Traverse Connect is endorsing the renewal of Traverse City's Tax Increment Financing (TIF) plan, the organization announced Wednesday.

The Traverse City Downtown Development Authority (DDA) is currently looking to extend the TIF 97 plan – which covers the core of downtown Traverse City and is set to expire at the end of 2027 – by another 30 years. TIF districts capture taxes on rising property values within their boundaries to fund public improvement projects, though those projects must be named in the plan in order to be funded. As such, the proposed extension would rename TIF 97 as "Moving Downtown Forward" and would identify a new list of projects for the plan to fund, potentially including things like housing, the development of a new civic square downtown, work on a proposed riverwalk redesign, and more.

There is considerable debate locally about whether or not TIF should be renewed. A "Let's End TIF 97" movement has sprung up online, and TIF has also been a core issue for city commission candidates to address in their respective platforms. How the city commission race shakes out in November is expected to have significant impact on whether the funding plan moves forward, as the TIF renewal is slated to go before the DDA Board of Directors next April. The plan would then move to the city commission for final approval.

In a press release announcing the endorsement, Traverse Connect President and CEO Warren Call framed the renewal of TIF as an important cog in Traverse City’s future development, upkeep, and growth.

“If [TIF] is not renewed, Traverse City will have to halt upcoming infrastructure projects and let stormwater, roads, and bridges further deteriorate or it will have to fill a $1.7 million hole by raising taxes or cutting services in residential neighborhoods,” Call said. “TIF provides regional financial support for the improvements that make downtown Traverse City an employment and entertainment destination for the 153,000 people who live in the Grand Traverse region.”