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.
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 Infrastructure First TIF Plan (Proposal 1)
Voting YES on Proposal 1 ensures our region’s economic engine—generating nearly 3% of the county’s tax base on 0.05% of its land—can maintain its critical public infrastructure. The plan directly funds essential upgrades: replacing 100-year-old water and sewer mains, improving stormwater systems to protect Grand Traverse Bay, and repairing bridges. Under this modernized model, regional partners continue contributing to the downtown assets their residents use daily, while 30% of revenues are returned directly to local general funds.
Why It’s Essential to Vote ‘YES’
Fair Cost-Sharing: Over 40% of TIF funds come from regional partners. Voting YES keeps those entities contributing instead of shifting 100% of downtown maintenance onto city taxpayers alone.
Infrastructure First: Dollars are dedicated strictly to essential assets: drinking water mains, bridges, stormwater quality, and pedestrian safety.
No Added Taxes: Proposal 1 is not a new tax and does not raise property tax rates; it simply reinvests growth generated inside the district.
Built-In Compromise: Returns 30% of future captured tax revenue directly back to participating jurisdictions, including the City and County general funds.