Traverse City DDA Plans TIF Extension Vote, Backs State Street Two-Way Traffic

The tax financing district that keeps Traverse City's downtown lights on, its farmers market running, and its streets clean is heading toward a November voter referendum, after the Downtown Development Authority laid out its full pitch at a board meeting Thursday.

TIF 97, established in 1997 for a 30-year term, generates roughly $4.8 million to $5 million per year, funding the Clean and Green maintenance team, trash and recycling collection, public restrooms, street lighting and holiday lights, the community police officer, and full operations at the Sarah Hardy Farmers Market. Without an extension, the district expires in December 2027, and the city would become solely responsible for all projects and programs within it.

The DDA's board reviewed a $7.8 million spending plan and 30-year revenue projections, debating how any renewed TIF would share revenue with the city. Board members were asked to submit priority rankings by April 6, ahead of a joint session with the city commission on April 13. The DDA is targeting a June vote to formally approve a TIF plan, with the extension then placed before voters in November.

"We want to have as much collaboration and support from the city as possible," said board member Burkholder. "So we have to weigh the support of the city, whatever that split might be. But we also still have to be a responsible fiduciary for our funds moving forward to implement these projects."

The stakes extend well beyond downtown's daily upkeep. Though TIF 97 covers just 2.6 percent of the city's geographical area, it accounts for 13 percent of the city's entire taxable value. The district generates about $4.5 million annually in one estimate, of which $2.6 million would otherwise flow to the city and $1.9 million to regional taxing jurisdictions including Grand Traverse County, according to Traverse Ticker's February reporting. The DDA's own website characterizes a 30-year extension as "the smart, cost-efficient, and fair option" given the absence of other financing tools.

The board's capital priorities list runs to 13 projects in total. Four that have been specifically named include East Front Street reconstruction, district-wide snowmelt infrastructure, additional riverwalk segments, and continued stormwater improvements.

Any extension scenario short of simply allowing TIF 97 to expire requires voter approval, a point staff have repeatedly emphasized. The DDA has an ad hoc committee working on both a potential ballot proposal and a new TIF plan detailing which projects and programs future funding would support. City commissioners, who must ultimately approve any TIF plan after voters weigh in, were reportedly drawn to one of several scenarios under review, making alignment between the two boards a critical near-term goal.

At Thursday's meeting, the DDA also backed a two-way traffic pilot on State Street following a multi-year study, though details of that recommendation were not immediately available.