Grand Rapids reviews corridor improvement authorities, Uptown BID renewal and state facade grant application

The Grand Rapids City Commission received an informational briefing on Corridor Improvement Authorities (CIAs) and the city’s lone Business Improvement District (BID) at its meeting. Economic development staff outlined tax-increment financing (TIF) revenues, project priorities for six CIAs and a pending state facade grant application that would layer additional dollars atop local facade grants.

The presentation, given by Sarah Renero, economic development department staff, summarized each CIA’s formation date, geographic scope, fund balance and stated priorities. Renero said the city oversees six CIAs and one BID and that the CIAs “were guided by Act 57” and maintain TIF plans that outline district priorities. She told commissioners the city has roughly $4.5 million in total TIF revenue across the six districts (the presentation did not specify whether that figure is current-year cash, cumulative capture or another accounting metric).

Why it matters: CIAs use tax increment financing to fund streetscape, safety and placemaking projects in commercial corridors. Additional state funds for facades and other capital work could increase the scale of local projects and affect neighborhood commercial corridors where the CIAs operate.

Key details from the briefing

- North Quarter (established 2012): spans the Creston and Cheshire business districts; priorities listed include public infrastructure maintenance (including bio-retention islands) and event support such as “Lights on Creston.”

- Southtown (originally Madison Square, established 2009; amended 2016): covers six business districts (Boston Square, Madison Square, Seymour Square, Eastern and Franklin, South Division). Staff reported a fund balance of more than $1 million; priorities include streetscape beautification, landscaping and lighting, trash tipping and street cleaning. Renero noted differences in how SIDs/BIDs and CIAs can fund services such as trash and cleaning.

- Uptown (established 2009): about $500,000 in fund balance; Uptown has formed a nonprofit, Uptown Inc., that also runs the BID and pays for district administration. Commissioners were told Uptown earned roughly $130,000 in special-assessment revenue last year, primarily funding an ambassador program and beautification.

- Michigan Street (established 2015): reported fund balance $866,000; priorities include corridor branding and events (Renero referenced “Poutine Week,” adjacent to ArtPrize) and transition improvements between the medical mile and surrounding neighborhoods.

- South Division (established 2018): covers two business districts; priorities listed include traffic and pedestrian safety and alleyway activation.

- Westside (established 2014; amended 2021): spans three business districts; staff said the district has been saving for gateway signage at key cross streets (Bridal, Fulton and Leonard) and funds pedestrian-safety work in coordination with the city’s mobile GR team.

State facade grant application

Renero said the city applied to the Michigan Economic Development Corporation (MEDC) for a revitalization and placemaking facade grant that would leverage existing local facade programs. The city’s facade program provides grants in the $5,000 to $30,000 range; the MEDC application seeks about $1 million across three projects to supplement local awards. Renero said this was the first time MEDC allowed leveraging of existing local facade programs in this way.

Commissioner comments and next steps

Commissioners and the mayor framed the briefing as informational and raised issues they want staff to explore further: requests for more-custom refuse services in corridors where trash in the right-of-way is a concern; greater CIA input on recommending future board appointees (the mayor said, while appointment authority rests with the city and commission, CIA members want more opportunity to recommend candidates); and differences in administrative capacity among CIAs, with some districts relying more on city staff and others having dedicated corridor managers or nonprofit partners.

One commissioner raised equity concerns about tax-capture mechanisms, saying that TIF tends to “favor areas that are cool and hip” and can leave other neighborhoods behind; the commissioner suggested discussions about floor funding or other ways to ensure more equitable support across corridors.

Renero and other staff told the commission the budget process and midyear performance report could be used as venues for follow-up discussions about how the city supports CIAs, whether additional staffing or city-side resources are needed, and how to share best practices across districts.

Formal actions

The only formal vote recorded during the segment was the commission’s approval of the previous meeting’s minutes. A member moved to approve the minutes; the motion carried on a voice vote. The briefing itself was informational and did not include a vote on new policy or funding.

What’s next

Commissioners were told the Uptown BID special-assessment renewal was scheduled for a March public hearing (staff said the notice was on the last city commission agenda) and that staff will continue conversations with CIA chairs and the commission during budget and midyear reporting. Staff also noted the MEDC application outcome pending; the presentation did not specify a timeline for MEDC’s decision.

Ending

No policy changes or new funding allocations were approved during the briefing. Staff asked commissioners to signal any priorities for follow-up during the upcoming budget process and indicated they would return with additional details as those efforts proceed.