Cadillac and Muskegon reaping benefits of public investment

Cities around Michigan are reaping the benefits of private investment, thanks to the momentum first created by public investment. These examples show how when public resources are leveraged in our cities, private investment and economic growth follow. 

Two recent articles about this local investment feed into the ongoing SaveMICity narrative about the economic power of local municipalities. The SaveMICity initiative has identified four solutions necessary to fixing Michigan’s broken municipal finance system. Solution No. 3 is provide local municipalities revenue-generating options. These recent articles illustrate the economic development that can occur when local governments are able to invest in themselves. But more often than not, existing laws and an overall disinvestment from the state into our local cities, villages and townships greatly hamper a community’s ability to do these kinds of investments to attract and retain business and talent.

The first article focused on Cadillac experiencing new development around the city, including the new Cadillac Lofts. In a Cadillac News article, Michigan Community Capital CEO Eric Hanna said this $19 million project is possible because of a series of smaller investments made by the city, community and local investors. The investments advancing the city include the renovation of the Rotary Performing Arts Pavilion, construction of the Plaza at Cadillac Commons and Market at Cadillac Commons. 

The city’s ability to invest in itself has helped drive economic revitalization, making investors become more interested in developing in the city. 

Hanna said the completion of these projects has built momentum, earning the attention of private investors and public entities like the Michigan Economic Development Corporation (MEDC).

Daniel Leonard of the MEDC agreed the Cadillac Lofts project is largely due to the city’s smaller projects, which are now gaining investors’ attention. “The private sector is finally getting up to speed with the public sector,‘ Leonard said.

“The private sector is finally getting up to speed with the public sector,” Leonard said.

Muskegon has also seen recent growth. The Lake View Lofts project downtown has been in the works for awhile. According to MLive, its success and other downtown projects have made lining up investors for future projects much easier. 

The projects happening in both cities are a result of the investment by local and private investors, which are giving these communities the tools they need to succeed and grow. These cities are setting themselves up for success by investing in themselves, and are ultimately benefiting their economic future for years to come. Success stories like what’s happening in Muskegon and Cadillac are great to see and we our state and local communities can have even more examples like these once the broken system for funding our municipalities is fixed.