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Hudson Chamber of Commerce "Together building the foundation of Hudson"
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SEQ CHAPTER ORDINANCE NO. 385.09
AN ORDINANCE TO AMEND THE CODE OF THE CITY OF HUDSON BY ADDING DIVISION 7A TO ARTICLE V OF CHAPTER 2 OF SAID CODE.
THE PURPOSE OF SAID ORDINANCE IS TO ADOPT A DOWNTOWN DEVELOPMENT AUTHORITY PLAN AND TAX INCREMENT FINANCING PLAN PURSUANT TO ACT 197 OF PUBLIC ACTS OF MICHIGAN 1975, AS AMENDED.
THE CITY OF HUDSON ORDAINS:
Sec. 2.270.100 Title. This ordinance shall be known and cited as the Downtown Development Authority Plan and Tax Increment Financing Plan.
Act 197 of Public Acts of 1975, as amended, of the State of Michigan, is commonly referred to as the Downtown Development Authority Act. It was created in part to:
- correct and prevent deterioration of business districts
- promote economic growth and revitalization
- encourage historic preservation
- authorize the acquisition and disposal of interests in real and personal property
- authorize the creation of downtown development authorities
- authorize the levy and collection of taxes and the issuance of bonds
- allow the use of tax increment financing
The Act is designed to aid in the accomplishment of specific downtown development activities identified in locally adopted development plans.
The purpose of the Act is to:
- attack problems of urban decline
- strengthen existing areas
- encourage new private developments within the downtown districts of Michigan communities.
It provides communities with the necessary legal, monetary and organizational tools to revitalize downtown districts either through public-initiated projects or in concert with privately funded development projects. The individual projects depend on the problems and opportunities within each particular downtown district and the priorities established by the community in the revitalization of its business area.
Creation of the Hudson Downtown Development Authority On October 1, 2004, the Hudson City Council adopted Ordinance No. 354.03, creating the Hudson Downtown Development Authority (DDA). The general location of the City of Hudson is located on Map 1. The properties included in the Downtown Development Authority are indicated on Map 2, and a copy of Ordinance 354.03 is included as Exhibit A.
Organizational Development The DDA was given all the powers and duties prescribed for a downtown development authority pursuant to the Act. The operational structure of the Hudson Downtown Development Authority was approved pursuant to its By-Laws.
Basis for the Development Plan In the City of Hudson, the Downtown Development Authority District referred to in this Development Plan can generally be described as including commercial properties along both sides of Main Street from N. Maple Grove to the city limits on US127 and along the east side of US 127 from Railroad Street south to Pleasant Street.
The “downtown district” referred to in the Act is the area in the downtown of a municipality that is zoned and used primarily for business. The tax increment financing will capitalize on the increased tax base created by economic development within the boundaries of the downtown district, as provided in Act 197 of the Public Acts of 1975, as amended.
The Development Plan will define projects specific to the Downtown Development Authority District which was created through the ordinance adopted by the Hudson City Council on October 1, 2004. The DDA district comprises the same area as the Downtown district, also referred to as the Downtown Development Authority District Boundary.
Sec. 2.270.101 General Development Plan for Hudson.
The Development District was established in the belief that the success of Hudson’s current efforts to revitalize its commercial area rely on the ability of the public sector to initiate improvements that strengthen the commercial area and to encourage and support the development of new private uses that facilitate the creation of new jobs, the attraction of new business, the maintenance of existing business, and the generation of additional tax revenues.
The General Development Plan for Hudson recommends the following:
- continued redevelopment of the commercial area by encouraging the reinvestment of public and private funds
- improvement of existing parking areas and addition of more parking as well as pedestrian improvements that support and strengthen the business district, including streetscape improvements, and coordination with public facilities.
- enhancement of signage and information systems in the business district
- promotion, retention and recruitment of businesses within the business district
- establishment of special financing programs to assist property owners with appropriate exterior renovations and improvements, both decorative and structural.
Sec. 2.270.102 Specific Development Plan for Hudson.
(a) Designation of the Boundaries of the Development Area The Development Area boundary is located within the jurisdictional limits of the City of Hudson and the Hudson Downtown Development Authority. The City of Hudson established the Downtown Development Authority pursuant to Act 197 of Public Acts of 1975, as amended through adoption and publication of Ordinance No. 354.03, adopted on October 1, 2004. The Downtown Development Authority Development Area boundary is shown on Map 2, and can be generally described as including commercial properties along both sides of Main Street from N. Maple Grove to the city limits on US127 and along the east side of US 127 north and south from Railroad Street to Pleasant Street.
(b) Location and Extent of Existing Streets and other Public Facilities. Public land uses within the Development Area include right-of-ways under the jurisdiction of the City of Hudson. Included within the Development Area are alleys that run parallel to the major streets mentioned above and behind the retail and office land uses fronting on these streets.
(c) Location, Character and Extent of Existing Public and Private Land Uses within the Development Area. Existing land uses within the Development Area are composed of public and private land uses. The locations of these land uses are shown on Map 3 entitled “DDA District Organization”. 1. Public Land Uses In addition to the circulation system described, other public land uses including City Hall, Hudson Police Station, and Hudson Fire Station are located within the Development Area.
2. Private Land Uses Residential - There are several detached single-family dwellings as well as second floor apartments within the Development Area that occur along Main, Market, Church, West, and Lane Streets. In all there are approximately 45 residential (homestead) properties in the DDA District and Development Area.
Commercial - The majority of property within the Development Area consists of commercial property. There are approximately 90 commercial (non-homestead) properties within the DDA District and Development Area. These consist of professional offices, service businesses, retail establishments, financial institutions, storage, and health and personal service businesses.
Industrial - There are 4 industrial manufacturing sites within the Development Area, however none of them are currently operating.
Transportation - There are no daily private transportation facilities, railroads, or truck terminals located within the Development Area.
3. Educational Uses The Hudson Museum is the only educational land use located within the Development Area. Property owned by the Hudson Area Schools and Sacred Heart School are located outside the Development Area.
4. Vacant Land There is a large parcel of land available for development within the Development Area. It is located along Railroad Street between West Street and US 127, one block north of Main Street. There is also room for economic development along the US127 corridor on the west edge of the City.
(d) Location and Extent of Proposed Public and Private Land Uses. The Development Plan includes the integration of public and private land uses to strengthen the economic base of the Development Area. This may require the improvement of public infrastructure adjacent to existing private development. The Downtown Development Authority will use the following approaches to revitalize and enhance the Hudson commercial base:
- Induce private reinvestment through the installation of public improvements that will provide increased parking and pedestrian access to existing commercial establishments and underutilized properties.
- provide or assist in obtaining low-cost financing to purchase, renovate and resell or reuse properties that are currently deteriorated.
- improve public property adjacent to commercial areas where commercial investment is already occurring.
- assist local business and property owners through the use of low interest loans, merchant retention and recruitment programs, and coordinated advertising, promotion and marketing.
(e) Legal Description of the Development Area. The boundaries of the Downtown Development Authority are set forth on the legal description attached hereto as Exhibit B. All public or private alleys and other public rights of way abutting these lots are also included in within the boundary of the proposed district.
(f) Existing Improvements in the Development Area to be Repaired or Altered and Time Required for Completion The proposed development plan for the Development Area combines public and private improvements. The overall project descriptions and schedule of phasing for projects in the Development Plan are explained in the next section according to their location within the Development Area. In the following pages, the changes from existing conditions for the project areas are discussed.
1. Public Infrastructure The City of Hudson is divided by Main Street (M-34) that runs east-west and is bordered by US127 which runs north-south on the west edge of the City. The main business district contains two blocks of commercial buildings that are listed on the National Historic Register. A streetscape project including decorative lighting, curb and sidewalk treatments and tree plantings on Main Street in the business district was completed in 1998.
Main Street and US127 are two lane paved roads. Main Street has parallel parking on both sides in the downtown business area.
Other infrastructure systems include water, sanitary sewer and storm sewer facilities, sidewalks, public parking lots, and street lighting. All systems require ongoing maintenance and periodic updates and improvements. Infrastructure improvements and maintenance should be completed through a City wide infrastructure capital improvements program, however, the expansion of the streetscape and lighting will be a joint project for the DDA and the City, in cooperation with MDOT.
2. Pedestrian Circulation The City of Hudson is configured along Main Street (M-34) where the Original Plat of Hudson was developed. Businesses are also located one block North on Railroad Street, where the train depot was located, and one block south of Main Street. Residential properties extend west from the business district on Main Street to the intersection of US127, although the properties are currently zoned for residential or office use.
Two banks, post office, supermarket, service station, restaurants, decorating center, convenience store, a community center, walkthrough park, and retail stores are located in the downtown commercial district. Hudson serves a trade area much larger than the City limits, therefore the downtown is the center of pedestrian activity during the day. Parallel parking on the streets and parking lots behind the businesses on Main Street provide parking for the business district, and sidewalks and alleys provide pedestrian access to the businesses. The business district is accented with tree plantings, decorative street lamps, banners, and trash receptacles. The crosswalks (part of the streetscape project in 1998) are ADA compliant for easy access in the downtown area.
Recommended projects include extending the streetscape west to US127, and decorative lighting along US127 north and south within the DDA district. Utility systems on Main Street are located underground, so the removal or relocation of overhead utility systems in the downtown parking lots is recommended. As more of the business district is utilized, the acquisition of additional parking areas will become necessary.
3. Building Facades Some of the buildings within the original core of Hudson DDA district have been altered from their original state. These alterations include the placement of wooden or metal awnings or cedar shakes on the lower portion of the facade, and covering of window openings on the upper floors. Some of the buildings have also had a stucco treatment over the original brick facades.
Several of the buildings are in need of extensive work on the facades, windows, and structural elements. The DDA will work to assist private investment in the renovation process, where possible.
4. Projects The following table shows the projects planned for the DDA district by the Hudson Downtown Development Authority. The projects are identified by Project Area, Project Name, Estimated Cost and Probable Start Dates. The estimated cost for each project area is based on gross approximations for similar projects. The estimated start dates will depend on funds from Tax Increment Capture and cooperative ventures with the city and private investment.
5. Additional Parking Space As more efficient utilization of the properties within the DDA take place, increased parking will be necessary for the convenience of customers and employees. When suitable properties are available, they will be acquired and developed. Once developed, these facilities would be maintained by the City with funds other than those acquired through tax increment financing.
6. Corridor Enhancement The DDA plans continued right of way improvements along Main Street and other public streets and rights of way within the business district. These improvements will include installation of uniform street signs, expansion of the decorative lighting used in the downtown streetscape project, plantings, and selective street improvements.
7. Community Signage The installation of community or business district entry signs at selected entry zones supplemented by informational signage to aid shoppers and visitors.
8. Building Restoration Program The establishment of a building renovation program with local lending institutions to provide low interest loans to improve the exterior of the buildings consistent with DDA guidelines.
9. Design and Infrastructure Plan Development of a design and infrastructure plan that assesses the condition of infrastructure within the DDA development area and addresses improvements necessary to complete the development plan.
10. Redevelopment Project The DDA District and Development Area contain distinct commercial areas: the original business district on Main, Market, and Church Streets and the commercial property on Railroad Street. It also includes commercially zoned property on Main Street that is currently residential. Although the sizable development at the Market House is within the downtown business area, other recent commercial development is located along US 127. Many of the properties in the downtown are smaller in size and in some cases are functionally or physically obsolete. This presents an opportunity to incorporate privately owned properties into the overall commercial development . The DDA’s role in the redevelopment process would include assisting with physical site improvements such as parking, sidewalks, streetscape decor, lighting and utilities.
(g) The Location, Extent, Character and Estimated Cost of Improvements including Rehabilitation for the Development Area and an Estimate of Time Required for Completion Projects proposed for the Hudson DDA Area include both public and private improvements. The cost estimates are estimated costs and will be revised as the plans are completed for the individual projects. Funding for the public improvement projects is proposed from a variety of sources including tax increment revenues, Federal and State sources, and other sources depending on the scope and location of the individual project. Other sources of funding such as grants may be utilized if available.
(h) Statement of the Construction or Stages of Construction Planned and the Estimated Time of Completion. The time schedule for construction of the public improvement program for projects listed in the Development Plan are outlined in this Section.
(i) Parts of the Development Area to be Left as Open Space and their Planned Use. Open space within the Development Area covered by the Development Plan will include right-of ways, pedestrian walkways, green space and mini parks.
(j) Portions of the Development Area which the Authority Desires to Sell, Donate, Exchange, or Lease to or From the Municipality and Proposed Terms. There are currently no properties that the Downtown Development Authority desires to sell, donate, exchange, or lease to or from the City of Hudson.
(k) Desired Zoning Changes and Changes in Streets, Street Levels, Intersections and Utilities. There are currently no further changes in zoning or street improvements that are part of the Development Plan.
(l) An Estimate of the Cost of the Development, Proposed Method of Financing and Ability of the Authority to Arrange Financing. Financing for the public improvement projects outlined in Section 6 will be provided by funds generated by the Tax Increment Financing Plan through annual increases in property valuations and new construction within the Development Area. If necessary, the Downtown Development Authority may request the City to sponsor a revenue bond or provide subordinate loan collateral, using the proceeds of the tax increments as debt service payment to finance the improvements. In addition, funding may be sought through grants and other funding programs that the DDA and the City Council deem beneficial.
(m) Designation of Person or Persons, Natural or Corporate, to whom all or a portion of the Development is to be Leased, Sold, or Conveyed in any manner and for whose benefit the Project is being undertaken if that information is available to the Authority. The public improvements undertaken in the Development Plan will remain in public ownership for the public benefit. Although components of the projects may benefit adjacent commercial property owners, they are public assets to be managed by the municipality.
(n) The Procedures for Bidding for the Leasing, Purchasing, or Conveying of all or a portion of the Development upon its completion, if there is no expressed or implied Agreement between the Authority and Persons, Natural or Corporate, that all or a portion of the Development will be Leased, Sold, or Conveyed to those Persons. There are presently no agreements for property conveyance between the City of Hudson, Hudson Downtown Development Authority or any person(s), natural or corporate for properties within that portion of the Development Area covered by the Development Plan. All land acquisitions, if any, would be done by mutual agreement between the seller and DDA as property becomes available. Any such sale, lease or exchange shall be conducted by the Downtown Development Authority pursuant to the requirements specified in Act 197 of Public Acts of 1975, as amended, with the consent of the City Council. If needed, more detailed procedures will be developed before the transactions are executed, according to applicable City policy and Michigan state law.
(o) Estimates of the Number of Persons Residing in the Development Area and the Number of Families and Individuals to be Displaced. Based on a review of the properties within the Downtown Development Authority District and Development Area, it is estimated that less than 100 individuals reside within the Development Area. This estimate is based on a physical inventory of dwelling units within the Development Area. As a result, there is no need to establish an Area Development Citizens Council pursuant to Section 21 of Act No. 197 of 1975, as amended.
The Development Plan does not require the acquisition and clearance of occupied residential property or the displacement of individuals and families within that portion of the Development Area covered by the Development Plan.
(p) A Plan for Establishing Priority for the Relocation of Persons Displaced by the Development in any New Housing in the Development Area. Since there is no plan to condemn property in the Development Plan, this section is not applicable.
(q) Provision for the Costs of Relocating Persons Displaced by the Development, and Financial Assistance and Reimbursement of Expenses, including Litigation expenses and expenses incidental to the transfer of Title in accordance with the Standards and Provisions of the Federal Uniform Relocation Assistance and Real Property Acquisition Policies of 1970. There is no plan to condemn property in conjunction with the Development Plan, so this section is not applicable.
2.270.200 Tax Increment Financing Plan
(a) Definitions as Used in This Plan.
1. “Captured Taxable Value” (the “CTV”) means the amount in any one (1) year which the current taxable value including the taxable value of the property for which specific local taxes are paid in lieu of property taxes as determined, exceeds the initial taxable value.
2. “Initial Taxable Value” (the “ITV”) means the taxable value, as equalized, of all the taxable property within the boundaries of the development area at the time the ordinance establishing the tax increment financing plan is approved as shown by the most recent roll of the municipality for which the equalization has been completed. Property exempt from taxation at the time of the determination of the initial taxable value shall be included as zero. For the purpose of determining initial taxable value, property for which a special local tax is paid in lieu of a property tax shall not be considered to be property that is exempt from taxation. The initial taxable value of property for which a specific local tax was paid in lieu of a property tax shall be included as zero.
3. “Specific Local Taxes” mean a tax levied under Act 1987 of the Public Acts of 1974, being sections 207.551 to 207.571 of the Michigan Compiles Laws, the commercial redevelopment act, Act No. 255 of the Public Acts of 1978, being section 207.651 to 207.668 of Michigan Compiled Laws, the technology park development act, Act No. 385 of the Public Acts of 1984, being sections 207.701 to 207.718 of the Michigan Compiled Laws and Act No. 189 of the Public Acts of 1953, being sections 211.181 and 211.182 of the Michigan Compiled Laws. The initial taxable value or current taxable value of property subject to specific local tax shall be the quotient of the specific local tax paid divided by the ad valorem millage rate.
4. “Tax Increment Revenues” means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon the capture taxable value of real and personal property in the development area subject to requirement specified in Act No. 197 of the Public Acts of 1975, as amended.
(b) Purpose of the Tax Increment Financing Plan. The City of Hudson’s Downtown Development District was established pursuant to Ordinance No: 354-03, effective October 1, 2004. In order to halt property tax value deterioration, increase property tax valuations and facilitate the overall economic growth of its business district, it is deemed to be beneficial and necessary to create and provide for the operation of a downtown development authority in the City under the provisions of Act 197 Public Acts of Michigan, 1975 as amended (the “Act”).
The Authority has determined that a tax increment financing plan is necessary for the achievement of the purposes of the Act and it is authorized to prepare and submit said plan to the governing body. Ordinance No: 354-03 adopted by the City Council on October 1, 2004, authorizes the DDA to prepare a Tax Increment Financing Plan (the “Plan”), which includes:
1. The Development Plan; 2. A detailed explanation of the tax increment procedure; 3. The maximum amount of bonded indebtedness to be incurred; 4. The duration of the program; 5. The impact of tax increment financing on the taxable values of all taxing jurisdictions in which the development area is located; and statement of the portion of the captured taxable value to be used by the Authority.
The benefit of using tax increment financing as a method to finance downtown development improvements is that all local units of government levying taxes within the City of Hudson contribute to the revitalization of the business district. Prior to legislative authorization of tax increment financing only the municipality provided tax revenues for revitalization activities while the other taxing authorities shared the benefits of the revitalization efforts.
(c). Explanation of the Tax Increment Procedure The theory of tax increment financing holds that investment in necessary capital improvements within a designated area in a municipality will result in greater property tax revenues from that area than would otherwise occur if no special development were undertaken. This section is intended to explain the tax increment procedure.
1. In order to provide the Downtown Development Authority with the means of financing development proposals, the Act affords the opportunity to undertake tax increment financing of development programs. These programs must be identified in a tax increment financing plan which has been approved by the governing body of a municipality. Tax increment financing permits the Authority to capture incremental tax revenues attributable to increases in value of real and personal property located within an approved development area. The increases in property value may be attributable to new construction, rehabilitation, remodeling, alterations, additions, or any other factors that cause growth in value.
2. At the time the resolution or ordinance establishing a tax increment financing plan is adopted, the sum of the most recently taxable values, as equalized, of those taxable properties located within the development area is established as the “Initial Taxable Value” (the “ITV”). Property exempt from taxation at the time of determination of the Initial Taxable Value is included as zero. In each subsequent year, the total real and personal property within the district, including abated property on separate rolls, is established as “Current Taxable Value”.
3. The amount by which the total taxable value exceeds the ITV is the Captured Taxable Value (the “CTV”). During the period in which a tax increment financing plan is in effect, local taxiing jurisdictions continue to receive ad valorem taxes based on the ITV. Property taxes paid on a predetermined portion of the CTV in years subsequent to the adoption of tax increment financing plan, however, are payable to an authority for the purposes established in the tax increment financing plan.
(d) Taxing Jurisdiction Agreements. Tax increment revenues for the Downtown Development Authority result from the application of the general tax rates of the incorporated municipalities and all other political subdivisions which levy taxes in the development area to the captured taxable value. Since the plan may provide for the use of all or part of the captured tax increment revenue, the DDA may enter into agreements with any of the taxing units to share a portion of the revenue of the District. Should the Authority find it necessary to use all of the captured revenue, it shall be clearly stated in this plan. The Authority intends to use all captured revenue as referenced in Table 3, from the District until the projects addressed in the Development Plan are completed and, until any bonded indebtedness is paid.
(e) Property Valuations and Captured Revenue. The property valuation on which tax increment revenues will be captured is the difference between the Initial Assessed Valuation, the projected Captured Assessed Valuation and the anticipated increment revenues to be received by the Authority from the local taxing jurisdictions including the City of Hudson and Lenawee County and any other authorities or special tax districts that may be eligible to levy property taxes within the boundaries of the Downtown Development Authority, herein collectively referred to as the “Local Taxing Jurisdictions.”
1. The Initial Assessed Valuation is established based on the 2004 state equalized valuations on real property and on all nonexempt parcels within that portion of the Development Area as of July 1, 2004. The Initial Taxable Valuation of the Authority including personal property is $6,915,703. See Table 1. The Initial Taxable Valuation of the Authority without person property is $5,523,803. See Table 2.
2. The anticipated Captured Taxable Value is equivalent to the annual total taxable value within the Development Area boundaries less the Initial Taxable Value as described above. The tax increment revenues are then the product of all millages levied by all taxing units in the Development Area on the CTV. The CTV is projected based on a number of factors including historical growth patterns, recent construction trends, economic indicators and the impact of certain development projects anticipated to be undertaken by the Downtown Development Authority. For projection purposes, the annual growth rate for the remainder of the forecast (2005-2028) is factored at 2.6% for real property. Personal property is captured but not forecasted. A more detailed depiction of the Captured Taxable Valuations not including personal property can be found in Table 2.
3. The Authority will receive that portion of the tax levy of all taxing jurisdictions paid each year on the Captured Taxable Value of the eligible property included in the Development Area. The Authority may use the revenues for any legal purpose as is established under the Act including the payment of principal and interest on bonds. Anticipated Captured Taxable Valuation Without New Development or Redevelopment
The Treasurer will collect the general property taxes from property owners in the DDA. After taxes are collected, the Treasurer will deduct that portion of the total tax revenues derived from captured taxable value of the DDA and distribute them to the DDA to use for purposes outlined in the development plan. A review of the 2005 millage rates for all local taxing jurisdictions in the DDA is set forth in Section (h) below.
Anticipated Captured Revenue
The Anticipated Captured Revenue can be found in Table 2. These amounts are listed in the “EST PRE Taxes” column and in the “EST NON-PRE Taxes” column.
(f) Maximum Indebtedness. The maximum amount of indebtedness to be incurred based on 2005 costs for projects identified in the Development Plan will be limited by the annual revenues available to the Downtown Development Authority for bond interest and principal payments. This amount may vary depending on the size of the DDA District and Development Area and the type and intensity of Development and Redevelopment. A description of the various projects and the actual amounts to be financed are set forth in Section 6 of the Development Plan. Revenues captured will be used to accomplish projects in the Development Area.
(g) Use of Captured Revenues. Revenues captured through the Tax Increment Plan will be used to finance the improvements and projects outlined in Table 2 of the Development Plan, in accordance with procedures specified in this Plan. Captured revenues may also be used to finance current financial obligations of the DDA, to pay for costs incurred by the City/DDA in implementing both the Development Plan and the Tax Increment Financing Plan, and to pay for costs associated with the administration and operation of the Development and Tax Increment Plan.
(h) Duration of the Program. The Development Plan and Tax Increment Financing Plan shall extend 25 years, through October, 2029. 2005 Actual Millage Rates: __________________________________________________________________ 2005 Millage Rate City of Hudson General Operations 10.6419 mills EMS Operations 1.0000 mills
Lenawee County General Operations 4.9881 mills Department on Aging .4867 mills Medical Care .1915 mills
Lenawee Intermediate School General Operations 7.3409 mills
State Educational Tax General Operations 6.0000 mills Hudson School Operating General Operations 18.0000 mills
Total Millage Rate 48.650 mills
(i) Plan Impact on Local Taxing Jurisdictions. The Authority recognizes that future development in the City’s business district will not be likely in the absence of tax increment financing. The Authority also recognizes that the enhancement of nearby property will indirectly benefit all local governmental units included in this plan. Although the affected local taxing Jurisdictions may not experience a gain in property tax revenues from the Development Area during the duration of the plan, but should realize increased property tax revenues as a result of activities financed by the plan. Such future benefits cannot be accurately predicted at this time.
(j) Release of Captured Revenues after Completion of the Plan. When the Development and Financing Plans have been accomplished, the captured revenue is released and the local taxing jurisdictions receive all the taxes levied from that point on.
Tax Increment Financing Forecast
The Tax Increment Financing Forecast can be found on Table 2. Forecasting future revenues from the TIF is figured without personal property.
(k) Assumptions of the Tax Increment Financing Plan. The following assumptions were considered in the formulation of the Tax Increment Financing Plan for the Hudson Downtown Development Authority:
1. Real Property valuations are based on the 2004 actual State Taxable Values (S.T.V.) and reflect an increase of 2.6% each year thereafter. These increases are net of any additions or subtractions due to new construction, property acquisition, relocation, or other factors, based on discussions with the Lenawee County Equalization Department.
2. Personal property valuations are subject to capture, but are not included in the forecast of tax increment revenues.
3. Costs provided for the various DDA projects shown in Table 1 are estimated costs in 2007 dollars. Final costs will be determined after the final designs are authorized by the Authority. The effects of inflation may also have an undermined influence on these cost figures.
(l) Operating Agreement Between Downtown Development Authority and Local Unit of Government Regarding the Use of Tax Increment Revenues. The Downtown Development Authority will not spend any funds outside of those annually approved through the budgeting process, and shall not commit to any loans, leases, or purchases without sufficient evidence of an adequate revenue source to support the proposal.
(m) Relationship of the Tax Increment Financing Plan with Other Funding Programs. As discussed in the Development Plan, the revitalization of the Hudson Business District will include Tax Increment Financing as well as other forms of intergovernmental and private financing, such as grants, special assessments and loans. It is intended that Tax Increment Financing revenues be used to leverage other funds in order to implement the Downtown Development Program. Further, The Downtown Development Authority is encouraged to work with local lending institutions to develop business loan programs consistent with the purposes identified in the Development Plan and the lending institutions’ Community Reinvestment Program.
(n) Relationship to Community Master Plan. The Development Plan indicated the need to revitalize the business and commercial corridors of the City of Hudson. The future plans from the Planning Commission and the City Council will incorporate the Downtown Development Plan as an integral component of the community’s redevelopment program.
If it is determined that any portions of the City of Hudson’s Master Plan conflict with the provisions of the Downtown Development Plan, then the Development Plan shall be adopted as a component of the Master Plan, pursuant to Section 8 of Act 285 of 1931; the Municipal Planning Act.
(o) Submission of an Annual Report to the Governing Body and State Tax Commission Annually, the Authority shall submit to the City Council and State Tax Commission, a report on the status of the tax increment financing account. The report shall include those items listed in Section 15 (3) of Act 197 of 1975 (MCL 125.1665). The report shall also be published in a newspaper of general circulation.
________________________________________________________________________________________
[ ] Non-emergency Ordinance [ ] Emergency Ordinance Introduced:_______________________________________________________________________________
Summary of Minutes Published: ______________________________________________________________ Enacted: _________________________________________________________________________________ Vote: ______ Yes: _____ No: _____ Abstain: _____
Ordinance Published: _______________________________________________________________________
Effective Date: ____________________________________________________________________________
Approved: ________________________________________, Mayor
Attest: ___________________________________________, City Clerk
Klm:mydocuments:ordinances:385.09 |
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