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Shelby council commits up to $500,000 to downtown renovation, approves related street-fund transfers

Village of Shelby Common Council · January 12, 2026
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Summary

The Village of Shelby Common Council on Jan. 12 approved a resolution committing up to $200,000 from the General Fund and $300,000 from the Major Streets Fund toward a downtown renovation project and authorized a $150,000 transfer for FY 2025/26 (and a second $150,000 for FY 2026/27) from Major Streets to the Local Streets Fund to support the effort.

The Village of Shelby Common Council voted Jan. 12 to formally commit municipal funds to a downtown renovation project and to move local street funds to support implementation.

The council approved Resolution No. 01-26, committing up to $200,000 from the Village General Fund balance and $300,000 from the Major Streets Fund (through the Local Streets allocation) toward an estimated $2.0 million downtown improvement plan. The motion was moved by Councilmember Steve Crothers and seconded by Councilmember Crystal Heykoop; the roll-call vote was 5-1 in favor with Councilmember Dan Zaverl voting no and Samantha Gottschalk absent.

Council also approved Resolution No. 02-26 to transfer $150,000 from the Major Streets Fund to the Local Streets Fund in Fiscal Year 2025/26 and a second $150,000 transfer in Fiscal Year 2026/27 to ensure local funding is available for the project. That motion, also moved by Crothers and seconded by Heykoop, passed on a 5-1 roll-call vote (Zaverl opposed).

Village Administrator Phil Morse told the council the proposed funding plan anticipates $100,000 in private contributions that would be matched dollar-for-dollar by a private donor, and that roughly $800,000 of the project’s estimated cost is expected to be funded through a Brownfield Housing tax-increment financing capture arrangement if the council approves that future proposal. Morse said the project has already generated private investment interest, including a nonprofit willing to participate in the proposed TIF arrangement.

Morse also reported that the village submitted required documentation for the MEDC Match on Main Street program, allowing the village to pass $25,000 to Tienda La Palma as part of related downtown work.

The council’s votes represent a commitment of village budget capacity to the downtown plan while leaving the proposed TIF capture and any future ordinance or financing actions for later consideration. No ordinance changes were adopted at the Jan. 12 meeting.

Next steps identified in the meeting record include continued fundraising outreach, follow-up consideration of the Brownfield Housing TIF capture arrangement at a future council meeting, and coordination with development partners and state and nonprofit technical-assistance providers named by village staff.