Tax Increment Financing (TIF) is a vital tool that helps Traverse City create opportunities by supporting critical public projects and needs. It funds improvements like street upgrades, public utilities, and environmental cleanup efforts, which keep our downtown and commercial areas vibrant and functional. TIF also attracts private investment, allowing us to fund these public projects without raising taxes. This ensures the community can meet its needs proactively and efficiently without adding an extra burden on taxpayers.

TIF funds aren’t simple “developer subsidies” but targeted investments that support public benefits. In Traverse City, DDA TIF funds can’t be directly given to developers; they go into infrastructure projects, streets, and public spaces, which lift the community as a whole. Brownfield TIFs, meanwhile, are reimbursements for developer expenses tied to public benefits like environmental cleanup and affordable housing—improvements that make the city more livable and sustainable.

The added tax revenue from TIFs is generated by higher property values post-development, not existing taxpayer funds, so it isn’t a drain on the city. And, developers carry financial risk upfront, while Traverse City gains benefits that would be too costly otherwise.

TIFs generate new revenue by reinvesting in projects that drive economic growth, which supports essential services like police, fire, and parks. Without TIF, the City could face higher taxes or fewer projects and services, losing nearly $4 million annually in state and regional contributions. If you don’t live in a TIF district, you still benefit from these improvements without your taxes being affected since TIFs use new tax revenue within the district itself. TIFs grow the pie instead of slicing it up.

TIF plans help prevent tax increases by using new tax revenue in high-growth districts for public projects and goals. They bring in $4 million annually in state and regional funds. There's no scenario where less funding means more for the City. Instead, we would face higher taxes or fewer options to fund solutions. Voting NO on proposals 1 & 2 protects the ability to invest in our community's needs without adding extra burdens on city taxpayers.

No, there is no loss. The DDA is part of the City, and that $2.6 million in new tax growth is reinvested in downtown through DDA TIF plans, strengthening our city and region as a whole. This reinvestment also draws an additional $1.7 million in regional contributions, significantly reducing costs for City taxpayers. And it's the City Commission, not the DDA, that makes all decisions on how these funds are used, ensuring every dollar aligns with community goals.

Traverse City TIF plans invest in affordable housing, public spaces, and long-term city planning by leveraging private investments for public benefit. Traverse City is using TIF tools to access state funding for Housing TIFs, enabling targeted investment in developments that meet the needs of working families. These projects make our city more livable, resilient, and accessible—promoting a community that can support residents of all ages and income levels sustainably.

TIF projects strengthen the entire region by investing in Traverse City's core. The incorporated area of Traverse City yields 18 times the tax revenue per acre compared to the rest of Grand Traverse County. At the same time, downtown generates 4.6 times more tax value per acre than the rest of the City. By keeping our core vibrant, TIF helps boost opportunity, job creation, and regional investment—ultimately building a stronger community for everyone.

DDA TIF plans reinvest funds directly into downtown, covering essential infrastructure like street maintenance, bridge repairs, and intersection upgrades—expenses that totaled over $3 million in recent years alone. These projects serve downtown and the entire region by keeping our core vibrant and accessible. Using TIF funds, the City also attracts additional state and regional contributions, amplifying each dollar spent. Without TIF, the City would need to cover these costs from its general fund, reducing overall financial efficiency and limiting opportunities.

TIF (Tax Increment Financing) isn’t a new tax—it’s a policy that reinvests new revenue from increased property values within TIF districts back into community improvements. Unlike a millage, TIF doesn’t take from existing funds but uses growth to fund public needs like affordable housing and infrastructure.

Requiring a public vote for each TIF plan would create costly delays, reduce predictability, and discourage investment, especially for Brownfield projects that often have strict timelines and need partnership stability.

No, a "No" vote on Proposals 1 and 2 maintains the thorough process Traverse City already follows—a state-mandated process with multiple opportunities for public input on Traverse City TIF projects. This existing review structure ensures that citizen voices are integral while allowing the City Commission to make decisions aligned with community needs and an efficient system for long-term planning and improvement.

Additionally, the Michigan Attorney General and Governor have found that Proposals 1 and 2 conflict with the state's Home Rule Act. Rather than creating more community engagement, these proposals would likely result in gridlock and costly legal battles, undermining Traverse City's ability to pursue beneficial projects.

No, requiring voter approval for every TIF decision—even minor amendments—would make the process inefficient and costly, causing delays and deterring crucial investment. TIF plans need flexibility to adapt to changing needs and opportunities. Our current system already includes multiple points of public engagement, from hearings to input sessions, allowing for community voices to shape these projects efficiently. We encourage residents to stay actively involved in these discussions without adding bureaucratic roadblocks.

No, eliminating TIF wouldn’t avoid new millages. TIF funds are city-generated dollars reinvested to grow Traverse City's tax base, allowing us to leverage additional state and regional matching funds. While recent millages like the fire millage address immediate service needs, TIF funds focus on long-term infrastructure, redevelopment, and sustainable growth. Traverse City's strong financial health—including a nearly 40% fund balance—is supported by the strategic use of TIF. Blocking new Traverse City TIF plans could lead to an increased need for future millages to sustain essential services and community projects.

Brownfield TIF plans make challenging projects possible—projects that wouldn't happen or happen in the immediate future without this tool. These projects address environmental issues, boost public health, and revitalize neglected areas, all while promoting economic opportunities. Best of all, state and regional funding covers most of the cost. For every $1 the City contributes, it gets $3 in return ($2 from the state and $1 from regional partners). Brownfield TIFs are a powerful tool for converting community liabilities into valuable assets for everyone.

Not every decision should come down to a campaign and a popularity contest. Democracy means electing leaders to make informed choices, especially for complex, long-term issues like TIF projects. We encourage active citizen engagement throughout the planning process, from city master plans to specific TIF initiatives. Preserving these financial tools while ensuring public input is far more democratic than reducing nuanced, multi-year planning to a simple yes-or-no vote. Active participation across the entire process results in better, more informed decisions for the community.

TIF plans do more than capture normal inflation—they spur new development that wouldn't happen otherwise. They provide initial investment for critical infrastructure, environmental cleanup, and public improvements, making sites more attractive to investors. Real-world examples from Traverse City and beyond show that TIF-supported areas see increases in taxable value that far exceed inflation. By reducing risk and funding essential improvements, TIF plans create opportunities for growth and increased property value. Tax Increment Financing effectively pays it forward, benefiting the community without adding debt or new city-wide taxes.

No, TIF plans do not increase your taxes. The claim that TIFs create a "hole in the budget" and raise taxes misconstrues how property taxes work. In Michigan, property taxes are capped by the Headlee Amendment, which limits increases—meaning the longer you've lived in your home, the lower your taxes compared to a newer neighbor. TIF redirects a portion of the growth in tax revenue from specific districts—essentially, someone else's property improvements—to fund activities like streets, public services, and housing projects that benefit everyone. Without TIF, the City would need to raise taxes or cut services to fund these improvements. TIF allows us to make essential investments today without burdening current taxpayers. Using Tax Increment Financing shows that the City can confidently invest in its future, banking on continued success to pay for what we need today.

Imagine you live just outside a TIF District. The district receives funds to improve sidewalks, update the stormwater system, and add a small park that you and your family enjoy often. As the project develops, you benefit from cleaner, more accessible streets without paying directly into the TIF fund. Plus, as the neighborhood improves, your property value rises due to the upgrades, even though your taxes don’t increase due to Michigan’s property tax limits. Instead, you enjoy the perks of increased equity in your home, providing you with new options or greater financial security without added tax costs.