The City of Munising has officially approved a new Tax Increment Financing district to support the $2.2 million expansion of Pictured Rocks Cruises in a move that city officials and business leaders say could energize downtown development and spark future investments.

“This project could potentially serve as a catalyst for future growth and expansion projects for current and possible new businesses coming into the area,” Munising Mayor Christine Berry said.

Approved unanimously by the Munising City Commission on March 10, the project now moves forward under the joint oversight of the city’s Downtown Development Authority and the Alger County Brownfield Redevelopment Authority.

The Brownfield Redevelopment Authority, or BRA, plays a central role in turning underutilized or environmentally challenged properties — known as brownfields — into functional, tax-generating spaces.

In this case, the Alger County BRA will oversee the administration of the TIF plan tied to the Pictured Rocks Cruises expansion, ensuring compliance, managing reimbursements and eventually channeling additional revenue into a countywide redevelopment fund.

“Brownfields aren’t just about cleaning up contamination,” City Manager Devin Olson said. “They’re also about revitalizing sites with infrastructure or functional issues, and this project fits that purpose.”

The BRA also benefits the area financially. During the final three years of the plan, after developer reimbursements end, any captured taxes will be directed into the BRA’s revolving loan fund, which can be reinvested in future economic development projects across Alger County.

The TIF structure

The newly approved TIF district will function as a parcel-specific carve-out within the existing DDA boundary.

Property taxes on the PRC parcel will be frozen at 2025 levels for the DDA, and any increase in taxable value — estimated to rise from $332,400 to $1,289,804 — will be captured by the BRA over a 14-year period.

These funds will be used to reimburse the developer for up to $522,305 in qualified site improvements.

“This is a performance-based incentive,” Olson said. “If the developer doesn’t make the improvements or hit the projected taxable value, they won’t receive full reimbursement.”

The DDA will continue receiving its baseline tax revenue during the plan, with no loss to its annual budget. Once the capture period ends — capped at 17 years to include administrative time — the DDA will resume collecting full taxes on the improved parcel, projected to generate an additional $39,000 annually starting in 2043.

Expansion details

The PRC project includes a 4,000-square-foot addition to its lakefront building, upgraded restrooms and improved ADA accessibility. These changes are expected to enhance the visitor experience for the tens of thousands of tourists who ride the cruises each year.

“By investing in the substantial improvements being made at Pictured Rocks Cruises, this will benefit our other businesses in our downtown, the city and Alger County,” DDA Director Kathy Reynolds said. “A better customer experience at this business leads to more foot traffic, more referrals and more money flowing into Munising.”

Redevelopment track record This is not Munising’s first foray into brownfield-backed development.

In 2016, the city approved a Brownfield Redevelopment Plan for what would become the ROAM Inn — a project that transformed a former assisted living facility into a 19-room boutique hotel and award-winning restaurant.

Local entrepreneur Tom Dolaskie IV led the $2.5 million renovation, which preserved the historic structure while modernizing it into a lodging and dining destination.

According to state records, the project utilized about $157,000 in eligible brownfield expenses, approved through Michigan’s Brownfield Redevelopment Financing Act. The plan did not include school tax capture, and tax increment capture began in mid-2017.

Today, the ROAM Inn stands as a successful example of how underutilized properties can be redeveloped to support Munising’s growing tourism economy.

Olson emphasized that this latest plan stands out for its structure and minimal risk.

“The city’s general fund won’t see increased revenue during the capture period anyway, due to the 1993 DDAbaseline,” he said. “But the school district will. Thanks to a state reimbursement program, Munising Public Schools will receive dollar-for-dollar replacement of approximately $100,000 in school tax capture, plus an annual increase of $22,000 starting in 2026.”

What happens next?

With city approval in hand, Pictured Rocks Cruises is expected to break ground later this year. The Alger County BRA will take over administrative duties, reviewing expenditures and ensuring that reimbursements align with eligible costs outlined in the redevelopment plan.

The DDA, meanwhile, remains focused on its long-term vision for downtown. TIF revenues have previously been used to resurface roads, issue more than 300 façade improvement grants and invest in beautification and infrastructure.

“We’re always balancing longterm growth with current needs,” Reynolds said. “At the end of this plan’s term, we’re looking at a significant tax-revenue increase for downtown.”

And while the bulk of the immediate financial benefit will go to PRC through the reimbursement mechanism, city leaders say the payoff for Munising will come in the form of enhanced tourism, stronger businesses and a more vibrant downtown core.

“The expansion of Pictured Rocks Cruises isn’t just good for one business,” Reynolds said. “It’s a win for all of Munising.”