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Petoskey downtown authority reviews Greenwood site TIF options as district captures small increment
Summary
At its March 18 meeting, the Petoskey Downtown Development Authority reviewed the Greenwood site tax increment financing (TIF) district status, including captured increment, timeline to close in 2036 and options to retain or recommend eliminating the TIF; Emmet County renovation plans make a joint parking structure unlikely at present.
At its March 18 meeting, the Petoskey Downtown Development Authority discussed the status of the TIF district covering the Greenwood site and options for the next 12 years of the plan.
Ms. Wheaton, a downtown management board member, told the board the base taxable value when the TIF district was created was $1,150,000 and the district has captured $13,966.17 in increment to date; the current assessed value was described in the presentation as having risen since the district’s low period. The TIF plan is scheduled to close out in 2036 unless the city council takes action to end it earlier.
The DDA was presented with two options: leave the TIF in place until it expires and continue biannual informational meetings, or recommend the city council eliminate the current TIF and consider a new financing approach. Ms. Wheaton said a brownfield TIF can capture additional taxing jurisdictions, including state education taxes, and “capture a lot more” revenue than the existing DDA TIF, but a brownfield TIF’s revenue position is subordinate to the DDA’s first position.
Board member Chris asked for additional detail on the “pros and cons of each option.” Ms. Wheaton cautioned that eliminating the TIF now carries political risk: once a TIF is removed, re-establishing the same or similar district may prove difficult. She said, given current conditions, the “safest” course is to leave the TIF in place and continue the required biannual meetings while awaiting development that would increase captured increment.
The presentation also noted Emmet County plans to renovate its portion of the city–county parking lots (identified as expenditure area 3). Ms. Wheaton said county work is likely to involve regrading, removal of a retaining wall, and stormwater upgrades and estimated the county’s work could cost on the order of $1,000,000; because of that planned investment, she said a joint city–county structured parking project at that site is “probably no possibility” in the near term.
Board members discussed that the current TIF will not raise enough revenue in the remaining 12 years to fund a parking structure on its own and that any change to the TIF would require city council approval. After discussion, the chair asked whether members were in agreement with taking no immediate action; the board signaled agreement to make no changes at this time.
The board did not take a formal vote to modify the TIF at the meeting; staff was directed to continue monitoring values and to provide more detail on options if requested.
