New Ordinance to Limit Ann Arbor Downtown Development Authority TIF Capture Passes First Reading
Starting in 2016 Ann Arbor's Downtown Development Authority will likely have their ability to capture tax increment financing capped at a growth rate of 3.5% .
City Council last night voted nine to two in favor of the first reading of a new ordinance amendment limiting the DDA's TIF capture.
Chair of the DDA board Sandi Smith says this is a better plan than council originally considered but she thinks it will still hurt the city in the long run.
City Council member Stephen Kunselman says the amendment will allow the DDA to continue to do great work downtown, but force the authority to be more responsive to the city and other taxing authorities.
The amendment also caps DDA board members to three consecutive terms and requires annual contributions to the DDA's housing fund.