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Hillsdale TIFA review committee to refine development plan and probe Dawn Theater divestment
Summary
The Hillsdale Tax Increment Finance Authority Review Committee on Feb. 24 agreed to rewrite its development plan with a clearer mission and precedent-based goals, to research whether the State permits divestment of the Dawn Theater, and to examine ways to prevent erosion of the TIFA tax base after recent property sales removed revenue.
Members of the Hillsdale Tax Increment Finance Authority (TIFA) Review Committee met Feb. 24 and agreed to revise the TIFA development plan to include a clearer mission and concrete, precedent-based goals, the committee’s minutes show.
Andrew Gelzer provided written materials for the meeting, including a Development Plan History memorandum, a TIFA Development Plan Background memorandum and a Review Committee Discussion Framework; the committee reviewed those documents as part of its discussion, the minutes state. Olivia Smith, the city’s zoning administrator, was recorded as present for the session.
Committee members said the main development plan should be streamlined: historical accomplishments should be moved into a separate document for the City website so the plan itself can focus on current goals and priorities. Members asked staff to research whether the State allows divestment options for the Dawn Theater, which the minutes list as an outstanding question for follow-up.
The committee also discussed the potential revenue effects of hypothetical changes to the tax structure and whether TIFA could, in any scenario, collect revenues from a local income tax; the minutes note that further research is required. As an example of tax-base erosion, members cited the sale of 44 N. Howell to Hillsdale College and recorded that the change removed approximately $7,000 per year from TIFA funds.
Members agreed to consolidate the committee’s current goals and to come to the next meeting with four to five proposed goals to guide the revised development plan. The meeting adjourned at 8:43 a.m.; the committee scheduled its next meeting for 7:30 a.m. on March 3, 2026, to be held in the Dawn Theater due to potential room conflicts at City Hall.
