HomeMy WebLinkAboutResolutions - 2005.03.23 - 27921MISCELLANEOUS RESOLUTION /05060 March 24, 2005
BY: Finance Committee, Chuck Moss, Chairperson
IN RE: BOARD OF COMMISSIONERS — PROPOSED CITY OF ROCHESTER HILLS EXPANSION OF
LOCAL DEVELOPMENT FINANCING AUTHORITY
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 (T1FAs) and Local Development Finance Authorities
(LFDAs); 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, alter, and amend DDAs, TIFAs and LFDAs, the Board of
Commissioners, pursuant to Miscellaneous Resolution #99010, established the Tax
Increment Financing (TIF) District Review Policy Ad Hoc Committee to evaluate and
recommend to the Finance Committee on the County's participation in these proposed
authorities; and
WHEREAS on February 16, 2005, the City of Rochester Hills held a public
hearing to revise (expand) its LDFA, to be coterminous with the boundaries of its
SmartZone, said expansion being the recommendation of the State Treasurer and the
Michigan Economic Development Corporation; and
WHEREAS on March 8, 2005, the City's Manager of Economic Development
met with the County's Ad Hoc Review Committee concerning the proposed LDFA
expansion; and
WHEREAS the Ad Hoc Review Committee raised a number of issues, including
but not limited to, the following:
(1) Whether the capture of taxes in this proposed expansion would be
used for the LDFA (in which case the County may exempt its taxes
from capture) or for the certified technology park (or SmartZone), (in
which case the County may not exempt its taxes from capture)?
(2) Whether the County's Department of Economic Development had had
an opportunity to review the proposed expansion and apply the criteria
established by the Ad Hoc Committee for LDFA's, pursuant to
Miscellaneous Resolution 04239?
(3) What is the estimated County tax capture?
(4) Other questions relating to the proposed development plan; and
WHEREAS the LDFA Act as amended and specifically MCL 125.2154(3)
authorize the governing body of a taxing jurisdiction with millage that would otherwise
be subject to capture by the LDFA to exempt its taxes from capture by adopting, not
more than 60 days after the municipality's public hearing, a resolution to that effect and
filing a copy with the clerk of the municipality; and
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote with Melton absent.
WHEREAS MCL 125.2154(3) further states that the resolution remains effective
until a copy of a resolution rescinding it is filed with the municipality's clerk; and
WHEREAS the statutorily mandated 60-day time period within which the County
must act to preserve any rights to exempt its taxes from capture force the County to
make its exemption determination before the Ad Hoc Review Committee can complete
its review; and
WHEREAS the Ad Hoc Review Committee is faced with the legal mandate that
the County act on the tax exemption issue within 60 days of February 16, 2005.
NOW THEREFORE BE IT RESOLVED that pursuant to MCL 125.2154(3), the
Oakland County Board of Commissioners hereby exempts County taxes from capture
by the City of Rochester Hills LDFA expansion.
BE IT FURTHER RESOLVED that if, after further review of the City's LDFA
expansion project by the Ad Hoc Review Committee, the Committee finds it appropriate
to rescind the tax capture exemption, this recommendation will be brought back to the
Board of Commissioners.
BE IT FURTHER RESOLVED that a copy of this resolution be sent to the
Rochester Hills City Clerk.
Chairperson, on behalf of the Finance Committee, I move adoption of the
foregoing resolution.
FINANCE COMMITTEE
Resolution #05060 March 24, 2005
Moved by Moss supported by Douglas the resolution be adopted.
AYES: Crawford, Douglas, Gershenson, Gregory, Hatchett, Jarnian, Kowall, Long, Melton,
Middleton, Molnar, Moss, Nash, Palmer, Patterson, Potter, Rogers, Scott, Suarez, Wilson,
Woodward, Zack, Bullard, Coulter. (24)
NAYS: None. (0)
A sufficient majority having voted therefore, the resolution was adopted.
I HEREBY APPROVE THE FCSEGOING
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, 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 24, 2005
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 24th day of March, 2005.
Ruth Johnson, JohItOt,--County Clerk