City of Roseville, MI
Macomb County
By using eCode360 you agree to be legally bound by the Terms of Use. If you do not agree to the Terms of Use, please do not use eCode360.
Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Roseville as indicated in article histories. Amendments noted where applicable.]
GENERAL REFERENCES
Planning Commission — See Ch. 45.
Zoning — See Ch. 370.
[Adopted 10-13-2015 by Ord. No. 1283[1]]
[1]
Editor’s Note: This ordinance was adopted as Ch. 116 but was renumbered to maintain the organization of the Code. This ordinance also repealed former Ch. 21, Downtown Development Authority, adopted 11-25-1997 by Ord. No. 1100.

§ 21-1 Determination of necessity.

The City of Roseville City Council hereby determines that it is necessary and in the best interests of the public to create a public body corporate which shall operate to halt property value deterioration, eliminate the causes of that deterioration, increase property tax valuation where possible in the business districts of the City, and promote economic growth, pursuant to Act 197 of the Public Acts of Michigan of 1975, as amended.[1]
[1]
Editor's Note: See MSA § 5.3010(1a) et seq.; MCL § 125.1651a et seq.

§ 21-2 Definitions.

The terms used in this chapter shall have the same meaning as given to them in Act 197 or as hereinafter provided. As used in this chapter:
ACT 197
Act No. 197 of the Public Acts of Michigan of 1975, as amended.
AUTHORITY
The Downtown Development Authority of the City of Roseville created by this chapter.
BOARD or BOARD OF DIRECTORS
The Board of Directors of the Authority, the governing body of the Authority.
CHIEF EXECUTIVE OFFICER
The Mayor of the City.
CITY
The City of Roseville, Michigan.
COUNCIL or CITY COUNCIL
The City Council of the City.
DOWNTOWN DISTRICT
The downtown district designated by this chapter, as now existing or hereafter amended, and within which the Authority shall exercise its powers.

§ 21-3 Creation of the Downtown Development Authority.

There is hereby created, pursuant to Act 197, a Downtown Development Authority for the City. The Authority shall be a public body corporate and shall be known and exercise its powers under the title "Downtown Development Authority of the City of Roseville." The Authority may adopt a seal, may sue and be sued in any court of this State and shall possess all of the powers necessary to carry out the purposes of its incorporation as provided by this chapter and Act 197. The enumeration of powers of this chapter or in Act 197 shall not be construed as a limitation upon the general powers of the Authority.

§ 21-4 Termination.

Upon completion of its purposes, the Authority may be dissolved by the City Council. The property and assets of the Authority, after dissolution and satisfaction of its obligations, shall revert to the City.

§ 21-5 Description of the Downtown District.

The Downtown District shall consist of the territory in the City described in Exhibit A, attached hereto and made a part of hereof, subject to such changes as may hereinafter be made pursuant to this chapter and Act 197.

§ 21-6 Board of Directors.

The Authority shall be under the supervision and control of the Board. The Board shall consist of nine members including the Chief Executive Officer of the City, who shall be appointed and serve in accordance with the Act. Members of the Board shall serve without compensation, but shall be reimbursed for actual and necessary expenses. The Chairperson of the Board shall be elected by the Board. The Board shall adopt bylaws governing its procedures subject to the approval of the City Council.

§ 21-7 Powers of the Authority.

Except as specifically otherwise provided in this chapter, the Authority shall have all powers provided by law subject to the limitations imposed by and herein.

§ 21-8 Fiscal year; budget.

A. 
The fiscal year for the Authority shall begin on July 1st of each year and end on June 30, or such other fiscal year as may hereafter be adopted by the Council.
B. 
The Board shall prepare annually a budget and shall submit it to the City Council for approval. The Board shall not finally adopt a budget for any fiscal year until the budget has been approved by the City Council. The Board may, however, temporarily adopt a budget in connection with the operation of any improvements which have been financed by revenue bonds where required to do so by the ordinance authorizing the revenue bonds.
C. 
The Authority shall submit financial reports to the City Council at the same time and on the same basis as departments of the City are required to submit reports. The Authority shall be audited annually by the same independent auditors auditing the City and copies of the audit report shall be filed with the Council.
[Adopted 6-14-2016 by Ord. No. 1290]

§ 21-9 Definitions.

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
BASE YEAR ASSESSMENT ROLL
The base year assessment roll prepared by the City Assessor in accordance with § 21-13.
CAPTURED ASSESSED VALUE
The amount in any one year by which the current assessed value of the development area (also known as the "project area"), including the assessed value of property for which specific local taxes are paid in lieu of property taxes as determined in Section 1(x) of Act 197 [MCL 125.1651(x)], exceeds the initial assessed value. The method for calculating captured assessed value shall be as prescribed by the State Tax Commission.
DEVELOPMENT PLAN
The project development and financing plan of the Downtown Development District, dated April 2016, as amended and transmitted to the City Council by the Downtown Development Authority for public hearing, as modified by action of the City Council and confirmed by this article, copies of which are on file in the office of the City Clerk.
DOWNTOWN DEVELOPMENT DISTRICT
The area outlined in the development plan and legally described in Appendix A on file in the office of the City Clerk.
INITIAL ASSESSED VALUE
The most recently assessed value as finally equalized of all the taxable property within the boundaries of the Downtown Development District (development area) on the effective date of the ordinance from which this article is derived, as such term is used and defined in Section 1(p) of Act 197 [MCL 125.1651(p)].
PROJECT FUND
The Downtown Development Authority Project Fund established pursuant to § 21-15.
SPECIFIC LOCAL TAX
A tax levied under Public Act No. 198 of 1974 (MCL 207.551 et seq.), the Commercial Redevelopment Act; Public Act No. 255 of 1978 (MCL 207.651 et seq.), the Technology Park Development Act; Public Act No. 385 of 1984 (MCL 207.701 et seq.); and Public Act No. 189 of 1953 (MCL 211.181 et seq.), as such term is used and defined in Section 1(x) of Act 197 [MCL 125.1651(x)].
TAXING JURISDICTION
Each unit of government levying an ad valorem property tax on property in the Downtown Development District (development area).

§ 21-10 Legislative findings.

A. 
Preamble.
(1) 
Public Act No. 197 of 1975 provides for, among other things, the establishment of a Downtown Development Authority; to correct and prevent deterioration in business districts; to encourage historic preservation; to authorize the creation and implementation of development plans in the districts; to promote economic growth; and to authorize the use of tax increment plans.
(2) 
The Downtown Development Authority has caused to be prepared, and has recommended for approval, a tax increment financing and development plan to the area designated as Downtown District.
(3) 
Pursuant to Section 18 of the Act (MCL 125.1668), the City Council conducted a public hearing on May 17, 2016.
(4) 
The City has given the County Board of Commissioners and School Board an opportunity to meet with the City Council to express their views and recommendations regarding the plan, as required by Section 14 of the Act (MCL 125.1664).
B. 
Findings. The City Council finds all of the following:
(1) 
The Downtown Development Authority has approved an overall development plan designed to bring to the central area of the City new residents and businesses, specifically, the Downtown District.
(2) 
The tax increment plan will fund public improvements through taxes generated by private development.
(3) 
Implementation of the development plan will bring residents with disposable income to the downtown area, will create a new tax base and generate economic growth, thereby providing customers for retailers, and it will serve as an impetus for additional residential and retail growth.
(4) 
The development plan constitutes a public purpose and is reasonable and necessary to carry out the purposes of the Act.
C. 
Approval considerations. The development plan and tax increment plan are being approved by this article based upon the following considerations:
(1) 
The findings and recommendations of a development area citizens council, if a development area citizens' council was formed.
(2) 
The plan meets the requirements set forth in Section 17(2) of the Act [MCL 125.1667(2)].
(3) 
The proposed method of financing the development is feasible, and the authority has the ability to arrange the financing.
(4) 
The development is reasonable and necessary to carry out the purposes of the Act.
(5) 
The land included within the development area to be acquired is reasonably necessary to carry out the purposes of the plan and of this Act in an efficient and economically satisfactory manner.
(6) 
The development plan is in reasonable accord with the master plan of the City.
(7) 
Public services, such as fire and police protection and utilities, are or will be adequate to service the project area.
(8) 
Changes in zoning, streets, street levels, intersections and utilities are reasonably necessary for the project and the City.

§ 21-11 Approval; adoption of plans.

The development plan, as amended by the City Council, and the tax increment financing plan detailed and set forth in such development plan, are hereby declared by the City Council to constitute a public purpose, and the plans are hereby approved and adopted. The duration of the development plan and the tax increment financing plan shall be 20 years from the date of issuance of the last series of bonds issued pursuant to the development plan, except as it may be extended by subsequent amendment of the development plan and this article. A copy of the development plan and all amendments thereto shall be maintained on file in the City Clerk's office and cross-indexed to this article.

§ 21-12 Boundaries of Downtown Development District.

The boundaries of the Downtown Development District as set forth in the development plan and attached to Chapter 21 as Exhibit A, which is on file in the office of the City Clerk, are hereby adopted and approved, and the Downtown Development District shall constitute the development area.

§ 21-13 Preparation of base year assessment roll.

A. 
Within 20 days of May 17, 2016, the effective date of the ordinance from which this article is derived, the City Assessor shall prepare the initial base year assessment roll. The initial base year assessment roll shall list each taxing jurisdiction levying taxes in the Downtown Development District, the initial assessed value of the Downtown Development District on the effective date of the ordinance from which this article is derived, and the amount of tax revenue derived by each taxing jurisdiction from ad valorem taxes on the property in the Downtown Development District.
B. 
The City Assessor shall transmit copies of the initial base year assessment roll to the City Treasurer, to the county treasurer, to the Downtown Development Authority and to each taxing jurisdiction, together with a notice that the assessment roll has been prepared in accordance with this article and the tax increment financing plan contained and set forth in the development plan approved by this article.

§ 21-14 Preparation of annual base year assessment roll.

Each year, within 15 days following the final equalization of property in the Downtown Development District, the City Assessor shall prepare an updated base year assessment roll. The updated base year assessment roll shall show and contain the information required in the initial base year assessment roll, and in addition, the updated base year assessment roll shall set forth and show the captured assessed value for that year. Copies of the annual base year assessment roll shall be transmitted by the City Assessor to the same persons and entities as the initial base year assessment roll, together with a notice that it has been prepared in accordance with the development plan and this article.

§ 21-15 Establishment of project fund; approval of depository.

The Treasurer of the Downtown Development Authority shall establish a separate fund which shall be kept in a depository bank account in a bank approved by the City Treasurer, such fund to be designated the "Downtown Development Authority Project Fund." All proceeds of the tax increment financing plan shall be deposited in the Downtown Development Authority Project Fund. All monies in the Downtown Development Authority Project Fund and all earnings thereon shall be used only in accordance with the development plan and this article.

§ 21-16 Payment of tax increments to Downtown Development Authority.

The City Treasurer and the County Treasurer shall transmit tax increments to the Downtown Development Authority in accordance with Act 197; the amount of tax increment to be transmitted to the Downtown Development Authority by the City Treasurer and the County Treasurer shall be that portion of the tax levy of all taxing bodies (taxing jurisdictions) paid each year on real and personal property in the project area (development area) on the captured assessed value. For the purpose of this section, that portion of a specific local tax that is attributable to the captured assessed value of the facility shall be included as a part of the tax increment to be transmitted to the Downtown Development Authority. The tax increments transmitted by the City Treasurer and the County Treasurer to the Downtown Development Authority shall be deposited by the treasurer of the Downtown Development Authority into the project fund. The payment of the tax increments to the Downtown Development Authority shall be made on the date which the City Treasurer and the County Treasurer are required to remit taxes to each of the taxing jurisdictions, unless otherwise provided by law.

§ 21-17 Use of monies in project fund.

A. 
The monies and funds credited to and deposited in the project fund pursuant to this article and the earnings and income thereon shall, in accordance with Act 197, be annually used in the following manner and in the following order of priority to:
(1) 
Pay into the debt retirement fund, for all outstanding series of bonds issued pursuant to the development plan and this article, an amount equal to the interest and principal coming due (in the case of principal whether by maturity or mandatory redemption) prior to the next collection of taxes, less any credit for sums on hand in the debt retirement fund.
(2) 
Establish a reserve account for payment of principal and interest on bonds issued, pursuant to the development plan and this article, an amount equal to 1/5 of the largest combined annual principal and interest payments due on bonds issued pursuant to the development plan and this article until the amount equal to the credit of the reserve account is equal to the largest combined annual principal and interest requirements on bonds issued pursuant to the development plan and this article. Any amounts to the credit of the reserve account at the beginning of a fiscal year in excess of the requirement of the preceding sentence shall be considered tax increment revenue for that year.
(3) 
Pay the administrative and operating costs of the Downtown Development Authority and City for the Downtown Development District, including planning promotion, to the extent provided in the annual budget of the Downtown Development Authority.
(4) 
Pay, to the extent determined desirable by the Downtown Development Authority and approved by the City Council, the cost of completing the remaining public improvements as set forth in the development plan to the extent those costs are not financed from the proceeds of bonds.
(5) 
Pay the costs of any additional improvements to the Downtown Development District determined necessary by the Downtown Development Authority and approved by the City Council.
(6) 
Reimburse the City for funds advanced to acquire property, clear land, make preliminary plans, and improvements necessary for the development of the Downtown Development District in accordance with the development plan.
(7) 
Provide a pool of mortgage financing, as needed, for private development in accordance with the development plan.
B. 
Any tax increment receipts in excess of those needed under subsection a of this section shall revert to the taxing jurisdictions or be used for future development activities within the Downtown Development District, as defined in the development plan or as expanded to include all or parts of the Downtown Development District pursuant to amendment or modification of the development plan and/or this article pursuant to applicable provisions and requirements of Act 197 and/or pursuant to other applicable laws.

§ 21-18 Annual report required of Downtown Development Authority.

A. 
Annually, within 90 days after the end of each fiscal year, the Downtown Development Authority shall submit to the City Council and to the State Tax Commission, with copies to each taxing jurisdiction, a report on the status of the tax increment financing account (project fund). The report shall include the following:
(1) 
The amount and source of revenue in the account;
(2) 
The amount and purpose of expenditures from the account;
(3) 
The amount of principal and interest on any outstanding bonded indebtedness;
(4) 
The initial assessed value of the project area (development area);
(5) 
The captured assessed value retained by the Downtown Development Authority;
(6) 
The tax increments received;
(7) 
The amount of any surplus from the prior year; and
(8) 
Any additional information the City Council or the State Tax Commission considers necessary and any additional information deemed appropriate by the Downtown Development Authority.
B. 
The secretary of the Downtown Development Authority shall cause a copy of the report to be published once in full in the established legal newspaper of general circulation in the City.

§ 21-19 Reverting of surplus tax increments.

The Downtown Development Authority shall expend the tax increments for the development program only pursuant to the tax increment financing plan. Surplus funds shall revert proportionately to the respective taxing bodies (taxing jurisdictions).

§ 21-20 Applicability of State law.

This article is adopted pursuant to, and in accordance with, Act 197. The interpretation and administration of this article shall be governed by the terms, provisions and requirements of Act 197.