HomeMy WebLinkAboutResolutions - 2001.03.08 - 26497MISCELLANEOUS RESOLUTION # 01067 March 8, 2001
BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON
IN RE: BOARD OF COMMISSIONERS - PROPOSED VILLAGE OF HOLLY DOWNTOWN
DEVELOPMENT AUTHORITY - TAX CAPTURE
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 some of the tools used to promote this economic growth are Tax
Increment Financing in the form of Downtown Development Authorities (DDAs),
Tax Increment Finance Authorities (TIFAs) and Local Development Finance
Authorities (LDFAs); and
WHEREAS amendments to the Tax Increment Financing programs were adopted
in 1994 by the State Legislature, providing the County with the option to
exempt itself from participating in these authorities; and
WHEREAS in order to review requests from the County's cities, villages
and townships to establish DDAs, TIFAs and LDFAs, the Board of Commissioners,
pursuant to Miscellaneous Resolution #01002, established the Tax Increment
Financing (TIF) District Review Policy Ad Hoc Committee to evaluate and
recommend to the Finance Committee regarding the County's participation in
these proposed authorities; and
WHEREAS the Village of Holly has submitted a proposal to expand an
existing DDA; and
WHEREAS this request has been reviewed by the TIF District Review
Policy Ad Hoc Committee as to the implications of the capture of County tax
dollars in the proposed development area; and
WHEREAS the TIF District Review Policy Ad Hoc Committee recommends
participation in the proposed DDA.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of
Commissioners authorizes the County's participation in the Village of Holly
Downtown Development Authority, subject to a mutually agreeable contract
being negotiated between the County and the Village of Holly. The project is
limited to improvements, as detailed in the attached list, for a period of
five years beginning with the 2001 tax collection.
BE IT FURTHER RESOLVED should the Village of Holly desire the County to
continue its participation beyond the original five (5) year commitment, the
Village must reappear in front of the TIF District Review Policy Ad Hoc
Committee (or some subsequently charged committee) to request an extended
commitment. Such an extension will require the Oakland County Board of
Commissioners 'approval.
Chairperson, on behalf of the Finance Committee, I move adoption of the
foregoing resolution.
FINANCE COMMITTEE
FINANCE COMMITTEE:
Motion carried unanimously on a roll call vote with Palmer, Taub, Friedman
Appel and Melton absent.
t:01 ,16:44 ini 1 246 656 1610 'OAKLAND, CO TRE,ASURER
• •
41002
• . ,
• •
V.
Project
Insert Map 3 Improvement Projects
Markait
Red:, •
• 7
Table 1
Ruled Cost and liming
Holly DDA
i.
• Istirnated
Costs
Estimated .
Construction or
Implementation
Date
1 'STREET TREES . 10,000
2 STREET TREES $ 25,000
3 `B1REET TREES•• $ 15,000
4 BENCHES 10,000
6 1DIRt-CTIONAL SIGNS 5,000
6 PLANTERS/PLANTINGS 15,000
7 . • BRICK PAVERS $ 75,000
8 PARKING LOT IMPROVEMENT $ 50,000
9 ENTRY SIGN IMPROVEMENTS $ 10,000
10 PLANTERS/PLANTINGS $ 10,000
11 BENCHES $ 15,000
12 SIDEWALK CONSTRUCT ON $ 250,000
13 STREET UGHTS $ • 500,000
14 BRICK PAVERS $ 150,000
1$ FACADE RENOVATION 150,000
16 RESTORATION OF HISTORIC STRUCTURE $ 150,000
17 PARK AMENITIES $ 50,000
18 . STREET IMPROVEMENTS $ 100,000
18 LAKE SIDE ENHANCEMENTS 80,000
20 DDA DIRECTOR . $ 1,000,000
2001-04
2001-04
2001-04
2001-04
2001-04
2001-04
2001-04
2005-09
2005-09
2006-09
2005-09
2005-09
2010-2014
2010-2014
2010-2014
2010-2014
2015-2020
2015-2t120
2015-2020
2001-2020
10000
35000
60000
80000
65000
50000
155000
205000
215000
225000
240000
490000
900000
1140000
1290000
1440000
1490000
1590000
1670000
2070000
'tom. $ 2,670,000'
AGREEMENT
BETWEEN THE COUNTY OF OAKLAND COUNTY,
THE VILLAGE OF HOLLY AND
THE VILLAGE OF HOLLY DOWNTOWN DEVELOPMENT AUTHORITY
THIS AGREEMENT is entered into this 24th day of May, 2001 between the COUNTY
OF OAKLAND (County), 1200 N. Telegraph Road, Pontiac, Michigan 48341, the VILLAGE OF
HOLLY DOWNTOWN DEVELOPMENT AUTHORITY (DDA), 202 South Saginaw Street,
Michigan 48442-1689 and the VILLAGE OF HOLLY (VILLAGE), 202 South Saginaw Street,
Michigan 48442-1689. In this Contract, the County, DDA and Village may also be referred to as
Parties.
INTRODUCTION
Public Act No. 197 of the Public Acts of 1975, a/k/a the Downtown Development
Authority Act (Act 197), as amended, MCL 125.1651 et seq., authorizes municipalities to
establish a downtown development authority when it is necessary for the best interests of the
public to halt property deterioration and increase property tax valuation where possible within a
defined business district. One of the purposes for creating a DDA is to permit a municipality to
finance public improvements in a designated area by capturing the property taxes levied on any
increase in property values within the area; this is commonly referred to as tax increment
financing. Section 14(4) of Act 197 provides that a DDA may enter into agreements with taxing
jurisdictions and the municipality establishing the DDA to share a portion of the captured
assessed value of the district.
The DDA, Village and the County have discussed the County's participation in the
DDA's Development Plan and Tax Increment Financing Plan, which would create certain
improvements within the DDA District. The DDA has also met with the County's Ad Hoc DDA-
TIFA/LDFA-TIFA Review Committee (County Committee) and the DDA has provided all of the
required information, which was established by the general guidelines of the County
Committee.
On March 8, 2001 , the County adopted Miscellaneous Resolution No. 01-067 (MR #
01-067) (Exhibit A), requiring a contract be negotiated between the County, Village and the
DDA, to limit the capture of County ad valorem property taxes in the proposed DDA
development district to an amount not to exceed $40,000 and/or collected over five (5) years
beginning with a base year of 2000 ( hereinafter referred to as County's portion of tax increment
revenue). Thereafter, unless otherwise agreed in advance, once the County's portion of tax
increment revenue for the projects is captured or the expiration of five (5) years, whichever
comes first, the County's participation in the DDA 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 DDA. MR# 01-067 further provides that the County's portion of tax increment revenue shall
be applied and limited to the Improvement Projects (Projects) listed on page 11 of the DDA's
Tax Increment Financing Plan presented to the County Committee on February 15, 2001, those
projects being the ones accorded the highest priority by the Village and the DDA.
This is an alternative to the 20 years proposed by the Village and the DDA and will
enable the County to more closely monitor the progress of the DDA Development Plan. During
the term of this agreement, the Village and the DDA will make regular reports to the County and
the County will be able to make recommendations to the Village and the DDA relative to the
implementation of the Development Plan.
NOW, THEREFORE, pursuant to MR #01-067 which is incorporated herein, and in
consideration of the mutual promises, representations, and agreements set forth in this
Contract, and for other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the Parties 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 DDA
from the properties listed in Exhibit B beginning with the tax year 2001 (i.e. County's
portion of tax increment revenue). The amount captured shall not exceed forty thousand
($40,000) dollars or be captured beyond five (5) tax years, whichever comes first.
Thereafter, unless otherwise agreed, the County's participation in the DDA will cease
and its portion of ad valorem property that would otherwise be subject to capture will be
exempt from further capture by the DDA.
2. The County's portion of tax increment revenue shall be limited and applied to the
funding necessary for the Projects:
(a) The Projects are identified on page 11 of the DDA's Tax Increment Financing
Plan.
(b) The County's portion of tax increment revenue will be based upon the 2001
taxable value on the properties set forth in Exhibit B
2. Village and the DDA hereby warrant and agree that the County's portion of tax
increment revenue shall be applied and limited to the funding necessary for the Projects.
Unless otherwise agreed, once the County's portion of tax increment revenue for the
Project is captured or the expiration of five (5) years, whichever comes first, the
County's participation in the DDA 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 DDA.
3. The DDA agrees to file an annual report, which shall include the amount of the revenue
captured, and the costs and other expenses relating to the Projects, with the Oakland
County Board of Commissioner's Finance Committee on an annual basis during the
term of the financing. The DDA 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. An audit of the DDA's records pursuant to this section shall not occur, until
such time that County provides thirty (30) days written notice to the DDA, specifying
what information is necessary to insure a complete post evaluation of the County's
participation in the DDA.
4. Any other DDA project other than those specifically allowed for herein may be
considered by the County upon proper application by the DDA at the appropriate time in
the future. Any modification or amendments to the DDA's Development Plan and Tax
Increment Financing Plan that affects the Projects shall be submitted to the County's Ad
Hoc DDA-TIFA/LDFA-TIFA Review Committee for review and approval.
5. At least one (1) year prior to the expiration of this agreement, the Village and the DDA
will meet with the County TIFA Review Committee to discuss a renewal or extension of
this agreement. If this agreement is not extended or renewed, the County's participation
in the DDA's Development Plan and Tax Increment Financing Plan will terminate and
the County's portion of ad valorem property taxes that would otherwise be subject to
capture will be exempt from further capture by the DDA.
6. The Village agrees that in the event that tax increment revenue retained by the DDA is
in excess of the County's portion of tax increment revenue for the Projects, and upon
written notice of the County, the DDA and Village fail to tender over to the County this
excess, then without waiving any legal claims under this Contract, the County shall be
entitled to reduce, set-off, and permanently retain any amount due to Village from the
County's Delinquent Tax Revolving Fund (DTRF) by any such amount then still due and
owing the County pursuant to this Contract at the time the County distributes funds to
the Village from the Delinquent Tax Revolving Fund (DTRF).
By:
Village of Holly, _a_lillunicipal Corporation
Jeff Miller, Village Presiderit
County of Oakland, A plunicipal Corpfflfatifin
By:
Ft-al H. Millard, Jr., Chairperson / -G. William Caddell, County Clerk
Date:
7. The County, Village and the DDA 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 Contract, and for
other good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the undersigned hereby execute this Contract on behalf of the Parties, and by
doing so legally obligate and bind the Parties to the terms and conditions of this Contract.
Village of Holly Downtown Development Authority
Chairperson
Date: 5/2942
Date:
Marsha Powers, Clerk/Treasurer
EXHIBIT A
EXHIBIT B
FAX 248 634 4211 VILLAGE OF HOLLY UPDATED 06/01101
HOLLY DDA TIFA DISTRJCT
01-Jun-01
SI DWELL if
1 01-21-400-006
2 01-21-400-014
3 01-21-400-019
4 01-21-400-025
5 01-21-400-026
1 01-21-400-027
2 01-21-400-028
3 01-22-301-027
4 01-22-351-006
5 01-22-351-004
6 01-27-101-002
7 01-27-101-003
8 01-27-101-006
9 01-27-101-007
10 01-27-126-001
11 01-27-126-003
12 01-27-126-005
13 01-27-151-003
14 01-27-151-005
15 01-27-151-007
16 01-27-151-008
17 01-27-151-009
18 01-27-151-014
19 01-27-151-015
20 01-27-151-016
21 01-27-151-017
22 01-27-176-003
23 01-27-176-004
24 01-27-176-005
1
FAX 248 634 4211 VILLAGE OF HOLLY UPDATED 06/01/01
HOLLY D DA TIFA DISTRICT
01-Jun-01
SI DWELL #
25 01-27-176-006
26 01-27-176-007
27 01-27-176-008
28 01-27-176-009
29 01-27-176-010
30 01-27-176-011
31 01-27-176-012
32 01-27-176-013
33 01-27-176-014
34 01-27-176-015
35 01-27-176-016
36 01-27-176-017
37 01-27-176-018
38 01-27-176-019
39 01-27-176-020
40 01-27-176-021
41 01-27-176-022
42 01-27-176-023
43 01-27-176-024
44 01-27-176-025
45 01-27-176-026
46 01-27-176-027
47 01-27-176-028
48 01-27-176-029
49 01-27-176-030
50 01-27-301-002
51 01-27-301-005
52 01-27-301-015
53 01-27-301-016
54 01-27-301-017
2
FAX 248 634 4211 VILLAGE UPDATED 06101/01
HOLLY DDA TIFA DISTRICT
01-Jun-01
SIDWELL #
55 01-27-301-022
56 01-27-301-024
57 01-27-301-027
58 01-27-301-029
59 01-27-301-030
60 01-27-301-032
61 01-27-326-007
62 01-27-326-008
63 01-27-351-001
64 01-27-351-002
65 01-27-351-004
66 01-27-353-002
67 01-27-354-001
68 01-27-354-002
69 01-27-354-003
70 01-27-358-001
71 01-27-358-002
72 01-27-358-003
73 01-27-359-001
74 01-27-359-002
75 01-27-359-003
76 01-27-359-007
77 01-27-363-005
78 01-28-176-002
79 01-28-176-003
80 01-28-176-004
81 01-28-176-005
82 01-28-176-006
83 01-28-176-007
84 01-28-227-003
3
UPDATED 06/01/01
HOLLY DDA TWA DISTRICT
01-Jun-01
S I DWELL #
85 01-28-227-004
86 01-28-227-010
87 01-28-251-006
88 01-28-251-007
89 01-28-251-009
90 01-28-251-010
91 01-28-251-015
92 01-28-251-017
93 01-28-251-020
94 01-28-251-021
95 01-28-251-040
96 01-28-276-001
Lt. ,
0 97 01-28-276-006
98 01-28-276-009
99 01-28-276-011
100 01-28-276-012
101 01-28-276-015
102 01-28-276-018
CN1
,11 103 01-28-276-020
104 01-28-276-022
105 01-28-276-023
106 01-28-276-025 cs, 107 01-28-277-002
108 01-28-277-003
109 01-28-277-004
110 01-28-277-005
111 01-28-277-006
112 01-28-277-007
113 01-28-277-008
114 01-28-277-009
7-1
1-1 -
CsI
1/)
4
UPDATED 06/01/01
HOLLY DDATIFA DISTRICT
01-Jun-01
SIDWELL #
115 01-28-401-001
116 01-28-402-001
117 01-28-402-017
118 01-28-403-001
119 01-28-403-016
120 01-28-404-005
121 01-28-404-011
122 01-28-404-016
123 01-28-404-017
124 01-28-405-001
125 01-28-426-001
126 01-28426-002 Lt. , 0 127 01-28-427-001
12801-28-427-002
129 01-28-427-003
130 01-28-427-012
131 01-28-427-013
1-1
13201-28-427-015
13301-28-427-016
134 01-28-427-025
135 01-28-427-026
136 01-28-427-027
137 01-28-427-028
138 01-28-427-029
139 01-28-427-033
140 01-28-427-038
141 01-28-427-039
142 01-28-427-043
143 01-28-427-044
144 01-28-477-007 .-4
c.4
-
to
C`1
CZ
FAX 248 634 4211 VILLAGE OF HOLLY UPDATED 06/01101
HOLLY DDA TIFA DISTRICT
01-Jun-01
SIDWELL #
145 01-28-477-009
146 01-28-077-010
147 01-28-477-012
148 01-28-477-013
149 01-33-226-011
150 01-33-226-012
151 01-33-226-014
152 01-33-226-018
153 01-33-226-022
154 01-33-226-024
155 01-33-228-027
156 01-33-228-028
157 01-33-228-029
158 01-33-228-030
159 01-33-228-031
160 01-33-228-032
161 01-33-228-033
162 01-33-228-034
163 01-33-228-035
164 01-33-228-036
165 01-33-228-038
166 01-33-228-039
167 01-33-279-006
168 01-33-279-008
169 01-33-279-009
170 01-33-279-010
171 01-33-279-014
172 01-33-279-015
173 01-33-282-010
1 74 01-33-283-004
6
FAA 248 634 4211 VILLAGE OF HOLLY UPDATED 06/01/01 .
HOLLY DDA TIFA DISTRICT
01-Jun-01
SIDWELL #
175 01-33-283-005
176 01-33-283-009
177 01-33-283-010
178 01-33-283-013
179 01-33-283-014
180 01-33-426-005
181 01-33-426-008
182 01-33-426-009
183 01-33-426-010
184 01-33-427-004
185 01-33-427-005
186 01-33-427-006
187 01-33-427-007
188 01-33-427-011
189 01-33-427-013
190 01-33-433-010
191 01-33-433-011
192 01-33-433-012
193 01-33-433-013
194 01-33-433-014
195 01-33-434-004
196 01-33-434-005
197 01-33-434-006
198 01-33-434-009
199 01-33-479-004
200 01-34-101-002
201 01-34-101-003
202 01-34-101-007
203 01-34-105-004
204 01-34-105-005
7
up/u1/-zu01 Fro. 10:56 FAX 248 634 4211 VILLAGE OF HOLLY UPDATED 06/01/01
HOLLY DDA TIFA DISTRICT
01-Jun-01
SIDWELL #
205 01-34-105-006
206 01-34-105-008
207 01-34-105-010
208 01-34-105-011
209 01-34-151-001
210 01-34-151-006
211 01-34-151-007
212 01-34-151-009
213 01-34-151-010
214 01-34-151-012
215 01-34-151-013
216 01-34-151-014
217 01-34-151-015
218 01-34-151-016
219 01-34-151-025
220 01-34-151-026
221 01-34-151-031
222 01-34-151-032
223 01-34-151-035
224 01-34-151-036
225 01-34-151-040
226 01-34-151-041
227 01-34-151-042
228 01-34-151-043
229 01-34-151-044
230 01-34-151-046
231 01-34-301-001
232 01-34-301-002
233 01-34-301-003
234 01-34-301-006
8
FAX 248 634 4211 VILLAGE OF HOLLY UPDATED 06/01/01
HOLLY DDA TIFA DISTRICT
01-Jun-01
S1DWELL #
235 01-34-301-007
236 01-34-301-008
237 01-34-301-009
238 01-34-301-010
239 01-34-301-011
240 01-34-301-012
241 01-34-301-013
242 01-34-301-014
243 01-34-301-015
244 01-34-301-019
245 01-34-301-020
246 01-34-301-023
247 01-34-301-024
248 01-34-301-025
249 01-34-304-001
250 01-34-304-002
251 01-34-304-003
252 01-34-304-004
253 01-34-304-005
254 01-34-304-006
255 01-34-304-007
256 01-34-304-008
257 01-34-304-009
258 01-34-304-010
259 01-34-304-011
260 01-34-304-013
261 01-34-308-001
262 01-34-308-002
263 01-34-308-003
264 01-34-308-004
9
FAX 248 634 4211 VILLAGE OF HOLLY UPDATED 06101101
HOLLY DDA TIFA DISTRICT
01-Jun-01
SIDWELL #
265 01-34-308-005
266 01-34-308-006
267 01-34-308-007
268 01-34-308-008
269 01-34-309-001
270 01-34-309-002
271 01-34-309-003
272 01-34-309-004
273 01-34309-005
274 01-34-309-006
275 01-34-309-009
276 01-34-309-013
277 01-34-310-001
278 01-34-310-002
279 01-34-310-003
280 01-34-310-008
281 01-34-351-001
282 01-34-351-005
283 01-34-351-006
284 01-34-351-007
285 01-34-351-008
286 01-34-352-001
287 01-34-352-002
288 01-34-352-003
289 01-34-352-008
290 01-34-354-001
291 01-34-354-003
292 01-34-355-001
293 01-34-355-002
294 01-34-357-001
0
1 0
UPDATED 06/01/01
HOLLY DDA TIFA DISTRICT
01-Jun-01
SIDWELL #
295 01-34-357-002
296 01-34-357-003
297 01-34-357-004
298 01-34-358-001
299 01-34-358-003
300 01-34-358-006
301 01-34-358-007
302 01-34-358-008
303 01-34-358-009 FAX 248 634 4211 VILLAGE 1 1
E FOREGOING RESOLUTIC
3//21/4,
Eon, County Executive Date
• .0
Resolution #01067 March 8, 2001
Moved by Douglas supported by Patterson the resolution be adopted.
AYES: Brian, Causey-Mitchell, Coleman, Crawford, Dingeldey, Douglas,
Galloway, Garfield, Gregory, Law, McPherson, Melton, Millard, Moffitt, Moss,
Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Webster, Amos, Appel. (24)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution 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 March 8, 2001 with the original record
thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand ax 0 affixed the seal of the
County of Oakland at Pontiac, Michigan this .4r day/of March, ,A001.
G. William Caddell, County Clerk