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Mount Pleasant approves 75% downtown tax capture for 10 years to fund streetscape, incentives
Summary
After hours of debate about county impacts and city finances, the Mount Pleasant City Commission approved a renewal of the Central Business District tax-increment finance plan at a 75% capture rate for 10 years to fund downtown streetscape work, fire-suppression leads and incentive programs.
The Mount Pleasant City Commission on Monday voted to renew the Central Business District (CBD) tax-increment financing (TIF) plan at a 75% capture for 10 years, directing staff to proceed with plan drafting and public hearings.
City officials said the renewal will redirect property tax revenues that would otherwise flow to the city general fund, Isabella County and Mid Michigan College into a dedicated downtown fund to pay for infrastructure and incentive programs. Staff estimated an annual capture total of roughly $500,000 if the district captures eligible taxes at the proposed rate; that estimate includes city, county and college shares.
Supporters said the downtown needs — including replacement of sidewalks and hardscape, electrical and irrigation upgrades, and targeted programs to attract infill housing and façade improvements — exceed available general-fund resources and that capturing outside taxing jurisdictions will make the projects affordable. City staff and the city engineer presented a streetscape program that would be delivered as two larger construction packages (Broadway and Main) and additional work such as limited sidewalk replacements and fire-suppression “leads” to serve building faces.
Opponents warned the capture would shift funds away from county services and other programs relied on by residents. Commissioner Zang said the county and other jurisdictions “cannot afford” the capture and argued the city should fund downtown work from its general fund only if able. Several commissioners proposed lower capture rates before settling on a compromise.
Commissioner Michelle Alsager moved the 75% capture proposal; the motion was seconded. The commission adopted the measure in a roll-call vote: Commissioner Zang voted no; Commissioners Rollins, Olsager, Busch, Pershbacher and Mayor Wingard voted yes (motion passed). City staff said the capture would begin in 2026, with streetscape design and bonding in 2026 and construction likely to start in 2027. Staff estimated infrastructure debt service of about $460,000 per year for roughly eight years for the proposed $3.5 million package, leaving approximately $40,000 per year to replenish incentive funds.
What's next: staff will draft the detailed TIF plan, hold required public hearings and return to the commission for final adoption. If adopted, the plan would fund a mix of infrastructure projects and incentive programs such as infill grants, façade grants and fire-suppression assistance.
Votes at a glance: the commission approved the 75% capture for a 10-year term by roll call; additional procedural steps remain before the capture begins and bonds, if any, are issued.
