HomeMy WebLinkAboutResolutions - 2021.02.04 - 34129MISCELLANEOUS RESOLUTION #21028 February 4, 2021
BY: Commissioner Gwen Markham, Chairperson, Finance committee
IN RE: BOARD OF COMMISSIONERS — PARTICIPATION IN THE VILLAGE OF HOLLY DOWNTOWN
DEVELOPMENT AUTHORITY AND APPROVAL OF CONTRACT
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS the Oakland County Board of Commissioners supports the economic growth of Oakland
County; and
WHEREAS one of the tools used to promote economic growth is Tax Increment Financing used in
conjunction with Downtown Development Authorities (DDAs); and
WHEREAS the Downtown Development Authority ("DDA") Act, Public Act 197 of 1975, as amended, MCL
125.1651 at, seq., ("DDA Act") enables DDA's to utilize Tax Increment Financing ("TIF") to prevent
deterioration, encourage historic preservation and promote economic growth in a business district; and
WHEREAS to review requests from the County's cities, village and townships to establish DDAs, Corridor
Improvement Authorities and Local Development Finance Authorities, the Board of Commissioners,
pursuant to Miscellaneous Resolution #18000, updated the policy for the Tax Increment Financing (TIF)
District Review Policy Ad Hoc Committee (TIF Review Committee) to consider when evaluating and making
recommendations to the Finance Committee on the County's participation in these authorities; and
WHEREAS the Village of Holly DDA and the County via Miscellaneous Resolution #06115 agreed to
capture County taxes for 15 years ending in 2020; and
WHEREAS the Village of Holly held a public hearing on November 10, 2020, to present its Amended DDA
Development and Tax Increment Financing Plan ("TIF Plan"); and
WHEREAS the DDA and the Village appeared before the TIF Review Committee on November 12, 2020,
to present the proposed plan; and
WHEREAS pursuant to Miscellaneous Resolution #20519 the Oakland County Board of Commissioners
recommends that the County, through its Corporation Counsel, negotiate a contract with the Village of Holly
consistent with the DDAs presentation to the TIF Review Committee; and
WHEREAS the Village of Holly DDA TIF plan provides for the capture of County property taxes beginning
with the tax capture for 2021 for up to a total of $477,706 or twenty years (through 2040), whichever occurs
first.
NOW THEREFORE BE IT RESOLVED that the Finance Committee recommends County participation in
the TIF plan in an amount not to exceed $477,706 for a period of twenty years through collections
attributable to tax year 2040, whichever comes first, beginning with the tax collections attributable to tax
year 2021.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes the County
participation and approval in the DDA as specified in the attached Contract.
Chairperson, on behalf of the Finance Committee, I move adoption of the foregoing resolution.
4� ( 1�ar--
Commissioner Gwen Markham, District #9
Chairperson, Finance Committee
FINANCE COMMITTEE VOTE:
Motion carried on a roll call vote with McGillivray absent.
TAX INCREMENT IF__ij+MN INC AGREEMENT
THE
Cf7UNTY OF OAKLAND. VILLAGE OF HOLLY. AND THE
VILLAGE QF_1jQLLXD9WNTOWN DEVELOPMENT AUTH0, t�PY
THIS TAX INCREMENT FINANCING AGREEMENT ("Agreement") is entered this —day
Of . 2021 between the COUNTY OF OAKIAND ("County"), 1200 North Telegraph
Road, Pontiac, Michigan 48341, the VILLAGE OF HOLLY ("Holly"), 300 East Street, Holly, Michigan
48442, and the VILLAGE OF HOLLY DOWNTOWN DEVELOPMENT AUTHORITY ("DDA"), 300 East
Street, Holly, Michigan 48442. In this Agreement, the County, Holly, and the Holly DDA may also
be referred to as "Parties."
The Recodified Tax Increment Authority Financing Act, Public Act 57 of 2018, MCL
1.25.4101 at, seq., ("Act 57"), authorizes a municipality to establish a DDA when the municipality
determines that It Is necessary for the best Interests. of the public to correct and prevent
deterioration In a business district and to promote economic growth. One of the purposes for
creating a DDA Is to permit a municipality to finance improvements in a designated area by
capturing the property taxes levied on any incremental increase in property values within the
development area; this is commonly referred to as tax increment financing.
Section 214(4) of the Act 57 (MCL 125.4214) provides that a DDA may enter into
agreements with taxing jurisdictions and the municipality in which the development area is
located.
On May 8, 19B4, in Ordinance Number 137, Holly established its DDA. The DDA was
established when the area was beginning to experience economic blight and needed ways to
increase property tax valuation and facilitate economic growth.
Village of Holly DDA Pagel of 0
Holly determined that utilizing tax increment financing was needed to support Investment
In the DDA area and approved a Development Plan and Tax Increment Financing ("TIF) Plan in
1988. The County originally opted out of the DDA, however on May 21, 2001, the County
approved participating in the DDA and approved a 5-year collection period With Holly and the
DDA. (Resolution MR 01-067) On June 6, 2001 the County, Holly and the DDA executed an
agreement to authorize the capture of the County's taxes for five years in an amount not to
exceed $40,000. In 2006 Holly amended Its DDA District as it determined that there were still
several projects needed to Improve the DDA area. In Resolution 06198 adopted October 19,
2006, the County approved a contract with Holly and the DDA for an additional fifteen years,
through 2020, for an amount not to exceed $915,000.
Prior to the explratlon of the TIF Plan set to end In 2020, Holly determined that it still
had several projects it wished to focus on in the DDA District. Holly revised its TIF Plan to; 1)
create a visual cohesiveness and unity for the commercial and Industrial frontage through
enhancement of building facades and streetscape improvements; 2) eliminate the effect of
blighting Influences which detract from the appearance and marketability of the District
and negatively affect the historic Image of Holly, 3) create employment opportunities to
enhance the economic viability of the businesses In the District, to encourage additional
private investment In the business district; and 4) create a physical environment, image, and
"sense of place" which will encourage additional retail and commercial activity in the
District. The principal areas of focus of the DDA are Saginaw Street Corridor, North Holly
Road, Grange Hall Road and South Broad Street, The TIF Plan Includes parking
improvements and renovations to preserve historical buildings.
Village of Holly DDA Page 2 of 8
On October 8, 2019 Holly discussed and approved renewing its Development Plan and TIF
Plan for an additional 'twenty years at a public meeting. (Resolution 2019-052) The 2019
Restated Development Plan and TIF Plan is attached and incorporated as Exhibit A.
Representatives of Holly and the County conducted a series of meetings and
discussions concerning the County's continued Involvement in the TIF Plan. On November
12, 2020 representatives of Holly appeared before the County's Tax Increment Financing
District Review Policy Ad Hoc Committee ("Review Committee") to explain their plans for the
DDA District. The Review Committee is charged with evaluating and recommending to the
Finance Committee the County's potential tax sharing agreements. The Parties have
determined that to help promote economic development throughout Holly and Oakland
County, it is in their best interests to have this Agreement to continue the County's
participation in the Holly DDA.
Under the terms set forth in this Agreement, made pursuant to Act 57, the Parties agree
as follows:
1. The County concurs with the capture of the tax increment revenue generated by
its millage rate from the properties listed in Exhibit B, or any future divisions of such properties
for the limited purpose of paying County's Pro-Rata Share of the funding required for the
DDA as set forth herein.
(a) "County's Pro -Bata Share", pursuant to the 2019 Amended and Restated
Development Plan and TIF Plan, is defined as the County's proportionate share of the
combined millage funds captured by the DDA from all participating taxing jurisdictions,
which Include: County of Oakland (for general operating and Parks & Recreation), the
Village of Holly, Holly Township, Oakland Community College, and the Huron Clinton
Metropolitan Authority. with respect to the levy of any now additional millage by County,
Village of Holly DDA Page 3 of 8
eitherto restore amounts reduced by the Headlee Amendment, or anew additional millage
approved by County electors after the date of this Agreement, such millages shall be
exempt from this Agreement unless the County Board of Commissioners, in Its sole
discretion, adopts a Resolution submitting such additional millages to this Agreement for
capture by the DDA.
(b) The total estimated capture during the period of the 2019 Revised
Development Plan and TZF Plan is $5,958,500. The total estimated project costs are
$5,958,500,
(c) County's annual contribution shall be fifty percent (50%) of the total
amount of tax incremental revenues attributable to the County General Operating millage
and fifty percent (50%) of the total amount of tax incremental revenues attributable to
the County Parks millage within the DDA District area,
(d) Holly, the DDA and County acknowledge that the total anticipated capture
Is an approximation only. The expenditures for projects within the DDA shall be subject
to applicable Holly's public bid procedures and the final cost will be adjusted accordingly.
However, notwithstanding the above acknowledgments, Molly and the DDA agree that
County's participation from the Oakland County General Operating Millage and the
Oakland County Parks and Recreation Millage shall not exceed a total of $477,706 or a
period of twenty (20) years, whichever occurs first, subject to the requirement herein.
(e) The capture and retainage of County's millage will be based upon the 2000
taxable value of the parcels listed In Exhibit B with the tax collection and capture
attributable to tax year 2021 continuing through collections attributable to tax year 2040.
The Parties understand that the list of parcels provided in Exhibit 8 is subject to change
Village of Holly DDA Page 4 of 8
in the future to account for any real property split/combination activity, new personal
property or other legally required changes.
(1) In no event shall the capture from County's miilage be used to bury utility
lines, for land acquisition, for municipal facilities used to house Holly's departments or
operations, or for event and marketing materials not directly related to the implementation
of projects approved within the ITF Plan,
(9) The elected or appointed officials of Holly and the DDA, or their immediate
family members, shall not engage in a business transaction relating to property in the
DDA, which he or she may profit from because of his or her official position or authority,
or benefit from confidential Information which he or she has obtained because of such
position or authority. This provision does not prohibit members of the governing body of
Holly or the DDA from having an ownership or business interest in the DDA District, Any
plans by the DDA to purchase property in the DDA District from elected or appointed
officials of Holly or the DDA, or their immediate family members, shall be disclosed in
writing to the County. Immediate Family means a Holly official or employee, his or her
spouse, parents or children.
2. Holly and the DDA hereby warrant and agree that the portion of the captured
County ad valorem property taxes ("tax Increment revenue") shall be applied to and limited to
County's Pro -Bata Share of the funding necessary for development in the DDA.
3. The DDA and Holly agree to the following:
(a) The DDA shall within three (3) months after the end of the Authority's fiscal
year, send copies of the annual financial report to the County Treasurer, the Economic
Development Department and the Board of Commissioners. The report shall include:
Village of Holly DDA Page 5 of 3
i. The amount of taxes captured by the DDA.
IL The amount spent on each project in the TIF Plan.
M. The amount of private sector investment received,
Iv. The number of buildings rehabilitated, the square footage per building
rehabilitated, and the amount spent per building.
v. The amount of new construction Including the dollar amount spent and the
square footage added,
A. The number of new businesses locating In the DDA District:.
vii. The number of new jobs created.
Pill. The increase/decrease In the taxable value.
Ix. Any financial information the County is required to report in its financial
statements to the Michigan Department of Treasury,
(b) The DDA will appear before the TIF Review Committee, at the Committee's
request, within the first five (5) years of the Agreement execution date, and each rive (5)
years thereafter, to present the DDA's current return on investment, which is defined as
the increase In total value of the properties in the DDA since the inception of this
Agreement, and discuss the financial information required in this Agreement.
(c) The DDA will promote the services available from the County Economic
Development Department Including the One Stop Shop Business Center and the Oakland
County Economic Development Corporation and the Oakland County Business Finance
Corporation.
Village of Holly DDA Page 6 of 9
(d) Holly will adopt/amend its community master plan to accurately Incorporate
the 2019 Restated Development Plan and TIF Plan with its next scheduled community
master plan review.
4. The DDA and Holly shall submit to County's Review Committee any proposed
modification or amendments to the Development Plan and TIF Plan that is required under Act 57
to be submitted to County for review and approval.
5. Holly agrees that In the event tax increment revenue is retained by the DDA In
excess of the County's Pro-rata Share of the funding for the Project, and If upon written notice
from County, the DDA and Holly fail to tender over to County the excess retained tax Increment
revenue, then without waiving any legal claims under this Agreement, County shall be entitled to
reduce, set-off, and permanently retain any amount due to Holly from the County's Delinquent
Tax Revolving Fund ("DTRF") by any such amount then still due and owing to County pursuant
to this Agreement at the time the County distributes funds to Holly from the DTRF.
6. This Agreement sets faith the entire agreement between County, Holly, and the
DDA and fully supersedes all prior agreements or understandings between them in any way
related to this subject matter. It is further understood and agreed that the terms and conditions
herein are contractual and are not a mere recital and that there are no other agreements,
understandings, contracts, or representations between the Parties in any way related to the
subject matter hereof, except as expressly stated herein. This Agreement shall not be changed
or supplemented orally and may be amended only in writing and signed by the Parties.
7. County, Holly 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.
Village of Holly DDA Page 7 of 8
FOR AND IN CONSIDERATION of the mutual assurances, promises, acknowledgments, warrants,
representations, and agreements set forth In this Agreement, and for other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the undersigned
hereby execute this Agreement on behalf of the Parties, and by doing so legally obligate and bind
the Parties to the terms and conditions of this Agreement,
THE LACE OE4OWNTOWN DEVELOPMENT AUTHORITY
By: Name
Date: U 1
THE VILLAGE OF
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OAKLAND COUNTY
By:
David Woodward,
Chairperson, Board of Commissioners
Date:
CC File number 2020-1351
Village of Holly DDA Page 8 of 8
CC File number 20204351
Resolution #21028
February 4, 2021
Moved by Gingell seconded by Nelson the resolutions on the amended Consent Agenda be adopted.
AYES: Cavell, Charles, Gershenson, Gingell, Hoffman, Jackson, Joliat, Kochenderfer, Kowall,
Kuhn, Long, Luebs, Markham, McGillivray, Miller, Moss, Nelson, Powell, Spisz, Weipert,
Woodward. (21)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions on the amended Consent Agenda were adopted.
4t. '. a L'..
I HEREBM APPFOVE THIS i ,�SOLUi ION
CHIEF DE!UV COUN,-t,Y
RCTING PURSUANT TO MCL 4b,b%9A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, 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 February 4,
2021, 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 Circuit Court at Pontiac,
Michigan this 4'h day of February 4, 2021.
Lisa Brown, Oakland County