The Downtown Development Authority wants to add two new tax increment finance districts. The first would include the Grand Rapids United States Post Office and neighboring The Rowe building at the corner of Michigan Street NW and Monroe Avenue NW. The second at 201 Market Avenue SW and adjacent properties along the Grand River where the proposed Acrisure Amphitheater will be constructed along with the Grand River Greenway trail.
“We’re just creating new tax capture districts so that we can collect revenue to participate in projects moving forward.”
That’s Tim Kelly, President and CEO of Downtown Grand Rapids Inc. during the February Downtown Development Authority Board Meeting.
Known as TIFs, the Michigan Economic Development Corporation explains, “Through the Brownfield Redevelopment Financing Act, Brownfield TIF allows applicable taxing jurisdictions to receive property taxes on the property at the current level and capture the incremental increase in tax revenue resulting from a redevelopment project.”
“To date, so since 2016, we’ve sent back $6.6 million, and over the term of this proposed plan we would project that we’d send back close to $100 million in tax increment revenue. That is a result of the step-up. So, we’re at 15% now, in 2032 we would step up to 25%.”
Kelly says it will not capture special millages approved by voters. The timeline calls for a City Commission hearing in March followed by an April public hearing.