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HomeMy WebLinkAboutResolutions - 1991.09.12 - 18794REM( APPROVE THE FOREGOING RESOLUTION Daniel T. Murphy, County Execu FINANCE COMMITTEE MISCELLANEOUS RESOLUTION 91187 September 12, 1991 BY: FINANCE COMMITTEE, DR. G. WILLIAM CADDELL, CHAIRPERSON IN RE: TREASURER - AUTHORIZATION TO ENTER INTO AGREEMENTS WITH CITY OF WIXOM LOCAL DEVELOPMENT FINANCE AUTHORITY (LDFA) AND DOWNTOWN DEVELOPMENT FINANCE AUTHORITY (DDA) TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Mr. Chairperson, Ladies and Gentlemen: WHEREAS the City of Wixom, under the authority of State legislation, established both a Local Development Finance Authority (PA 281 of 1986) and a Downtown Development Authority (PA 197 of 1975) for the purposes of channeling tax revenues derived from economic growth into infrastructure and other public services necessary to sustain that growth; and WHEREAS the LDFA and DDA have legal discretion to share undesignated tax increment revenues with other local taxing jurisdictions to provide needed public services and have done so with the local community school district; and WHEREAS Miscellaneous Resolution #91158 authorized the County Treasurer to initiate court action against the City of Wixom LDFA to receive proportional sharing of County tax increment revenue captured by the LDFA; and WHEREAS since adoption of Miscellaneous Resolution #91158, the County Treasurer and the City of Wixom LDFA and DDA have negotiated agreements to share with the County a portion of tax increment revenue; and WHEREAS the agreements require that the Oakland County Board of Commissioners adopt a resolution each year to claim its share of tax increment revenue. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners authorizes its Chairperson to enter into the attached agreements with the City of Wixom Local Development Finance Authority and Downtown Development Authority. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners shall consider annually, for the duration of the Wixom LDFA and DDA, a resolution recommended by the County Treasurer which claims the County's proportionate share of available tax increment revenue from those authorities and that such resolution be included in the annual General Appropriations Act. Mr. Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. I:\LAUR\TREAS\WIXLDFA.RES CITY OF WIXOM LOCAL DEVELOPMENT FINANCE AUTHORITY AGREEMENT THIS AGREEMENT, dated the 2 i day of ,ILTX,..) 1991, is entered into by and among the City of Wixom, a Michigan municipal corporation, with its principal office located at 49045 West Pontiac Trail, Wixom, Michigan, 48393 (hereinafter the "City"), the City of Wixom Local Development Finance Authority, a Michigan public body corporate, with its principal office located at 49045 West Pontiac Trail, Wixom, Michigan, 48393 (hereinafter the "LDFA"), and the County of Oakland, with its principal office located at 1200 North Telegraph Road, Pontiac, Michigan, 48341 (hereinafter the "County"). WHEREAS, pursuant to the provisions of Act 281, of the Public Acts of 1986, as amended (hereinafter the "Act"), the City established the LDFA; and WHEREAS, the City, the LDFA and the County have been involved in negotiations concerning the Development Plan and Tax Increment Financing Plan - City of Wixom Local Development Finance Authority, approved by the Board of the LDFA on May 6, 1991 and approved by the City on May 21, 1991 (hereinafter the "Current Plan") and concerning development plans and tax increment financing plans which in the future may be prepared by the LDFA and submitted by the LDFA to the City Council of the City (hereinafter the "Future Plan(s)"); and WHEREAS, the parties hereto have determined that it is in their mutual interest to enter into this agreement. NOW THEREFORE, the City, the LDFA and the County agree: 1. The County acknowledges receipt of the Current Plan and the requisite statutory notification of all hearings and other proceedings taken in connection with the approval of the Current Plan by the LDFA and the City. The County agrees that the LDFA and the City may proceed with the projects described in the Current Plan and may capture 100% of tax increment revenues derived from taxes levied by the County, for the payment of the cost of the projects or the principal of and interest on bonds issued to pay all or part of the cost of such projects. 2. Any development plan or tax increment financing plan relating to projects other than those projects set forth in the Current Plan [i.e. Future Plan(s)] will provide that at least 30% of the tax increment revenues derived from taxes levied by the County will be paid and passed through to the County; provided, however, if after the date of this Agreement any such project receives any new reduction, abatement or other decrease in the obligation to pay the full amount of County millage and taxes, then the minimum payment or pass through of tax increment revenue from County taxes required by this Section shall be increased to 40%. 3. Notwithstanding the above, all passthroughs to the County are subject to the following conditions: A. In the event that in any year there are insufficient amounts available (including all amounts derived from captured tax increment revenues, captured IFT amounts or from any other source available to the LDFA) to pay required principal and interest payments on bonds issued under the Current Plan or Future Plan(s), then the foregoing funds to be paid and passed through to the County shall be reduced in that year by the amount necessary to pay such required principal and interest payments. B. Prior to January 1 of each year in which the foregoing funds are to be passed through to the County, the County Board of Commissioners shall decide by resolution whether such funds to be paid and passed through to the County shall be waived by the County and retained by the LDFA for uses pursuant to the Current or Future Plan(s). Prior to this annual decision, the County Board of Commissioners shall consider the recommenda- tions of the Oakland County Executive, as presented to the Board of Commissioners. - C. In the event the County Board of Commissioners fails to decide by resolution prior to January 1 of each year whether the funds to be paid and passed through to the County for such year shall be waived by the County and retained by the LDFA, then in that event such funds shall be retained by the LDFA for such year for uses pursuant to the Current or Future Plan(s). 4. The County agrees that it will not object to any Future Plan which is in compliance with this Agreement. Roy Rewo I t s Board Chairperson Glegsner : Chairman Q mes H. Ash ts: Secretary 5. This Agreement shall be governed by the laws of the State of Michigan. 6. Each party certifies that it has the authority to execute this Agreement and that its governing board has approved same. COUNTY OF OAKLAND Its: CITY OF WIXOM Jun' Buck : City Clerk CITY OF WIXOM LOCAL DEVELOPMENT FINANCE AUTHORITY Resolution # 91187 September 12, 1991 Moved by Caddell supported by Crake the resolution be adopted. AYES: Gosling, Huntoon, Jensen, Johnson, Krause, McConnell, McCulloch, McPherson, Millard, Moffitt, Oaks, Olsen, Palmer, Pappageorge, Pernick, Price, Rewold, Schmid, Serra, Skarritt, Wolf, Aaron, Bishop, Caddell, Crake, Ferrens. (26) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND I, Lynn D. Allen, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County .Board of Commissioners on e • s - • 19.91 with the original record thereof now rem ining in my o fice. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 12th . day or) September , 1991