East Bay Township trustees voted Monday to establish a corridor improvement authority (CIA) - a type of TIF district - for the township Beach District along US-31.

A CIA is a tool in Michigan similar to a downtown development authority (DDA) that uses TIF (tax increment financing) to pay for public infrastructure projects. Michigan has several requirements for establishing a CIA, including the corridor having been in existence for 30 years, having at least 51 percent of first-floor space classified as commercial, and being served by municipal water or sewer, among other criteria. A CIA has a defined time period and a TIF plan describing the projects that would be funded by tax capture. A TIF isn’t a new tax, nor does it raise property taxes; it instead sets a base year for taxable values on properties within the CIA and captures the difference as those values increase over time to fund public improvements.

The East Bay Beach District Corridor CIA is envisioned to help cover public safety and placemaking improvements such as a pedestrian bridge or crossings, sidewalks, streetscaping, and a pier on Grand Traverse Bay. Trustees considered two different boundary maps for the CIA, with one excluding a western residential stretch north of Pine Grove. Those neighbors wanted to be excluded from the plan and questioned the legality of being included. Township Director of Planning & Zoning Claire Karner said East Bay's attorneys felt comfortable with the neighborhood's inclusion from a legal perspective. However, she said the benefits of inclusion were likely outweighed by the strong opposition from neighbors.

Several township trustees disagreed, noting the importance of the extended CIA boundaries to provide continuity in improvements like sidewalks throughout the corridor. Trustees voted 4-2 to approve the CIA with the boundary map that included the western stretch, with Supervisor Beth Friend and Trustees Tracey Bartlett, Mindy Walters, and Matt Courtade in support and Trustees Glen Lile and Matt Cook opposed (Trustee Susanne Courtade was absent). The boundaries thus generally run from Avenue B to the east township municipal limits (pictured). 

Trustees also voted on establishing the CIA board Monday but tied 3-3, which caused the motion to fail. Those opposed wanted to see a full list of recommended board members before voting instead of having some additional recommended members come forward at a future meeting, as was planned by staff. The CIA board can have up to nine voting members plus the township supervisor, who is required under law to serve on the board. A majority of the board must have an ownership or business interest in the corridor, and at least one member must live in the district or within a half mile of its boundaries. 

The proposed CIA board members are Ally Diola (Alexandra Inn/corridor resident), Chris Cargill (district neighbor), Tyler Dohm (Swing Theory), Rob Bruning (Cherry Tree Inn), Don Nowka (Bay View Insurance), Beth Friend (township supervisor), and Steve Feringa (Grand Traverse Band of Ottawa and Chippewa Indians). Staff are seeking to put two more corridor residents on the board - for.a total of 9 members - and encouraged interested participants to apply. The CIA board appointments are expected to return for approval at the next trustee meeting November 10.