DDA Plans Next Steps for Priority Projects

Traverse City Downtown Development Authority (DDA) board members Friday discussed early cost estimates and next steps for a handful of key projects they plan to focus on the next three years, including Rotary Square, East Front Street, a farmers market pavilion, and the Boardman/Ottaway riverwalk. Improvements for the two-way street conversion pilot and a possible downtown ambassador program are also on the table.

Board members in December agreed on a project priority list for the three years remaining in the tax increment financing (TIF) 97 fund. Approximately $9.3 million remains in TIF 97 for capital improvements. It’s possible TIF 97 could be extended past 2027 – board members are expected to hear an update in February on when its proposed extension could be put to voters – but the DDA is preparing for the reality the plan could end. The expiration of TIF 97 won’t end the DDA itself, which still has the TIF 2 district and a mill on downtown property owners among other remaining funding sources, but its elimination would end a major source of revenue for downtown projects. If/when TIF 97 expires, the City of Traverse City will become responsible for funding public infrastructure projects in the TIF 97 district.

DDA Executive Director Harry Burkholder will present monthly progress updates to board members on their short list of TIF 97 priority projects, which he said will form “the framework of our work for the next couple years.” The DDA officially kicked off the conceptual design process for Rotary Square this week, called Imagine Rotary Square. Progressive AE is leading the process under a $141,656 contract with the DDA. A public survey is live now to start collecting ideas. More public engagement efforts are expected to follow. Burkholder noted that Rotary Square is the only project over which the DDA has “100 percent autonomy,” as the DDA owns the property outright. Other downtown projects are on city-owned assets and must be completed with city commission collaboration and approval.

One example of such a project is East Front Street. The corridor is one of the last downtown still in need of major streetscaping upgrades, including sidewalks, trees, mid-block crossings, and more. A 2021 design from Progressive Companies that covered East Front Street from the Grandview Parkway intersection to Park Street – plus Park from Front to Grandview – came in at an estimated $5 million, including underground utility work. That plan was paused due to public controversy over its design, however, with the roadway resurfaced as an interim compromise. Progressive recently provided Burkholder with a preliminary revised cost estimate of $7-$7.7 million for the project today, including $4-$4.3 million for road and streetscaping work from the TIF 97 fund and $3-$3.3 million for water and sanitary improvements, which would come from city funds.

“A possible next step would be to engage Progressive in additional design and engineering services to get a more definitive determination of actual costs,” Burkholder wrote to the DDA board. Other factors to consider will “include the determination and buy-in on the final design of the street features (e.g., bike-lane), the timing of implementation, and collaboration with the city on the underground utility components,” Burkholder said.

Moving forward with any spending on East Front Street would either require amending this year’s budget – which would need to go to city commissioners – or including it in the 2025-26 budget, which is typically approved in June, Burkholder noted. Working on a long-discussed permanent pavilion for the farmers market would also require a budget amendment or inclusion in next year’s budget. Burkholder said consulting firm Beckett & Raeder provided a preliminary cost estimate of $133,000 to update the pavilion design and provide construction drawings. The design needs to be updated because parking Lot B – where the market is held – has been reconfigured since the last design. Additional modifications like the city’s planned repaving of the lot and stormwater improvements also need to be factored in, Burkholder said.

One project that could move forward soon is the Boardman/Ottaway riverwalk. Areas targeted for upgrades include the J. Smith Walkway, pedestrian bridge, naturalized abutments, and stormwater infrastructure. Burkholder said a rough cost estimate to get to the construction drawing stage is $800,000, with the DDA already budgeting about $1 million this fiscal year to cover engineering services. Because it’s already in the budget, the DDA board could move forward on the project as soon as their February meeting.

Finally, board members discussed two other potential projects: improvements to State Street as part of the downtown two-way pilot project and a new ambassador program. Burkholder said multiple mid-block crosswalks could be installed along State Street, which could be covered by a combination of brownfield and TIF 97 funding. There are funds available in this year’s budget to cover the improvements, which require collaboration with city engineering, Burkholder said. The DDA also wants to explore a program in which ambassadors would help with downtown cleanup, beautification, and maintenance. Board members discussed options for an outside firm to run the program or possibly have an internal staff member assigned to oversee it, but did not make any decisions.

Pictured: Rotary Square. Photo credit: TC DDA.