LANSING, Mich. (March 11, 2026) — Today, the Michigan Senate acted in a bipartisan fashion to pass Sen. Kevin Hertel’s (D-St. Clair Shores) Senate Bill 581, which would modify the definition of a downtown district to allow a municipality to have one or more separate and distinct geographic areas in a business district if the municipality contains a mainland and one or more islands that are separated by a body of water.
“Harsens Island is a true gem to our lakeshore district — one that you cannot find anywhere else in Michigan,” said Sen. Hertel. “With this legislation, we have the opportunity to give the community the tools it needs to support the small businesses that make the island special, while creating vibrant downtown spaces that boost local entrepreneurship and spark new economic development.”
Currently, communities are only permitted to have a single Downtown Development Authority (DDA) that utilizes tax increment financing to fund improvements to buildings or infrastructure within the district, allows the district to levy a limited millage in order to address administrative expenses, and opens up opportunities for grant funding.
This expanded DDA definition would unlock opportunities for unique communities across the Great Lakes State. More specifically, this legislation would give Clay Township the ability and the tools they need to revitalize the downtown Sans Souci area on Harsens Island without detracting from downtown space on the mainland.
“As a lifelong resident of Harsens Island, I know how special this community is and how much potential it holds,” said Susan Prior, President of S.S. Downtown Inc., a nonprofit volunteer organization designed to support small businesses on the island. “Under current law, however, we don’t have access to the full set of tools we need to truly grow and invest in our local economy. Senator Hertel’s legislation will change that — empowering our community with the resources we need to create a bright, sustainable future for the island, its small businesses, and residents.”
According to the Michigan Townships Association, this legislation would also affect St. James Township in Charlevoix County; Leland Township and Glen Arbor Township in Leelanau County; Houghton Township, Fairbanks Township, and Eagle Harbor Township in Keweenaw County; and Clark Township in Mackinac County.
Senate Bill 581 now heads to the Michigan House for their consideration.