Traverse City voters weigh a 20-year extension of the downtown TIF that would send 30% of new tax growth back to local governments

TRAVERSE CITY, Mich. — Traverse City voters will see two Proposal 1s on their Nov. 3 ballots. One is the statewide constitutional convention question. The other, City Proposal 1, asks whether to extend and change the tax increment financing plan that has paid for much of downtown’s public infrastructure since 1997.

How the TIF works. Tax increment financing freezes a district’s taxable value at a base year. As property values grow, taxes on the growth above that base are captured and spent on projects in an approved plan. Traverse City’s TIF 97 covers much of the downtown core and is administered by the Downtown Development Authority, a component unit of the city whose board is appointed by the City Commission. The plan is set to expire Dec. 31, 2027, according to a city presentation on the proposal.

What would change. The proposed Infrastructure First TIF Plan would run 20 years, from Jan. 1, 2028, through Dec. 31, 2047. Instead of capturing all eligible growth, the DDA would capture 70%, and the other 30% would stay with the local taxing bodies that would otherwise receive it. The city estimates that would mean about $18 million more for the city over the life of the plan, including $730,570 in 2028, and about $7.2 million more for Grand Traverse County, including $290,683 in 2028. Special city or county millages approved on or after Jan. 1, 2023, would also be exempt from capture, the city said. The 1997 base value would not change.

UpNorthLive reported the plan would generate roughly $140 million over 20 years.

The project list. The city’s project summary puts Boardman-Ottaway river restoration and infrastructure first, starting with a new pedestrian bridge connecting the future Farmers Market pavilion with the J. Smith Walkway and Front Street. Other projects include East Front Street reconstruction with streetscape improvements, West Bay shoreline stabilization, and a 2% allocation for stormwater, for which the city says it currently has no dedicated funding source.

Today, TIF 97 also pays about $1.14 million a year for downtown maintenance and services, including a service agreement that reimburses the city general fund for staff time, trash and recycling, landscaping and holiday lights, according to the city presentation.

A yes vote approves the new plan. A no vote leaves TIF 97 to expire at the end of 2027. The city has a project page with the plan and frequently asked questions at traversecitymi.gov.

Monday, Oct. 19, was the last day to register to vote online or by mail. After that, residents can still register in person at their city or township clerk’s office with proof of residency, through 8 p.m. on Election Day. Statewide early in-person voting runs Oct. 24 through Nov. 1, and polls are open 7 a.m. to 8 p.m. on Tuesday, Nov. 3. Voters can check their registration and see their sample ballot at Michigan.gov/Vote.

Updated Oct. 20, 2026: The Oct. 19 deadline to register to vote online or by mail has passed, so the voting details now say so. Residents can still register in person at their city or township clerk’s office with proof of residency through 8 p.m. on Election Day.

Sources:
City of Traverse City, “City Proposal 1: Infrastructure First TIF Plan,” City Commission presentation, Oct. 5, 2026 (TIF 97 history and expiration, DDA role, 70/30 split, revenue estimates, millage exemptions, project list, maintenance funding), https://www.traversecitymi.gov/projects/infrastructure-first-tif-plan.html
City of Traverse City, “Infrastructure First TIF Plan: Proposed Infrastructure Improvements” (river restoration phases), via the project page above
UpNorthLive (WPBN/WGTU), “Voters weigh $140M Traverse City TIF plan as current plan expires in 2027,” Oct. 16, 2026 (20-year total, yes/no meaning), https://upnorthlive.com/news/local/voters-weigh-140m-traverse-city-tif-plan-as-current-plan-expires-in-2027-grand-traverse-county
Michigan Department of State, “Absentee voting” and election calendar (registration, early voting and absentee deadlines), https://www.michigan.gov/sos/elections/voting/absentee-voting
Photo: Iulus Ascanius, “Boardman River in Traverse City.jpg,” Wikimedia Commons, public domain, cropped, https://commons.wikimedia.org/wiki/File:Boardman_River_in_Traverse_City.jpg

Up North · Election 2026 coverage

Tags: Up North · Election 2026 · Traverse City · Tax Increment Financing · Elections · Development