DDA Updates: 2026 Ballot Push for New TIF Plan, Downtown Events

In addition to a closed-door session to discuss the results of a recent audit, Traverse City Downtown Development Authority (DDA) board members Friday agreed to pursue putting a new tax increment finance (TIF) plan on the ballot in 2026. The board also heard updates on several downtown events.

Moving Downtown Forward TIF Plan
With a 2027 expiration looming for TIF 97 – one of two TIF plans that help fund most downtown programs and projects, along with Old Town TIF – DDA leaders will kick off a process in January to prepare a new TIF plan to go to voters in November.

Board members voted Friday to establish a subcommittee consisting of Mayor Amy Shamroe, Jeff Joubran, Shelley Spencer, and Todd McMillen (who will serve as chair) to lead the process for developing the new plan. The DDA already previously approved a new 30-year TIF plan – called Moving Downtown Forward – in August 2024, which the board intended to replace TIF 97 when it expired. That plan was supposed to go to city commissioners for approval after the DDA vote.

However, that process got put on hold when voters approved two ballot proposals in the fall 2024 election requiring the creation, amendment, or extension of any TIF plan to go to a public vote. That requirement applies to both DDA and brownfield TIF plans. Moving Downtown Forward has remained on pause since then. However, as the end of TIF 97 approaches, DDA CEO Harry Burkholder said Friday that it was “imperative that this body pick up those discussions” again.

“What are those next steps in terms of getting a TIF plan ready for the summer?” he said. Any ballot proposal would need to be approved by the DDA board by July in order to go to city commissioners and then the state by August to appear on the November ballot. While the DDA doesn’t have to repeat all the work it did previously – Moving Downtown Forward took several years to create – it does need to update that plan to reflect current DDA priorities. For example, Moving Downtown Forward lists a retail incubator as a downtown project for TIF funding; the DDA canceled the incubator last year and would remove it from the new version of the plan. A Development Area Citizen Council consisting of residents who live in the TIF district would also be reconvened to review the updated plan.

Another consideration is that in the time Moving Downtown Forward was last approved, the city adopted a new strategic plan. Burkholder said there were “a lot of parallel” priorities between that strategic plan and DDA focus areas. Moving Downtown Forward could be further tweaked to reflect those shared goals, he said, emphasizing the “value and the need to have this (TIF extension) conversation in tandem with the city.” The DDA board and city commission will likely have at least a few joint meetings to discuss the new TIF plan, Burkholder said, adding that city staff have been working on long-term budget projections considering the impacts with and without TIF.

“We’re not starting from scratch here,” Burkholder summarized. “We're really taking the existing plan and trying to refine it.”

City commissioners adopted a policy in October that outlines how TIF-related proposals are put on the ballot. There is no limit to the number of times a proposal can be submitted to voters, though a submitter would be responsible for costs if a special election was required. The ballot language must list the requesting entity’s name, the boundaries of the TIF district, the total projected tax capture, and the years of the term, along with a note that the TIF plan is available to view in its entirety online and at the city clerk’s office. Any entity seeking TIF plan approval would submit the proposal to the city clerk, with the city commission then taking action to put it to voters at the next regular or special election. Commissioners aren’t required to approve a TIF plan that’s been approved by voters but must consider it within 60 days of election results being certified.

Downtown Events
Board members received updates Friday on several downtown events from DDA Director of Events & Engagement Sara Klebba.

According to Klebba, Shop Your Community Day on November 8 generated nearly $21,577 in donations for local nonprofits. That’s more than was raised in 2024 despite having eight fewer participating merchants this year (35 total with sales). Cell data showed 17,100 guests within the downtown Traverse City area that day with a 203-minute “average dwell time,” according to Klebba.

The Light Parade on November 22 attracted 18,700 people downtown between 4pm and 10pm. That is a 13 percent increase in foot traffic over 2024. Though survey respondents described the event as “festive” and “well-run,” its continued growth brings additional logistical pressures. “We’re going to be talking about how to address the event and make sure safety is paramount,” Klebba said.

Meanwhile, foot traffic was up on Black Friday and Small Business Saturday compared to 2024 (22,900 shoppers versus 20,700 last year), with an average dwell time of 145 minutes this year compared to 133 minutes in 2024. Both Ladies’ Night and Men’s Night also saw higher turnouts this year over 2024. Ladies’ Night on December 4 brought 8,000 people downtown, while Men’s Night brought 6,100 people downtown. The inaugural Wrap It Up Shopping Night – which was held Thursday – suffered from cold, rainy conditions that hurt turnout, Klebba said. However, “we’re not going to be dissuaded,” she said, adding the event would likely return since this was only its first year.

Finally, Traverse City Restaurant Week will return again February 22-28. The event, which has expanded over the years to include numerous restaurants outside of DDA boundaries, drew 53 participating eateries last year. Registration is open now for restaurants for the 2026 event with a deadline of January 18. Restaurants can sign up to offer breakfast/brunch, lunch, dinner, or takeout prix fixe menus at $25, $35, and $45 price levels, according to Klebba.