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Redevelopment Commission adopts 2026 TIF spending plan, corrects school grant line and designates $450,000 to Silver Birch housing fund
Summary
The commission approved the annual TIF spending plan Nov. 17 (staff said a $500,000 line for schools was a typo and should be $600,000), authorized submission to the Department of Local Government Finance, and unanimously designated $450,000 to the Silver Birch Affordable Housing Fund to be controlled by the common council when funds are available. Several routine financial reports and community items (holiday tree use) were also approved.
The Michigan City Redevelopment Commission adopted its 2026 TIF spending plan Nov. 17 after staff and commissioners resolved a discrepancy in the grant line requested for local schools.
Skyler, who presented the spending plan and account balances, told the commission that one line in the draft—listed as $500,000 under grants—was a typographical error. "I think that should say $600," Skyler said, and confirmed the intent to allocate $600,000 for an education grant to Michigan City Area Schools (MCAS). The commission voted unanimously to approve the spending plan as amended; staff will forward the filing to the Department of Local Government Finance by the December deadline.
Why it matters: staff emphasized that recent legislative changes to property tax law (Senate Bill 1) may reduce future TIF revenues and that the spending plan is a required annual submission to the DLGF. The plan sets out expected infrastructure, loan and grant uses for the coming year and allows adjustments over the year as circumstances change.
Community and other actions: commissioners also unanimously approved a motion to designate $450,000 (discussed at council) to the Silver Birch Affordable Housing Fund, which will be administered by the common council and subject to program criteria such as CDBG rules when funds become available. Skyler noted the funds will be received as the associated project proceeds and bonds: "We will not have these funds until the project starts or until they do their bonding." The board approved routine minutes, claims, and financial reports and granted permission for a holiday tree and related events at 7th & Franklin.
Next steps: staff will submit the spending plan to the DLGF, prepare minutes that reflect the corrected school grant figure, and coordinate with the council on the mechanics for placing the $450,000 into the Silver Birch fund once proceeds are available.
