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HomeMy WebLinkAboutResolutions - 2003.04.17 - 27043MISCELLANEOUS RESOLUTION #103081 BY: Finance Committee, Chuck Moss, Chairperson IN RE; TREASURER'S OFFICE — POLICY FOR COUNTY PARTICIPATION IN DOWNTOWN DEVELOPMENT AUTHORITIES (DDAs) AND LOCAL DEVELOPMENT FINANCE AUTHORITIES (LDFAs) WITH TAX INCREMENT FINANCING 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 this economic growth is Tax Increment Financing, used in conjunction with Downtown Development Authorities (DDAs), and Local Development Finance Authorities (LDFAs); and WHEREAS twenty-eight (28) of the County's cities, villages and townships are using tax increment financing as a tool to promote their economic growth; and WHEREAS the Board of Commissioners, through adoption of Miscellaneous Resolutions #90144, #97157, #99010, #01002, and #01193, established the current Oakland County Tax Increment Financing Program, including 1994 legislative amendments allowing the County to exempt its property taxes from capture by any newly created or expanded Tax Increment Financing District; and WHEREAS the original intent of the law was to address the needs of downtown commercial areas; however, the imprecise language in the law allows communities to establish questionable districts with Tax Increment Financing; and WHEREAS to ensure adherence to the original intent of the law, the County intends to exercise its prerogatives of negotiation and, if necessary, opt- out option by adopting the attached amended policy for future consideration of County participation in Tax Increment Financing; and WHEREAS the proposed policy is supported by the County Executive and the Tax Increment Financing District Review Policy Ad Hoc Review Committee. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners adopts the attached Policy for County Participation in Downtown Development Authorities (DDAs) and Local Development Finance Authorities (LDFAs) with tax increment financing. BE IT FURTHER RESOLVED that the Oakland County Parks and Recreation Commission continue to be advised of any proposed Downtown Development Authorities (DDAs) and Local Development Finance Authorities (LDFAs) with tax increment financing during the negotiating process. Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing resolution. FINANCE COMMITTEE Motion carried unanimously on a roll call vote. MR #03 - POLICY FOR COUNTY PARTICIPATION IN DOWNTOWN DEVELOPMENT AUTHORITIES WITH TAX INCREMENT FINANCING I. DECLINING PROPERTY VALUES As part of the rationale for establishing a DDA or LDFA, the law requires a finding of a decline in property value of a significant number of parcels. The requesting community must demonstrate declining property values and present its case to the Ad Hoc Review Committee. The County Equalization Division will review the community's findings regarding declining property values and may conduct an independent analysis for the Ad Hoc Review Committee. II. PERFORMANCE STANDARDS The following performance standards are established as guidelines for evaluating (1) new DDA/LDFA with TIF requests, and/or (2) requests for expansion of area boundaries by an existing DDA/LDFA with TI F: 1. Adopt/Amend a Downtown Management Plan based upon the "Main Street 4 Point Approach" of Organization, Promotion, Design and Economic Restructuring. 2. Adopt/Amend Community Master Plan to accurately incorporate the Downtown (DDA) Plan. 3. Commit to actively work with County staff and resources to seek "Main Street Oakland County" status. 4. Utilize all (100%) of TIF Revenue for redevelopment efforts, i.e., those activities specifically authorized within the Act, including operating expenses of the DDA/LDFA. 5. Utilize the Oakland County Planning and Economic Development Division's Downtown Development Database Geographic Information System (GIS) to measure the annual and cumulative, since inception of the DDA, performance and effectiveness. The following economic development activities within and around the boundaries of the DDA district will be measured by the GIS System: a. Building Rehabilitation, including number and square footage b. Facade Rehabilitations, including number and cost c. New Construction, including number and square footage of buildings d. Adaptive Reuse of Existing Buildings e. New Businesses Created f. Average Cost Per Business Created g. Business Retention h. Business Expansion i. Job Creation, including: I) Management/Administrative, 2) Professional, 3) Retail, 4) Office, 5) Service j. Private and Public Investment k. Increase in tax base as measured by State Equalized Value (SEV) and State Taxable Value (SW) Ratio of Reinvestment into the Downtown District (The average number of dollars generated in the Downtown, District for every dollar - TIF, Millege, Special Assessment and/or Local Budget Contribution- used to implement the downtown development plan. 6. The plan shalt include an expiration date for the proposed district, or, if an amendment, it shall incorporate an expiration date for the amended district or total district. 7. Acknowledgement and disclosure by the requesting community that it is aware of the impact on any voted millage. 8. Require disclosure of any agreements or proposed agreements that would alter the amount of lawfully captured revenue from other sources. 9. Supplement TIF Revenue with DDA Millage (up to 2 mills), Special Assessment and/or designate Municipal Budget Contributions to demonstrate local commitment and funding for the downtown development program. 10. A historic, traditional, commercial business district including uses such as commercial, retail, office, public/civic, multi-family and mixed-use with upper floor housing, should comprise the majority of the land area within the proposed district. 11. The land area within the proposed district (planned or existing) devoted solely for single family residential use should be limited. In addition, any single family residential development (planned or existing) within the proposed district must support, contribute to and compliment the business district. 12. The application community must demonstrate, through financial projections, a positive return on the investment of county incremental taxes proposed for capture. The Ad Hoc Review Committee may request the County Equalization Division conduct a review of the applicant's projections. These performance standards are guidelines to assist the County in its review of a municipality's plan. They are not determinative of the County's decision whether or not to participate in the Tax Increment Financing of a DDA/LDFA. The County may determine to "opt out" or may negotiate a contractual arrangement with the municipality to share a portion of the captured tax revenue of a district for specified project plans, for a specified period of years, or for whatever purpose the County deems appropriate. REPORT (MISC . #03081) BY: Tax Increment Financing District Review Policy Ad Hoc Review Committee, Pat Dohany, Chairperson IN RE: Policy for County Participation in Downtown Development Authorities with Tax Increment Financing To the Finance Committee Chairperson, Ladies and Gentlemen: On February 27, 2003, the Finance Committee postponed action on proposed changes to the County's Policy for Participation in Downtown Development Authorities with Tax Increment Financing to allow for additional input and further review of the policy by the Ad Hoc Committee. The Tax Increment Financing District Review Policy Ad Hoc Review Committee, having met on Thursday, April 3, 2003, for this purpose, reports with the following recommended changes to the Policy: I. DECLINING PROPERTY VALUES As part of the rationale for establishing a DDA or LDFA, the law requires a finding of a decline in property value of a significant number of parcels. The requesting community must demonstrate declining property values and present its case to the Ad Hoc Review Committee. The County Equalization Division will review the community's findings regarding declining property values and may conduct an independent analysis for the Ad Hoc Review Committee. T.140-e.cmatly-A444-4.4641-04:143-4;* emaorienGiRg-a-G164444i444,214410:r II. PERFORMANCE STANDARDS The following performance standards are established as guidelines for evaluating (1) new DDA/LDFA with TIF requests, and/or (2) requests for expansion of area boundaries by an existing DDA/LDFA with TIF: 1. Adopt/Amend a Downtown Management Plan based upon the "Main Street 4 Point Approach" of Organization, Promotion, Design and Economic Restructuring. (.144441,31444;40). 2. Adopt/Amend Community Master Plan to accurately incorporate the Downtown (DDA) Plan. 44444 1.411.6144-.24) 3. Commit to actively (WORK WITH COUNTY STAFF AND RESOURCES TO) seek "Main Street Oakland County" status (eRs1-14€4741ae.r.s.h.i.p.).. (Rsiatalatwai-24). 4. Utilize all (100%) of T1F Revenue for redevelopment efforts, i.e., those activities specifically authorized within the Act, including operating expenses of the DDA/LDFA. (44i424-1.41u4N-413)- 5.(F.calatoy. UTILIZE) the Oakland County Planning and (ECONOMIC) Development Division's Downtown Development Database Geographic Information System (GIS) to measure the annual and cumulative, since inception of the DDA, performance and effectiveness. The following economic development activities within and around the boundaries of the DDA district will be measured by the GIS System: (Poin4-444,14.-24)- a. Building Rehabilitation, including number and square footage b. Facade Rehabilitations, including number and cost c. New Construction, including number and square footage of buildings d. Adaptive Reuse of Existing Buildings e. New Businesses Created f. Average Cost Per Business Created g. Business Retention h. Business Expansion Job Creation, including: 1) Management/Administrative, 2) Professional, 3) Retail, 4) Office, 5) Service j. Private and Public Investment k. Increase in tax base as measured by State Equalized Value (SEV) and State Taxable Value (SW) Ratio of Reinvestment into the Downtown District (The average number of dollars generated in the Downtown, District for every dollar - TIF, Miliege, Special Assessment and/or Local Budget Contribution- used to implement the downtown development plan. (6. THE PLAN SHALL INCLUDE AN EXPIRATION DATE FOR THE PROPOSED DISTRICT, OR, IF AN AMENDMENT, IT SHALL INCORPORATE AN EXPIRATION DATE FOR THE AMENDED DISTRICT OR TOTAL DISTRICT.) (7. ACKNOWLEDGEMENT AND DISCLOSURE BY THE REQUESTING COMMUNITY THAT IT IS AWARE OF THE IMPACT ON ANY VOTED MILLAGE. ) (8. REQUIRE DISCLOSURE OF ANY AGREEMENTS OR PROPOSED AGREEMENTS THAT WOULD ALTER THE AMOUNT OF LAWFULLY CAPTURED REVENUE FROM OTHER SOURCES.) 4aia.44J-14upts 6114;Iii Performance Standards, 6.9. Supplement TIF Revenue with DDA Millage (up to 2 mills), Special Assessment and/or designate(44 m)unicipal Budget Contributions to demonstrate local commitment and funding for the downtown development program. (Rolat-Valkow-26). A historic, traditional, commercial business district (INCLUDING USES SUCH AS COMMERCIAL, RETAIL, OFFICE, PUBLIC/CIVIC, MULTI-FAMILY, AND MIXED-USE WITH UPPER FLOOR HOUSING) should comprise the majority of the land area within the proposed district. a. 11. The land area within the proposed district (planned or existing) devoted solely for single family residential use should be limited. (IN ADDITION, ANY SINGLE FAMILY RESIDENTIAL DEVELOPMENT (PLANNED OR EXISTING) WITHIN THE PROPOSED DISTRICT MUST SUPPORT, CONTRIBUTE TO, AND COMPLIMENT THE BUSINESS DISTRICT.) A. 120 Points - 25 Years 406--laciii4s-241--Year-s S0-Izaii4s-46--Year-s 6.0-4aolats-46--Years 40-124446-5--Years (12. THE APPLICANT COMMUNITY MUST DEMONSTRATE, THROUGH FINANCIAL PROJECTIONS, A POSITIVE RETURN ON THE INVESTMENT OF COUNTY INCREMENTAL TAXES PROPOSED FOR CAPTURE. THE AD HOC REVIEW COMMITTEE MAY REQUEST THE COUNTY EQUALIZATION DIVISION CONDUCT A REVIEW OF THE APPLICANT'S PROJECTIONS.) These performance standards are guidelines to assist the County in its review of a municipality's plan. They are not determinative of the County's decision whether or not to participate in the Tax Increment Financing of a DDA/LDFA. The County may determine to "opt out" or may negotiate a contractual arrangement with the municipality to share a portion of the captured tax revenue of a district for specified project plans, for a specified period of years, or for whatever purpose the County deems appropriate. Chairperson, on behalf of the Tax Increment Financing District Review Policy Ad Hoc Review Committee, I move acceptance of the Policy for County Participation in Downtown Development Authorities with Tax Increment Financing, with the recommended amendments. TAX INCREMENT FINANCING DISTRICT REVIEW POLICY AD HOC REVIEW COMMITTEE TIFA DISTRICT REVIEW POLICY AD HOC REVIEW COMMITTEE Vote: Motion carried on a voice vote. FOREGOING rson, Cow- Executive 7111110.111.141...• .6.1XMI.1,111.1n141.00 2g-79,3 Datq G. William Caddell, County Clerk Resolution #03081 April 17, 2003 Moved by Moss supported by Palmer the resolution be adopted. AYES: Coulter, Douglas, Gregory, Hatchett, Jamian, Knoilenberg, Law, Long, McMillin, Middleton, Moffitt, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Zack, Bullard, Coleman, (21) NAYS: None. (0) A sufficient majority having voted therefore 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 April 17, 2003, 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 17th day of April, 2003.