Grand Traverse County weighs East Bay Township tax deal amid growth debate

Grand Traverse County, BATA and NMC opted out of East Bay Township’s US-31 tax increment plan, putting the future of Beach District improvements and the question of who pays for them back in play. The dispute now sits at the center of how East Bay Township wants growth along one of Grand Traverse County’s busiest corridors to finance itself.

East Bay Township trustees approved a resolution of intent on June 26, 2025, to form a corridor improvement authority in the township’s Beach District along US-31. The proposed district would help pay for pedestrian crossings, sidewalks, streetscaping and a public pier, giving the township a tool to capture future property tax growth from new development and direct it into corridor work instead of leaving all of that new revenue in the general tax stream.

On March 24, 2026, two East Bay Township governing boards met together for the first time to review a draft plan aimed at turning the US-31 corridor from a pass-through traffic route into a destination. The East Bay Beach District development and tax increment financing plan was described as a way to capture tax revenue for placemaking projects, tying the district’s financial structure directly to the physical changes planned along the roadway and waterfront.

The township says the Beach District project focuses on safer pedestrian crossings, connected sidewalks and better access to the waterfront. It established the Beach District Corridor Improvement Authority after a community visioning effort, signaling that the financing plan is tied to a broader place-making strategy, not just a single project. That matters because every future dollar captured inside the district is a dollar not flowing in full to other taxing units that depend on growth in East Bay’s commercial and residential base.

A 9&10 News report on April 8, 2026 described the proposal as a 20-year tax increment financing plan that would use new property tax revenue from hotel development along US-31 to fund safety upgrades. By April 30, 2026, Grand Traverse County, BATA and NMC had opted out of the plan, creating another obstacle for a township effort that has already moved through a resolution of intent, boundary discussions and board planning.

East Bay Township has also paired the corridor debate with housing policy. Trustees approved a tax abatement for a new workforce housing complex planned on Three Mile Road, showing how incentives are being used in more than one part of the township’s growth strategy. Together, the Beach District district and the housing abatement point to the same local question: whether new development should pay more of its own way, and which public services or future tax dollars should be protected when it does.