HomeMy WebLinkAboutResolutions - 2015.05.06 - 21818MISCELLANEOUS RESOLUTION #15117 May 6, 2015
BY: Finance Committee, Tom Middleton Chairperson
IN RE: BOARD OF COMMISSIONERS — ESTABLISH AN END DATE FOR COUNTY PARTICIPATION
IN THE CITY OF AUBURN HILLS TAX INCREMENT FINANCING AUTHORITY
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Oakland County Board of Commissioners supports the economic growth of Oakland
County; and
WHEREAS several municipalities in the County have established Downtown Development Authorities
("DDA's"), Local Development Financing Authorities, Corridor Improvement Authorities ("CIA's") and Tax
Increment Financing Authorities, to utilize Tax Increment Financing ("TIE") to prevent deterioration,
encourage historic preservation and promote economic growth in a business district or corridor; and
WHEREAS according to an analysis by the County Treasurer's Office, since 2004 approximately
$62,000,000 of the County operating levy has been captured by these Authorities to improve deteriorating
economic conditions; and
WHEREAS prior to 1994, state law did not give the County the authority to opt-out of having its taxes
captured; and
WHEREAS recently, several municipalities have presented TIF proposals to the County for its
consideration; and
WHEREAS the Board of Commissioners Tax Increment Financing District Review Policy Ad Hoc
Committee ("TIF Review Committee") reviews requests from municipalities to utilize TIF, as provided in
Miscellaneous Resolution #15056, ("TIF Policy") when making its recommendation to the Finance
Committee on possible County participation in TIE plans; and
WHEREAS one of the factors, specified in the TIE Policy, to consider when reviewing a request to
participate in a new TIF Plan, is whether a municipality has an older TIF plan capturing County taxes
which was created before the County had an opportunity to opt-out; and
WHEREAS the City of Auburn Hills has requested the County participate in a TIF Plan for its Downtown
Development Authority; and
WHEREAS the County initially opted-out of the Auburn Hills DDA but after careful consideration has
determined it is in the County's best interest to participate in that DDA and intends to execute a contract
for its participation with Auburn Hills and the Auburn Hills DDA; and
WHEREAS Auburn Hills has a DDA that was established on February 17, 1986 and is not capturing
County taxes; and
WHEREAS Auburn Hills has three TIF Districts that were established on January 7, 1985 and February
17, 1986 and are capturing County taxes; and
WHEREAS since the three TIF Districts implemented their TIE plan they have captured approximately
$16,937,440.30 of County taxes; and
WHEREAS Auburn Hills has considered the County's desire to comprehensively address its participation
in the TIE plans throughout the County and has determined that it is in their best interest to establish a
firm end date when the Auburn Hills' TIE plan's will cease capturing County taxes; and
WHEREAS the TIF Review Committee recommends that, in conjunction with the County's execution of a
separate contract on the Auburn Hills ODA; the County, Auburn Hills and the Auburn Hills TIFA agree that
the Auburn Hills TIF districts 85-A, 85-B and 86-D shall cease collecting County taxes on December 31,
2031 consistent with the terms in the attached agreement.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the
attached contract between the County, Auburn Hills and the Auburn Hills TIFA to establish that on
December 31, 2031 the Auburn Hills TIFA shall cease collecting County taxes.
Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing resolution.
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
AGREEMENT BETVVEEN THE COUNTY OF OAKLAND
THE CITY OF AUBURN HILLS AND
THE AUBURN HILLS TAX INCREMENT FINANCE AUTHORITY
TO END THE CAPTURE OF COUNTY TAXES
This Agreement to establish an end date for the capture of Oakland County property tax
revenue by the City of Auburn Hills Tax Increment Finance Authority ("Agreement") is entered
into between the County of Oakland, 1200 N. Telegraph Road, Pontiac, Michigan, ("County"),
the City of Auburn Hills, 1827 North Squirrel Road, Auburn Hills, Michigan 48326-2753 ("Auburn
Hills") and the Auburn Hills Tax Increment Finance Authority, 1827 North Squirrel Road, Auburn
Hills, Michigan 48326-2753 ("Auburn Hills TIFA"). The County, Auburn Hills, and the Auburn
Hills TIFA may be referred to as "Parties" in this Agreement.
Auburn Hills established three TIF Development Districts following the requirements of
Public Act 450 of 1980, as amended, MCL 125.1801 et. seq., ("The TIFA Act") on January 7,
1985 and February 17, 1986. These Development Districts are known as TIF 85-A, 85-B and 86-
D, and are further described in Exhibit A. The Auburn Hills TIFA determined that it was
necessary to establish a TIF Plan ("TIF Plan") to achieve the purposes of the TIFA Act. After
public hearings held on May 20, 1985 and December 15, 1986, a TIF plan was established. An
amended TIF Plan was thereafter amended and restated in 2001 and 2011. The TIF Plan
provides for the capture of County property tax revenue in the Auburn Hills TIFA district. At the
time the Auburn Hills TIFA was established, state law did not permit taxing jurisdictions subject
to the capture of their taxes to opt-out of having their property taxes captured. Since 1994 the
Auburn Hills TIFA has captured approximately $16,937,440.30 of County tax revenue for the
improvement of the Auburn Hills TIFA district. This TIF Plan is currently scheduled to end on
December 31, 2031.
Pursuant to the requirements of the Downtown Development Authority ("DDA") Act,
Public Act 197 of 1975, MCL 125.1651 et. seq., Auburn Hills established a DDA on February 24,
Auburn Hills TIFA Sunset Page 1 of 3
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1983. On October 20, 2014, Auburn Hills adopted an ordinance to expand and amend the
boundaries of its DDA. Auburn Hills has held discussions with the County over the last eight
months concerning the County's participation in a TIF Plan for the Auburn Hills DDA ("Auburn
Hills TIF Plan"). Auburn Hills and the Auburn Hills TIFA understand that the County has
financial limitations on the total tax revenue it has available to contribute to tax increment
financing plans throughout Oakland County. In consideration of County's participation in the
Auburn Hills DDA TIF Plan, Auburn Hills and the Auburn Hills TWA have determined it is in their
best interests to cease collecting County taxes for the Auburn Hills TIF Plan when the current
Auburn Hills TIF Plan ends on December 31, 2031. The Parties further agree unless otherwise
agreed to by all of the parties, that in no event shall the TIF Plan be extended to capture any
County taxes beyond December 31, 2031. The alteration, amendment, or clarification of the IF
plan prior to its expiration in December 31, 2031 shall be permitted and shall not be considered
an extension for purposes of this Agreement.
This Agreement sets forth the entire agreement between the Parties concerning the
Auburn Hills TIFA and supersedes all prior agreements or understandings between the Parties
related to this subject matter. The Parties acknowledge there is a separate contract between
Auburn Hills, County and the Auburn Hills DDA to provide for the capture of County tax revenue
by the Auburn Hills DDA. This Agreement will not be effective unless Auburn Hills, the County
and the Auburn Hills DDA simultaneously execute a contract for County's participation in the
Auburn Hills DDA TIF Plan.
This Agreement may not be modified in any way except by a writing signed by the
proper signatories for all Parties and supported by Resolutions passed by the Board of
Commissioners of Oakland County, the City Council of Auburn Hills and the Board of the Auburn
Hills TWA.
Auburn Hills TIFA Sunset Page 2 of 3
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In consideration of the mutual assurances, representations and terms set forth in this
Agreement, and for other good and valuable consideration, the receipt and adequacy of which
is acknowledged, the undersigned acknowledge that they have been authorized by their
respective public bodies to execute this Agreement and do hereby legally obligate the Parties to
the terms and conditions of this Agreement.
FOR THE CITY OF AUBURN HILLS
By:
Date:
FOR THE CITY OF AUBURN HILLS
TAX INCREMENT FINANCING AUTHORITY
By:
Date:
FOR OAKLAND COUNTY
By:
Michael J. Gingell, Chairperson
Oakland County Board of Commissioners
Date:
2014-0768 Auburn Hills TIFA Sunset
Auburn Hills TIFA Sunset Page 3 of 3
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Resolution #15117 May 6, 2015
Moved by Fleming supported by McGillivray the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted),
AYES: Fleming, Gershenson, Gingell, Gosselin, Hoffman, Jackson, KowaII, Long, Matis,
McGillivray, Middleton, Scott, Spisz, Taub, Weipert, Woodward, Zack, Bowman, Crawford. (19)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
,./.1 72/4-r—
II HERON APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45.559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, 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 May 6, 2015,
with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 6th day of May 2015.
Lisa Brown, Oakland County