Traverse City Downtown Development Authority (DDA) board members voted unanimously Friday to push back a vote on a new proposed tax increment financing (TIF) plan by one month. The board was scheduled to vote Friday on the new plan, which is called Moving Downtown Forward, but agreed to take more time to answer board member questions and to try to create better community outreach around TIF.

Board Chair Gabe Schneider and Vice Chair Scott Hardy sent a memo to board members this week recommending postponing taking action on the plan, which would serve as a 30-year extension of the existing TIF 97 plan. Their reasons for postponement ranged from letting new board members get up to speed on the plan to completing the DDA's CEO search first to wanting to focus on a fall ballot initiative that - if passed - would require a public vote to create, modify, amend, or extend any TIF plan. That would include not just DDA TIF plans, but brownfield and any other local TIF plans.

Several board members believe that initiative poses an existential threat to TIF in Traverse City, potentially not only jeopardizing the future of DDA funding but brownfield funding for environmental clean-up sites around Traverse City. If the DDA approves Moving Downtown Forward now - and if it was then approved by the city commission this spring - a ballot referendum period would follow. If enough signatures were collected during that period to force Moving Downtown Forward on the ballot for public approval, that could put two TIF questions on the ballot in November. Schneider expressed concern dual ballot initiatives could potentially confuse the public and lead to both failing at the polls. It would be better for the DDA to wait on Moving Downtown Forward and focus first on trying to educate the community on the importance of TIF as a funding mechanism, he said, with the hope that voters will reject the general TIF ballot initiative in November.

"That separation (of issues) in my mind is really critical," Schneider said. Mayor Amy Shamroe, who sits on the DDA board, pointed out that delaying Moving Downtown Forward's approval would also delay its referendum period. Doing that too long could mean that if enough signatures were collected to put the plan on the ballot, that might not happen until the fall 2025 election - delaying the project by well over a year. Scheider acknowledged the DDA is "stuck between a rock and a hard place" when it comes to timing on Moving Downtown Forward.

New DDA board member Gary Howe said he believes the public is generally supportive of the downtown projects covered by the new TIF plan, but that many residents don't "understand TIF as a financing mechanism." Misinformation is also being spread about TIF, he said. Hardy said the "very survival of downtown" depends on TIF as a funding mechanism, agreeing with others that better communication was needed to the public to explain how TIF works and its importance. Board member Pete Kirkwood said a "few loud voices" who are against TIF have "managed to thwart" the quiet voices of the majority who may support its use. "We need the people that care to stand up for TIF," he said.

Howe made a motion to table Moving Downtown Forward until the DDA's July meeting to give more time for board review and community education. That motion failed 5-7, with several board members saying the DDA has worked a long time to create Moving Downtown Forward and shouldn't wait any longer to proceed. "I don't want to be stunted by perfectionism here," said board member Katy Bertodatto. "We've put in the work." Kirkwood also questioned to what degree the DDA could truly move the needle on educating the public on TIF in just a few months. "We've been trying to educate the community about TIF forever," he said.

Board members then unanimously approved a second motion to delay the Moving Downtown Forward plan vote by one month, meaning it will appear on the agenda at the board's April 19 meeting. That timing will at least give a window for new board members to get their questions answered about the plan and for some work to take place on communication outreach tools, the board agreed. Board members could have at least one other opportunity to discuss the plan prior to that meeting, as a study session is on the calendar for April 5.