With Clock Ticking Down on TIF 97, Board Members Look to Prioritize Projects

With the future of downtown’s tax increment financing (TIF) 97 plan uncertain, Traverse City Downtown Development Authority (DDA) board members agreed Friday to start prioritizing which TIF 97 projects they want to tackle in the next three years in case the plan is not extended. Board members also voted to extend a two-way traffic pilot downtown for another year, approved two contracts for professional support services, and discussed staffing and board positions.

TIF 97 Budget
With downtown’s tax increment financing (TIF) 97 set to expire at the end of 2027 – and the future of the plan uncertain pending a city commission vote on its extension and a pair of TIF-related charter amendments on the November ballot – DDA Executive Director Harry Burkholder wants to work with board members to prioritize which capital improvements should be funded by approximately $9.3 million remaining for projects over the next three years. The DDA board in August voted to approve extending TIF 97 – which will be renamed Moving Downtown Forward – but city commissioners have final approval and have not yet taken up the issue. Two TIF-related ballot proposals will also go to voters in November that could require a public vote on all TIF plans and reverse any action taken by the city on TIF 97 this year.

“Although I remain optimistic about the approval and extension of the Moving Downtown Forward TIF Plan, I think it is prudent to consider scenarios in which TIF-97 is not extended,” Burkholder wrote in a memo to the board. “To that end, I believe it is in the best interest of the DDA to start a conversation about what capital improvement projects we want to focus on and complete over the next three years."

Burkholder shared almost two dozen projects the DDA has either previously considered tackling or have been identified as part of Moving Downtown Forward discussions. He then cited eight of those as potential DDA priorities, with the possibility of completing two or three between now and 2027. Those include Rotary Square, a new farmers market shed, Boardman riverwalk improvements, two-way traffic improvements, bayfront TART Trail improvements, stormwater infrastructure, East Front Street streetscaping, and a downtown ambassador program. That program could utilize full-time, year-round ambassadors to help with the maintenance of downtown, particularly during the summer.

Board members agreed to send Burkholder their ideas for which criteria to use to start prioritizing, including factors like cost, public safety, economic development, staffing constraints, and completion time. Board members in October could then look at using a rubric of those factors to start prioritizing projects. Board member Pete Kirkwood said that with the DDA facing the possibility of “falling off a budgetary cliff,” the DDA should not touch projects the city will likely have to do itself if TIF 97 ends. Instead, he hoped to focus on projects that might not otherwise get done if TIF 97 ends and the city becomes financially responsible for the district’s upkeep.

Also at Friday’s DDA meeting...
> Board members voted to extend a pilot project converting State Street, Pine Street, and Boardman Avenue to two-way traffic by another year. The pilot, which started in late 2022, was set to expire next month. Board members want to take additional time to make tweaks and gather more data before deciding whether to make the conversion permanent or go back to one-way traffic. Consultants said adding westbound left-turn signals, making State Street adjustments like reducing the bulbout at Union or a few parking spaces at Cass to make it easier for cars to get around left-turning traffic, and potentially experimenting with making Front Street two-way could better determine whether the pilot is effective. Board members also hope to get more feedback from downtown business owners. The pilot extension now goes to city commissioners for final approval.

> Board members approved two contracts for support services. The first was a $42,000 contract for Traverse Connect to provide continued economic development services to the DDA. The cost will be covered by the TIF 97 fund ($37,000) and Old Town TIF fund ($5,000). The agreement was initially envisioned to cover three years, but because of the uncertainty of TIF 97, it was shortened to one year. Board members worried during the contract discussion that if TIF 97 ends, downtown’s character will “begin to deteriorate in the absence of our ability to effectively engage and deliver on our mission to support small local independents as opposed to large national chains,” in the words of Kirkwood. Mayor Amy Shamroe agreed, saying she didn’t think downtown would necessarily revert to its ghost-town status of the 1990s if TIF is eliminated but could become dominated by chains “because they're the ones who can afford to pay rent.” Board members expressed interest in having Traverse Connect help identify businesses that might be missing from the downtown mix and requested quarterly updates.

Board members also approved a one-year $83,160 contract with Rehmann for financial and accounting support services. Rehmann is assisting the DDA with payroll, tax returns, financial data entry, budgeting/forecasting, and other accounting services under the contract. 

> Board members approved an updated job description for Burkholder, who was hired earlier this year to be the permanent executive director of the DDA. When city commissioners approved Burkholder’s employment contract earlier this month, some noted the job description seemed outdated and riddled with typos and errors, calling it unprofessional and embarrassing. City commissioners will receive a copy of the new job description approved by the DDA board. Burkholder also said the DDA will soon be holding interviews to fill two key staff positions, including a deputy director and a communications/marketing outreach specialist.

> Finally, board members Friday elected new officers for the next year. Scott Hardy will serve as the new chair after former Chair Gabe Schneider recently stepped down, while Ed Slosky will serve as vice chair. Jeff Joubran was selected to be treasurer, while Shelley Spencer was voted secretary.