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March 4, 2005Initiative strives to boost economyPark passes, RR credit, rural grants proposedByRecord-Eagle staff writer TRAVERSE CITY - Three northern Michigan Republicans are rolling out a plan they say will boost the area's economy and promote regional tourism. The three-pronged initiative is proposed by state Sens. Jason Allen, of Traverse City; Michelle McManus, of Lake Leelanau; and Tony Stamas, of Midland. The legislation, dubbed the "Northern Michigan Initiative," will be introduced in the coming weeks and was to be announced today in Gaylord. The plan would create a Great Lakes Recreational Pass, allowing visitors to purchase one pass to gain entrance to a host of parks and recreation areas throughout Michigan and neighboring states. Also proposed is a single business tax credit of up to $1,000 per mile to maintain and invest in short-line railroad tracks. The third component would funnel Community Development Block Grants to rural areas. The grants are federal pass-through dollars allocated by the state. Allen said the three proposals were grouped together as the state senators studied northern Michigan economics. Tourism, he said, is one of the most potent forces of the regional economy. "We are trying to come up with ways to encourage tourism; to be able to share the park passes is a very, very unique idea," Allen said. The pass plan is modeled after a similar program between Oregon and Washington, said Jeremy Hendges, a legislative aide to Allen. Stamas said in a statement the plan for shared passes is "overdue." "This is a great idea and could do so much to help boost tourism in northern Michigan," he said. The railroad tax credit would help businesses by giving them another transportation option, the legislators said. But Liz Boyd, spokeswoman for Gov. Jennifer Granholm, said any proposals need to include a "revenue source." "Whenever people talk tax credits we are interested in knowing how much it is going to cost, and how we are going to pay for it," Boyd said. Allen said the state tax credit would be an added "sweetener" to an existing federal tax credit available to rail investors. The state is home to 3,900 miles of railroad, meaning the program would cost the state a maximum of $3.9 million, Allen said. "The only way to get that tax credit is if you are going to make a major investment; I look at it as a fiscal impact (that) is going to be minimal," Allen said. Focusing block grants on rural areas, where unemployment numbers are often high, makes sense, Allen said. He said the grants could be used to pay for infrastructure, sewer and water projects and the rehabilitation of buildings - all things that can lead to economic development.
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