Agencies Get Budgets

July 13, 2007
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GRAND RAPIDS — City commissioners approved the 2008 fiscal year budgets last week for the Brownfield Redevelopment Authority and the Economic Development Corp., two city agencies involved in economic development efforts.

The budget for the redevelopment authority totals $568,479 for the year. Most of the revenue, $531,854, is expected to come from property-tax increment captures. Other sources are fees the authority collects for brownfield applications and investment interest.

Most of the authority's expenses, $456,589, will go to developers in the form of property-tax reimbursements. Staff salary, legal fees and notices, and administrative functions are the agency's other expenditures.

Acting Economic Development Director Dan Oegema said the authority has approved 59 brownfield projects since 1998. Those projects have led to more than $860 million worth of investments and an estimated 9,200 jobs.

The annual budget for the Economic Development Corp., which provides tax exempt bonding to manufacturers and nonprofits, is $51,833. Most of the revenue, $30,000, comes from interest on investments. Bond-processing fees are expected to account for $30,000, with another $8,833 expected to come from its fund balance.

The agency's biggest expenditure is for staff salary, which should total $37,533.

Oegema said having both agencies operating in the city has greatly reduced the need for the general operating budget to fund the Economic Development Office, which he has headed on an interim basis since Susan Shannon resigned earlier this year.

In 2002, Oegema said the general fund contributed just under $400,000 to EDO. This year that number is $163,000.     

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