high of $3.60 per $1000 in taxable value down to $1 per $1000, depending on geography and business type.
“That direction, in the budget for the dollars, comes from MCBD,” Kinser said. “It’s not something that you would just have thrown on your property tax bill, it actually comes out with your regular taxes and is shown by a separate line item, so it’s very clear what it is.”
She also described the use of the SSMID in Clinton, where she formerly worked. The city first had a $10 per $1000 SSMID, and then a $6 rate.
“The thing that I’ve noticed with the SSMID … is that, when there are rewards to be reaped in downtown, everybody reaps those rewards because everybody is together as a district,” Kinser said, describing it as a “steady, consistent” funding source.
For a SSMID petition to be considered by the Marshalltown City Council, Kinser said 25 percent of district building owners and 25 percent of the district’s valuation must be represented. To stop such a petition from being considered, 40 percent of building owners and 40 percent of the valuation must be represented.
So far, the 25 percent of valuation requirement has been met, and 25 percent of owners requirement is still being pursued.
Hellberg’s Jewelers owner Vic Hellberg voiced his support for the SSMID.
“When somebody new comes to our community and looks us over … they’re going to drive through our downtown area,” he said. “We’ve only got one chance to make a first impression, and if we aren’t doing this, if the CBD were to disappear … I think the feeling of our town would be diminished some.”
A founding member of the MCBD, Hellberg said the move is a “no-brainer,” and added he hopes business owners in downtown Marshalltown will support the move.
McCarty listed the MCBD’s list of improvements to be made should the SSMID be approved, including development and funding for a downtown retail marketing campaign and of a strategic business recruitment tools and materials.
Also on the list were improved safety and environmental appeal, such as enhanced sidewalk snow removal and trash services. Wayfinding and parking, business improvement workshops and training, and continuing and enhancing key programs also made the list.
All together, McCarty said the estimated investment in Marshalltown’s downtown would be $60,000-$75,000 with the SSMID. “Our downtown provides us a unique look into our past,” McCarty said. “It is also, clearly, an indicator of our economic and social future.”
With the goal of attracting more people to the downtown area, one question during the meeting had to do with some businesses staying closed during downtown events, such as parades or festivals.
McCarty said more people in the downtown district is a good thing for businesses. Hellberg said his business, for instance, usually doesn’t get many customers during such events in the downtown area, as people aren’t focused on shopping.
Kinser said the city will begin the budgeting process in October, and it could take “5 to 6 months” after a petition is submitted to the city council before adoption of a SSMID could be considered.
The MCBD hopes to have the petition signed by the end of June, and the SSMID could be effective by July 1, 2018.
“Property owners, you also have personally invested in downtown,” McCarty said. “That’s really what really drives our group, and that’s why we’re here.”