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Posted on Fri, Aug 5, 2011 : 5:59 a.m.

Ypsilanti's Depot Town Association faces financial challenges as it considers future

By Tom Perkins

What is next for the Ypsilanti’s Depot Town Association?

For several decades the group attracted visitors to Depot Town through a variety of measures and a long list of regular festivals, events and fundraisers. In 2011, the DTA is involved in two events - including this weekend's Michigan Roots Jamboree - even as the nonprofit records monthly losses.

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Angele Cesare | AnnArbor.com

Its president, Gary McKeever, acknowledges the group is losing money, faces financial challenges and only has around $70,000 cash on hand. Financial statements show the group has been losing around $2,000 monthly since at least November.

In 2006, the DTA created a “subsidiary” in the Depot Town Community Development Corporation. McKeever said its executive director, Erik Dotzauer, is now only full-time “when we have something for him to do.”

Its membership, which used to number more than 200, is down to around a dozen, only four of whom appear to own businesses in Depot Town.

With the formation of a new Depot Town Merchant's Association that includes the bulk of the Depot Town business community promoting the area, some former members and other community leaders have wondered what the future holds for the once-strong organization.

McKeever said the DTA will maintain its purpose of “bringing people to the area.” He also said to expect a “big change” intended to turn the organization around, but declined to elaborate.

“We’re in the process of making some changes, but I’m not willing to discuss it right now, not until we’ve completed it in a couple months,” he said. “It’s going to be bigger this time. We’re in the process of getting it going.”

The DTA is a non-profit formed in 1976. Its website states the organization comprises merchants, employees, friends of the community and property owners whose focus is “the vitality, enhancement and beautification of historic Depot Town.”

According to its website, McKeever is the DTA’s current president, Ruth Ann Jamnick is the treasurer, Sandee French is the secretary and Merrill Guerra is vice-president.

The group used to promote Depot Town through multiple channels. It launched the ElvisFest, created a Depot Town Historic Foundation to raise money and started a Depot Town Association Merchants Committee among numerous other efforts. McKeever said the organization also used to promote Depot Town via newspaper ads, billboards, radio, television and the Depot Town Rag.

But he said promoting the area with the merchants had become a losing proposition because business owners weren’t happy with how the promotions would work.

“Periodically, the merchants would say ‘We need to do something,’ and it would all come together,” he said. “Then they would get all hot and bothered and all of a sudden it’s like ‘I’m going back to my store’ and everything would die. The DTA always footed the bill, although (the merchants) did their share, we covered the loss.”

When asked about the membership dwindling by almost 200, McKeever replied that “people have gone off and done other things.”

“They didn’t want to go the direction the DTA is going and that’s fine,” McKeever said.

So what is the direction of the DTA? McKeever said the organization is involved in two promotional efforts this year. One is the “Pianos 'Round Town.” Pianos are placed on the street around Ypsilanti’s downtown districts for several weeks and people can stop and play them throughout the day.

The other is the Michigan Roots Jamboree, a Riverside Park music festival happening August 5-6. The Jamboree was created and is managed by the CDC. According to what Dotzauer told AnnArbor.com in November, the event made several thousand dollars last year, though he expects it to have a breakout year by the time it's done this weekend.

McKeever said the Jamboree and Dotzauer’s salary accounts for the bulk of the DTA and CDC’s expenditures. Financial reports show $3,333 for “director’s expenses.”

The group also reported $70,000 cash on hand. McKeever said that figure is down from previous years though he wouldn’t say how much money the DTA had in its prime. According to DTA financial reports, those numbers are down $18,000 since last November, though some expenditures can likely be attributed to Jamboree costs that will be recouped.

“We are spending more than we are bringing in,” McKeever said when asked about the organization continuously losing money.

“We’re putting a lot of our money into the Jamboree,” he later added. “Hopefully that will respond with some income. It’s a gamble like anything like that is a gamble, so you have to just wait and see.”

Tom Dodd is a former DTA president who has vocally questioned the DTA’s financial management and where its money is spent. Dodd, a lifetime member of the DTA, said he frequently asks the group's officers where funds go, but has not received an answer.

“When you don’t show us we become very suspicious,” he said. “I have a whole lot of question marks floating over my head.”

The CDC was created in 2006 to help fundraise and capture grants for economic development. McKeever said the CDC hasn’t been as successful as the DTA originally hoped, which he attributed to the bad economy and opposition from City Council.

“We’ve been thwarted by those who don’t want us to do anything,” he said, specifically naming council members Brian Robb and Pete Murdock. Murdock and Robb declined to comment.

But he added the CDC and DTA leadership are “putting their heads together at this very minute” and will soon be doing more than Pianos Around Town and the Jamboree .

“No, we’re not doing anything exciting, but that’s not going to be true for very long,” McKeever said.

Comments

Thomas

Mon, Aug 8, 2011 : 12:48 p.m.

(1) The DTA hasn't had anything to do with the duck race in over 8 years. And (2) Didn't the DTA give up the Elvis Fest? For what again? It sounds to me like they should have kept it. and (3) If their membership is down from 200 to a dozen because they don't like the direction the DTA is going, then the DTA isn't accurately representing the merchants and they need to stop and start over.

al

Sun, Aug 7, 2011 : 10:20 p.m.

I think Tom Perkins might be on to something. Part of an investigative reporter's job is to bring things to light that some people may prefer to keep quiet. He must be getting close to something, because a lot of the comments in these articles are designed to do nothing more than distract from the point of the article. The convention bureau has nothing to do with the DTA. I guess the biggest question I would have is why did 95% of the members of the DTA leave? Was it because of mismanagement, or is the DTA no longer necessary?

Andrew Jason Clock

Sun, Aug 7, 2011 : 9:27 p.m.

Randy, I don't get paid, but I do know a railroad job when I see one, and Tom Perkins is one hell of an engineer. Not much of a reporter, but great at excersizing other folks grudges. By the way, aa.com, this interview took place over three weeks ago. Why the decision to run it now?

Carole Clare

Sun, Aug 7, 2011 : 11:10 p.m.

It was good for the Jamboree, it was positive about the Festival and the Piano's around Town. Are you a DTA member?

Deb Locke-Daniel

Sun, Aug 7, 2011 : 1:44 a.m.

Debbie Locke-Daniel Executive Director Ypsilanti Area Convention & Visitors Bureau Dear Let's Get Real - If you should decide to reveal your identity, I would be happy to have you stop by THE YPSILANTI AREA CONVENTION & VISITORS BUREAU so we can share with you all of the initiatives, both financial and through a variety of marketing strategies, we are currently employing to promote Ypsilanti as well as the entire County of Washtenaw.

Wolf's Bane

Fri, Aug 5, 2011 : 4:42 p.m.

An just think the Corner Brewery is owned by Snyder supporters! Yahoo-oo

Korin Amos

Fri, Aug 5, 2011 : 4:32 p.m.

Just would like to clarify the misunderstanding on Pianos 'Round Town. Last year, the DTA funded it entirely and this year the Ypsilanti CVB offered to fund it along with the DTA. The CVB will pay $1,000 for the moving of the pianos and the DTA will pay for the necessary permits to have the pianos on the sidewalks along with doing the leg work for the application, thus the word "involved" Gary McKeever used in the article. The Pianos Round Town would not have happened without the help of the DTA last year. It was a huge success and we hope to continue it each year. However, there are other sponsors, one of which is Steinway Piano Gallery where the pianos are coming from and the other is the Nelson Amos Studio who started the project to begin with. The Studio is responsible for the creation of the flyer and publicizing the event throughout the area. Then there are the businesses who haul the pianos in and out every day for the public to play. This year MIX and B-24 in Downtown and Cafe Racer, Nelson Amos Studio, Depot Town Dispensary, Sidetrack, Food Co-Op and possibly Clover Computers will participate. I believe if we work together, more things can happen in Ypsilanti. After all, that's what it's all about! Look at what happened regarding the debt ceiling. Do we want to act like the congressmen who wouldn't come together for the good of the country?

Lets Get Real

Fri, Aug 5, 2011 : 4:18 p.m.

So here's what the YPSILANTI Convention and Visitor's Bureau is hyping on Pure Michigan right now: "The Ypsilanti / Ann Arbor Area boasts nearly 10 brewpubs and microbreweries, each with its own distinctive flavor and story. Experience a craft brewery getaway with discounted hotel rates starting at $99 per night. Whether you're out to enjoy a peaceful afternoon in the country or the hustle of the nightlife in Ann Arbor, we guarantee you'll have a great time exploring our unique brewpubs and microbreweries." Here are the brewpubs and microbreweries they are hyping: Arbor Brewing, Jolly Pumpkin, Blue Tractor, Grizzly Peak, Wolverine Brewing - all in Ann Arbor - and Original Gravity in Milan. Only ONE is an Ypsilanti brewer: Corner Brewing. How do you like that for promotion and support from your YPSILANTI CVB? Send 'em to AA! Where is the YPSILANTI CVB'S support of the bed and breakfast industry in the area - two of which are right in Ypsilanti: Parish House and Queen's Residence? Thanks for directing money out of the area to the BIG chains' headquarters. Any wonder why Depot Town is struggling? Could it be the lack of support from those who are charged with the task and paid to drive people to the area? This is to whom the county pays part of the 5% accommodation tax to promote Ypsilanti. The county pays most of the tax to the Ann Arbor CVB to promote their own area. Why is the Ypsilanti group promoting Ann Arbor when the Ann Arbor branch gets most of the money? Perhaps they overspent? BTW, the rest goes to the county treasurer so she can hire people to threaten, cajole, and litigate local small business owners who she believes under-report their revenues. Let's get real, are you traveling right now? Spending hundreds of dollars indiscriminately while the stock market crashes? Across the country occupancy rates range from 40-62%, but here, the county calculates what is owed on >100% occupancy, then wonder why their estimates fall short. S

Eagletrace

Fri, Aug 5, 2011 : 4:08 p.m.

WOW! This is shameful. I never paid much attention to the critical comments about the Ann Arbor News but there is no doubt that Tom is someone's puppet. First of all, how many organizations can say they have $70,000? Doesn't sound like this neighborhood group is in any financial trouble to me!!! I bet every neighborhood organization would love to be able to say that. If you state that the DTA was more involved in the past, you'd probably be correct but look at what they have accomplished. I know they did the Clock Tower, the alley, the Signal Tower and I'm pretty sure they did the Rubber Ducky Race during Heritage Festival. They have been involved in making Depot Town and Ypsilanti a destination spot. They have been community givers for years, not haters. It doesn't do any good to pit one group against another and it's NOT news. What does Tom hope to accomplish by continuing to create this image that the DTA/CDC is evil? I'm sure there is a small faction that is driving this controversy but why? I just don't get it.

randy

Fri, Aug 5, 2011 : 3:59 p.m.

Andrew Clock, Are you paid through the DTCDC to work Jamboree? If so, I don't blame you for constantly defending them. If they were paying me, I would would defend them too.

randy

Fri, Aug 5, 2011 : 3:58 p.m.

interesting comments

moonunit

Fri, Aug 5, 2011 : 3:55 p.m.

Depot Town, just two square blocks of four square miles of Ypsilanti and nearly ALL of the politics.

Steve McKeen

Fri, Aug 5, 2011 : 3:01 p.m.

After living in Ypsilanti for the past six months, the one thing I've learned is that Pete Murdoch is the most powerful person in town and it's wise not to get on his bad side because he can do anything.

Wolf's Bane

Fri, Aug 5, 2011 : 4:41 p.m.

Yeah, he can. I watched him peel a grape with his toes. A-mazing I'm telling you.

moonunit

Fri, Aug 5, 2011 : 3:57 p.m.

Pete can do anything!

P Beal

Fri, Aug 5, 2011 : 2:41 p.m.

When I first came to this area forty odd years ago, I lived in Ypsi. Now, I'm again a part of Ypsi. It is still a sad place full of so much promise that gets ignored. Out of it all, what has happened in Depot Town has been the most inspiring, not to discount other hopeful and successful efforts all around to wake up the city… Since the start of Depot Town, driven much by Carolyn (? it's been a while) McKeever (related?), some of the merchants/people involved seem to have lost sight too often of their common goal, to make Depot Town a place people WANT to go to. Don't lose sight of this common effort; stick together and evolve your strategy. Ypsilanti needs you to do this. You do too.

Lets Get Real

Fri, Aug 5, 2011 : 2:40 p.m.

So if you need to promote an area to have fun in Ypsilanti, WHERE IS THE STELLAR YPSILANTI VISITORS AND CONVENTION BUREAU? What are they doing to help? They get paid to promote activities and events in Ypsilanti from the 5% accommodation's tax the county, raised by 150% in 2009, charged to visitors to the county on their hotel, motel, and bed and breakfast room fees. So $5 of every $100 paid for a room is supposed to support promoting reasons to come to our area. Now I understand that the ANN ARBOR VISITORS AND CONVENTION BUREAU, the other paid contractor which the county supports which gets most of the money collected from the tax, couldn't care less about Depot Town, but certainly the Ypsilanti branch should care. Just where do all these tax dollars go? And where we have overlapping missions, a little collaboration could go a long way. Where is Pure Michigan in all of this? They too are supported by our tax dollars. I thought their role is to promote small business and tourism? Oh yes, I remember now, it's that wonderfully effecient government at work again. Anyone considered a good old fashioned strategic marketing campaign? Only one that leverages the new technology techniques for getting to people where they are - on their computers or iPhones. This means identifying the market, planning the message, and consistent contact with the customers to incentify them to come. Or is that just too simple.

HCaulfield

Sat, Aug 6, 2011 : 12:17 a.m.

The Convention and Visitors Bureau model in Washtenaw County seems odd. I just moved to Ypsilanti and was surprised to learn they had a Convention and Visitors Bureau because it's not a very large metropolitan area and promotional duties could easily be handled by one entity. Then again, Convention and Visitors Bureaus in smaller areas are usually not-for-profit and ran by less than qualified leadership. They probably use most of the accommodations tax money they get to hire marketing firms who probably don't know much about the area's assets.

Carole Clare

Fri, Aug 5, 2011 : 2:35 p.m.

I looked at the DTA website, they must get a ton of money for advertising the Marriott.

Andrew Jason Clock

Fri, Aug 5, 2011 : 1:40 p.m.

What interesting timing for this article. If one didn't know better, one might think that Tom Perkins had a personal grudge against these groups, considering he's been running negative articles against them over and over for the last several months, with much of the (often misleading) info being fed to him by "community leaders" who do harbor childish grudges against the group, like Carol Clair and Pete Murdock. Way to eat your own, Ypsilanti. I mean, its not like our city is on the verge of insolvency and can use the help of every community group it can get. We can't have people running around trying to make a difference, can we? And we certainly can't keep out of our neighbor's business. Or resist feeding stories to Tom, who has no problem with writing these attacks. Way to keep up your editorial duty, aa.com.

Carole Clare

Fri, Aug 5, 2011 : 2:22 p.m.

It is not about the Jamboree, it is about the Depot Town Association. I hope the Jamboree will make a ton of money, but done of it goes to operate the DTA.

Concerned Citizen

Fri, Aug 5, 2011 : 2:02 p.m.

I agree, the timing is really bad. If an article is going to be written about this, why not wait to see how the Jamboree does first so you can have a more complete article.

Depot Town

Fri, Aug 5, 2011 : 12:42 p.m.

Nelson Amos is the man responsible for Pianos 'Round Town. Get your facts straight AnnArbor.com! Give credit where credit is due!

Tom Perkins

Fri, Aug 5, 2011 : 1:29 p.m.

It's a DTA project, according to McKeever.

Carole Clare

Fri, Aug 5, 2011 : 12:20 p.m.

McKeever said.I'm not willing to discuss it right now, not until we've completed it in a couple months, but declined to elaborate. But he said promoting the area with the merchants had become a losing proposition because business owners weren't happy with how the promotions would work. "They didn't want to go the direction the DTA is going and that's fine," But he added the CDC and DTA leadership are "putting their heads together at this very minute" and will soon be doing more than Pianos Around Town and the Jamboree. ??? If the Merchants are not happy with the DTA/CDC the DTA no longer represent Depot Town. The new group Depot Town Merchants are moving forward. If the Jamboree does not make it this year the DTA is DOA.

Wolf's Bane

Fri, Aug 5, 2011 : 11:46 a.m.

Thompson Block looks stellar.