[Adopted 3-31-1989 by Ord. No. 89-7]
The terms used in this article shall have the following meanings unless the context clearly requires otherwise:
- BASE YEAR ASSESSMENT ROLL
- The base year assessment roll prepared by the City Assessor in accordance with § 52-23 of this article.
- CAPTURED ASSESSED VALUE
- The amount in any one year by which the current assessed value as finally equalized of all taxable property in the Woodward/I-696 Development Area exceeds the initial assessed value.
- DEVELOPMENT AREA
- The area legally described in Exhibit A and which is hereby made a part of this article.
- DEVELOPMENT FUND
- The Downtown Development Authority Development Fund, established pursuant to § 52-25 of this article.
- DEVELOPMENT PLAN
- The Woodward/I-696 Tax Increment Financing and Development Plan dated March 1989, as transmitted to the City Commission by the Royal Oak Downtown Development Authority for public hearing, copies of which are on file in the office of the City Clerk.
- DOWNTOWN DEVELOPMENT AUTHORITY
- The City of Royal Oak Downtown Development Authority.
- INITIAL ASSESSED VALUE
- The assessed value as equalized of all the taxable property within the boundaries of the Development Area at the time of adoption of this article, as shown by the most recent assessment roll of the municipality for which equalization has been completed at the time this article is adopted.
- TAXING JURISDICTION
- Each unit of government levying an ad valorem property tax on property in the Development Area.
The Development Plan, as submitted by the Downtown Development Authority, is hereby approved and adopted by the City Commission. The duration of the plan shall be 30 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 City Clerk's office and cross-indexed to this article.
[Amended 3-9-1992 by Ord. No. 92-6; 8-15-2005 by Ord. No. 2005-09]
The boundaries of the Downtown Development Area as described in the Development Plan, and the attached Exhibit A, are hereby adopted and confirmed.
Within 60 days of the effective date of this article, the City Assessor shall prepare the initial base year assessment roll. The initial base year assessment roll shall list each taxing jurisdiction in which the Woodward/I-696 Development Area is located, the initial assessed value of the Woodward/I-696 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.
The Assessor shall transmit copies of the initial base year assessment roll to the City 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 contained in the Development Plan approved by this article.
Each year within 15 days following the final equalization of property in the Woodward/I-696 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 depository bank account or accounts in a bank or banks approved by the City Treasurer of the City of Royal Oak to be designated Downtown Development Authority Woodward/I-696 Development Fund. All monies received by the Downtown Development Authority pursuant to the Development Plan shall be deposited in the Development Fund. All monies in that fund and earnings thereon shall be used only in accordance with the Development Plan and this article.
The City and County Treasurers 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 Development Fund. The payments shall be made on the date or dates on which the City and County Treasurers are required to remit taxes to each of the taxing jurisdictions.
The money credited to the Development Fund and on hand therein from time to time shall annually be used in the following manner and following order of priority:
To pay into the debt retirement fund, or funds, for all outstanding series of bonds issued pursuant to this plan, 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.
To establish a reserve account for payment of principal and interest on bonds issued pursuant to this plan, an amount equal to that required by P.A. 197 of 1975, as amended, from time to time. 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.
Editor's Note: See MCLA § 125.1651 et seq.
To pay the cost of public improvements as set forth in the Development Plan on a pay-as-you-go basis, to the extent those costs are not financed from the proceeds of bonds.
To pay administrative and operating costs of the DDA to the extent provided in the annual budget of the DDA.
To reimburse the City for any funds advanced to the Downtown Development Authority for use in financing those public improvements, or any portion thereof, indicated in the Development Plan. To the extent the City may be called upon to meet any debt service insufficiencies, tax increment revenues will be used to reimburse the City in the amount of any such advance it has made.
Any tax increment receipts in excess of those needed under the preceding paragraphs shall revert proportionately to the taxing jurisdictions.
Within 90 days after the end of each fiscal year, the Downtown Development Authority shall submit to the City Commission, with copies to each taxing jurisdiction, a report on the status of the Development 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 Woodward/I-696 Development Area, the captured assessed value of the Woodward/I-696 Development Area, the tax increments received and the amount of any surplus from the prior year, and any additional information requested by the City Commission or deemed appropriate by the Downtown Development Authority. The Executive Director 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 City.