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HomeMy WebLinkAboutResolutions - 2006.07.20 - 28157MISCELLANEOUS RESOLUTION # 06 134 July 20, 2006 BY: Finance Committee, Chuck Moss, Chairperson IN RE: TREASURER'S OFFICE — POLICY FOR COUNTY PARTICIPATION IN CORRIDOR IMPROVEMENT AUTHORITIES (CIA'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 (DDA's) and Local Development Finance Authorities (LDFA's); and WHEREAS Public Act No. 280 of 2005; MCL 125.2871, et seq., provides for the establishment of Corridor Improvement Authorities (CIA's) pursuant to the Corridor Improvement Authority Act; and WHEREAS twenty-eight (28) of the cities, villages, and townships in Oakland County use 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; and WHEREAS pursuant to MR #03081 and MR #04239, respectively, this Board of Commissioners approved policies for County participation in Downtown Development Authorities with Tax Increment Financing and Local Development Finance Authorities with Tax Increment Financing; and WHEREAS the Corridor Improvement Authority Act is designed to allow municipalities to redevelop commercial corridors and thereby promote economic growth in these areas; and WHEREAS upon recommendation by the Tax Increment Financing District Review Policy Ad Hoc Review Committee (Ad Hoc Committee), a similar policy for County participation should be applied in circumstances in which the County is reviewing CIA's with Tax Increment Financing. Further, the Department of Planning & Economic Development Services has developed criteria for this purpose. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners, upon recommendation of the Ad Hoc Review Committee, hereby adopts the attached policy for County participation in Corridor Improvement Authorities (CIA's) with Tax Increment Financing. Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINANCE COMMITTEE FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Palmer and Woodward absent. Corridor Improvement Authority Act No. 280 of 2005 Performance Standards for Ad Hoc TIF Committee consideration Listed below are ten PERFORMANCE STANDARDS being suggested for your consideration for the review of requests to establish Corridor Improvement Authorities utilizing TIE 1. The CIA should be required to demonstrate compliance with the seven development area criteria described in the Act and further defined by the Oakland County Board of Commissioners. Communities must provide a written explanation of how they meet each criterion with supporting maps where available. 1. Be adjacent to an arterial or collector road—Parcels included in the CIA development area must be abutting the arterial or collector road as defined by the Federal Highway Administration. If additional parcels are to be included, the applicant must demonstrate their contribution and adherence to the remaining criteria. 2. Contain at least 10 contiguous parcels or at least 5 contiguous acres 3. More than 1/2 of existing ground floor square footage is commercial real property 4. Residential, commercial, or industrial use has been allowed and conducted for the last 30 years 5. Is presently served by municipal water and sewer—All individual parcels included in the CIA development area must be currently served by municipal water and sanitary sewer. If additional parcels, not currently served, are to be included, the applicant must demonstrate their contribution and adherence to the remaining criteria. 6. IS zoned to allow for mixed use that includes high-density residential use—A zoning map of the CIA development area along with definitions of the zoning classifications must be included in the documentation submitted. 7. The community agrees to a) expedite local permitting and inspection process in the development area and b) mod) its master plan to provide for walkable, nonmotorized interconnections including sidewalks and streetscape in the development area.—See standard 3 below for more information. 2. The CIA should be required to prepare and adopt a management plan. This plan would need to detail the responsibilities of the CIA Board, the Director, and any committees that may be established. 3. The Community should be required to adopt/amend the Community Master Plan to accurately incorporate the Corridor Improvement Authority plan. The Master Plan needs to show how the CIA development area will incorporate historic preservation and walkable, nonrnotorized interconnections in the area, as well as other improvements listed in the plan. 4. Utilize all (100%) of TIF Revenue for those activities specifically authorized within the Act, including operating expenses of the CIA. The CIA should be required to submit a project list with associated costs and only spend TIF dollars on items specifically authorized within the Act. 5. Under Section 19 (3) of the CIA Act, the authority shall submit an annual report on the status of the tax increment financing account. Oakland County shall receive a copy of this report, and it should include statistics such as the dollar amount of private investment, development and redevelopment activities, employment, and business creation. 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. 9. The CIA should be required to demonstrate local commitment and funding for the corridor improvement program in addition to funds provided through TIF capture. 10. 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. The applicant also must provide employment projections and impacts. 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 CIA. 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. Ruth Johnson, County Clerk Os' Resolution #06134 July 20, 2006 Moved by Moss supported by Jamian the resolutions (with fiscal notes attached) on the Consent Agenda, be adopted (with accompanying reports being accepted). AYES: Coleman, Coulter, Crawford, Douglas, Gershenson, Gregory, Hatchett, Jamian, KowaII, Long, Melton, Middleton, Molnar, Moss, Nash, Palmer, Potter, Rogers, Scott, Suarez, Wilson, Woodward, Zack, Bullard. (24) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent Agenda, were adopted (with accompanying reports being accepted). 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 July 20,2006, 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 20th day of July, 2006.