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HomeMy WebLinkAboutResolutions - 2017.07.19 - 23012MISCELLANEOUS RESOLUTION #17196 BY: Commissioner Tom Middleton, Chairperson, Finance Committee IN RE: BOARD OF COMMISSIONERS — PROPOSED INDEPENDENCE TOWNSHIP CORRIDOR IMPROVEMENT AUTHORITY TAX CAPTURE AMENDMENT To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS the Oakland County Board of Commissioners strongly supports the economic growth of Oakland County; and WHEREAS one of the tools used to promote economic growth is Tax Increment Financing used in conjunction with Corridor Improvement Authorities (CIAs); and WHEREAS to review requests from the County's cities, villages and townships to establish DDAs, CIAs and LDFAs, the Board of Commissioners, pursuant to Miscellaneous Resolution #16166, updated the Policy for the Tax Increment Financing (TIE) District Review Policy Ad Hoc Committee (TIF Review Committee) to consider when evaluating and making recommendations to the Finance Committee on the County's participation in these proposed authorities; and WHEREAS on June 12, 2008, the Oakland County Board of Commissioners pursuant to MR 08117 approved the County's participation in the Charter Township of Independence and the Sashabaw Road Corridor Improvement Authority Tax Increment Financing Plan; and WHEREAS MR 08117 limited the County's tax capture and participation in the TIF plan to an amount not to exceed $1,294,501.37 or, beginning with the tax capture of 2008, for a period of 14 years, whichever occurs first; and WHEREAS the Township and the CIA appeared before the TIF Review Committee on July 12 2017, to present an amendment to the previously approved plan. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners, upon recommendation from its TIE Review Committee, recommends that the County, through its Corporation Counsel, attempts to negotiate an amendment to the agreement consistent with the CIA's presentation to the TIF Review Committee on July 12, 2017. BE IT FURTHER RESOLVED that the Board of Commissioners requests the County Clerk send a signed copy of this Resolution to the Clerk of the Township of Independence. Chairperson, on behalf of the Finance Committee, I moyelffe-ItidoptionkTh fowgoing, tion. PZ NV". Commissioner Tionr-rii1111.1111 --ii, 4 Chairperson, Finance Committee REPORT July 13, 2017 BY: Tom Middleton, Chairperson, Tax Increment Financing District Review Policy Ad Hoc Review Committee IN RE: BOARD OF COMMISSIONERS — PROPOSED INDEPENDENCE TOWNSHIP CORRIDOR IMPROVEMENT AUTHORITY TAX CAPTURE AMENDMENT TO THE FINANCE COMMITTEE Chairperson, Ladies and Gentlemen: The Tax Increment Financing (TIF) District Review Policy Ad Hoc Review Committee, having met on July 12, 2017, recommends that the attached suggested resolution be adopted. Chairperson, on behalf of the Tax Increment Financing District Review Policy Ad Hoc Review Committee, I move acceptance of the foregoing report. (7 i L llomltmissionerTom Middleton, District #4 Tax Increment Financing District Review Policy Ad Hoc Review Committee TAX REVIEW COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Zack absent. SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY CHARTER TOWNSHIP OF INDEPENDENCE AMENDED AND RESTATED DEVELOPMENT PLAN AND TAX INCREMENT FINANCING PLAN AMENDED AND RESTATED PLAN ,2017 Carlisle I Wortman SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN 8r; TAX INCREMENT FINANCING PLAN Page 1 Independence Township Board Pat Kittle, Supervisor Barbara Palotta, Clerk Paul Brown, Treasurer Jose Aliaga, Trustee Rachel Loughrin, Trustee Ronald Ritchie, Trustee Andrea Schroeder, Trustee Corridor Improvement Authority Board Bob Roth, Chair Craig Bennett Bryan Cornwall, DVM Patrick Kittle, Supervisor Chip Robinson Dave Smith Dale Verhey Ken Winship SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 2 Table of Contents 1.0 INTRODUCTION 1.1 History and Background of the Sashabaw Corridor 1.2 Purpose of the Corridor Improvement Act 1.3 Creation of the Corridor Improvement Authority 1.4 Activities of the Corridor Improvement Authority 1.5 Reasons for Proposed Plan Amendments page 5 page 6 page 7 page 7 page 8 2.0 DEVELOPMENT PLAN 2.1 Designation of Boundaries of the Development Area 2.2 Existing Streets and Public Facilities 2.3 Existing Land Use and Land Use Trends 2.4 Zoning 2.5 Master Plan 2.6 Existing Improvements to be Demolished, Repaired or Altered 2.7 Location, Extent, Character, Estimated Cost of Improvements, Construction Stages, and Estimated Completion Time 2.8 Areas Left as Open Space 2.9 Portions of the Development Area which the Authority Desires to Sell, Donate, Exchange, or Lease to or from the Township page 9 page 10 page 14 page 16 page 18 page 18 page 20 page 20 page 20 2.10 Desired Zoning Changes page 20 SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEW LOPMETqf PLAN & TAX INCREMENT FINANCING PLAN Page 3 2.11 Change in Streets, Street Levels, Intersections, and Utilities 2.12 Method of Financing the Development and Ability to Arrange the Financing 2.13 Persons to Whom All or a Portion of the Development is to be Leased, Sold, or Conveyed, and Project Beneficiaries 2.14 Procedures for Leasing, Purchasing or Conveying 2.15 Estimates of the Number of Persons Residing in the Development Area 2.16 Relocation of Displaced Persons 3.0 TAX INCREMENT FINANCING PLAN 3.1 Tax Increment Procedure 3.2 Tax Increment Financing Area 3.3 Bonded Indebtedness to be Incurred 3.4 Duration of the Program 3.5 Estimated Impact on Taxing Jurisdictions 3.6 Plan for the Use of Tax Increment Revenues page 20 page 20 page 21 page 21 page 21 page 21 page 23 page 23 page 25 page 25 page 25 page 26 List of Figures and Tables Figures 1 CIA District Development Area 2 CIA Existing Land Use 3 CIA Zoning page 11 page 15 page 17 SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCI NC PLAN Page 4 Tables 4 CIA Future Land Use 5 CIA Tax Increment Finance Area 1 Proposed, Completed and Eliminated Projects 2 Taxing Jurisdiction Non-Debt voted Millage Rate 3 Estimated Capture of CIA without Township and Recticel for All Taxing Jurisdictions page 19 page 24 page 22 page 27 page 28 SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEV ELOPMENT PI .AN TAX INCREMENT FINANCING PLAN Page 5 1.0 Introduction 1.1 History and Background of the Sashabaw Corridor The potential of Sashabaw Road as a Township center of commerce has been recognized for over twenty years. As a result, Independence Township has devoted a significant amount of time, attention and dollars to ensure that the Sashabaw Corridor is a showpiece for proactive planning policies, strategic and timely public investment, and innovative private developments. Due to the importance of Sashabaw Road, the first Sashabaw Corridor Study was completed in 1980. The completion of this plan set the tone for the Township to be progressive in its planning, promote quality design, and encourage a mix of uses along the Corridor. Interest in Sashabaw Road as a center of commerce further evolved when the Village of Clarkston incorporated as a City. By the early 90's, Sashabaw Road began to be viewed very seriously as a potential Town Center for the Township. The Sashabaw Corridor is one of the most important areas in Independence Township. As one of only two full 1-75 interchanges in the Township, it serves as a gateway into the central portion of the community. M-15/I-75 interchange is the second full interchange and a third interchange, Dixie Highway/I-75, is located partially in Independence and Springfield Townships. The Sashabaw Corridor is located near the center of the Township and is within close proximity to the City of the Village of Clarkston. In addition, the reemergence of Detroit Energy Music Theatre as a highly successful outdoor entertainment venue north of the interchange has resulted in a large influx of new visitors to the community traveling on Sashabaw Road. Historically, Dixie Highway served as the major commercial corridor of the Township, although it had developed in a disjointed, strip commercial Fashion. Today, Dixie Highway is nearly fully developed, although significant redevelopment projects continue to occur. Since 1995, efforts to create a Town Center have intensified and have been embodied in a number of planning documents and regulatory ordinances, which include the Township's Master Plan, Vision 2020 Strategic Plan, and the Sashabaw Overlay District and Design Guidelines. The benefits of over twenty years of proactive planning to the community have been considerable: a cohesive and attractive streetscape, walkable and safe neighborhoods, and a mix of uses. Instead of typical strip-mall construction with seas of parking and unconnected uses, the Overlay District is characterized by buildings oriented to the street, expansive safety paths and walkways, and public features for people to gather. All of these have helped create a burgeoning Town Center for the community. In addition, the planning that has gone into the Sasliabaw Corridor has resulted in a more comprehensive coordinated approach to providing public infrastructure. The regional stormwater management system and SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 6 wetland bank has not only resulted in a more environmentally sustainable approach, but has also contributed to the more efficient delivery of essential utility services. Finally, the culmination of years of proactive planning is the boulevard itself. Recognizing that a five lane roadway improvement would detract from the Town Center concept, the Township aggressively encouraged road agencies to accept and fund a boulevard. Sashabaw Boulevard is now complete, culminating years of diligent work by the Township to meld land use and infrastructure planning into a seamless system. In 2006, the Independence Township Board formed the Corridor Improvement Authority to take advantage of the improvements that occurred within the Sashabaw Corridor and complete the balance of the needed infrastructure and amenity improvements. 1.2 Purpose of the Corridor Improvement Act On December 19, 2005, Governor Granholm signed Public Act 280 of 2005 (the Act), which provides a powerful new community development tool designed specifically for the commercial corridors of Michigan. The Act allows communities to create "Corridor Improvement Authorities" (CIA) which function in a manner similar to a Downtown Development Authority (DDA), but with special powers, conditions, and criteria unique to commercial corridors. One of the chief features of a CIA is the ability to fund improvements through the use of tax increment financing, discussed more in depth later in this report. 'The Act is intended to combat the deterioration of existing business districts and promote economic development efforts within these districts. Unlike DDAs, communities are permitted to create as many CIA districts as they wish, provided no single parcel is located within more than one CIA district. Another distinction of CIA districts is the ability for municipalities to develop a single CIA district for a corridor that is located in more than one community. Such benefits as continuity of appearance, uniformity of improvements and land use regulations, and cooperative traffic management are all potential benefits of multi-jurisdictional CIA districts. Like a DDA, a CIA is granted specific powers and duties to empower it to accomplish its mission. However, the duties of the Sashabaw Corridor CIA have been more narrowly defined, as follows: Construct and improve public facilities that are identified in this Plan; Make and enter into contracts and acquire, own, convey, dispose of or lease all or part of land, real or personal property, or interests in property, grant or acquire licenses, easements and options needed to implement any project identified in this Plan; Accept grants and donations of property, labor or other things of value needed to implement any project identified in this Plan; SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 7 13 Creation of the Corridor Improvement Authority On May 16, 2006, the Township Board passed a resolution of intent to establish a Corridor Improvement Authority for Sashabaw Road. On June 20, 2006, the Board held a public hearing regarding the intent to establish a Corridor Improvement Authority for Sashabaw Road and the proposed boundaries of the Development Area. The Ordinance creating the Corridor Improvement Authority and identifying the applicable development was introduced by the Board on September 5, 2006 and adopted on September 19, 2006. Members of the Corridor Improvement Authority were appointed by the Supervisor and approved by the Board on September 19, 2006. 1.4 Activities of the Corridor Improvement Authority As noted above, the establishment of a CIA and the use of TIF to fund its progress require a development plan which sets for the objectives for the improvement of the CIA District, a schedule of implementation, anticipated revenues, procedures for the spending of revenues and disbursement of excess revenues. Since its creation, the Authority has focused its attention on identifying those public improvements that are needed in the Development Area and which, if provided will result in the enhancement of existing business activity and stimulation of new private investment that is in keeping with the policies of Independence Township. As a result of the Authority's deliberations, a number of the improvements that were contemplated in the plan adopted in 2007 have been accomplished, including: 1. Improvements to the Interstate 75 interchange; 2. Improvement and widening of Waldon/Sashabaw intersection; 3. Completion of streetscape improvements, such as landscaping, irrigation, signage, and coordinated lighting; 4. Installation of a thru traffic signal at Sashabaw Road/Fleming Lake Road intersection. The final project that will be completed with the Amended and Extended Development Plan and Tax Increment Financing Plan will include: • Acquisition of right-of-way and the widening of Sashabaw Road north of the Interstate 75 inter- change, between Flemings Lake Road and the entrance to DTE Theater with a 5-lane cross-section. It is important to note that all of the CIA's investments have been to Sashabaw Road and the 1-75 Interchange, roads owned, operated and maintained by either Oakland County Road Commission or the Michigan Department of Transportation. As the 1-75 improvement project through Oakland County is now underway, the CIA planned and implemented improvements to the Sashabaw/I-75 interchange well in advance. SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX. INCREMENT FINANCING PLAN Page 8 1.5 Reasons for Proposed Plan Amendments Due to the unanticipated and dramatic decline in taxable values in portions of the Development Area, and the reduced amount of tax increment revenues, the CIA will be unable to complete the purposes enumerated in the Development Plan. Specifically, the CIA will be unable to complete the improvement of Sashabaw Road to a 5-lane cross-section between Flemings Lake Road and the entrance to DTE Theater, SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVE LOPf'ilLE;NT PLAN & TAX INCREMENT FINANCING PLAN Page 9 2.0 Development Plan 2.1 Designation of Boundaries of the Development Area The boundaries of a CIA district are referred to in the Act as the "development area." A boundary map is included as Figure 1. The Act provides criteria to determine what may constitute a development area; it states that the area must comply with ALL of the following criteria set forth below. It was determined that CIA district met all the criteria of the Act at the time the CIA was created. 1. The development area must be situated adjacent to an arterial or collector road, as defined by the Federal Highway Administration manual "Highway Functional Classification- Concepts, Crite- ria, & Procedures." Sashabaw Road in this area is classified as a minor arterial road. 2. The development area must con- tain no less than 10 contiguous parcels or at least 5 contiguous acres. The boundary incorporates a significant area consisting of about 300 parcels, and is well in excess of 5 acres. 3. No less than 50 percent of the existing ground floor area must be commercial within the pro- posed development area. Sashabaw Road in this area is dominated by office, commercial and mixed-use development, and exceeds the 50 percent minimum in this regard. A more detailed analysis has been conducted by the Township Assessor who has determined that the total ground floor area of the proposed district is 1,157,767 square feet, of which 776 824 square feet or 67% is devoted to commercial/ industrial use. 4. Residential, commercial or industrial uses have been permit- ted and/or conducted within the development area for the past 30 years. The boundary encompasses parcels that have long been zoned and used for a wide variety of residential and non-residential uses. 5. The development area must currently be served by municipal water and sewer. The potential development area is served by public water and sewer service. 6. The development area must be zoned to allow mixed use devel- opment, including high-density residential. As noted above, the area includes a very wide variety of zoning categories, including existing Planned Unit Development Districts. The Sashabau; Town Center Overlay District encourages mixed use. The PUD option is available in any existing zoning district and permits a mix of diverse land uses within a single development. 7. The Township must agree to expedite the permitting and in- spection process, and to modify the Master Plan to provide for walkable, non-motorized inter- connections, such as sidewalks and streetscapes, within the development area. The Township has a long established safety path system. Throughout the Town Center portion, sidewalk connections to safety paths have been planned. The Planning Commission is currently SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DFNELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 10 updating the Township Master Plan. The necessary planning principles can be incorporated within the document. Through the Overlay District, which encompassed the core area of the CIA provides for a development process which has been streamlined. 2.2 Existing Streets and Public Facilities The principal street is Sashabaw Road from an area just north of Clarkston Road, south to the Independence/ Waterford Township boundary. Small segments of other major streets included within the Development Area are Clarkston, Waldon, and Maybee Roads. Over the last several years, the Township has made substantial investment in public infrastructure and improvements. A. Design Improvement To coincide with the development of the boulevard, the Sashabaw Corridor Design Plan was formulated. The Corridor Design Plan illustrates the following improvements that either have been implemented in conjunction with the boulevard or will be completed at a later date, include: pedestrian paths on both side of Sashabaw (complete — see VI, subsection D) landscaping of the boulevard median and r.o.w. (later phase) irrigation of the median (later phase) pedestrian lighting (complete — see VI, subsection E) site furnishings and amenities (underway) B. Sashabaw Boulevard The Sashabaw Road improvement project was initiated by the Township and RCOC in order to address the current and future traffic capacity deficiency of the existing two (2) lane Sashabaw Road between Maybee and Waldon Roads. Prior to initiating the project, Sashabaw Road carried 29,000 vehicles per day. The two lane bituminous road was improved to a four (4) lane concrete boulevard with a center median, curb and gutter, and enclosed drainage as well as intersection improvements, new traffic signals with pedestrian interfaces, concrete safety paths and low level pedestrian lighting and intersection lighting. The total project costs exceeded $10 million and including construction, construction engineering, right of way acquisition and preliminary engineering. The Township's share was approximately $1 million but was offset partially by right of way donations by private property owners. In 2012, the Authority completed the installation of landscaping and irrigation within the center median of Sashabaw Road between Waldon and Maybee Roads. In 2014, the Corridor Improvement Authority completed the installation of a traffic signal on Sashabaw Road at Flemings Lake Road. The cost of the signalization project was approximately $150,000 using Tr-Party Funds, with fit 0 0_ I f I L7cUi e Tip it 7 lo p I 111 up- BEENcHrik, Apt. Il lil 011 m k-ot I II ME .7.kif.:1% itio" 'YJ Furri 4YRAP4 s MI_ mg; llllllll gig n •'•p. II all IF SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX UNCREMENT FINANCING PLAN Page 1.1 ClarrIcsto-ry o -ffrir[ Figure 1: Sashabaw Road Corridor Improvement Auth District Development Area Q.1 LI Iii EE EEL= SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 12 the local match provided by the Authority. The Authority also completed a high priority project in 2015 with the improvement of the 1-75 Sashabaw interchange and Sashabaw/Waldon intersection improvements to the interchange including construction of an additional ramp to provide dedicated southbound access to Sashabaw Road from northbound 1-75. Completion of the new ramp, modification of the other ramps, and associated improvements to the bridge surface provides much needed relief to the congestion on I-75 caused by both daily commuting traffic and concert traffic traveling to DTE Music Theater. To accomodate the changes made to the existing bridge surface and ramp configuration, the Waldon/ Sashabaw intersection also required expansion to provide dual left-hand turns on eastbound Waldon Road and northbound Sashabaw Road. The cost of the interchange and intersection projects were approxirnagely $4.7 million with funding provided from a combination of sources, including: CIA TIF funds Township General Funds Tr-Party funds McLaren Hospital State Category A grant C. Waldon Center Drive and Bow Pointe Loop Road Equally vital to the improvement of traffic circulation and the creation of the Town Center has been the planning and construction of the internal road system. The Township successfully gained the cooperation of several developers within the corridor to construct Waldon Center Drive and extend Bow Pointe Road from Sashabaw to Waldon Center Drive. These roads provide a secondary means of ingress/egress to the commercial properties fronting on Sashabaw and to the existing and future residential areas behind the commercial areas. Waldon Center Drive from Bow Pointe north is a public road. From Bow Pointe south, Waldon Center Drive will be a private road, open to public traffic. D. Safety Paths and Pedestrian Crossings As part of the improvement to Sashabaw Road, two concrete pathways eight (8) feet wide on both sides of the roadway have been installed. Three pedestrian crossings of Sashabaw were incorporated in the road design at Maybee, Waldon, as well as at Bow Pointe Roads. The location of the Bow Pointe Road crossing was determined with the Road Commission due to the need for a traffic light to ensure pedestrian safety. The Sashabaw Corridor Design Plan and the Overlay District and Design Guidelines provide for the extension of public walkways within private development sites, connecting Sashabaw Road and Waldon Center Drive with nearly all residential areas. The intent of the walkways improvement is to create a pedestrian friendly, walkable environment SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY D EV E LO PMENT PLAN & TAX INC RE MENT FINANCING PLAN Page 13 as envisioned by the Vision 2020 Strategic Plan. E. Public Lighting Another goal of the Vision 2020 Strategic Plan was to create a cohesive lighting scheme for the entire Corridor. Again, as part of the improvements to Sashabaw Road, decorative pedestrian lighting has been installed. The cost of the lighting to the Township exceeds $400,000. Lighting within all new private developments is required to be of a type recommended according to the Overlay District and Design Guidelines. Guidelines are provided for internal roadways, along pedestrian walkways and plazas, within parking lots and industrial office park entryways. However, each of such lighting fixtures are to be of a similar appearance to further a consistency throughout the Corridor. F. Sashabaw Regional Drainage District A top Township priority in the development of the Sashabaw Road corridor was the creation and implementation of a Township owned and operated storm water management system serving the Sashabaw Corridor. The system emphasizes storm water quality and natural features preservation. The Township initiated this by developing a comprehensive storm water management plan for this area followed by the construction of the related infrastructure needs. The Sashabaw Corridor drainage district consists of approximately 330 acres between 1-75 and Maybee Road and Walters and Sashabaw Roads. The District also receives drainage from north of 1-75, east of Sashabaw, west of Walters Road and south of Maybee Road. However, this flow is treated as pass through. Properties outside of the District must provide on-site storm water volume control facilities and water quality enhancement measures. The overall project costs were $1.3 million including all of the infrastructure improvements, design and construction engineering. In addition, property rights were secured by area developers that are not reflected in this cost. The District provides over 2 million cubic feet of storage capacity in its ponds, impoundments, wetlands and Spring Lake. Private property owners are able to purchase capacity in the systems in order to offset the need for on-site retention. The Drain provides an opportunity for more efficient use of private property while at the same time creating a better managed publicly owned storm water management system. G. Independence Township Wetland Mitigation Bank Wetland preservation is a priority for Independence Township. As such, the Township has enacted a local wetland ordinance which includes an in-kind mitigation requirement similar to MDEQ's same requirements. Through negotiations with the owner/developer of the former Liberty Golf Club (now The Fountain), Independence Township secured easements on the golicourse to construct, maintain and conserve wetland areas with the intent to create a Township mitigation bank. In addition, the Township constructed 6 acres of wetlands in-line with the SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 14 drainage course so as to double as storage and filtration areas and in order to create a Township Wetland Mitigation Bank. The project cost $250,000 and created 6 acres of emergent wetlands on the golf course. Approximately one-fifth of the costs were for control structures, weirs and storm sewers on the golf course to provide for flow control and water diversion into and out of the wetland areas in conjunction with the above mentioned Regional Drainage District improvements. I. Water and Sewer In the course of the Sashabaw Blvd. project, water mains along Sashabaw Road were upgraded to increase capacity. 2.3 Existing Land Use and Land Use Trends The property within the Sashabaw Corridor includes a range of existing land uses and a variety of forms of development. Existing land use is depicted in Figure 2. These include: • Commercial/Office: - Older, strip-center oriented uses on the northwest corner of Sashabaw/Maybee Road, and shopping center use on the southwest corner of Sashabaw/Waldon Road. Small, older office buildings along the east side of Sashabaw. New commercial development built according to the Town Center guidelines on the northeast corner of Sashabaw/ Maybee Road (Regency Center). In addition, new commercial is being constructed north of 1-75 at the interchange area at Clarkston Road. • Mixed-Use: - New McLaren medical office/ commercial complex on Bow Point Drive, east side of Sashabaw. - New mixed-use, including banking, neighborhood commercial, banking, office and institutional (church) along the west side of Sashabaw (Liberty PUD in progress). - New mixed use office service/ day care south of Waldon (Independence Village Center PUD). - New mixed use neighborhood commercial and office service on west side of Sashabaw, south of Waldon (Waldon Village Town Center). • Residential: Older, single-family residential homes spread primarily along the east and west sides of Sashabaw, south of Maybee Road and on both sides of Waldo a. - Existing multiple- family on both sides of Sashabaw near Maybee Road. - New single family detached and attached residential homes providing a transition between mixed use commercial/office and existing single family development to the west (Liberty PUD). SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPIVIENT PLAN Sc '[AX. INCREMENT FINANCING PLAN Page 15 LEGEND Vacant/Agricultural (212.2 ac./ 25%) L I Rural Residential (95.5 ac./ 11.2%) I Estate Residential (1.8 ac./ 0.21%) I Single Family Residential (77.3 ac./ 9.1%) 11 Multiple Family Residential (156 ac./ 18.4%) Mobile Home Park (0 ac./ 0%) ME Commercial (78 ac./ 9.2%) Office (28.1 ac./ 3.3%) Recreation/Open Space (100.9 ac./ 11.9%) III Industrial (52.2 ac./ 6,1%) Public/Semi-Public (20.8 ac,/ 2.4%) Utilities (26.5 ac./ 3.1%) CIA Boundary (944 acres Gross Area including Right-of-Way) Percent area calculated based on total of designated land use areas (849.3 acres) Figure 2: Sashabaw Road Corridor Improvement Authority Existing Land Use SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN ,Sz TAX INCREMENT FINANCING PLAN Page 16 • Institutional: Pine Knob Elementary, located on the east side of Sashabaw north of Maybee Road. • Industrial: - New industrial development east of Sashabaw Road, including the LGI/Sheifier and Magneti Marelli facilities. Pontiac Coil located north of 1-75 across from Pine Knob. Vacant: There remains a number of vacant parcels, as depicted in Figure 2. 2.4 Zoning A. General Discussion of Zoning in Township The current Zoning Ordinance, Ordinance 83, was approved in 1975, but has been amended and updated numerous times. The Township has been proactive in providing standards that encourage creative development, recognize and protect the predominant residential nature of the community, and protect the natural environment and existing residents. For example, the Township was one of the first townships in the state to have a Wetlands Ordinance and require a natural features setback from wetlands. The Township has also been progressive in providing Ordinances allowing for creation land development in the form of cluster residential, Planned Unit Development and Planned Residential Development regulations. The Zoning Ordinance includes a variety of residential office and commercial designations, as well as research-office, industrial office park, and industrial classifications. Many developers in the Township have also taken advantage of the more flexible techniques found in the Planned Unit Development and Planned Residential Development options, with great benefits to the projects and to the Township in general. B. Current Zoning Designation in Study Area The Sashabaw Corridor contains a wide range of zoning districts. Zoning is depicted in Figure 3. The largest categories are Planned Unit Development (PUD), Industrial Office Park (TOP), Single Family Residential (R-1A) and Multi-Family Residential (R-2). The delineation of these categories is similar to the designations of the Future Land Use Plan, and future zoning changes will continue to be based on the Master Plan. In examining the 1975 and current zoning maps, a number of zoning changes have been made based on the evolution of Sashabaw Road, and Independence Township. The majority of acreage was zoned R-1A at the time due to the low density residential and vacant/agricultural nature of most of the area. As more development has come to the Township, Sashabaw Road has grown. The most apparent change is the extensive use of PUD zoning along the west side of Sashabaw in order to implement the Town Center Plan conceived by Vision 2020. Other changes of note have been the expansion of Office Districts (0, OS, and 0S-2) and the rezoning of the large area of TOP that was originally Limited Industrial; both of these changes reflect the Township's intent to provide low-intensive research and SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX. INCREMENT FINANCING PLAN Page 17 Figure 3: Sashabaw Road Corridor Improvement Authority District Zoning SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 18 office uses to protect the Corridor from more intensive industrial uses. C. Sashabaw Overlay District and Design Guidelines Following adoption of the current Master Plan in 1999, the Planning Commission proceeded to implement various aspects of the Strategic Plan, Master Plan and Sashabaw Target Plan. Consistent with the recommendation of the Sashabaw Target Plan, the Overlay District was created to provide additional standards for the Sashabaw Road Corridor, and was supported by published Town Center Design Guidelines. In 2015, the Township expanded the Overlay District to include the North Sashabaw Overlay District. The area between 1-75 and Clarkston Road is covered by the Overlay Districts. 2.5 Master Plan The Vision 2020 Plan was an ambitious program created to identify the goals, policies, programs and strategies for the Township. The Master Plan is depicted in Figure 4. It was conducted as a three-part series which consider of Background Studies, the Strategic Plan, and Master Plan documents. While each were separate documents, these elements were consistent and relied upon a comprehensive relationship; e.g., the Strategic Plan followed the data gathered within the background studies, which led to the formulation of the Master Plan. In 2008, the Township undertook a comprehensive update to the Master Plan, Of significance to this update was the consolidation of the Master Plan and Strategic Plan into a single document. The Township completed an update to the Master Plan in 2016. This document could be characterized as a "fine-tuning" of the 2008 Plan. As part of the 2016 Master Plan, the Target Plans for the Sashabaw Corridor and for the Pine Knob Area were combined into a single Sashabaw Corridor Target Plan. While these two portions of the corridor have different character and land use, the Target Plan seeks to create unity between these areas. Ihe future land use designation in the Master Plan indicates that the Sashabaw Corridor, along with Dixie Highway and M-15, is a predominant commercial corridor in the Township. Strip commercial development is to be restricted, and commercial development is to be clustered in areas identified by the Master Plan. Appropriately for the Corridor, the future land use categories vary significantly. Planned Mixed Use, Multiple Family Residential and Industrial Office Park comprise the greatest amount of area. The layout of the Planned Mixed Use area is more specifically detailed in the Master Plan. The specific uses within the Planned Mixed Use category include Commercial, Office, Research, Single-Family and Multiple-Family Residential, and Public. 2.6 Existing Improvements to be Demolished, Repaired, or Altered The completion of the 5-lane improvement to Sashabaw Road north of Flemings Lake to the entrance of DTE Theater will require that some or all portions of existing infrastructure will be demolished, repaired, or altered. SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT Pl...A.N & TAX INCREMENT FINANCING PLAN Page 19 Rural Residential (( aa.10%) listate Residential. (3.3 we/ 0,4%) Suburban Resit-Ionia! 1,0%) Single-Family Residential (215.6 aei 12%) Traditional Lakefront Residential (0 -Mt 0%) igkFamiIyAltuabetif.Datadied (23.2 Lie). 2.8%) Multiple Family Residential (130 au) 15.14%) Mobile Home Park (0 ae..1 0%) °moo Service (104,1 lie,/ 12.6%) Planned tylixed 11840 (223,5 .f 27i%) Local ComnicreiaL (11.6 ac,/ 1.4%) General. Commercial (17.8 aci 7.0%), PIaarred Reseorch Office (101.1 lied' 123%) Induatrial Office Park (29,5 acl 3.6%) Omen' 1olustria1 (0 u,,,'0%) Reeteatiend - Conservation (103,7 ac,112.6%) Public, Semi-Public (1,5ar..-.10.18%) CIA Boundary (944 acn.% Orutos Amu. including Right-of-Way) Percent arca calculated hated an total of designated land use utes ( 824,6 ac) Figure 4: Sashabaw Road Corridor Improvement Authority Future Land Use Plan SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 20 2.7 Location, Extent, Character, Estimated cost of Improvements, Construction Stages, and Estimated Completion Time Table 1 provides a complete description of the extent and character of each proposed improvement project. Table 1 identifies all potential projects, the year that a project is to be started, and anticipated cost. The estimated cost of improvements is done without detailed engineering design or specific knowledge of field conditions which may affect project costs. Therefore, cost estimate and time frames are subject to change. Furthermore, the ability of the CIA to implement the proposed projects, may be affected by contractual agreements made with other taxing jurisdictions. The components of each project are broken down into three (3) categories: design/engineering easement/property acquisition construction There is also a fourth category of legal, financial and administrative services that are not associated with any specific project but will be incurred by the Authority each year. The total amount of legal, financial and administrative services are estimated to be less than $100,000. 2.8 Areas Left as Open Space The Township Master Plan identifies several areas within the corridor which are intended to remain as open space. The Corridor Improvement Authority is also interested in establishing public open space, particularly within the Town Center area. 2.9 Portions of the Development Area which the Authority Desires to Sell, Donate, Exchange, or Lease to or from the Township In the event the Authority desires to sell, donate, exchange or lease property to or from the Township, it will follow the established procedures of the Township and all other applicable laws. 2.10 Desired Zoning Changes Although certain zoning changes may be initiated by private property owners or the Township, the Authority does not intend to request any zoning changes. 2.11 Changes in Streets, Street Levels, intersections, and Utilities The various improvements described in Tables 1 will require changes to streets, street levels, intersections, and utilities. 2.12 Method of Financing the Development and Ability to Arrange the Financing Financing of the costs associated with the implementation of the Development Plan will be accomplished by the use of one or more of the following: Tax increment revenues Revenues received from issuance by the Authority or the Township of revenue bonds. Revenues from Authority owned, leased or sold property. Donations received by the Authority. SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT -FINANCING PLAN Page 21 Funds obtained from other sources approved by the Township Board (i.e. general obligation bonds, special assessment bonds, County bonds, installment purchase contracts, CDBG funds, etc.). Federal and state grants. 2.13 Persons to Whom All or a Portion of the Development is to be Leased, Sold, or Conveyed, and Project Beneficiaries No sale, lease, or conveyance to private entities is contemplated at this time. 2.14 Procedures for Leasing, Purchasing or Conveying In the event the Authority needs to employ procedures for leasing, purchasing or conveying, it will follow the established procedures of the Township. 2.15 Estimates of the Number of Persons Residing in the Development Area As of the 2000 Census, there were approximately 2,874 residents within the Development Area. Currently, the number of residents as of 2016 is estimated to be 3,356 people. 2.16 Relocation of Displaced Persons Should any relocation of persons or businesses be necessary in the future, the Township, their agents, and/or the CIA will first adopt a formal relocation program. Although not anticipated, if acquisition of any real property should result in the displacement of persons or businesses, the CIAT recognizes its obligation to make the affected parties economically whole. If it appears that any relocation obligations may be incurred during the proposed life of this Plan, the Township and the CIA will adopt a relocation plan as soon as the circumstances become known. The relocation plan shall require that certain payments and other assistance be paid to families, individuals, businesses, and non-profit organizations as they are displaced or their personal property is moved as a result of activity that may be subject to the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. Should relocation be required, the CIA in cooperation with the Township shall allocate within the CIA budget appropriate relocation assistance in accordance with the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Any acquisition and/or relocation activities that occur using CIA funds will comply with Act No. 227 of Public Acts of 1972 of the Michigan Complied Laws. Any relocation plan to be adopted will incorporate by reference the applicable portions of the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act that are designed to make the affected individuals or businesses economically whole. SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 22 Table 1: Proposed, Completed and Eliminated Projects List Amended and Extended Development Plan Proposed Projects 1. Sashabaw Road (Flemings Lake Road to entrance of DTE Theater). To relieve existing and anticipated demand, the project would improve this segment of Sashabaw Road to a 5-lane cross-section. Sashabaw Road widening Year Estimated Cost (Flemings Lake Road to entrance to DTE) Engineer & Administration 2016-2017 $400,000 Construction & Contingencies 2020 $3,600,000 Completed Projects 1 Landscaping, amenities, and irrigation (Clarkston Road to Maybee Road). This project involves the installation of hundreds of new perennials, trees, shrubs, ground covers, irrigation, and other aesthetic components to beautify the Sashabaw Road Corridor. It is anticipated this project will be done in phases to correspond with road improvement projects. The first phase that was completed was the boulevard section between Maybe° and Waldon. 2. Sashabaw/I-75 Interchange - To relieve congestion on 1-75 and improve access to Sashabaw Road, an exit ramp was added to serve northbound 1-75 traffic to southbound Sashabaw Road. Additional improvements were also made to the bridge surface, other entrance/exit ramps and the park and ride lot. 3. Improvement to SashabawNValdon intersection - To relieve congestion on Sashabaw and Waldon Roads, dual left hand turn lanes were added to northbound Sashabaw and eastbound Waldon. Projects Eliminated 1. Bury Detroit Edison overhead lines (Sashabaw Road east side Clarkston to Maybee Road). This project involves the installation of new underground duct banks to allow for the elimination of overhead utility lines along the Sashabaw Road Corridor. SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 23 3.0 Tax Increment Financing Plan 3.1 Tax Increment Procedure Tax increment financing permits the Authority to capture tax revenues attributable to increases in the value of eligible real and personal property resulting from implementation of a Development Plan as defined in Act 280. Property value increases will be attributable to the development projects. At the time the Plan was initially approved by the Township Board in 2006, the value of the eligible property within the boundaries of the Development Area (the "Initial Taxable Value") was established. The Initial Taxable Value is the State Equalized Value of the eligible property on that date. In each subsequent year for the duration of the Tax Increment Financing Plan, the "Current Taxable Value" of the eligible taxable property will be determined, The Current Taxable Value for each year after December 31, 2006, is the taxable value of the eligible taxable property for that year, as determined under Section 27a of the General Property Tax Act. The amount by which the Current Taxable Value exceeds the Initial Taxable Value in any one year is the "Taxable Value Increase." For the duration of the Tax Increment Financing Plan, the local taxing jurisdictions will continue to receive tax revenues based upon the Initial Taxable Value, The Authority, however, receives that portion of the tax levy of all applicable taxing jurisdictions paid each year on part or all of the Total Tax Increment Revenues (as set forth in the Tax Increment Financing Plan) of the eligible taxable property included in the Tax Increment Financing Plan, or any taxes specifically levied for the payment of principal and interest of obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit or specific local taxes attributable to such ad valorem property taxes. The Township Treasurer and County Treasurer are required to pay to the Authority the Tax Increment Revenues as collected, and to pay to the other taxing units the tax revenues derived from the application of their millages to the Initial Taxable Value of all eligible property. 3.2 Tax Increment Financing Area The area selected to incorporate tax increment financing in the TIF District under the Current Plan included a portion of the Development Area, as illustrated in Figure 5. While the overall Development District boundaries remain the same, the TIF District in the Amended and Restated Plan eliminates two parcels of real property along with the associate personal property which contributes to a negative value in the base year versus the year of capture. These parcels are: Parcel 1 Real Property 08-27-126-004 (Independence Township) Associated Personal Property 99-55-648-302 (Chase Plastics) 99-55-648-301 (Harry McMillan & Fiederlein) Jrr Magneti -Mirelli 11 Figure 5: Sashabaw Road Corridor Improvement Authority Tax Increment Financing Area (shaded) 11.1 Properties Eliminated El Eg,k41, ....,...•morti — t.„„,,,ev 1 1 iv ,fliik,. ft.,z, inpult.,...41021. 1,757.... • was" 'lb— "IBM III U. SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 24 SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN 8c TAX. INC REMEN1 FINANCING PLAN Page 25 Parcel 2 Real Property 08-27-276-003 (Magneti MareIli) J-IN-13- 100-373 (Magneti MareIli IFT) Associated Personal Property 99-35-560-002 (Magneti Marelli) HP-13-100-373 (Magneti Mar& ET) 99-35-560-001 (Recticel) 3,3 Bonded Indebtedness to be Incurred The Authority anticipates issuing bonds to finance proposed public facilities described in the Development Plan, subject to any limitations prescribed by law. The CIA shall incur no bonded indebtedness or other financial debt without the approval of the Township Board. The maximum amount of bonded indebtedness to be incurred will be equal to: • The costs of the projects described in the Development Plan, as adjusted for costs paid for by other agencies, inflation, deflation, and contingencies; and Expenses related to issuance of the bonds, including the fees of legal and financial counsel, bond printing, printing of the prospectus, notice of sale, and miscellaneous expenses. Therefore the Authority anticipates incurring bonded indebtedness to finance future projects within the Development Area. 3.4 Duration of the Program For the purposes of this program, the initial taxable value of all real and personal property within the Tax Increment Financing Plan portion of the Development Area was taken as of December 31, 2005 with a 2006 base year. The duration of the original TIF Plan was for a period of 14 years, ending in 2020, with accrued tax collection ending in 2021. The Amended and Restated TIP Plan is extended for an additional period of no longer than nine (9) years, with accrued tax collections ending in fiscal year 2030. 3.5 Estimated Impact on Taxing Jurisdictions The taxing units affected by this Tax Increment Financing Plan and their millage rates as of the date of adoption are illustrated in Table 2. The Tax Increment Financing Plan is based upon a fifty (50) percent capture of eligible taxes from the applicable units of government. The total amount of Oakland County General Operating Millage and Parks and Recreation Millage are subject to prior agreement between Oakland County, the Charter Township of Independence, and the Sasahabaw Corridor Improvement Authority. The agreement with Oakland_ County limits the total capture to not exceed $1,294,501.37. The revenues would be used to the extent needed from year to year to accomplish the purposes of this Amended and Restated Tax Increment Financing Plan. Debt millage will be left totally unaffected by the Plan. Debt millage will continue to generate tax revenue for the taxing jurisdictions based on the full current asse value, rather than the initial assesse va ue. SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCING PLAN Page 26 As provided for by Act 280, tax revenues generated from within the Amended and Restated Tax Increment Financing Plan area of the Development Area prior to the adoption of this Tax Increment Financing Plan (those based on the Initial Assessed Value) will continue to be distributed to all taxing jurisdictions during the duration of this Plan. Upon completion of this Tax Increment Financing Plan, all additional tax revenues having been captured by the Authority will be distributed proportionately to the taxing jurisdictions. The Authority proposes to continue to improve and strengthen the Development Area. This is to be accomplished by using the additional tax revenues generated in the TIF District to make public improvements and induce private redevelopment. More specifically, the amendment and extension of the TIF Plan will provide the CIA with sufficient revenue to complete improvements to Sashabaw Road. It is anticipated that the public improvements proposed for the TIF District, and the private improvements that result will provide long term stability and growth in the TIF District. This will greatly benefit all taxing jurisdictions which to a significant degree are dependent upon the well being of the TIF District for stability and growth. This benefit will result from increases in property valuations surrounding the TIF District; increases in property valuations in the TIF District as the Tax Increment Revenues are shared between the Authority and the other taxing units as described above; increases in property valuations in the TIP District at the time this Tax Increment Financing Plan is completed; and increases in property valuation throughout the entire community. Pursuant to Act 280, as amended, the Authority shall fully inform the applicable taxing jurisdiction of the fiscal and economic implications of the Plan. 3.6 Plan for the Use of Tax Increment Revenues Revenues Estimates of projected tax increment revenues and increases in State Equalized Valuation resulting from increases in existing tax base and new development under the Amended and Extended Plan are summarized in Table 3. All revenue projections are estimates only. Furthermore, revenues may be modified by contractual agreements with individual tax jurisdictions. Expenditures The expenditure of tax increment revenues are illustrated in Table 1 of the Development Plan. Priorities In the event that tax increment revenues are greater or less than projections used for the purposes of this Tax Increment Financing Plan, the available funds will be used to complete the Development Plan in accordance with the following directive: The Authority and Township Board will evaluate those projects which are the most beneficial and best meet the goals and objectives of the Development Plan and adjust the project importance accordingly. SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY DEVELOPMENT PLAN & TAX INCREMENT FINANCINC,' PLAN Page 27 Table 2 Taxing Jurisdiction Non-Debt Voted Millage Rate (2016) Independence Township General 1.0020 Fire 3.4653 Police 2.9003 Safety Path 0.4418 Township subtotal = 7.8094 District Library Library 1.2287 Library subtotal = 1.2287 Oakland County. Operating 4.0400 Parks & Recreation 0.2392 HCMA 0.2146 County subtotal = 4.4938 Da aniLLemilitY.Aditautuulig Operating 1.5707 OCC subtotal . 1.5707 Total Millage Rate Capture = 15.1026 [Developmental Taxable Value Value Changes Total Value 50% capture 50% capture KM capture 50% capture 50% capture 5056 capture 50% crpture 50% capture 50% capture ap.m,.:,, .... N. ,:l q PrIMA ..: . ".'. r,,A' 41 g 54 r. Uk.'3MA :1',Ii qM .9t.iE'Vel $25231 $3,069 11 $3,537 $3,739 ii" F, q _ gmd ... 0' . 1 2f.',1 .7,9n ""g8'742 :TIM N vz 2' ri.. $31241 $541721 FiMi M M. sn.414 Ut 14 '91 IIPPANAPAPAPPAP r-,A- V4, Izi,,,,ig Tulavw 4M gp 44 Eql p ri ni r 4 ru r4 MVO VOA P Z9V5OZIZT$ ZSOlirlefitt$ kL4 P2 0../. q a MIHIP, APPPPP. Resolution #17196 July 19, 2017 Moved by Crawford supported by Quarles the resolutions (with fiscal notes attached) on the Consent Agenda be adopted (with accompanying reports being accepted). AYES: Crawford, Dwyer, Fleming, Gingell, Hoffman, Jackson, Kochenderfer, KowaII, McGillivray, Middleton, Quarles, Spisz, Taub, Tietz, Weipert, Woodward, Zack, Berman, Bowman. (19) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent Agenda were adopted (with accompanying reports being accepted). 5j) I HEREBY APPAOVETHIS 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 July 19, 2017, 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 19 th day of July, 2017. Lisa Brown, Oakland County