Shandy Papi, executive director of the Downtown Development Authority, told the Grand Haven City Council that the DDA is beginning the five-year PSD renewal process and is proposing a 2¢ per-square-foot increase to its principal shopping district assessment to offset rising operating costs.

Papi said the DDA’s operating revenue currently comes from a two‑mill levy and PSD assessments, with PSD receipts roughly $95,000 annually. She told council the two‑millage is eroding because of Headley adjustments tied to taxable value and that rising costs — including event production, marketing and downtown beautification — have pushed the DDA to seek additional, modest revenue. “This would give us roughly $20,000 more in operating expense,” Papi said, adding that the increase would cost property owners an estimated $33–$34 per year for some businesses during the five‑year term.

The DDA’s proposal would allocate modest increases across Main Street committees (promotions, organization, recruitment and preservation), add funds to recruitment and retention programming and partially fund an administrative assistant. Papi said the board has scheduled six meetings through February, with two meetings including public hearings for parcel‑level approval, and that staff have worked with the county assessor and city attorney to streamline adding new properties between renewals.

Council members asked about merchant feedback and the DDA’s plan to add new properties (for example, newly completed hotel projects). Papi said she has seen no negative feedback from merchant groups and described a plan to add properties via a single‑property public hearing once per year rather than reopening the full roll every five years.

Several council members said they support the East End’s growth and the DDA’s work but emphasized the need for transparency on how additional funds will be used. The city manager confirmed the DDA’s survey and a year‑in‑review presentation will inform final budget allocations ahead of council’s February decisions.

The DDA’s renewal process, with two public hearings and additional council review, remains subject to formal motions and eventual council action.