The city of South Haven’s Downtown Development Authority Tax Increment Financing plan has been making a big difference over the past year.

The South Haven DDA’s Suzanne Brock addressed the city council this week to give an annual update on the TIF, as required by law. She said the TIF has been in place since 1980, and in its current form since 2000. It allows incremental tax growth in the downtown area to be captured for public improvements.

“So let’s say there’s a property that’s worth a million dollars, that’s their set valuation,” Brock said. “Then the following year it was valued at $1,250,000. That $250,000 growth will then be part of that TIF money.”

Brock said there are some exceptions, noting that growth is not withheld from schools, for example.

Brock said the TIF in the past year has paid for parking lot resurfacing, sidewalk repairs, and downtown electrical improvements. It also enables the DDA to partner with groups like SHOUT for South Haven, which helped create the winter fireplace in Dyckman Park.

“We took on the responsibility of paying for the gas for the fireplace, so we went ahead and fund that bill. And the social district, we take care of all the labels and the signage that are part of that social district. Our annual holiday lighting, we light the pavilion.”

And she said the DDA pays for winter lighting throughout the downtown.

Plans for the coming years include improvements to Huron Street, work at the Four Seasons Pavilion, and improved wayfinding signage.

The city of St. Joseph is now in the process of setting up its own downtown TIF with goals similar to South Haven’s. Commissioners held their first reading of the TIF plan late last month.