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Automotive and Transportation
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Marquette City Commission extends DDA Tax Increment Financing plan

In a move aimed at bolstering downtown revitalization efforts, the Marquette City Commission has voted to extend the Downtown Development Authority's (DDA) Tax Increment Financing (TIF) plan. The decision, made during a regular commission meeting on August 12, 2025, extends the plan through 2040, providing continued funding for infrastructure improvements, business incentives, and community projects in the city's core district.

The extension comes as part of a broader strategy to sustain economic growth in Marquette's downtown area, which has seen significant transformations in recent years. Tax Increment Financing, or TIF, is a public financing method that allows municipalities to capture the increased property tax revenues generated from development within a designated district. These "increment" revenues are then reinvested back into the area to fund further improvements, rather than being distributed to general city funds or other taxing entities like schools and counties.

According to city officials, the original TIF plan for the Marquette DDA was established in the late 1990s, with an initial expiration set for 2025. The extension pushes this deadline out by 15 years, allowing the DDA to continue leveraging captured taxes for key initiatives. During the commission meeting, DDA Executive Director Mona Lang presented a detailed report highlighting the plan's successes to date. "Over the past two decades, the TIF has been instrumental in attracting new businesses, enhancing public spaces, and preserving our historic downtown," Lang stated. She pointed to projects such as the redevelopment of the Third Street corridor, upgrades to waterfront parks, and incentives for mixed-use developments that have contributed to a vibrant local economy.

Commissioners debated the extension for over an hour, weighing the benefits against potential concerns from other taxing jurisdictions. Proponents argued that the TIF has directly led to increased property values in the downtown district, rising from an assessed value of approximately $50 million in 2000 to over $150 million today. This growth, they say, has created a ripple effect, boosting tourism, employment, and overall city revenues. For instance, the plan has funded facade grants for small businesses, streetscape enhancements including better lighting and pedestrian pathways, and events like the annual Art on the Rocks festival, which draws thousands of visitors each summer.

Critics, however, expressed reservations about the long-term diversion of tax revenues. Representatives from the Marquette Area Public Schools and Marquette County voiced concerns that extending the TIF could limit funding for essential services outside the downtown area. "While we support downtown development, we must ensure that this doesn't come at the expense of our schools and infrastructure county-wide," said County Commissioner Sarah Thompson during public comments. In response, city staff emphasized that the TIF only captures the incremental increase in taxes, not the base revenues, meaning other entities continue to receive their original share. Moreover, a provision in the extension requires annual reporting and audits to maintain transparency.

The commission ultimately approved the extension by a 5-2 vote, with Commissioners Johnathan Hale and Lisa Ramirez dissenting. Hale cited the need for more comprehensive impact studies, arguing, "We should explore alternative funding mechanisms that don't lock in revenues for such an extended period." Despite the split, Mayor Emily Farrar praised the decision as a forward-thinking step. "This extension ensures that Marquette remains a competitive and attractive destination in the Upper Peninsula," Farrar said in a post-meeting statement. "By investing in our downtown, we're investing in the heart of our community."

Background on the Marquette DDA reveals its role as a pivotal player in local economic development. Formed under Michigan's Public Act 197 of 1975, the DDA oversees a district encompassing the city's central business area, including Washington Street, Front Street, and adjacent neighborhoods. The TIF plan has historically supported a range of projects, from the construction of the Marquette Commons event space to grants for entrepreneurial startups. Recent successes include the revitalization of the former ore dock area into a mixed-use zone featuring retail, residential, and recreational facilities, which has helped stem population decline and attract younger demographics to the region.

Looking ahead, the extended TIF plan outlines several priority areas for the coming years. These include sustainable infrastructure projects, such as green energy initiatives for downtown buildings, expanded broadband access to support remote work, and adaptive reuse of vacant properties to combat urban blight. The DDA plans to allocate funds for affordable housing components within new developments, addressing a growing need in Marquette amid rising real estate prices. Additionally, community engagement efforts will be ramped up, with public input sessions scheduled to guide project selection.

Economic experts note that TIF extensions like this are common in Michigan cities, where downtown districts often serve as economic engines. A study by the Michigan Municipal League highlights that TIF districts statewide have generated billions in private investment, with Marquette's program serving as a model for smaller communities. However, the extension also comes at a time of broader fiscal challenges, including inflation and supply chain issues affecting construction costs.

Residents have mixed reactions to the news. Local business owner Tom Jenkins, who operates a cafe on Washington Street, welcomed the extension. "The TIF grants helped me renovate my storefront during the pandemic, and it's kept foot traffic steady," he said. Conversely, retiree Margaret Olson worried about property tax implications. "If downtown keeps growing, will that mean higher taxes for everyone else?" she asked.

City officials assure that the plan includes safeguards, such as caps on the total captured revenue and mechanisms for early termination if goals aren't met. With the extension now in place, the Marquette DDA is poised to build on its momentum, fostering a downtown that blends historical charm with modern amenities. As Marquette navigates the post-pandemic recovery and aims for sustainable growth, this decision underscores the city's commitment to targeted economic development.

The full details of the extended TIF plan, including financial projections and project timelines, are available on the City of Marquette's website. The next commission meeting will address related budget adjustments, ensuring the plan's implementation aligns with broader municipal priorities. (Word count: 928)

Read the Full Upper Article at:
[ https://www.uppermichiganssource.com/2025/08/12/marquette-city-commission-extends-dda-tax-increment-financing-plan/ ]