HomeMy WebLinkAboutResolutions - 1999.04.15 - 25571MISCELLANEOUS RESOLUTION 199079 April 15, 1999
BY: Finance Committee, Sue Ann Douglas, Chairperson
IN RE: PROPOSED CITY OF NOVI DOWNTOWN DEVELOPMENT AUTHORITY - TAX CAPTURE EXEMPTION
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the City of Novi has passed a resolution declaring its intention to
create and provide for the operation of a downtown development authority (DDA); and
WHEREAS on February 22, 1999, the City of Novi held a public hearing on the
adoption of a proposed ordinance creating the Novi DDA and designating the boundaries
of the downtown district; and
WHEREAS, the Oakland County Ad Hoc Tax Increment Financing District Review
Committee (Ad Hoc Review Committee), acting pursuant to MR #99010, met on March 11,
1999, to evaluate the proposed City of Novi DDA as to its consistency with State
statute(s) and to evaluate the impact of the projected revenue loss to the County; and
WHEREAS the Downtown Development Authority Act, 1975 PA 197, as amended, at
Section 3(3), authorizes the governing body of a taxing jurisdiction levying ad
valorem property taxes that would otherwise be subject to capture by a DDA to exempt
its taxes from capture by adopting, not more than 60 days after the public hearing on
the adoption of a proposed DDA, a resolution to that effect and filing a copy with the
clerk of the municipality proposing to create the authority; and
WHEREAS Section 3(3) of 1975 PA 197, as amended, authorizes the governing body
of a taxing jurisdiction levying ad valorem property taxes to rescind any resolution
exempting its taxes from capture by a proposed DDA; and
WHEREAS the statutorily mandated 60 day time period within which the County must
act to preserve its right to exempt its taxes from capture forces the County to make
its tax exemption determination before a detailed downtown development plan has been
prepared and adopted by a municipality, making responsible determinations as to
proposed DDA compliance with state statute(s) and evaluations of fiscal impact on
County revenues both premature and speculative; and
WHEREAS, the Ad Hoc Review Committee, faced with the legal mandate that the
County act on the issue of tax capture exemption within 60 days of February 22, 1999,
and concerned both with the proposed Novi DDA's consistency with state statute and the
speculative nature of the impact of the projected revenue loss to the County, has
recommended that the County of Oakland exempt its taxes from capture by the proposed
City of Novi Downtown Development Authority; and
WHEREAS the Ad Hoc Review Committee further recommended that the County, through
the appropriate County departments and officials, offer to work with the City of Novi
so that a downtown development strategy benefiting both the City and County may be
developed and, if appropriate, be presented to the Board of Commissioners in support
of any future resolution proposing to rescind the tax capture exemption recommended by
the Committee.
NOW THEREFORE BE IT RESOLVED that, pursuant to Section 3(3) of 1975 PA 197, as
amended, MCL 125. 1653(3), the Oakland County Board of Commissioners hereby exempts its
taxes from capture by the proposed City of Novi Downtown Development Authority.
BE IT FURTHER RESOLVED that the County, through the appropriate County
departments and officials, offers to work with the City of Novi in creating a downtown
development strategy benefiting both the City and County that may, if appropriate, be
considered by the Board of Commissioners in support of any future resolution proposing
to rescind the tax capture exemption adopted herein.
BE IT FURTHER RESOLVED that the County Clerk is directed to file a copy of this
resolution with the Clerk of the City of Novi, before April 22, 1999.
Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing
resolution.
FINApCE COMMITTEE
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
Resolution #99079 April 15, 1999
Moved by Douglas supported by Schmid the resolution be adopted.
Moved by Schmid supported by Coleman the resolution be amended, as follows:
In the first BE IT FURTHER RESOLVED paragraph, following the words
--a downtown development--, add "authority." and delete the remainder of
the paragraph;
Add the following as second and third BE IT FURTHER RESOLVED
paragraphs:
BE IT FURTHER RESOLVED that should the City of Novi Downtown
Development Authority be approved by the State Tax Commission, the County
agrees to review and negotiate with the City a mutually beneficial
agreement to enhance the economic development of both the County and the
City.
BE IT FURTHER RESOLVED that if a mutually acceptable agreement is
negotiated between the County and the City of Novi pursuant to the
preceding paragraph, the Board of Commissioners shall consider the
adoption of a resolution rescinding the tax capture exemption adopted
herein.
A sufficient majority having voted therefor, the amendment carried.
Vote on resolution, as amended:
AYES: Coleman, Devine, Dingeldey, Douglas, Galloway, Garfield, Gregory,
Jensen, Law, McCulloch, McPherson, Melton, Millard, Moffitt, Obrecht, Palmer,
Patterson, Schmid, Sever, Suarez, Taub, Amos, Appel, Causey-Mitchell,
Colasanti. (25)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution, as amended,
was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, G. William Caddell, 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 April 15, 1999 with the original record
thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand anclaffixed the seal of the
County of Oakland at Pontiac, Michigan this 15,471 day/of April, ,1,999.
G. William Caddell, County Clerk