Traverse City commissioners will tackle a busy agenda tonight (Monday) that includes proposed new ethics and tax increment financing (TIF) policies, repairs to the city-owned TACS boathouse, the establishment of Indigenous Peoples’ Day as a holiday, and expanded consulting services to help the city land more grants.

TIF/Ethics Policies
After months of discussion and rejected drafts, city commissioners will take another stab tonight at approving a new implementation policy for tax increment financing (TIF) charter amendments passed by voters last year. Since new TIF plans, amendments, and extensions are now required to go to a public vote, the city has been working to enact a policy outlining how TIF-related proposals are placed on the ballot. Commissioners have been divided on numerous aspects of the policy, from what kind of language accompanies a ballot proposal to how many times a proposal can go before voters.

In a memo to commissioners, City Attorney Laurent Trible-Laucht attempted to clarify several legal issues with the policy. First, she argued there should be no limit on the number of times a TIF proposal can be submitted to voters. Since the charter amendment states that “the city commission shall not attempt to evade the petition rights and voting rights of city residents,” it would be “inconsistent with and contrary to the language and purpose of the charter amendment to limit the opportunity of the voters to weigh in,” she wrote.

Commissioners also previously questioned whether they could reject a TIF plan before it ever goes to voters. Trible-Laucht said they could not, since the charter amendment states that TIF plans “shall be submitted to a vote of the people.” Trible-Laucht summarized: “This entire line of reasoning, whether allowing the city commission to reject a TIF plan prior to a vote of the people or allowing the city commission to prevent a TIF plan from being voted on more than once, would be an attempt to evade the voting rights of city residents.”

Commissioners wouldn’t be required to approve a TIF plan that’s been approved by voters but must consider it within 60 days of election results being certified. The ballot language would 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 tonight will also get their first look at a proposed new ethics ordinance and vote to schedule the policy for possible enactment at their October 20 meeting. An ad hoc committee of commissioners has been working for several months to draft the policy, which would apply to all city elected officials, appointed officials, employees, and board/committee members. The policy outlines expectations for numerous areas including fiduciary duties, conflicts of interest, impartiality, annual disclosure statements, and standards of conduct on issues ranging from nepotism and confidential information to use of public property and media relations. The policy also outlines an enforcement process – using an independent arbiter – and penalties for violating the policy. City voters will vote on November 4 to enshrine an ethics policy in the city charter, requiring that such a policy – which can be edited but not eliminated – always remains in place.

Boathouse Repairs
As part of a project to install a solar photovoltaic and battery energy storage system at the city’s wastewater treatment plant, the adjacent city-owned boathouse on Boardman Lake – used by Traverse Area Community Sailing (TACS) – will also receive an upgrade. The boathouse and other buildings are set to have solar arrays installed on their roofs. However, the boathouse roof is nearly 20 years old. City staff and the TACS operation manager “determined that replacing the shingled roof before installing the solar panels would be prudent and cost-effective in the long term since the solar panels have at least a 20-year service life expectancy,” according to City Director of Municipal Utilities Art Krueger.

Commissioners will vote to approve a not-to-exceed contract of $36,190 with Summit Point Roofing – the lowest of three bidders on the project – for the roof replacement, with funds coming from the sewer fund. Krueger noted that because of nearly $1.69 million in grant funding secured for the plant’s solar array project – along with tax credits for the city’s solar investment – the boathouse roof replacement “should be the only out-of-pocket cost for the city for this project.” The project is expected to generate about 10 percent of the plant’s annual energy consumption, reducing the city’s electricity costs and CO2 emissions.

Indigenous Peoples’ Day
Commissioners will consider updating the city’s ordinance to recognize Indigenous Peoples’ Day – celebrated the second Monday of each October – starting in 2026. “Indigenous Peoples' Day recognizes the strength and resilience of Indigenous communities since European ships first arrived in North America in 1492,” according to a memo from Interim City Manager Benjamin Marentette. “It's also a time to celebrate the cultures, traditions, and contributions of Native people in the U.S. today… I believe that this day has such significance that it deserves the respect of being officially recognized as a holiday.”

The recognition would primarily impact commission meetings, as city staff would still work on Indigenous Peoples’ Day. However, no commission meetings would be held that day. Other recognized holidays on which commission meetings are not held – they are typically moved to the next business day – include New Year’s Day, Martin Luther King Jr. Day, President’s Day, Labor Day, and the Fourth of July.

Grant-Writing Services
Finally, commissioners will hear an update tonight from LSI Business Development, a firm the city hired last year to provide grant-writing services. Commissioners allocated just over $58,000 from the city’s American Rescue Plan Act (ARPA) funds for the contract and specified that the firm should exclusively seek Inflation Reduction Act funding to “help move Traverse City toward carbon neutrality,” according to the 2024 commission motion. That motion stated grant-writing funds “may not be used for any other purpose until such opportunities have been exhausted as determined by the city manager.”

However, given changes in the “current granting environment at the federal level,” according to Deputy City Manager Deb Allen, commissioners tonight will consider expanding the scope of services to also pursue state and private foundation grants. LSI Business Development is expected give an update on efforts so far and the status of energy-related grants under the Inflation Reduction Act. Commissioners will also discuss how to pay back the ARPA funds – which must be spent by the end of 2026 – if they’re not fully used through LSI’s contract.