Traverse City voters will decide whether to approve the Downtown Development Authority's Infrastructure First Tax Increment Financing plan for 2028 through 2047. Under the proposal, 70% of applicable growth in property-tax revenue within the district would be captured for eligible public infrastructure while 30% would flow to participating taxing jurisdictions, including the city's General Fund. The city estimates total capture over the 20-year term at roughly $140 million, although the actual amount would depend on future taxable-value growth. TIF is not a new millage; the dispute is about where future growth in existing tax revenue should go. Downtown infrastructure eventually has to be paid for. The real choice is whether future downtown tax growth should be reserved in advance for that work or flow more fully to the city, county, library, and other taxing bodies to compete with their other priorities.
Is a 20-year Infrastructure First TIF the right financing structure for downtown Traverse City?