Council approves DDA boundary expansion and amended TIF sharing model after divided public comment

The City Council advanced a significant change to downtown financing by approving amendments to the Downtown Development Authority’s (DDA) boundary and a new revenue-share (gain-share) TIF model.

The DDA expansion adds 19 blocks to the north of the existing district, enabling a broader set of downtown projects and allowing the DDA to capture additional tax-increment revenue under a revised sharing arrangement intended to meet growing infrastructure needs. Supporters, including downtown business groups, the Ann Arbor Area Transportation Authority, and local advocacy organizations, described benefits such as funding for event bollards, a downtown service team, transit corridor improvements, and affordable housing investments.

Opponents warned the expansion and extended TIF capture would divert rising tax revenue from the city, county, school and other taxing jurisdictions over decades, potentially reducing funds available for services and prompting future millage pressure. Speakers raised governance questions about the authority’s unelected board and demanded clearer accountability measures and more visible benefits for neighborhoods outside downtown.

Council members debated how to balance long-term infrastructure needs against revenue diversion. Supporters emphasized the DDA’s previous contributions to affordable housing and safety projects, while critics asked for more consistent metrics to compare public participation across projects.

The council approved the DDA boundary and amended TIF plan (C1) during the meeting; final voting on some implementing details was noted as scheduled for a later date (a referenced final vote in April was noted).