DDA director details $2.7M in TIF capture, priorities for sidewalks, lighting and downtown patrols

Lori Mullins, the newly appointed DDA executive director, presented the Downtown Development Authority’s current financing and priorities to the financial health team, explaining the DDA’s authority under state law and how tax increment financing (TIF) and other revenue streams are used to fund downtown improvements.

Mullins said the DDA captures tax increment revenue across three TIFF areas and reported that total capture for the district is roughly $2.7 million in the current year (the presentation distinguished city‑portion capture from total project capture and noted interlocal agreements with brownfield plans that temporarily redirect capture toward developer reimbursements). She said the DDA expects about $320,000 in the upcoming budget for sidewalk programs and identified façade improvements, lighting upgrades, public restrooms and increased downtown promotion among planned investments.

Municipal service agreements and public safety: Mullins described municipal service agreements that fund maintenance and public safety in the downtown; the DDA’s FY27 budget anticipates providing about $850,000 toward municipal services, including funding for two dedicated downtown police officers (daytime) and overtime for night patrols. Committee members asked about shift timing and noted that some positions may be filled later depending on police department hiring timelines.

Brownfields and fund balance: Staff described active brownfield reimbursement plans that can shift capture to developers while eligible costs are repaid; when plans end the captured revenue flows back to the DDA. Mullins said the DDA’s fund balance is variable — affected by brownfield reimbursements and property sales such as the evergreen parcels (a signed purchase agreement has not yet closed) — and that several brownfield plans are scheduled to end in the coming years, which will alter capture flows.

LDFA and technology innovation center (TIC): The presentation also covered the LDFA and its fiscal year capture (roughly $952,610 this year, with East Lansing retaining a 10% portion for administration and the remainder directed to the LDFA for innovation‑oriented projects). Mullins and staff described the TIC (technology innovation center) as a incubator for early‑stage businesses and noted ongoing work to extend the LDFA authority.

What happens next: Mullins said she is available to provide more detailed reports and underlying spreadsheets on captures and reimbursements; council members asked for a simple projection of city‑only capture changes over the next three years so the financial team can evaluate budget impacts.