I’ve analyzed the numbers as best as possible, considering the lengths of these TIFs, the real tax values, and the potential revenue generated. The TIF terms range from 9 to 14 years, with an average of about 13 years. Over these abatement periods, the city foregoes approximately $17 million in tax revenue. However, this assumes the businesses would have made these improvements without any incentive—which is unlikely. TIFs are one of the primary tools cities use to increase business diversity and support a healthy local economy. They are an investment in our community’s future.

Looking forward, I’ve projected that over the next 15 years after these abatements end, the city could see around $20 million in additional revenue from the increased property values alone.

How does this “cost” the residents? Be specific. What am I potentially missing?

TIFs don’t directly shift costs to residents. The general tax rate for residents remains the same, whether or not a business receives an abatement. If anything, successful business expansions help stabilize residents’ tax burdens by increasing and diversifying the tax base. With the incentive, we’re making an investment: while there’s a short-term reduction in tax revenue, this helps create a larger tax base that benefits everyone over time.

Moreover, these improvements are permanent investments in our city. They can't just pick it up and move it somewhere else. The TIF supports long-term improvements that stay in Coopersville, building a more sustainable tax base and supporting future growth.

A TIF is a give-and-take between the city and the business. The business receives support by temporarily reducing their property taxes on new industrial facilities or equipment, making it easier to invest in local operations. In return, the city and its residents benefit in multiple ways:

1. Job Creation and Local Employment

   • Impact: By attracting new businesses or encouraging expansions, TIFs help create local jobs, reducing the need for residents to commute and keeping income within our community.

   • Example: The Coopersville Tooling Coalition, supported by TIF abatements, includes tool and die companies that have expanded operations, providing stable, quality employment for residents.

2. Economic Growth and Diversification

   • Impact: Business growth creates demand for local suppliers, service providers, and retail, leading to a more stable, vibrant economy.

   • Benefit: A diversified economy provides resilience against downturns in specific industries, and residents gain access to a wider array of local services and experiences.

3. Long-Term Tax Revenue Increase

   • Impact: While the city collects reduced taxes during the TIF, it begins to collect full property tax on the improved properties once the abatement expires. Importantly, the city has not increased its operating millage in over 20 years.

   • Benefit: The expanded tax base allows for improved city services and infrastructure without raising taxes on current residents, helping fund amenities and improvements that benefit everyone.

4. Community Investment

   • Impact: New and expanding businesses contribute to the local quality of life by investing in partnerships, sponsorships, and community initiatives.

   • Example: You can see the support of businesses that have received TIFs at nearly every community event. Every football game I have been to, I hear Fairlife’s name. I see on kids sport shirts the names of, Midwest Machining, Conveyor Concepts, Continental Dairy, Bekins, Port City Racing, Reeves, Alliance Analytical, Ranger, and Aggressive Tool and Die. They are prominent sponsors of school sports and local events. Their investment enriches our community and directly benefits our kids. All of these have received TIFs.

5. Increased Property Values

   • Impact: Thriving businesses make the area more desirable, increasing property values over time.

   • Benefit: For homeowners, rising property values mean greater long-term wealth and community pride.

Finally, the question is what kinds of businesses and developments do we, as a community, want to attract? Right now, my focus is on housing, trying to make sure I am trying to meet the community’s needs and align with our values.