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HomeMy WebLinkAboutResolutions - 2021.08.05 - 34781MISCELLANEOUS RESOLUTION #21314 August 5, 2021 BY: Commissioner Gwen Markham, Chairperson, Finance Committee IN RE: BOARD OF COMMISSIONERS — PROPOSED INDEPENDENCE TOWNSHIP CORRIDOR IMPROVEMENT AUTHORITY PROJECT MODIFICATION 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 economic growth is Tax Increment Financing used in conjunction with Corridor Improvement Authorities (CIAs); and WHEREAS to review requests from the County's cities, villages and townships to establish DDAs, CIAs and LDFAs, the Board of Commissioners, pursuant to Miscellaneous Resolution (MR) #16166, 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 proposed authorities; and WHEREAS on June 12, 2008, the Oakland County Board of Commissioners, pursuant to MR #08117, approved the County's participation in the Charter Township of Independence (the "Township') and the Sashabaw Road Corridor Improvement Authority Tax Increment Financing Plan by entering into a Tax Sharing Agreement; and WHEREAS on September 6, 2017, the Oakland County Board of Commissioners, pursuant to MR #17246, approved an amendment to the Tax Sharing Agreement extending the term of the agreement through tax collections attributable to tax year 2029; and WHEREAS the Township and the CIA appeared before the TIF Review Committee on July 28, 2021, to request a modification, as described in a letter from the Township dated May 17, 2021, attached to this Resolution, to the Project defined in the Tax Sharing Agreement and set forth in the previously approved plan; and WHEREAS the requested modification includes improvements to the intersection of Weldon Road and Waldon Center Drive, as described in the attached letter; and WHEREAS the requested modification meets the intent of the approved Tax Sharing Agreement. NOW THEREFORE BE IT RESOLVED that, based on the recommendation from the TIF Review Committee, the Oakland County Board of Commissioners approves the Project modification consistent with the CIA's presentation to the TIF Review Committee on July 28, 2021, and the attached letter. BE IT FURTHER RESOLVED that the Board of Commissioners requests the County Clerk send a signed copy of this Resolution to the Clerk of the Township of Independence. Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. Commissioner Gwen Markham, District #9 Chairperson, Finance Committee FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote. TOWNSHIP OFFICES (2,10)625 6111 FAX (24E) Q5 25115 PATRICK J. KITTLE SuPalm9er CART J. NEUSECK Clerk RACHEL J. LOUGHRIN Treasure! TOWNSHIP TRUSTEES JO SE AIJAGA PAULA DROWN THERESAA NALLAMC HONA1.0A Rrr UP May 17, 2021 Gwen Markham, Chair CHARTER TOWNSHIP OF INDEPENDENCE 6463 WALDON CENTER DRIVE CLARK5TON, MICHIGAN 46346 www.lndtwp.cam Oakland County Tax Increment District Review Policy Ad Hoc Committee 1200 North Telegraph Rd. Pontiac, Michigan 48341 Re: Request to Modify the Sashabaw Corridor Improvement Authority approved project in Independence Township Dear Commissioner Markham: Per Section 4 of the Tax Sharing Agreement between the County of Caldand, Charter Township of Independence, and the Sashabaw Road Corridor Improvement Authority, the Charter Township of independence and the Sashabaw Road Corridor Improvement Authority are submitting this request to modify the approved Projects to the County's Review Committee for review and approval. In 2006, Independence Township established the Corridor Improvement Authority for Sashabaw Road in order to construct various road improvements within the Sashabaw Road corridor. As a condition of the County's participation in the TIF Plan, a Tax Sharing Agreement between the Township and the County was required. Although the Corridor Improvement Authority has completed all of the major road improvements that were Identified in the Development Plan and Tax Increment Financing Plan, the Township was unable to gain Road Commission approval for a traffic signal at Waldon Road and Waldon Center Drive at the time that the Sashabaw/Waldon intersection and Waldon Road widening improvements were made. We are respectfully requesting approval From your Committee to allow County participation in this signalization and pedestrian crossing project, described herein. The first part of this request describes the current project in which we are requesting County participation. The second part describes the Agreement between the Township and the County and why, in our opinion, this project is approvable. Completed projects by the Corridor Improvement Authority are described in Attachment 1. Current Project Reauest When the Sashabaw/Waldon intersection was improved in conjunction with the improvements to the Sashabaw/1-75 interchange, the Road Commission required widening of Waldon Road from the intersection west past Waldon Center Drive. The Township's offices are located at the corner of Waldon Road and Waldon Center Drive. At the time the widening was conducted, the Township requested approval from the Road Commission for a traffic signal to be installed at the intersection of Waldon Road and Waldon Center Drive. Despite heavy traffic In this area, especially from Clarkston High School, RCOC made a finding that a signal did not meet its warrants. The Township Board recently granted approval for a 70-acre, mixed -use project called Waldon Village, located directly across from the Township Hall on the north side of Waldon Road. Waldon Center Drive will be extended into the property at the expense of the developer. The project will have over 350 single, multiple family and townhome dwellings and a commercial center anchored by a major fresh market. The project is anticipated to add over $50 million in new taxable value. The Road Commission has now approved the warrants for a traffic signal with pedestrian crossings. The Township believes that there will be a significant amount of pedestrian traffic in the vicinity of this expanded Intersection. The pedestrian crossing will connect to the Township's extensive safety path network. The signal and associated improvements to the south leg of Waldon Center Drive are estimated to cost $500,000. The County's TIF share would be approximately 34% or $155,000. Aereement with Oakland County Oakland County and Independence Township entered into a Tax Sharing Agreement in 2008. In 2017, the Agreement was amended to reflect the Amended and Restated Development and Tax Increment Financing Plan. The terms and conditions of the Original and Amended Agreement are essentially identical, although the Amended Agreement extend to terms of the County's participation until 2029. Both the Original and the Amended Agreement caps the total amount of tax capture from the County at $1,294,501.37. As of the end of 2019, the Sashabaw CIA TIF had captured a total of $471,086.55 in County operating taxes and $27,271.55 in County Parks and Recreation taxes. We understand that the County is currently updating its database as to TIF captures from all jurisdictions. The Tax Sharing Agreement also contains an Important statement which provides the path for approval of the Township's request. Section 4 of the Agreement states the following: 4. Any other C.I.A. project other that those specifically listed herein may be considered by the County upon proper application by the C.I.A., at the appropriate time in the future. Any modification or amendments to the C.I.A. Development Plan and Tax Increment Financing Plan that modify the approved Project shall be submitted to the County's Review Committee for review and approval. The Township is not requesting an amendment of the Plan because we believe such an amendment is not necessary to justify this project. However, we are requesting the County to consider our request to complete a project that, in our opinion, remains incomplete. When the Township and the County entered Into the Tax Sharing Agreement, the reason for creating the Corridor Improvement Authority and preparing the Development and Tax Increment Financing was clearly to make improvements to Sashabaw Road and the Sashabaw/1-75 interchange. The Improvements to Sashabaw Road and the Sashabaw/1-75 interchange also required extensive improvements to Waldon Road. The Tax Sharing Agreement identifies the approved project in Section 1(b), in the general manner that is similar to the language in the Development and Tax Increment Plan. The project descriptions were broadly stated for very good reason. Working with two road agencies, RCOC and MDOT, it was impossible to know the full scope of the proposed road improvement projects until the design phase was completed. The ultimate design and improvement of the Sashabaw/Waldon intersection and the improvements to the Sashabaw/1-75 interchange were intertwined. In other words, there were certain requirements by MDOT that affected the design of the roads under RCOC jurisdiction. One of the design parameters that occurred was the need to widen Waldon from the intersection, west of Waldon Center and the Township Hall. We requested the light go in at that time, but RCOC would not permit until the property on the north side was developed. We believe the correct conclusion is not a matter of consistency with the Tax Sharing Agreement or Development and Tax increment Financing Plan, but rather one of timing. Had the Road Commission considered the inevitability of the development of the property on the north side of Sashabaw and the extension Waldon Center Drive to the north, the light would have been installed at the time that Waldon Road was widened. Therefore, we respectfully request that the County allow our use of Tax Increment funds for installation of the traffic signal and intersection improvements. Yours Truly, Pat Kittle, Township Supervisor Independence Township Cc: Richard Carlisle — Carlisle / Wortman Associates, Inc. Bret Rasegan— Oakland County - Manager, Planning Division Ingrid Tighe —Oakland County- Director, Economic Development 3 Attachment 1 Completed CIA Protects The CIA Development and Tax Increment Financing Plan has focused on a narrow approach specifically targeted at road improvements to Sashabaw Road, the Sashabaw/Waldon Road intersection, and the Sashabaw/1-75 bridge, Including the on/off ramps. Since the inception of the Corridor Improvement Authority in 2007, the following projects have been completed: 1. Improvements to the 1-75/Sashabaw Road interchange — For many years, the Sashabaw/1-75 interchange experienced significant congestion especially during afternoon commuting hours and DTE Theater concerts. The problem was so severe that traffic backed up travel lanes of northbound 1-75. The addition of a relief ramp from northbound 1-75 to southbound Sashabaw Road has provided much needed relief. To accommodate the additional ramp, additional improvements were made to the bridge surface, park and ride lot, and other exit/entrance ramps. Improvements to Waldon/Sashabaw Intersection — The improvements to the Sashabaw/1-75 interchange also required expansion of the Waldon/Sashabaw intersection, which at the time did not have the capacity to handle the volume of traffic. Eastbound Waldon was widened to accommodate dual left-hand turns onto northbound Sashabaw and northbound Sashabaw was expanded to include dual left-hand turns onto westbound Waldon. In addition, Waldon Road was widened from the intersection to Waldon Center Dr. Improvements to the interchange and intersection were completed at a cost of approximately $5.168 million. The Township was highly creative in packaging and leveraging funds from a variety of public and private sources. Installation of the traffic signal at Sashabaw Road/Flemings Lake Road intersection — Adding signalization at Sashabaw and Flemings Lake Roads had been sought by the Township for many years to alleviate serious safety problems. Commercial businesses, including the Secretary of State's office, had difficulty accessing Sashabaw Road. Adding the light has greatly improved traffic safety. 4. Streetscape improvements to the Sashabaw Boulevard —The Sashabaw Boulevard between Maybee and Waldon Roads was completed in 2005, but the lack of funds did not permit the Township to complete the landscaping of the center median. In 2012, the CIA completed the landscape improvements. 5. Complete widening of Sashabaw Road north of 1-75 — In 2018, the CIA initiated the widening of Sashabaw Road, north of 1-75, to a full 5-lane cross-section from Flemings Lake Road to the entrance of DTE. This improvement matches the existing 5-lane cross -sections at the north and south ends in this portion of the corridor north of 1-75. Additional infrastructure improvements incorporated in the project included the extension of the safety path, relocation of street lighting and extension of water and sewer. Resolution #21314 August 5, 2021 Moved by Gingell seconded by Luebs the resolutions on the amended Consent Agenda be adopted. AYES: Gingell, Jackson, Kochenderfer, Kowall, Kuhn, Long, Luebs, Markham, McGillivray, Miller, Moss, Nelson, Powell, Spisz, Weipert, Woodward, Cavell, Charles, Gershenson. (19) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions on the amended Consent Agenda were adopted. 4ID", Q I HEREBY APPROVE THIS RESOLUTION CHIEF DEPUTY COUNTY EXECUTIVE ACTING PURSUANT TO MCL 45.559A (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 August 5, 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 51h day of August, 2021. Lisa Brown, Oakland County