HomeMy WebLinkAboutResolutions - 2017.09.06 - 23087MISCELLANEOUS RESOLUTION #17246
September 6, 2017
BY: Commissioner Thomas Middleton, Chairperson, Finance Committee
IN RE: BOARD OF COMMISSIONERS — AMENDMENT TO THE AGREEMENT WITH THE CHARTER
TOWNSHIP OF INDEPENDENCE CORRIDOR IMPROVEMENT 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 the Corridor Improvement Authority ("CIA") Act, Public Act 280 of 2005, as amended, MCL
125.2871 et. seq., ("CIA Act") enables CIA's to utilize Tax increment Financing ("TIF") to prevent
deterioration, encourage historic preservation and promote economic growth in a business district; and
WHEREAS the Board of Commissioners' Tax Increment Financing District Review Policy Ad Hoc
Committee ("TIF Review Committee") reviews requests from municipalities to utilize T1F as provided in
Miscellaneous Resolution #16166, which contains the performance standards to consider ("TIF Policy")
when making its recommendation to the Finance Committee on possible County participation in TIF
plans; 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 for a period of 14 years, whichever occurs first; and
WHEREAS representatives of the Township and the CIA appeared before the TIE Review Committee on
July 12, 2017, to present an amendment to the previously approved plan; and
WHEREAS the amended TIF Tax Sharing Agreement between the County of Oakland, the Charter
Township of Independence, and the Sashabaw Road Corridor Improvement Authority provides for an
extension of the term through tax collections attributable to tax year 2029 but remains at the previously
agreed dollar amount of $1,294,501.37 of County tax capture, whichever ever occurs first; and
WHEREAS the amendment requires the CIA to appear before the TIF Review Committee, at the
Committee's request, within the first five years of the amendment.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby
approves the amended TIF plan.
BE IT FURTHER RESOLVED that the Finance Committee recommends County participation in the TIF
plan in an amount not to exceed $1,294,501.37 or through tax collections attributable to tax year 2029,
whichever comes first.
BE IT FURTHER RESOLVED that the Board of Commissioners authorizes the County's continued
participation in the CIA as specified in the attached contract.
Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing res lution.
Commissioner Thomas Middleton,
Chairperson, Finance Committee
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
AMENDMENT #1
TO THE TAX SHARING AGREEMENT BETWEEN THE COUNTY OF OAKLAND.
THE CHARTER TOWNSHIP OF INDEPENDENCE, AND
THE SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY
This is Amendment #1 ("Amendment") to the Tax Sharing Agreement dated August
1, 2008 ("Agreement') between the COUNTY OF OAKLAND ("County"), 1200 North
Telegraph Road, Pontiac, Michigan 48341, the CHARTER TOWNSHIP OF
INDEPENDENCE ("Independence"), 6483 Waldon Center Drive, Clarkston, Michigan
48346, and the SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY
("C.I.A."), 6483 Waldon Center Drive, Clarkston, Michigan 48346. This Amendment is
entered into this 6th day of September 2017. In this Amendment, the County,
Independence, and the C.I.A. may also be referred to as "Parties."
The Parties agree that the purpose of this Amendment is to modify as provided herein and
otherwise continue the present contractual relationship between the Parties as described in their
current Agreement. Except as described below in the Amended Terms Section, any and all other
terms and conditions set forth in the Agreement between the Parties shall remain in full force and
effect and shall not be modified or otherwise changed by this Amendment except as otherwise
expressly provided for in this Amendment.
BACKGROUND
Public Act 280 of 2005, a/k/a the Corridor Improvement Authority Act ("Act 280"),
authorizes a municipality to establish a Corridor Improvement Authority when the
municipality determines that it is necessary for the best interests of the public to redevelop
its commercial corridors and to promote economic growth. One of the purposes for
creating a C.I.A. is to permit a municipality to finance corridor improvements in a
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designated area by capturing the property taxes levied on any incremental increase in
property values within the Development Area; this is commonly referred to as tax
increment financing (TIF).
Section 18(5) of Act 280 provides that a governing body of a taxing jurisdiction
whose ad valorem taxes would otherwise be subject to capture may exempt its taxes from
capture by adopting a resolution to that effect. Furthermore, Section 18(3) of Act 280 also
provides that a C.I.A. may enter into agreements with taxing jurisdictions and the
Municipality establishing the C.I.A. to share a portion of the captured assessed taxable
value of the Development Area.
On June 12, 2008, the Board of Commissioners agreed to participate with
Independence and the C.I.A. by means of sharing with the Authority a portion of the
revenue derived from certain County ad valorem property taxes levied on properties
located within the Development Area upon the terms and conditions described in the
Agreement. The Agreement limited the County's tax capture and participation in the TIT
plan to the parcels listed in the Agreement, and to an amount not to exceed $1,294,501.37
or, beginning with the tax capture for 2008, for a period of 14 years, whichever occurs
first. (Miscellaneous Resolution #08117)
Although many of the originally planned improvements to the Development Area
were implemented, as a result of the unanticipated and dramatic decline in taxable values,
during the period of the national economic downturn, the C.I.A. was unable to capture the
anticipated revenue to complete all of the planned improvements in the Development
Plan. Independence and the C.I.A. have now amended their plan to extend the term
through tax collections attributable to tax year 2029, which they believe will enable them
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to capture sufficient funds to complete the needed improvement. The additional time will
be used to undertake and complete public infrastructure improvements along Sashabaw
Road, north of the 1-75 interchange, including the expansion and improvement of
Sashabaw Road to a 5-lane cross section between Flemings Lake Road and the entrance to
DTE Theater.
In addition to extending the time period for the capture, the amended Development
Plan eliminates two parcels of property. One of the parcels is now the location of
township municipal offices, which is exempt from taxation. The second parcel originally
belonged to a sizable manufacturing facility which has since left the Development Area.
Act 280 authorizes the governing body of a municipality to alter or amend the boundaries
of the Development Area to include or exclude lands. The County understands the
reasons for excluding the two parcels.
On July 12, 2017, representatives of Independence and the C.I.A. appeared before
the Oakland County TIF Review Committee to request an amendment to the Agreement.
Prior to their presentation before the TIF Review Committee, representatives of the C.I.A.
had multiple discussions and meetings with County staff to review the proposed
amendment.
Following the notice and public hearing requirements of the Act, on August 22,
2017, Independence approved an Amended and Restated Development Plan and Tax
Financing Plan (Exhibit A) extending the period of capture through collections attributable
to tax year 2029 and eliminating two parcels from the Development Area.
AMENDED TERMS
Pursuant to the Resolution passed by the Oakland County Board of Commissioners
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on September 6, 2017 incorporated herein and in accordance with the conditions described
below, the Parties agree to amend their August 1, 2008 Tax Sharing Agreement as
follows:
I. The County agrees to allow the tax increment revenue generated by its
millage rate to continue to be captured and retained by the C.I.A. for the properties listed
in Exhibit B for the limited purpose of paying the County's pro-rata share of the funding
required for the Amended and Restated Development Plan and Tax Increment Financing
Plan (Exhibit A).
2. The capture and retainage of the County's millage will be based upon the
2006 taxable value of the properties as set forth in Exhibit B. Once the County's total
share of tax increment revenue for the Project is captured at a maximum of
$1,294,501.37, or through tax collections attributable to tax year 2029, whichever occurs
first, the County's participation in the C.I.A. will terminate and its portion of ad valorem
property taxes that would otherwise be subject to capture will be exempt from further
capture by the C.I.A.
3. The C.I.A. agrees it will file its annual report, within three (3) months
after the end of the Authority's fiscal year, and the report shall include, to the best of the
Township's information and knowledge, the following:
i. The amount of taxes captured by the Authority.
The amount spent on each project in the TIF Plan.
The amount of private sector investment received.
iv. The number of buildings rehabilitated, the square footage per building
rehabilitated, and the amount spent per building.
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v. The amount of new construction including the dollar amount spent and the
square footage added.
vi. The number of new businesses locating in the Development Area.
vii. The number of new jobs created.
viii. The increase/decrease in the taxable value.
ix. Any financial information the County is required to report in its financial
statements and/or to the Michigan Department of Treasury.
4. The C.I.A. will appear before the TIP Review Committee, at the
Committee's request, within the first five (5) years of the Amendment execution date, to
present the Development Area's current return on investment; which is defined as the
increase in total value of the properties in the Development Area since the inception of
this Amendment and discuss the financial information required in this Amendment.
5. The C.I.A. will promote the services available from the Oakland County
Economic Development Community Affairs Department including the One Stop Shop
Business Center, the Oakland County Economic Development Corporation and the
Oakland County Business Finance Corporation,
6. To the extent that it has not already done so, Independence will
adopt/amend its community master plan to accurately incorporate the TIF Plan with its
next scheduled community master plan review.
7. Elected or appointed officials of the C.I.A. and Independence or their
immediate family members shall not engage in a business transaction, relating to property
in the Development Area, which he or she may profit from because of his or her official
position or authority or benefit from confidential information which he or she has
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obtained because of such position or authority. However, members of the governing
body of the C.I.A. may have an ownership or business interest in the Development Area
and comply with this requirement. Any plans by the C.I.A. to purchase property in the
Development Area from elected or appointed officials of Independence, or their
immediate family members, shall be disclosed in writing to the County.
8. The County, Independence and the C.I.A. warrant that they each have
the appropriate authority to enter into this Amendment and that each of them are
bound by the respective signatures below.
FOR AND IN CONSIDERATION of the mutual assurances, promises,
acknowledgments, warrants, representations, and agreements set forth in this Amendment,
and for other good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged the undersigned hereby execute this Amendment on behalf of the Parties,
and by doing so legally obligate and bind the Parties to the terms and conditions of this
Amendment.
INDEPENDENCE CORRIDOR IMPROVEMENT AUTHORITY (C.I.A.)
By:
Name
Its:
Date:
THE CHARTER TOWNSHIP OF INDEPENDENCE
By:
Name
Its:
Date:
OAKLAND COUNTY
By:
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Michael J. Gingell,
Its: Chairperson Board of Commissioners
Date:
2016-0885 Independence 'fW Amendment
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TAX SHARING AGREEMENT BETWEEN TITE
COUNTY OF OAKLAND, CHARTER TOWNSHIP OF INDEPENDENCE,
AND THE SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY
This Tax Sharing Agreement ("Agreement") is entered into this 1st day of
August, 2008 between the COUNTY OF OAKLAND ("County"), 1200 North Telegraph
Road, Pontiac, Michigan 48341, the CHARIER TOWNSHIP OF INDEPENDENCE
("Independence"), 90 North Main Street, P.O. Box 69, Clarkston, Michigan 48346, and
the SASHABAW ROAD CORRIDOR IMPROVEMENT AUTHORITY ("C.I.A."),
90 North Main Street, P.O. Box 69, Clarkston, Michigan 48346. In this Agreement, the
County, Independence, and the C.I.A. may also be referred to as "Parties."
RECITALS
Public Act 280 of 2005, ailda the Corridor Improvement Authority Act ("Act
280"), authorizes a municipality to establish a Corridor Improvement Authority when the
municipality determines that it is necessary for the best interests of the public to
redevelop its commercial corridors and to promote economic growth. One of the
purposes for creating a C.I.A. is to permit a municipality to finance corridor
improvements in a designated area by capturing the property taxes levied on any
incremental increase in property values within the development area; this is commonly
referred to as tax increment financing.
Section 18(5) of Act 280 provides that a governing body of a taxing jurisdiction
whose ad valorem taxes would otherwise be subject to capture may exempt its taxes from
capture by adopting a resolution to that effect. Furthermore, Section 18(3) of Act 280
also provides that a C.I.A. may enter into agreements with taxing jurisdictions and the
municipality establishing the C.I.A. to share a portion of the captured assessed taxable
value of the development area.
On May 16, 2006, Independence passed a resolution of intent to establish a
Corridor Improvement Authority for Sashabaw Road; on June 20, 2006, Independence
held a public hearing regarding its intent to establish the C.I.A. and the proposed
boundaries of the Tax Increment Financing ("TIF") and development area. Pursuant to
Miscellaneous Resolution #06237, on December 14, 2006, the Oakland County Board of
Commissioners determined to exempt County ad valorem property taxes from capture by
the C.I.A.
Thereafter, Independence, the CIA., and the County met with the representatives
of County's Planning and Economic Development Services Division on numerous
occasions and appeared before the County's Tax Increment Financing District Review
Policy Ad Hoc Committee ("Review Committee"). This Review Committee is charged
with evaluating and reconuriending to the Board of Commissioners as to the County's
participation and possible tax sharing arrangement in the proposed C.I.A.
Representatives from Independence and the C.I.A. appeared before the Review
Committee on September 25, 2007, and again on March 28, 2008 to present a revised TIP
plan for the CIA. As a result of these several meetings and appearances before the
Review Committee, the County Board of Commissioners ultimately determined that the
C.I.A. had successfully demonstrated its plan meets the County's performance standards
for review of proposed CIA. districts. Accordingly, pursuant to Miscellaneous
Resolution #08117, on June 12, 2008, the Board of Commissioners stated that the
Independence Township C.I.A. supports job creation and retention at a critical time in the
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County's history. Further, the Board noted that as the first community to seek County
participation in its CIA., the Independence Township plan would set a precedent for
other communities who presented C.I.A. development and TIE plans to the County.
Miscellaneous Resolution #08117 also limited the County's tax capture and
participation in the TIF plan to the parcels listed in Exhibit A, and further to an amount
not to exceed $l, 294,501.37 or, beginning with the tax capture for 2008, for a period of
14 years, whichever occurs first.
Accordingly, under the terms of this Agreement made pursuant to Act 280, the
County agrees to participate with Independence and the C.I.A. by means of sharing with
the Authority a portion of the revenue derived from certain County ad valorem property
taxes levied on properties located within the development area upon the terms and
conditions described in this Agreement.
Pursuant to Miscellaneous Resolution #08117, incorporated herein and in
consideration of the mutual promises, representations, and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, the Parties hereby agree as follows:
1. In accordance with the following conditions, the County agrees to allow
the tax increment revenue generated by its millage rate to be captured and retained by the
C.I.A. from the properties listed in Exhibit A for the limited purpose of paying the
County's Pro-rata Share of the funding required for the Sashabaw Road C.I.A. as set
forth in the Development Plan and Tax Increment Financing Plan ("Plan") dated October
23, 2006, revised May 7, 2007, and further articulated in "Response to Oakland County
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Performance Standards for Review for CIA Districts" dated January 22, 2008 and
referenced in Miscellaneous Resolution #08117.
(a) "County's Pro-rata Share" is defined as the County's proportionate
share of the combined millages captured by the C.I.A., from all participating
taxing jurisdictions, which include: County of Oakland (for general operating and
Parks & Recreation), Charter Township of Independence (for general operating,
library, safety path, police and fire protection), Huron Clinton Metropolitan
Authority and Oakland Community College. With respect to the levy of any new
additional millage by the County, either to restore amounts reduced by the
Headlee Amendment, or new additional millage approved by County electors
after the date of this Agreement, such millages shall be exempt from this
Agreement unless the County Board of Commissioners, in its sole discretion,
adopts a resolution submitting such additional millages to this Agreement and
capture by the Authority.
(b) The Project improvements are as follows and further described in
the Plan documents, dated January 22, 2008 and attached as Exhibit B:
Acquisition of right-of-way and the widening of Sashabaw
Road north of the Interstate 75 interchange;
(ii) Improvements to the Interstate 75 bridge and interchange;
(iii) Completion of streetscape improvements, such as
landscaping, irrigation, signage, and coordinated lighting;
(iv) Legal, financial, and general administrative services.
These improvements arc projected to cost approximately $3,831,800.00.
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(c) Independence, the County, and the C.I.A. acknowledge that the
total anticipated expenditure is an approximation only. The Project shall be
subject to Independence's public bid procedures and the final cost will be adjusted
accordingly. However, notwithstanding the above acknowledgments,
Independence and the C.I.A. agree that the County's participation shall not exceed
from the Oakland County General Operating Millage and the Oakland County
Parks and Recreation Millage a total of $1,294,501.37, or, beginning with the tax
capture for 2008, a period of 14 years (through 2022), whichever occurs first.
(d) The capture and retainage of the County's rnillage will be based
upon the 2006 taxable value of the properties as set forth in Exhibit A and will not
exceed $1,294,501.37, or 14 years with tax capture beginning with the 2008
collection. Thereafter, unless otherwise agreed, the County's participation in the
C.I.A. will cease and its portion of ad valorem property taxes that would
otherwise be subject to capture will be exempt from further capture by the C.I.A.
2. Independence and the C.I.A. hereby warrant and agree that the portion of
the captured County ad valorem property taxes ("tax increment revenue") shall be applied
to and limited to the County's Pro-rata Share of the funding necessary for the listed
Project. Thereafter, unless otherwise agreed, once the County's total share of the tax
increment revenue for the Project is captured at a maximum of $1,294,501.37, or for 14
years (through 2022), whichever occurs first, the County's participation in the C.I.A. will
terminate and its portion of ad valorem property taxes that would otherwise be subject to
capture will be exempt from further capture by the C.I.A. Independence and the C.I.A.
understand and agree that under no circumstances shall the tax increment revenue
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generated by the County's millage rate and retained by the CIA. be used to pay the full
amount of the Project costs.
3. The C.I.A. agrees to file an aim al report, which shall include the amount
of the revenue captured, and the costs and other expenses relating to the Project, with the
Oakland County Board of Commissioner's Finance Committee, the Oakland County
Treasurer, and the Oakland County Department of Planning and Economic Development
on an annual basis during the term of the financing. The C.I.A. shall allow the Auditing
Division of the County of Oakland to perform financial and compliance audits as
appropriate to assess all records relating to the Project throughout the term of financing
and for a period of three (3) years thereafter for compliance with the terms of this
Agreement. An audit of the C.I.A.'s records pursuant to this section shall not occur, until
such time that County provides thirty (30) days written notice to the C.I.A., specifying
what information is necessary to insure a complete post evaluation of the County's
participation in the C.I.A.
4. Any other C.I.A. project other than those specifically listed herein may be
considered by the County upon proper application by the C.I.A. at the appropriate time in
the future. Any modification or amendments to the C.I.A. Development Plan and Tax
Increment Financing Plan that modify the approved Project shall be submitted to the
County's Review Committee for review and approval.
5. Independence agrees that in the event tax increment revenue is retained by
the C.I.A. in excess of the County's Pro-rata Share of the fimding for the Project, and
upon written notice from the County, the C.I.A. and Independence fail to tender over to
the County the excess retained tax increment revenue, then without waiving any legal
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claims under this Agreement, the County shall be entitled to reduce, set-off, and
permanently retain any amount due to Independence from the County's Delinquent Tax
Revolving Fund ("DTRF'') by any such amount then still due and owing the County
pursuant to this Agreement at the time the County distributes funds to Independence from
the Delinquent Tax Revolving Fund ("DTRF").
6. This Agreement sets forth the entire agreement between the County, the
C.I.A. and Independence and fully supersedes any and all prior agreements or
understandings between them in any way related to this subject matter. It is further
understood and agreed that the temis and conditions herein are contractual and are not a
mere recital and that there are no other agreements, understandings, contracts, or
representations between the Parties in any way related to the subject matter hereof, except
as expressly stated herein. This Agreement shall not be changed or supplemented orally
and may be amended only in writing and signed by the Parties.
7. The County, Independence and the C.I.A. warrant that they each have the
appropriate authority to enter into this Agreement and that each of them are bound by the
respective signatures below.
FOR AND IN CONSIDERATION of the mutual assurances, promises,
acknowledgments, warrants, representations, and agreements set forth in this Agreement,
and for other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged the undersigned hereby execute this Agreement on behalf of the
Parties, and by doing so legally obligate and bind the Parties to the terms and conditions
of this Agreement.
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Ti3U,i-\\11•\.
CHARTER TOWNSHIP OF INDEPENDENCE,
a Municipal Corporation
Rift Johnk, County Clerk
SASHABAW ROAD CORRIDOR
IMPROVEMENT AUTHORITY
e 177i- 'c';)
c1A-n t
Date: S
Date: g- E
COUNTY OF OAKLAND,
a Municipal Corporation
By: aipp,R
Bill Ballard, Jr., Chairperson
Date:
2008-0348
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Resolution #17246 September 6. 2017
Moved by KowaII supported by Bowman the resolutions (with fiscal notes attached) on the Consent
Agenda be adopted (with accompanying reports being accepted).
AYES: Crawford, Dwyer, Fleming, Gershenson, Jackson, Kochenderfer, KowaII, Long,
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).
I HEREBY APPItIOVF THIS REISOLUYION
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 September 6,
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 6 th day of September, 2017.
Lisa Brown, Oakland County