[Michlib-l] DDA, TIF Exemptions (Act 57, PA 2018)

Andrea Ingmire aingpwpl at gmail.com
Mon Dec 14 14:38:11 EST 2020

Thanks for all your input!
Through this process I learned that the only capture we have at the moment
(for which there is an exemption) is the DDA. They have a bond which
doesn't pay off until 2026. But, I've made the city aware that we want out!
It also seems that this process can be very informal, or can involve legal
documents etc. I'm sure it's like most things when talking about
libraries in Michigan... it depends ;) Verify your process with your

Several of you asked for the responses, so here you go. Attached are the
documents I received.

Email responses are below.


When we asked our City to stop the DDA tax capture, it was a simple matter.
I sent this email in 2017 to the DDA director who also is our city

“The library board directed me to send this to you following a vote at its
Sept. 27 meeting.

The Downtown Development Authority Act was recently amended to exempt
certain library millages from capture. The Stair District Library’s millage
is automatically exempt under the new law because the millage was approved
by voters before January 1, 2017 and the DDA has no outstanding bonds or
obligations. Please confirm that the library millage will no longer be

Then he replied that he wouldn't be capturing the tax anymore.

Good luck!



We tried, but the DDA has outstanding debt that was issued before the
change in the law.  So, they get to keep capturing until that debt is paid
off.  That is my understanding.  Found some notes about it, the DDA can
only count pre Jan 1, 2017 bonds.  In our case the bond in question isn't
paid off until 8/01/2029.

Good Luck -



The Pere Marquette District Library took the opportunity to work with our
local city to have an Agreement for capture of library millage during a
recent change to the DDA boundary. It was perfect timing for us. Our DDA
expanded their boundaries right after Act 57 was passed. So we used it for
the opportunity to get out of automatic capture. However, in our current
agreement we are supporting the capture of our millage.  This is mainly
because the library is located in the center of the DDA. The DDA helps to
maintain the municipal parking lot of which the library uses for our
patrons. We are lucky that our DDA is very focused on the true intent of
the law. They do great work at keeping our downtown vibrant.  However,
these things can change. Our library millage is in perpetuity so their
change in boundary was our shot at making an agreement   This was the main
reason why we decided to move to an agreement. It gives us the ability to
make changes in the future regarding capture. Our City Manager at the time
was very supportive regarding our interest to move to an agreement instead
of automatic capture. I was completely honest with him to our reasons.  He
understood our situation and that ACT 57 basically made new  library
millages exempt from capture.  In his opinion that meant all library
millages. I was very thankful for his interpretation of the act.

Right now the DDA only captures about 4K of library funding. We feel that
we get more value than that from the goals of the DDA. However, The
boundary expansion doubles the size of the DDA. So we expect that this
amount will increase. We will re-evaluate capture amounts in the future and
revisit the agreement. I’m happy at least this gives us the control to say
yes or no to capture.

Hope all is well in the UP.



We have used the new Act to exempt the library from 2 tax captures.  In
both cases the DDA changed their boundaries which gave us the opportunity
to request the exemption.  It was as simple as presenting a letter from the
Library Board that they would be exercising their rights to leave the tax
capture.  There are a few circumstances that open that window and sometimes
you have to watch when they are making changes.  They may not be very
forthcoming announcing the changes.  One of the DDAs was very accommodating
and understood our motives.  The other still has resentment and treat us
like we are thieves taking their money.

Mark C. Bronson, MLS

Executive Director

Cheboygan Area Public Library


I have just one experience with this. When I was the Director at the Grant
Area District Library and we decided to go for a new millage, I had to
write a letter to the mayor citing Act 57 and tell them that we were
"opting out" of the DDA and TIFA. The City of Grant's governing board were
very disappointed.  However, they had to accept our decision according to
the law.  You are right you will have to wait until the bond debt is paid,
but eventually you will be free of that. I even passed it on to the school
superintendent at the time so they could opt out as well. Also, if you can
afford it, you can also have your lawyer submit the opt out letter or at
least co-sign it with you.

Deborah L. Bose, Interim Director

Tamarack District Library

MLS, Retired


I emailed with our City Manager shortly after Act 57 was passed, letting
him know we were within our legal right to opt out of DDA capture, and he
was fine with it. Anne Seurnyck helped me draft the attached letter and
then I sent it to the City Manager via certified mail. It was a pretty
quick and easy process for us..

However it's more complicated with the TIFA capture. The city *does
not* capture
our PLDL taxes in the TIFA district, and instead charges us rent on the
building annually, in the exact amount the TIFA capture *would *be. We
don't own the building, and lease it from the City, and I don't really know
why this is the system that's in place, but it's always been that way since
the building was built for the library. The City Manager did tell me that
if PLDL stopped paying rent, he would reinstate the TIFA capture in the
exact same amount.

Dillon Geshel

Library Director

Portage Lake District Library


Our City of Traverse City extended a DDA/TIF for another 20 years at the
end of 2018.  We went to the public hearing  and told them we would be
opting out if they extended the TIF.  They extended and our lawyer did the
required work and we got out of it.

They are also looking to extend another TIF.  I have spoken to our lawyer
and basically when they hold the public hearing to extend the TIF, we'll
repeat the process, and once they vote to extend it, we will file the
required paperwork, and then can be excluded from the tax capture.  I'll be
happy to give you more information if you need it.

Hope this helps!

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

*Andrea IngmireLibrary DirectorPeter White Public Library*
(906) 226-4303 (office)
(906) 250-0080 (cell)
(906) 226-1783 (fax)
*http://pwpl.info/ <http://pwpl.info/>*

On Tue, Dec 8, 2020 at 5:26 PM Andrea Ingmire <aingpwpl at gmail.com> wrote:

> Any libraries out there who have used the Act 57, PA 2018 to exempt their
> library from DDA and TIF tax captures?
> We would like to start having this conversation with our local officials,
> and I'd like more details about how this process works.
> Thanks all!
> Andrea
> ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
> *Andrea IngmireLibrary DirectorPeter White Public Library*
> (906) 226-4303 (office)
> (906) 250-0080 (cell)
> (906) 226-1783 (fax)
> *http://pwpl.info/ <http://pwpl.info/>*
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