FAQ

What is City Prop 1 about?

City Prop 1 is a request by the Downtown Development Authority (DDA) to extend the City’s biggest district tax increment financing plan (commonly called TIF97) for 20 years. A “Yes” vote is a vote to extend TIF97. A “No” vote is a vote not to extend TIF97.

What are the financial implications if TIF97 is extended?

The impact would be substantial. While TIF97 has diverted $25 million in City tax revenue over the past 29 years, projections show an extended TIF97 would divert $79 million in City tax revenue over the next 20 years. That huge increase would lead to higher property taxes, reduced city services or both.

How would an extended TIF97 affect other local institutions?

An exended TIF97 is projected to divert $61 million from non-City taxes over 20 years. (That compares to $21 million diverted from non-City taxes over the last 29 years.) This huge increase in diverted tax revenue will reduce funding for Grand Traverse County, NMC and the other affected agencies. For example, Northwestern Michigan College (NMC) would lose an estimated $11 million over the next 20 years.

What happens when TIF97 ends as scheduled?

The diverted tax revenue would return to the city's general fund , pension fund and ambulance fund. The City would be able to spend this money for the benefit of the City as a whole, reduce property tax rates, or some of both.

Will Prop 1 affect brownfield projects?

Yes, it will require voter approval for brownfield TIFs as well. Given that these projects can divert millions in tax dollars, it's appropriate for taxpayers to have a say.

Who is opposed to City Prop 1?

We are City residents working together to defeat the extension of TIF97 aka “Infrastructure First” Plan. Our supporters include former mayors, city commissioners, DDA board members and thousands of City taxpayers. We're working to make the City's use of TIF programs accountable to all residents.