[Adopted 3-6-2006 by Ord. No. 113]
This article shall be known and cited as the
"Blackman Township Tax Exemption Ordinance — Village
of Springport."
A.
It is acknowledged that it is a proper public purpose
of the State of Michigan and its political subdivisions to provide
housing for its citizens of low income and to encourage the development
of such housing by providing for a service charge in lieu of property
taxes in accordance with the State Housing Development Authority Act
of 1966 [1966 PA 346, as amended, MCLA § 125.1401 et seq.,
MSA Section 116.114(1) et seq.]. The Township is authorized by this
Act to establish or change the service charge to be paid in lieu of
taxes by any or all classes of housing exempt from taxation under
this Act at any amount it chooses, not to exceed the taxes that would
be paid but for this Act. It is further acknowledged that such housing
for elderly persons of low income is a public necessity, and as the
Township will be benefited and improved by such housing, the encouragement
of the same by providing certain real estate tax exemption for such
housing is a valid public purpose; further, that the continuance of
the provisions of this article for tax exemption and the service charge
in lieu of taxes during the period contemplated in this article are
essential to the determination of economic feasibility of housing
developments which are constructed and financed in reliance on such
tax exemption.
B.
The Township acknowledges that Presbyterian Villages
of Michigan (the "sponsor") has offered, subject to receipt of a mortgage
loan from the Michigan State Housing Development Authority, to erect,
own and operate a housing development identified as the Village of
Springport Senior Living Community, located on County Farm Road on
approximately 12.86 acres of property, more or less, in the Charter
Township of Blackman, to serve elderly persons of low income, and
that the sponsor has offered to pay the Township on account of this
housing development an annual service charge for public services in
lieu of all taxes.
As used in this article, the following terms
shall have the meanings indicated:
The State Housing Development Authority Act, being Public
Act 346 of 1966 of the State of Michigan, as amended.[1]
The total collections during an agreed annual period from
all occupants of a housing development representing rent or occupancy
charges, exclusive of charges for gas, electricity, heat or other
utilities furnished to the occupants.
The Michigan State Housing Development Authority.
A single person who is 55 years of age or older, or a household
in which at least one member is 55 years of age or older and all other
members are 50 years of age or older.
A development which contains a significant element of housing
for persons of low income and such elements of other housing, commercial,
recreational, industrial, communal, and educational facilities as
the Authority determines improve the quality of the development as
it relates to housing for persons of low income.
Housing occupied by a single person who is 55 years of age
or older, or housing occupied by a family and/or household in which
at least one member is 55 years of age or older and all other members
are 50 years of age or older.
A loan to be made by the Authority to the sponsor for the
construction and/or permanent financing of the housing development.
Person(s) or entities which have applied to the Authority
for a mortgage loan to finance a housing development.
[1]
Editor's Note: See MCLA § 125.1401
et seq.
It is determined that the class of housing development
to which the tax exemption shall apply and for which a service charge
shall be paid in lieu of such taxes shall be housing for the elderly,
which are financed or assisted pursuant to the Act. It is further
determined that Village of Springport Senior Living Community is of
this class.
The housing development identified as Village
of Springport Senior Living Community and the property on which it
shall be constructed shall be exempt from all property taxes from
and after the commencement of construction. The Township acknowledges
that the sponsor and the Authority have established the economic feasibility
of Village of Springport Senior Living Community in reliance upon
the enactment and continuing effect of this article and the qualification
of the housing development for exemption from all property taxes and
a payment in lieu of taxes as established in this article, and in
consideration of the sponsor's offer, subject to receipt of a mortgage
loan from the Authority, to construct, own and operate the housing
development, agrees to accept payment of an annual service charge
for public services in lieu of all property taxes. The annual service
charge for Village of Springport Senior Living Community shall be
equal to 4% of the annual shelter rents (as defined in above and subject
to the exclusions stated in the definition) actually collected.
[Amended 8-31-2006 by Ord. No. 114]
A.
The Public Safety Improvement Fund of the Charter
Township of Blackman is hereby established to be used by the Charter
Township solely for public safety improvements in the Township.
B.
The sponsor, its successors or assigns, on or before
August 1 of the year following the year in which the certificate of
occupancy is issued for the housing development, and on each August
1 thereafter if and as long as this article remains in effect, shall
pay to this fund the sum of $12,292. From and after the first anniversary
of the initial such payment, the annual amount payable shall be increased
by 3% per annum.
Notwithstanding the provisions of Section 15(a)(5)
of the Act[1] to the contrary, a contract between the Township and the
sponsor with the Authority as third party beneficiary under the contract,
to provide tax exemption and accept payments in lieu of taxes, as
previously described, is effectuated by enactment of this article.
[1]
Editor's Note: See MCLA § 125.1415a(5).
The annual service charge in lieu of taxes as
determined under this article shall be payable in the same manner
as general property taxes are payable except that the annual payment
shall be paid on or before August 1 of each year, beginning in the
year following the year in which the certificate of occupancy is issued
for the housing development.
This article shall remain in effect and shall
not terminate so long as the mortgage loan remains outstanding and
unpaid or the Authority has any interest in the property; provided
that construction of the housing development commences within one
year from the effective date of this article, and provided further
exemption shall not exceed 35 years from the date of the first payment
towards amortization of the original mortgage loan used to initially
construct this project.
Those housing projects which are currently exempt
from taxation and are already making payment in lieu of tax (PILOT)
payments shall not be affected nor shall the terms of the tax exemption
and PILOT payments for those housing projects be changed by reason
of the passage of this article.
