HomeMy WebLinkAboutResolutions - 2007.12.13 - 28399MISCELLANEOUS RESOLUTION 107289 December 6, 2007
BY: Finance Committee, Mike Rogers, Chairperson
IN RE: TREASURER'S OFFICE — AMEND MISCELLANEOUS RESOLUTION #06134 - 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, designed to allow
municipalities to redevelop commercial corridors and thereby promote economic growth; 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 Miscellaneous Resolution #03081 and Miscellaneous Resolution #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 upon recommendation by the Tax Increment Financing District Review Policy Ad Hoc Review
Committee (Ad Hoc Committee), Miscellaneous Resolution #06134 was adopted on July 20, 2006, to
provide a similar policy to determine County participation in reviewing CIA's with Tax Increment
Financing; and
WHEREAS, since adoption of Miscellaneous Resolution #06134, the Ad Hoc Committee has had the
opportunity to review several proposed CIA plans and, as a result, determined that there was a need to
develop additional CIA review criteria; and
WHEREAS, the Ad Hoc Committee met on October 26, 2007, to consider additional criteria and is
recommending revisions to the CIA policy.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners, upon
recommendation of the Board of Commissioners' Tax Increment Financing District Review Policy Ad Hoc
Review Committee, hereby adopts the attached amended policy for County participation in Corridor
Improvement Authorities with Tax Increment Financing.
Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution.
FINANCE:rITT E
\
FINANCE COMMITTEE
Motion carried unanimously on a roll call vote.
Corridor Improvement Authority Act No. 280 of 2005
Performance Standards for Ad Hoc TIF Committee consideration
This document sets forth performance standards and guidelines to assist the County in its
review of a municipality's Corridor Improvement Authority (CIA) Plan. These guidelines
are not determinative of the County's decision whether or not to participate in the Tax
Increment Financing (TIF) 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.
Listed below are twelve PERFORMANCE STANDARDS for the review of requests to establish
Corridor Improvement Authorities utilizing TIF.
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) modifii 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,
nonmotorized interconnections in the area, as well as other improvements listed in the plan.
4. The community should commit that it will 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. In addition to the municipality and the
State Tax Commission, the CIA shall also submit the annual report to the Oakland County
Treasurer and the Planning & Economic Development Services Division. The report must
include statistics such as the dollar amount of private investment, development and
redevelopment activities, employment, and business creation.
6. The TIF 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. The community must acknowledge and disclose that it is aware of the impact on any
voted millage.
8. The community must disclose of any agreements or proposed agreements that
would alter the amount of lawfully captured revenue from other sources.
9. The CIA must demonstrate recent or future local commitment and local 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 relevant projections and impacts
such as those listed below.
a. Employment
• Projected number of new and retained jobs
• Type of projected new jobs (skilled, unskilled, professional)
• To the extent practicable, the impact on jobs in other communities within
Oakland County.
b. Tax base growth projected from community and verified by Equalization
• Provide break even analysis for tax generated revenue
• 20 year projection
• Demonstrate a positive return on the County's investment.
c. Emerging Sectors: Does the project address any of the sectors?
11. The County may not support plans that include fundings for certain items such as
but not limited to:
• Burying utility lines
• Land acquisition
• Municipal facilities or buildings
12. Other policy issues may be considered by the County. Those include but are not
limited to:
• Consideration of whether the CIA facilitates the redevelopment
and/or revitalization of an existing developed area, rather than the
development of a Greenfield or relatively undeveloped area.
• Single family residential portion — 10% max. of total district (both
future land use as master planned and existing land use)
• High density residential portion —20% max. of total district (both
future land use as master planned and existing land use)
• Number of TIF's Per Community
• If the community has a current TIF, other than a Brownfield
or Smart Zone, the community must establish a sunset on all
existing TIF's.
• Only one CIA with TIF per community
• Identify other fund partners and their amount of committed dollars
and uncommitted dollars to total project
• Preference will not be given to any particular industry
• Consideration of the municipality's tax rate and the requested
county participation
/ 21/4 /07
Resolution #07289 December 13, 2007
Moved by Rogers supported by Potter the resolution be adopted.
AYES: Coulter, Crawford, Douglas, Gershenson, Gingell, Gosselin, Gregory, Greimel, Hatchett,
Jacobsen, KowaII, Long, Middleton, Nash, Potter, Potts, Rogers, Scott, Spector, Woodward,
Zack, Bullard, Burns. (23)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolution was adopted.
I HEREBY APPROVE THE FOREGOING RESOLUTION
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 December 13,
2007, 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 13th day of December, 2007.
Rutti JohnsoW, County Clerk