DOWNTOWN DEVELOPMENT AUTHORITY PURPOSE
Public Act 197 of 1975 authorized the use of Tax Increment Finance to correct and prevent the deterioration of downtown areas in the State of Michigan
The Tax Increment Finance Plan allows Downtown Development Authorities to collect tax increases above the base value of the DDA District at the time the DDA was established. In the case of the Fife Lake DDA, this tax collection began in 1999. The base value of the DDA district is $1,531,790. The 2021 overall value is $2,978,860. Of this amount, the DDA captures $1,447,070.
In 2021, $1,447.070 amounts to $36,283 which was diverted to the DDA from these taxing units: Village of Fife Lake, Fife Lake Township (including fire and ambulance), Grand Traverse County, and additional county taxing units such as BATA, Library, NMC, Road Commission, Veterans Affairs, Commission on Aging. Of this capture, only $12,883 would have been tax income for the Village without a DDA/TIF plan. This captures an additional $23,400.
Please note no funds are diverted from Forest Area Schools.