[HISTORY: Adopted by the Village Council
of the Village of New Haven as indicated in article histories. Amendments
noted where applicable.]
[Adopted 3-14-2006 by Ord. No. 292]
This article shall be known and may be cited
as the "Downtown Development Authority Ordinance."
The terms used in this article shall have the
same meaning as given to them in Act 197 or as hereinafter in this
section, unless the context clearly indicates to the contrary. As
used in this article, the following terms shall have the meanings
indicated:
Act No. 197 of the Public Acts of Michigan of 1975, as now
in effect or hereinafter amended.[1]
The Downtown Development Authority of the Village of New
Haven created by this article.
The Board of Directors of the Authority, the governing body
of the Authority.
The President of the Village.
The legislative body of the Village.
The downtown district designated by this article as now existing
or hereafter amended and as defined in the annexed Exhibit A, which
is incorporated by reference in to the text of this article.[2]
The Village of New Haven, Michigan.
The Village Council of the Village hereby determines
that it is necessary for the best interests of the Village to halt
property value deterioration and increase property tax valuation where
possible in the business district of the Village, to eliminate the
causes of that deterioration and to promote economic growth by establishing
a downtown development authority pursuant to Act 197.
There is hereby created pursuant to Act 197
a Downtown Development Authority for the Village. The Authority shall
be a public body corporate and shall be known and exercise its powers
under the title of "Downtown Development Authority of the Village
of New Haven." 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 purpose of its incorporation as provided by this article
and Act 197. The enumeration of a power in this article or in Act
197 shall not be construed as a limitation upon the general powers
of the Authority.
The downtown district in which the Authority
shall exercise its powers as provided by Act 197 shall consist of
the described territory in the Village, subject to such changes as
may hereinafter be made pursuant to this chapter and Act 197, as set
forth in Exhibit A, attached hereto and made a part hereof.
A.
The Authority shall be under supervision and control
of a Board of Directors consisting of the Village President and eight
members as provided by Act 197. The members shall be appointed by
the Chief Executive Officer, subject to approval by the Council, and
shall hold office for the terms provided in Act 197. All members shall
hold office until the member's successor is appointed.
B.
The Authority may employ and fix the compensation
of a director, subject to the approval of the Council, and a treasurer
and secretary. The director shall furnish bond in the amount of $100,
and the treasurer shall furnish bond in such amounts as prescribed
by the Board. The bonds shall be in such form as may be approved by
the Board, including coverage in the form of a blanket policy carried
by the Authority or the Village.
Except as specifically otherwise provided in
this article, the Authority shall have all powers provided by the
law, subject to the limitations imposed by law and herein.
A.
The fiscal year of the Authority shall begin on April
1 of each year and end on March 31 of each year, or such other fiscal
year as may hereafter be adopted by the Village.
B.
The Board shall annually prepare a budget and shall
submit it to the Council on the same date that the proposed budget
for the Village is required to be submitted to the Council. The Board
shall not finally adopt a budget for any fiscal year until the budget
has been approved by the 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
Council at the same time and on the same basis as departments of the
Village are required to submit reports. The Authority shall be audited
annually by the same independent auditors auditing the Village, and
copies of the audit report shall be filed with the Council.
[Adopted 3-14-2006 by Ord. No. 293]
The terms in this article shall have the following
meaning unless the context clearly required otherwise:
The base year assessment roll prepared by the Village Assessor in accordance with § 34-14 of this article.
The amount in any one year by which the current assessed
value, as finally equalized, of all taxable property in the development
area exceeds the initial assessed value.
The area legally described in the development plan.
The "Tax Increment And Development Plan – Village of
New Haven Downtown Development Area," as amended and transmitted to
the Village Council by the Downtown Development Authority for public
hearing, as modified by action of the Council and confirmed by this
article, copies of which are on file in the office of the Village
Clerk.
The Village of New Haven Downtown Development Authority.[1]
The most recent assessed value, as finally equalized, of
all the taxable property within the boundaries of the development
area at the time of adoption of this article.
The Downtown Development Authority Project Fund established pursuant to § 34-16 of this article.
Each unit of government levying an ad valorem property tax
on property in the development area.
The development plan as amended by the Village
Council is hereby approved and adopted. The duration of the 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 plan and this article. A copy of the
plan and all amendments thereto shall be maintained on file in the
Village Clerk's office and cross-indexed to this article.
The boundaries of the development area as set
forth in the development plan are hereby adopted and confirmed.
A.
Within 60 days of the effective date of this article,
the Assessor shall prepare the initial base year assessment roll.
The initial base year assessment roll shall list each taxing jurisdiction
in which the development area is located, the initial assessed value
of the development area on the effective date of this article and
the amount of tax revenue derived by each taxing jurisdiction from
ad valorem taxes on the property in the development area.
B.
The Assessor shall transmit copies of the initial
base year assessment roll to the Village Treasurer, County Treasurer,
Downtown Development Authority and 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 in the development
plan approved by this article.
Each year, within 15 days following final equalization
of property in the development area, the Assessor shall prepare an
updated base year assessment roll. The updated base year assessment
roll shall show the information required in the initial base year
assessment roll and, in addition, the captured assessed value for
that year. Copies of the annual base year assessment roll shall be
transmitted by the Assessor to the same persons as the initial base
year assessment roll, together with a notice that it has been prepared
in accordance with this article and the development plan.
The Treasurer of the Downtown Development Authority
shall establish a separate fund which shall be kept in a depositary
bank account or accounts in a bank or banks approved by the Director
of Finance of the Village, to be designated the “Downtown Development
Authority Project Fund.” All moneys received by the Downtown
Development Authority pursuant to the development plan shall be deposited
in the project fund. All moneys in that fund and earnings thereon
shall be used only in accordance with the development plan and this
article.
The Village and County Treasurer shall, as ad
valorem taxes are collected on the property in the development area,
pay that proportion of the taxes, except for penalties and collection
fees, that the captured assessed value bears to the initial assessed
value to the Treasurer of the Downtown Development Authority for deposit
in the project fund. The payments shall be made on the date or dates
on which the Village and County Treasurers are required to remit taxes
to each of the taxing jurisdictions.
The money credited to the project fund and on
hand therein from time to time shall annually be used in the following
manner and following order of priority:
A.
First, to pay into the debt retirement fund, or funds,
for all outstanding debts established pursuant to this plan an amount
equal to the interest and principal coming due prior to the next collection
of taxes.
B.
Second, to reimburse the Village for funds advanced
to make preliminary plans and improvements necessary in the development
area in accordance with this plan.
C.
Third, to pay the administrative and operating costs
of the Downtown Development Authority and city for the development
area, including planning and promotion, to the extent provided in
the annual budget of the Tax Increment Finance Authority.
D.
Fourth, to establish a reserve account for payment
of one year's principal and interest on debts encountered pursuant
to this plan.
E.
Fifth, to pay, to the extent determined desirable
by the Downtown Development Authority and approved by the city, the
cost of improvements as set forth in the development plan, to the
extent those costs are not financed from the proceeds of bonds.
F.
Sixth, to establish a sinking fund or a set-aside
account to be used to retire the debt incurred pursuant to this plan
at the earliest possible date.
Within 90 days after the end of each fiscal
year, the Downtown Development Authority shall submit to the Village
Council, with copies to each taxing jurisdiction, a report on the
status of the project fund. The report shall include the amount and
source of revenue in the account, the amount and purpose of expenditures
from the account, the initial assessed value of the development area,
the captured assessed value of the development area, the tax increments
received and the amount of any surplus from the prior year, and any
additional information required by the Village Council or deemed appropriate
by the Downtown Development Authority. The Secretary of the Downtown
Development Authority shall cause a copy of the report to be published
once in full in a newspaper of general circulation in the Village.
Any surplus money in the project fund at the
end of the year, as shown by the annual report of the Downtown Development
Authority, shall be paid by the Authority to the Village or County
Treasurer, as the case may be, and rebated by them to the appropriate
taxing jurisdiction.
