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HomeMy WebLinkAboutResolutions - 2007.11.29 - 9312MISCELLANEOUS'RESOLUTION 10726 1 November 29, 2007 BY: FINANCE COMMITTEE, MIKE ROGERS, CHAIRPERSON IN RE: BOARD OF COMMISSIONERS — NOTICE TO VILLAGE OF HOLLY REGARDING OAKLAND COUNTY'S SUPPORT FOR DDA EXPANSION 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 among the tools used to promote this economic growth is Tax Increment Financing (TIF) in the form of Downtown Development Authorities (DDAs), Local Development Finance Authorities (LDFAs), and Corridor Improvement Authorities (CIAs); and WHEREAS to review requests from the cities, villages, and townships to establish DDAs, LDFAs, and CIAs, the Board of Commissioners has, pursuant to Miscellaneous Resolution #99010, established the Tax Increment Financing District Review Policy Ad Hoc Committee (Review Committee) to evaluate and recommend to the Finance Committee on the County's participation in these proposed Authorities; and WHEREAS the Review Committee has promulgated protocols and performance standards for County participation in these Authorities, and this Board of Commissioners has adopted these policies as guidelines to assist the County in its review of a municipality's plan; and WHEREAS by letter dated May 15, 2007, the Village of Holly and the Holly DDA advised the Review Committee that the DDA sought to incorporate the train depot located on S. Broad Street into the DDA district, thereby expanding the boundary of the DDA; and WHEREAS the Village of Holly and the DDA appeared before the Review Committee on June 14, 2007, to present the planned incorporation of the train depot into the DDA district; and WHEREAS the public hearing for the proposed expansion was held on June 26, 2007; and WHEREAS due to the timing of the public hearing, the County Board of Commissioners meeting schedule, and the 60-day statutory timeframe within which a taxing jurisdiction, in this case the County, must act, this Board determined pursuant to MR #07158, to exempt any County ad valorum property taxes from capture pending further details and confirmation of the tax exempt status of the property proposed for inclusion in the expansion; and WHEREAS the Village and the DDA have now provided the requisite documentation to verify that the property in this expansion is exempt from County and local taxation, and further, that the expansion will have no impact on potential tax revenues and no financial impact regarding loss of tax revenues to Oakland County. NOW THEREFORE BE IT RESOLVED that MR #07158 is hereby rescinded. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners supports the expansion of the Holly DDA district boundaries as set forth in the "First Amended Agreement Between the County of Oakland, the Village of Holly, and the Village of Holly Downtown Development Authority" and exhibits referenced in and attached thereto. BE IT FURTHER RESOLVED that the County's support for the DDA expansion is premised upon the continued tax exempt status of the property. Pursuant to the "First Amended Agreement," if any of the parcels identified in the "2007 Expansion" documents become subject to capture of any tax increment revenue under the terms of any current or future tax increment financing plan, Holly and the DDA will be required to appear before the County's appropriate review committee(s) to allow the County the opportunity to "opt out" of any tax capture as provided by law. BE IT FURTHER RESOLVED that the County Clerk shall forward a copy of this resolution to the Clerk for the Village of Holly. Chairperson, on behalf of the Finance Committee, I move the adoption of the foregoing resolution. FINAN C MM1 EE FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Potter and Woodward absent. FIRST AMENDED AGREEMENT BETWEEN THE COUNTY OF OAKLAND, THE VILLAGE OF HOLLY, AND THE VILLAGE OF HOLLY DOWNTOWN DEVELOPMENT AUTHORITY THIS FIRST AMENDED AGREEMENT is entered into this day of November, 2007, between the County of Oakland ("County"), 1200 N. Telegraph Road, Pontiac, Michigan 48341, the Village of Holly ("Village"), 202 S. Saginaw Street, Holly, Michigan 48442-4689, and the Village of Holly Downtown Development Authority ("DDA"), 202 S. Saginaw Street, Holly, Michigan 48442-1689. In this Agreement, the County, the Village, and the DDA may also be referred to as "Parties." RECITALS Pursuant to Act 197 of Public Acts of 1975, the Village of Holly (Village) established its Downtown Development Authority (DDA) in May, 1984. In May, 2001, the Village and the DDA approached the County on a proposal to share in certain revenues derived from taxes captured in the DDA district. On May 24, 2001, the County, the Village, and the DDA entered into a sharing agreement concerning the capture of County ad valorem property taxes in the then delineated DDA district. That agreement is referenced in the County's MR #01067. The resolution and agreement are attached as Exhibit A. In October, 2006, after a series of meetings and negotiations, the Parties entered into a subsequent sharing agreement pursuant to MR #06198. This resolution and the subsequent (2006) sharing agreement are attached as Exhibit B. In May, 2007, the Village and the DDA advised the County through its Tax Increment Financing District Review Policy Ad Hoc Committee (Review Committee) that the DDA sought to incorporate the Train Depot located on South Broad Street into the DDA district, thereby expanding the boundary of the DDA. The Village and the DDA appeared before the Review Committee on June 14, 2007, to present the proposed expansion of the Train Depot into the DDA district. The Village and the DDA represented to the Review Committee the following concerning the property proposed for inclusion in the expansion: (A) The Grand Trunk Western Railroad Incorporated, a Delaware Corporation, (Railroad) is the lessor of the property designated in the proposed DDA expansion. On November 1, 1999, the Railroad entered into a twenty (20) year lease with the Village for the premises. A copy of that lease is attached as Exhibit C. (B) On November 1, 1999, the Railroad sold to the Village the one-story brick building located east of North Broad Street and south of Washington Street. This building is referred to as the Train Depot. A copy of the Bill of Sale is attached as Exhibit D. (C) Holly and the DDA further represent that the property proposed for inclusion in this DDA expansion is exempt from County and local taxation. Accordingly, the expansion will have no impact on potential tax revenues and no financial impact regarding loss of tax revenues to Oakland County. THE PARTIES AGREE AS FOLLOWS: 1. The County agrees to support the expansion of the Holly DDA district boundaries as set forth in the attached Legal Description (Village of Holly DDA 2007 Expansion) and Map designated as "2007 Expansion Area 1H-D1-HOLL-2007." 2. Holly and the DDA represent to the County that the properties listed in the 2007 expansion are exempt from the capture of any tax revenues under the terms of any tax increment financing plan established, amended, or restated by Holly or the DDA. The Parties acknowledge that the building which houses the Train Depot is exempt from tax capture as it is owned by the Village, that the land belongs to the Grand Trunk Railroad, 2 and that it is not on the ad valorem roll but is, instead, taxed otherwise under P.A. 282 of 1905. 3. Holly and the DDA further agree that if any of the above parcels identified in the "2007 Expansion" become subject to capture of any tax increment revenue under the terms of any current or future tax increment financing plan, Holly and the DDA shall appear before the County's appropriate review committee(s) to allow the County the opportunity to "opt out" of any tax capture as provided by law. VILLAGE OF HOLLY DOWNTOWN DEVELOPMENT AUTHORITY By: Date: VILLAGE OF HOLLY By: Date: COUNTY OF OAKLAND, A Michigan Public Corporation By: Bill Bullard, Jr., Chairperson Ruth Johnson, County Clerk Date: \2007-0451 \FIRST AMENDED AGREEMENT-revised.doc 3 Feeffikv- n. County CIE RuTfhltMhYn, County Clerk Resolution #07261 November 29, 2007 Moved by Rogers supported by Gershenson the resolutions (with fiscal notes attached) on the amended Consent Agenda be adopted (with accompanying reports being accepted). AYES: Burns, Coulter, Crawford, Douglas, Gershenson, Gingell, Gosselin, Gregory, Greimel, Hatchett, Jacobsen, KowaII, Long, Middleton, Nash, Potter, Potts, Rogers, Scott, Spector, Zack, Bullard. (22) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended Consent Agenda were adopted (with accompanying reports being accepted). I HEREBY APPROVE THE FOREGOING RESOLUTION ACTING PURSUANT TO 1973 PA 139 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 November 29, 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 29th day of November, 2007.