[HISTORY: Adopted by the City Council of the City of Roseville
as indicated in article histories. Amendments noted where applicable.]
[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ordinance also repealed former Ch. 21, Downtown Development Authority,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.
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.
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 No. 197 of the Public Acts of Michigan of 1975, as amended.
The Downtown Development Authority of the City of Roseville
created by this chapter.
The Board of Directors of the Authority, the governing body
of the Authority.
The Mayor of the City.
The City of Roseville, Michigan.
The City Council of the City.
The downtown district designated by this chapter, as now
existing or hereafter amended, and within which the Authority shall
exercise its powers.
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.
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.
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.
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.
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.
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]
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:
The base year assessment roll prepared by the City Assessor in accordance with § 21-13.
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.
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.
The area outlined in the development plan and legally described
in Appendix A on file in the office of the City Clerk.
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)].
The Downtown Development Authority Project Fund established pursuant to § 21-15.
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)].
Each unit of government levying an ad valorem property tax
on property in the Downtown Development District (development area).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
