MOUNT PLEASANT, Mich. — The Mount Pleasant City Commission on Nov. 10 adopted an ordinance and resolution renewing the Central Business District (CBD) Tax Increment Financing Authority (TIFA) plan, approving a 10‑year program to capture 75% of taxes within the downtown district for infrastructure and incentive projects.

City Manager Jacintz told the commission the proposal "seeks to capture 75% of the taxes within the district to be used for downtown infrastructure and incentive programs," including façade improvement support for small businesses, fire suppression upgrades and housing incentives. The plan will be in effect for 10 years and staff said approved projects and allocations will be set through future annual budgets.

The measure drew questions from commissioners about how the capture would affect other taxing authorities and whether the TIFA would borrow to pay for projects or use a pay‑as‑you‑go approach. Commissioner Skalitzki echoed concerns voiced by a former commissioner about potential impacts on the school district, saying opponents believe "it does take from certain, sources ... from the school department." Manager Jacintz responded that many taxing authorities can opt out of participation in a capture and staff expect most will do so; he said it is likely the TIFA will capture for the city and county only and that the school district "is not going to end up losing any funds with this TIFA in place," while acknowledging Mid Michigan College could see a small impact.

Commissioners also discussed how an active TIFA board could prevent requests for funding from piling up and ensure downtown reinvestment, particularly after recent downtown losses such as the Painted Turtle fire. Staff reiterated the commission will consider specific project budgets at later meetings and that the city intends to employ a PAYGO approach (saving funds and then paying for improvements) unless the commission directs otherwise.

Commissioner Alsager moved to approve the ordinance and associated resolution (listed in the packet as Resolution No. 17‑1); Vice Mayor Eke seconded. The commission recorded a roll‑call vote and all members present voted yes. The ordinance was adopted.

Next steps include formal adoption of component unit budgets and specific project approvals in subsequent city budget and TIFA board meetings.

(Quotes in this article are drawn from the Nov. 10 Mount Pleasant City Commission meeting.)