Downtown Improvement District proposes assessment hikes, boundary expansion to include amphitheater

Melvin Elledge, director of operations for Downtown Grand Rapids Inc., outlined the Downtown Improvement District’s operations and a proposed three-year operating plan during the committee of the whole on April 14.

Elledge explained DID services (beautification, sidewalk sweeping, snow-melt infrastructure, public-safety liaison work, marketing and community assistance) and described how assessments are calculated (land area, building square footage and parcel frontage accounting for roughly 90% of assessments; residential properties pay a $120 flat annual fee; nonprofits receive a 40% reduction). He said this year’s stakeholder survey had 110 respondents, the highest return to date, and that about 70% rated services as "good" or "very good." "It's an important place management tool that helps keep downtown clean, beautiful, and welcoming," Elledge said.

The DID’s proposed FY2027 operations plan would raise the area-wide assessment by 3% in year one (raising the resident flat rate to $124), then cap increases at 4% in FY28 and FY29 tied to a state inflation multiplier; the plan also proposes expanding the DID area to include the newly constructed amphitheater. Commissioner questions focused on the effect on taxes (city manager clarified the DID is a special assessment, not a tax increment and does not change city tax revenue) and whether the DID could support storage or services connected to downtown unhoused-outreach work; DID staff said those service requests were not included in the current plan but may be considered via board discussion.

The commission set a public hearing to consider reauthorization and expansion of the DID at the next meeting; commissioners thanked DID staff for the presentation and for clarifying program boundaries and funding mechanics.