Understand Tax Increment Financing

Tax Increment Financing (TIF) is a powerful tool that helps Traverse City attract public and private investment in key redevelopment areas. By redirecting the additional tax revenue from new developments, TIF supports vital projects like environmental cleanup, infrastructure upgrades, and affordable housing—ensuring our community thrives.

While the baseline tax revenue supports existing taxing jurisdictions, TIF projects channel incremental tax growth to benefit the broader community. This ensures that TIF districts continue contributing directly to the community while generating a strong return on investment for all stakeholders and providing pivotal funding for city projects.

Traverse City and TIF

Michigan’s TIF programs are tailored to meet diverse community needs. Without TIF, many critical projects would remain unfunded, leaving us to ask: 'Without TIF, how would we finance these essential developments?

The three primary types of TIF projects are:

  • Brownfields: Aimed at environmental cleanup, redevelopment, and housing initiatives.

  • Downtown Development Authorities: Focus on revitalizing regional centers to encourage stronger, more sustainable development in the city center.

  • Corridor Improvement Authorities: Dedicated to enhancing mixed-use neighborhoods and promoting development around transit routes.

Traverse City is a national leader in Brownfield Redevelopment, effectively using tax increment financing to secure millions in state grants for major projects. Notable initiatives include the Grand Traverse Commons, the Boardman Lake Loop, and several waterfront developments. The city has also implemented two Downtown Development Authority (DDA) plans to invest in this core district of Grand Traverse County.

➡️ Downtown Development Authority (DDA): Visit the DDA’s website for a detailed list of projects, budget insights, and explanations of TIF districts.

➡️ Brownfield Redevelopment Authority (BRA): BRA's website lists Brownfield plans, annual reports, and detailed project information since 1999.

Future TIF Opportunities

While no Corridor Improvement TIF projects are active, proposals suggest potential opportunities on 8th Street, Garfield Avenue, and Fourteenth Street—key areas where TIF could drive future progress.

Additionally, exploring further TIF projects the state allows, such as Water Resource Improvement, Historical Neighborhood, or Neighborhood Improvement Authorities, could significantly advance efforts in clean water initiatives, historic preservation, and neighborhood development.

Explore the different types of tax increment financing used in Traverse City at TIF Successes.

Downtown Riverwalk TIF

The downtown Riverwalk and River’s Edge—both products of smart TIF funding—showcase the transformative power of TIF97 and Brownfield projects in creating a vibrant community space.

Impact of the proposed charter amendment for the use of tax increment financing in TC:

These charter amendments threaten Traverse City's progress by obstructing key projects and inviting costly legal challenges. They risk eliminating Brownfield redevelopment opportunities—essential programs for securing state funding and driving large-scale community projects.

Why It's Essential to Vote 'No':

Voting 'No' on these amendments is crucial to maintaining Traverse City’s growth. It’s not just about preserving a financial tool; it’s about protecting our city’s ability to make vital investments without placing undue strain on residents.