Township approves $200,000 interdepartmental loan to DDA to bolster Lions Park grant application

GROSSE ILE, Mich. — The Grosse Ile Township Board of Trustees on Jan. 27 approved a $200,000 interdepartmental loan to the Downtown Development Authority (DDA) to help secure a $500,000 Michigan Economic Development Corporation (MEDC) revitalization and placemaking grant for redevelopment of Lions Park on Macomb Street.

The loan was approved contingent on an MEDC award and passed by voice vote, 4-2. The motion read that the township “approves the request for an interdepartmental loan in the amount of $200,000 to Downtown Development Authority contingent upon an approved grant from the Michigan Economic Development Corporation.”

The DDA purchased a vacant lot on Lyons and Macomb in 2009 for $70,000 and contracted Wade Trim in 2022 for landscape architecture and engineering services tied to a 2020 DDA master-plan process. Ross, a Downtown Development Authority representative, told the board the DDA will apply for the MEDC grant — its third attempt — and is requesting $500,000. Ross said the DDA lowered its local ask from $300,000 to $200,000 to preserve cash for a proposed playscape the recreation department may place nearby.

“The DDA can still support this project through our tax increment financing fund, but it will lower our chances of a successful application,” Ross said, describing the loan as a way to show committed local funds to grant reviewers.

Trustees who opposed the loan cited timing and township-wide budget uncertainty. One trustee said the township has “other aging equipment” needs — including the bridge, wastewater plant, police and fire — and asked whether the loan could be tabled until the board reviews the new fiscal-year budget. Another trustee, Kevin (Treasurer), said he would vote no because he wants a clearer view of cash flows before approving major outlays.

Trustee Jameson defended the loan as a financing tool that uses DDA resources and the township’s revolving loan fund rather than general-fund dollars. “This is the DDA’s money,” Jameson said. “They are asking for a loan, which will be repaid.” He added that the revolving loan fund exists to enable departments and entities with smaller budgets to execute larger projects and capture matching grants.

Ross told the board that if the MEDC grant is not awarded, the DDA could still complete the project but would need to phase construction over several years and could see program cuts or reduced events to conserve funds.

Board members discussed alternatives including phasing the park build-out, seeking bond financing (which Ross said had been explored and found not feasible), and pursuing private or nonprofit donations for the playscape equipment.

Votes at the Jan. 27 meeting recorded the loan as approved, 4–2. The board chair said further discussion about the project will continue in future meetings.

Why it matters: The loan is intended to strengthen a competitive state grant application that would fund roughly half of a proposed park renovation that supporters say will anchor the Macomb Street corridor. Opponents said approving the loan before the township completes its annual budgeting process risks reducing liquidity for other imminent capital needs.

What’s next: The DDA will submit the MEDC application before the January 30 grant deadline. If the grant is awarded, the DDA and township will return to the board with details about funding, phasing and any required follow-up approvals.