Loading...
HomeMy WebLinkAboutResolutions - 2003.07.31 - 27169MISCELLANEOUS RESOLUTION /03181 July 31, 2003 BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON IN RE: BOARD OF COMMISSIONERS - PROPOSED CITY OF WIXOM 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 one of the tools used to promote this economic growth is tax increment financing in the form of Downtown Development Authorities (DDAs), Tax Increment Finance Authorities (TIFAs), and Local Development Finance Authorities (LDFAs); and WHEREAS 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 #99010, established the Tax Increment Financing District Review Policy Ad Hoc Committee (Ad Hoc Committee) to evaluate and recommend to the Finance Committee on the County's participation in these proposed authorities; and WHEREAS on July 23, 2002, the City of Wixom held a public hearing to consider the adoption of a proposed amendatory ordinance for the expansion of its Downtown Development Authority boundaries. In accordance with Section 3(4) of Act 197 in September, 2002, the County adopted Miscellaneous Resolution #02206 indicating that the County would exempt its ad valorem property taxes from capture pending resolution of certain issues; and WHEREAS subsequent to the events of July and September, 2002, outlined above, Wixom amended its DDA proposal and held another public hearing on April 8, 2003, concerning this amendment. Pursuant to Miscellaneous Resolution #03123, the County again determined to exempt its taxes from capture by the City of Wixom DDA; and WHEREAS throughout the time frames detailed above, the DDA, Wixom, and the County had numerous meetings and discussions concerning the County's participation in the DDA's development plan and tax increment financing plan. Based upon these meetings and discussions, Wixom and the DDA eliminated certain lands from the original DDA proposal (i.e., the plan from July, 2002), and altered these plans in accordance with the County's recommendations. The revised boundaries and other amendments to the July, 2002 plan were presented to the County on May 6, 2003; and WHEREAS although Miscellaneous Resolution #03123 referenced the County's decision to " opt out" of the April, 2003 plan, it also evidenced the County's willingness to negotiate a contract with Wixom and the DDA for the County's participation in the revised plan from July, 2002; and WHEREAS upon further review and successful contract negotiations with Wixom and the DDA,the Ad Hoc Review Committee now recommends participation in the proposed amendatory DDA plan from July 2002, as set forth in the attached agreement. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby rescinds Miscellaneous Resolution #02206. BE IT FURTHER RESOLVED that the Board of Commissioners authorizes the County's limited participation in the City of Wixom's amended July, 2002, DDA plan as set forth in the attached agreement and accompanying maps and exhibits. Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing resolution. FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Suarez absent. AGREEMENT BETWEEN THE COUNTY OF OAKLAND THE CITY OF WIXOM AND THE CITY OF WIXOM DOWNTOWN DEVELOPMENT AUTHORITY THIS AGREEMENT is entered into this day of ,2003 between the COUNTY OF OAKLAND ("County") 1200 N. Telegraph Road, Pontiac, Michigan 48341, the CITY OF WIXOM ("Wixom") 49045 Pontiac Trail, Wixom, Michigan 48393, and the CITY OF WIXOM DOWNTOWN DEVELOPMENT AUTHORITY ("DDA") 49045 Pontiac Trail, Wixom, Michigan 48393. In this Contract, the County, DDA and Wixom 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 Downtown Development Authorities when it is necessary for the best interests of the public to halt property deterioration and increase property tax valuation where possible within defined business districts. One of the purposes for creating Downtown Development Authorities is to permit municipalities to finance public improvements in designated areas by capturing the property taxes levied on any increase in property values within the areas; this is commonly referred to as tax increment financing. Section 3(4) of Act 197 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. However, Section 14(4) of Act 197 provides that Downtown Development Authorities may enter into agreements with taxing jurisdictions and the municipality establishing the Downtown Development Authority to share a portion of the captured assessed value of the district. On July 23, 2002, Wixom held a public hearing to consider the adoption of a proposed amendatory ordinance for the expansion of its Downtown Development Authority boundaries. In accordance with Section 3(4) of Act 197 in September, 2002, the County adopted Miscellaneous Resolution No. 02206 indicating that the County would exempt its ad valorem property taxes from capture pending resolution of certain issues. This resolution was then filed with the City Clerk. Subsequent to the events of July and September, 2002, outlined above, Wixom amended its DDA proposal and held another public hearing on April 8, 2003 concerning this amendment. Pursuant to MR 03123, the County again determined to exempt its taxes from capture by the City of Wixom DDA. Throughout the time frames detailed above, the DDA, Wixom and the County had numerous meetings and discussions concerning the County's participation in the DDA's Development Plan and Tax Increment Financing Plan. Representatives from the City had a 7, series of productive meetings with staff from the County's Department of Community and Economic Development. Wixom also met with the County's Ad Hoc DDA TIFA/LDFA — TIFA Review Committee. Based upon these meetings and discussions, Wixom and the DDA eliminated certain lands from the original DDA proposal (i.e., the plan from July, 2002), and altered these plans in accordance with the County's recommendations. The revised boundaries and other amendments to the July, 2002, plan were presented to the County on May 6, 2003. Although MR 03123 referenced the County's "opt out" of the April, 2003 plan, it also evidenced the County's willingness to negotiate a contract with Wixom and the DDA for the County's participation in the revised plan from July, 2002. Accordingly, what follows sets forth the Agreement between Wixom, the DDA and the County as to the revisions to the July, 2002, DDA proposal. Throughout all of the discussions and meetings detailed in this document, the Parties agreed that this Agreement would include complete capture of County millage and that no County tax capture would be used for the infrastructure portions of the DDA projects, as detailed in Exhibit "C", Item 4. NOW, THEREFORE 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. Unless otherwise agreed, 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 2003 (i.e., County's portion of tax increment revenue). The amount captured shall not exceed nine million one hundred ninety-eight thousand three hundred sixty-seven ($9,198,367) dollars or be captured beyond twenty- five (25) years, whichever comes first. Thereafter, 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. The County's portion of tax increment revenue shall be based upon the 2003 taxable value of the properties listed in Exhibit "B" and such revenue shall be limited and applied to the funding necessary for the DDA projects listed on Exhibit "C" and as set forth on the maps prepared by the County's Department of Planning and Economic Development, attached, and made part of this Agreement (Exhibit "D"). The DDA's capture of County 2 millage will be complete, including Parks and Recreation; however, no County tax capture shall be used for sewer infrastructure portions of the DDA projects. 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 Project, with the Oakland County Board of Commissioner's Finance Committee on an annual basis during the term of this Agreement. The DDA shall allow the auditing division of the County of Oakland to perform financial and compliance audits as appropriate and access to all records relating to the Project throughout the term of this Agreement and for a period of three (3) years thereafter. To facilitate this audit, the DDA shall have financial and compliance records available to the County within 120 days of the end of the DDA's fiscal year. 4. Wixom agrees to continue to capture its city tax rate plus the 2 mills designated on property within the DDA for the duration of this Agreement. 5. Wixom acknowledges that it is aware of the impact of any voted millages affecting this Agreement. 6. Wixom acknowledges that it is not currently party to, or proposing any agreements that would alter the amount of lawfully captured revenue from sources other than Oakland County; furthermore, Wixom agrees to disclose any such proposed agreements to the County's Ad Hoc Review Committee before entering into them. If such an arrangement is contemplated by Wixom, the County reserves the right to reconsider its participation in the tax capture set forth in this Agreement. 7. Any 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 DDA Project List attached as Exhibit "C" shall be submitted to the County's Ad Hoc DDA-TIFA/LDFA-TIFA Review Committee for review. The County may "opt out" of any future modifications or amendments impacting tax capture as provided by law. 3 Date: _ (2002-0605) , 2003. 8. The County's participation in the DDA's Development Plan and Tax Increment Financing Plan will terminate in either 25 years or when the County tax capture amount of $9,198,367 is reached, whichever comes first; thereafter, the County's portion of ad valorum property that would otherwise be subject to capture will be exempt from further capture by the DDA. The County, Wixom 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. City of Wixom Downtown Development Authority By: Eugene Boilore, Chairperson J. Michael Dornan, Executive Director Date: ,2003. City of Wixom, a Municipal Corporation By: Michael McDonald, Mayor Linda Kirby, Clerk Date: ,2003. County of Oakland, a Municipal Corporation By: Thomas A. Law, Chairperson G. William Caddell. County Clerk 4 VILLAGE CENTER AREA DDA PROJECTS LIST (Revised 5/01/03) 1. Update VCA Master Plan and Prepare Promotional Materials* It is the City/DDA's intent to develop a fully integrated mixed use, pedestrian-oriented new urbanism styled Village Center Area. To that end, the following planning and study projects are needed. • Retail Market Study. A retail market study is needed to determine the extent of commercial space supportable within the DDA District. Study would entail performing a market analysis to determine the market size, providing additional detail regarding site information, identifying commercial and retail opportunities and the development of a marketing strategy and tenant mix. • Conceptual Design Guidelines. Design guidelines are needed as a tool to encourage guided development and building patterns along each of the VGA Corridors and will enable the City to direct the design and appearance of new construction and renovation to take place in the future. Additionally, the Streetscape Design Standards will be reviewed, evaluated and changes recommended by both the City and developer as needed. • Village Center Area Concept Plan Updating. The current concept plan is to be reviewed and revised to reflect the results of the marketing study, incorporation of existing and planned utility work, current physical and economic conditions and solicited input. City of Wixom DDA/TIFA Proposal April 3, 2003 • Promotipnal Materials. The preparation of marketing materials that can be presented to developers, retailer and real estate firms promoting the Wixom downtown market is needed. This may include brochures, exhibits, trade area data and an animated, virtual Village Center Area tour. 2. VCA Property Acquisition * Property acquisition will be a necessary part of the development projects contained herein including, but not limited to, road improvements, storm water facilities, parking development, locating the senior citizen housing, and future development opportunities. This item is not intended to subsidize private development property acquisition requirements. 3. VCA Road Improvements The following road improvements are needed to ensure proper access into and around the Village Center Area: • Pontiac Trail Road Improvements (boulevard, entrance, and signali.zation for VCA). Road and signalization improvements are needed along Pontiac Trail to accommodate the Village Center Area. Since this is the main entrance into the downtown, a formal and appealing entryway is needed. • Construct a Village Center Boulevard. A north-south roadway will be constructed by private development from Pontiac Trail north to the proposed Gunnar Mettala Lane. This will be the main street through downtown and create the primary vehicular and pedestrian connection into and through the downtown area. Funds provided for under this item will be used to expand and enhance the roadway such that a boulevard is created and community expectations are met. • Irfixom Road Improvements (boulevard 6, signalkation). Per the VGA concept plan, a boulevard and signal are proposed for Wixom Road, north of Pontiac Trail. These improvements will allow Wixom Road to accommodate additional traffic volumes to be created by the Village Center development as well as address the transportation concerns expressed through various regional traffic planning studies (i.e. West Oakland Corridor Study. • Construction of Gunnar Mettala Lane (boulevard & Streetscape improvements). An east-west roadway will be constructed, in conjunction with private development, through the VGA, north of Coe Rail, from Wixom road to Gunnar Mettala Park. This road will be the primary east-west thoroughfare through the development and will provide access to the residential areas of the VGA. It is tentatively named Gunnar Mettala Lane since it will culminate at Gunnar Mettala Park. DDA funding will provide for expansion and construction of a boulevard roadway. Other anticipated improvements include streetscape amenities, such as brick pavers and decorative street lights. 4. VCA Detention Facilities and Storm Drain Improvements The commercial business district will be supported by a series of storm water detention facilities at a single location within the development. Additionally, the areas surrounding the storrnwater facilities will be improved with landscaping and other amenities to support the downtown activities and promotional events including outdoor concerts, festivals, fairs, etc. Funding for this program component will City of Wixom DDA/TIFA Proposal April 3, 2003 be derived from City tax capture as well as a 2 mill levy, and not funds generated from County tax capture. 5. Streetscape Improvements; Signalization and Signage. Coordinated streetscape improvements will be needed throughout the VCA to achieve the desired traditional look for the project. This will include items such as brick pavers, street trees, lights, benches, waste receptacles, etc. To enhance the visual appearance of the VGA and help direct traffic flow, traffic signals and sign improvements are needed. Entryway signs will help draw people into the downtown while banners and location direction signs will create interest and help direct people to specific locations, including parking areas. Areas where streetscape improvements will be needed are as follows: • Johanna Ware Stnetscape Improvements. As the proposed Johanna Ware bypass enters the downtown, it will be necessary to provide added pedestrian lighting, landscaping and streetscape improvements along the downtown portion of the thoroughfare. Actual road construction would be paid for using other federal, state and local funding sources. DDA funds will supplement and pay for those items not covered by the road construction funds. • Wixom Road Streetscape*. The Wixom Road Streetscape will continue the theme created by the Johanna Ware Streetscape Improvements. • Pontiac Trail Streetscape. Similar to the proposed Johanna Ware and Wixom Road Streetscape Improvements, the Pontiac Trail Streetscape Improvements will continue the theme easterly past the civic complex and the entry to the Village Center Area business district. • Village Center Boulevard Streetscape. Similar to the above, this item will include limited streetscape improvements such as decorative pole lighting, benches, rubbish containers and landscaping. 6. Parking Facilities To adequately accommodate parking that will be needed for the variety of residential, commercial and institutional uses, both surface and deck parking will be needed for the Village Center Area (VCA). Costs provided include the near-term construction of a parking lot and a future parking structure. 7. Non-Motorized Paths* The City is already in the process of designing and securing additional financing for a network of non-motorized paths throughout the City of Wixom, which would permit residents to walk or ride to downtown. This is a critical component in the viability of the business area. A key feature will be the incorporation, if feasible, of the Coe Railroad Corridor within these plans. 8. VCA Park Improvements A series of pocket parks will be developed throughout the VCA, in keeping with the traditional character of the project. Improvements will be needed including items such as gazebos, benches, play equipment, paths, fountains, clocks, etc. It is also anticipated that Coe Rail will be used to encourage access to the Village Center since it dissects the project area. City of Wixom DDA/TIFA Proposal April 3, 2003 9. Bury Utility Lines on Primary Roads At present, above ground utility lines are found on major thoroughfares such as Wixom Road and Pontiac Trail. These lines will be buried underground to enhance the appearance of the VCA District area and to increase the reliability of the distribution systems and eliminate the potential conflicts associated with overhead distribution systems. *Denotes prior inclusion or inclusion of portions thereof in DDA Plan City of Wixom Proposed DDA District and Conceptual Land Use LII Single Family 11.4% ("corrected for non-buildable areas) Multiple Family 9% Commercial/Office 19% Public/Institutional 17% Recreation & Conservation 40% I=1 Proposed ODA Boundary 1 9% 17% 19% 1111111 0 4 11'' , 3.6% 011 V 11.4% 265 acres 41110=m LSL- Larocavoto nuutt IABLINC Assourarax 530 Feel Data Sources Oakland County, City of Wixom, and LSL Planning "District is based upon comments received horn the Oakland County Community & Economic Development Department on 4/11/03 City of Wixom Proposed DDA District Index Section 31 1732301019 1732351024 2205105012 1731476018 1732301031 1732376011 2205105013 1731476031 1732301034 1732401004 2205106017 1731477001 1732326001 1732502004 2205106018 1731477002 1732326002 2205106020 1731477003 1732326003 Secdcn 5 2205106022 1731477006 1732351001 2205101001 2205106023 1731477007 1732351002 2205101015 2205126007 1731477008 1732351003 2205101018 2205126011 1731477009 1732351006 2205101019 2205126012 1731477010 1732351007 2205101021 1731478006 1732351008 2205101026 Sechal6 1731502007 1732351009 2205101028 2206200034 1732351010 2205101029 2206200035 Section 32 1732351011 2205102001 2206200036 1732176017 1732351012 2205103003 1732176024 1732351013 2205103004 1732176029 1732351014 2205103007 1732301011 1732351018 2205105001 1732301013 1732351019 2205105002 1732301015 1732351020 2205105007 1732301016 1732351021 2205105008 1732301017 1732351023 2205105011 1Feet 0 250 500 1,000 Dale June 20 2003 I MY APPROVE DE MON / wooy G. William Caddell, County Clerk Resolution #03181 July 31, 2003 Moved by Moffitt supported by Potter the resolution be adopted. AYES: Crawford, Douglas, Gregory, Hatchett, Jamian, Knollenberg, KowaII, Law, Long, McMillin, Middleton, Moffitt, Palmer, Potter, Rogers, Scott, Webster, Wilson, Zack, Bullard, Coleman, Coulter. (22) NAYS: None. (0) A sufficient majority having voted therefore, the resolution was adopted. 011.1.n 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 July 31, 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 ,gounty of Oakland at Pontiac, Michigan this 31st day of July, 2003.