Alma council’s lawyer says city must terminate disputed TIF; affected business owners seek review

Deputy City Attorney Jaclyn Daake told the Alma City Council on Sept. 4 that the city does not have legal authority to continue a tax‑increment financing (TIF) arrangement previously promised to projects associated with Matt and Brandi Nissen and others, and that the city has made the decision to terminate the TIF.

Daake told the council the redevelopment plans and certifications required under state law were not present and that the city “did not have the authority to pass that resolution.” She said there were no eligible costs certified back to the city that would allow the municipality to continue dividing taxes and that, as a result, the TIF as granted was unlawful in her view.

Brandi Nissen, who said she had received a July 22, 2024 notice terminating the TIF, disputed the city’s action and said she had submitted information to Sarah Scott, the Property Tax Administrator, who “does not have a problem with it,” according to Nissen. Nissen asked whether the city could produce a letter from the Property Tax Administrator creating a binding contract; Daake replied that the city would need an attorney general opinion, not only a letter from the state office.

The dispute centers on a prior city resolution that, according to the transcript, provided that “Matt & Brandi Nissen DBA Alma Auto Parts shall be refunded 100% of the additional real estate taxes after the development of this real estate for 15 years.” Daake said that key application materials and a statutorily compliant redevelopment plan were missing and that the city could not certify costs required to sustain a TIF reimbursement schedule.

Daake outlined the practical consequence: without certified eligible costs and the required reporting of indebtedness, the city cannot lawfully continue to divide tax increments that would otherwise fund taxing authorities such as the school district and fire department. She advised the Nissens to consult a tax attorney and said the city would review any documentation provided by the Property Tax Administrator.

Mayor Hal Haeker said he regretted the situation and that the city would help where possible, but emphasized the council could not act outside state law. The council and staff discussed avenues for additional information, including review by the attorney general and engagement with legal counsel for the project owners; no formal rescission vote of the prior resolution is recorded in the minutes.

The meeting record shows the council closed business for the evening following the discussion; Councilmember Chris Tripe left the meeting prior to adjournment.

Next steps recorded in the meeting: the city attorney’s office offered to review documents the Nissens provide, and Daake recommended the Nissens obtain independent tax counsel to explore remedies.