HomeMy WebLinkAboutResolutions - 2004.09.09 - 27739MISCELLANEOUS RESOLUTION #04239 September 9, 2004
BY: Finance Committee, Chuck Moss, Chairperson
IN RE: TREASURER'S OFFICE - POLICY FOR COUNTY PARTICIPATION IN LOCAL
DEVELOPMENT FINANCE AUTHORITIES (LDFA's) 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 use Tax Increment Financing as a tool to promote their economic
growth; and
WHEREAS the Board of Commissioners, through adoption of Miscellaneous
Resolutions No. 90144, No. 97157, No. 99010, No. 01002, and No. 01193,
established the current Oakland County Tax Increment Financing program; and
WHEREAS pursuant to Miscellaneous Resolution 03081, this Board of
Commissioners approved a revised policy for County participation in Downtown
Development Authorities with Tax Increment Financing and noted that a similar
policy should be established for County participation in Local Development
Finance Authorities; and
WHEREAS an LDFA is empowered to develop plans and acquire and construct
public facilities for the purpose of encouraging local development so as to
prevent conditions of unemployment and underemployment; and
WHEREAS upon recommendation by the Tax Increment Financing District
Review Policy Ad Hoc Review Committee (Ad Hoc Committee), the proposed policy
should be applied in circumstances in which the County is considering
participation in LDFAs with Tax Increment Financing.
NOW THEREFORE BE IT RESOLVED that the Oakland County of Commissioners,
upon recommendation of the Ad Hoc Review Committee, hereby adopts the
attached policy for County participation in Local Development Authorities
(LDFAs) with Tax Increment Financing.
Chairperson, on behalf of the Finance Committee, I move the adoption of
the foregoing resolution.
FINANCE COMMITTEE
( ,420
FINANCE COMMITTEE:
Motion carried unanimously on a roll call vote.
POLICY FOR COUNTY PARTICIPATION IN
LOCAL DEVELOPMENT FINANCE AUTHORITIES
WITH TAX INCREMENT FINANCING
Overview:
Public Act 281 of 1986 was promulgated to encourage local development to prevent
conditions of unemployment and promote economic growth. Known as the Local
Development Financing Act, its purpose is to help municipalities create jobs, address
issues of unemployment, underemployment and joblessness, and to create jobs and
promote economic growth in municipalities throughout the state.
LDFAs may be created in areas with "eligible properties" whose primary purpose or land
use is or will be among the following: manufacturing, agricultural processing, high tech
activity, and production of energy by small power production facility (primarily fueled by
biomass or wood waste).
A recent amendment to the Local Development Financing Act includes provisions for
certified business parks as defined by the Michigan Economic Development
Corporation.
Performance Standards:
The following performance standards are established as guidelines for evaluating new
LDFAs with Tax Increment Financing requests and requests for expanded LDFAs with
Tax Increment Financing:
1. The applicant must demonstrate the number and type of jobs to be
retained and/or created.
2. The applicant must demonstrate, through financial projections, a positive
return on investment of County incremental taxes proposed for capture. If
applicable, include real and personal property, and any non-TIF sources to
be leveraged. The Ad Hoc Review Committee may request the County
Equalization Division to conduct a review of the applicant's projections.
3. The applicant must adopt/amend its Community Master Plan to accurately
incorporate the LDFA plan.
4. The plan must 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.
5. The requesting community must acknowledge and disclose that it is aware
of the impact on any voted millage.
3
6. The applicant shall establish a business retention effort to support
businesses.
7. The applicant shall consider supporting use of the Michigan Economic
Growth Authority program on projects in the district, if appropriate.
8. The applicant shall promote to investors in the district the Oakland County
Economic Development Corporation and the Oakland County Business
Finance Corporation.
9. The requesting community must provide annual reports to Oakland
County Planning and Economic Development on the progress of the
district.
These performance standards are guidelines to assist the County in its review of a
municipality's LDFA plan. They are not determinative of the County's decision whether
or not to participate in the Tax Increment Financing of an LDFA. The County may
determine to "opt out" as permitted by law, 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.
I HBEBY MEM FOREGOING RESOLUTION
7// 7/0y
Resolution #04239 September 9, 2004
Moved by KowaII supported by Zack the resolutions on the Consent Agenda be adopted (with
accompanying reports being accepted).
AYES: Coulter, Crawford, Douglas, Gregory, Jamian, Knollenberg, KowaII, Law, Long, McMillin,
Middleton, Moss, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Webster, Wilson, Zack,
Bullard. (22)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolutions on the Consent Agenda were adopted (with
accompanying reports be accepted).
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 September
9th, 2004 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 9th day of September, 2004.
G. William Caddell, County Clerk