Approval of Agenda

Council Member Scheid made a motion to approve the agenda as presented, supported by Council Member Cooper.

Mayor Gunderson stated Citizen Comments would be added for any agenda item for a 3-minute comment period.  Council Comments will be added after Business Item A.

The question on the motion, as amended, was called and the result of the voting is as follows:

            Ayes:               Council Members Cooper, Scheid, Lallo, Jones and Gunderson

            Nays:               None

Citizen Comments

Sharon Carlson, Chair of DDA, stated she appreciated all the time that was put into the plan and listening to comments from members of the DDA and community.  It took extra time to get to the root of the outstanding issues.  She was very appreciative on behalf of the whole DDA.

Business

A.    Adoption of ordinance to amend the Downtown Development and Tax Increment Financing Plan of the City of Belding Downtown Development Authority

The City Clerk read the preamble to the ordinance.

Council Member Jones moved the adoption of the ordinance and the motion was supported by Council Member Scheid.

ORDINANCE NO. 536

AN ORDINANCE TO AMEND THE DOWNTOWN DEVELOPMENT AND

TAX INCREMENT FINANCING PLAN OF THE CITY OF BELDING

DOWNTOWN DEVELOPMENT AUTHORITY

WHEREAS, in accordance with Act 197 of the Public Acts of 1975 (the “Act”), the City if Belding Downtown Development Authority (DDA) has determined it is necessary for the improvement of the City of Belding Downtown Development District to prepare and submit an amended Downtown Development and Tax Increment Financing Plan; and

WHEREAS, on December 20, 1983 the City of Belding adopted Ordinance No. 393 establishing the City of Belding Downtown Development Authority and designating the boundaries of the Downtown District; and

WHEREAS, on August 1, 1984, the City of Belding DDA Board approved the Development Plan (the “Original Development Plan) and recommended it to the City Council, which approved the Original Development Plan by Resolution No. 84-8-94 on August 8, 1984; and

WHEREAS, on February 21, 2006 the City of Belding City Council adopted Ordinance No. 489 approving the amended Development Plan and Tax Increment Financing Plan for the City of Belding Downtown District and Development Area; and

WHEREAS, on April 2, 2015, the City of Belding Downtown Development Authority recommended to the City Council adoption of an amendment to the 2006 Development Plan and Tax Increment Financing Plan to modify the boundaries of the Development Area, to finance all or part of the costs associated with the proposed development of the development area and to defray the costs of the activities of DDA, to extend the terms of the plan, and to update eligible projects and TIF capture projections, as set forth in the Plan; and

WHEREAS, the City Council held a public hearing on May 19, 2015 to consider the Plan, after the giving of public notice as required by the Act, including notice by publication on April 28, 2015 and May 8, 2015 in the Daily News, a newspaper of general circulation within the City, and also by first-class mail to all property taxpayers of record within the downtown district, by posting in at least 20 conspicuous and public places in the downtown district, and by certified mail to the governing body of each taxing jurisdiction levying taxes that would be subject to capture if the Plan is approved; and

WHEREAS, the notice contained a description of the proposed development area, as well as a statement that maps, the Plan and the method of relocating families and individuals who may be displaced from the area were available for public inspection at the City Hall, and that all aspects of the Plan would be open for discussion at the public hearing; and

WHEREAS, prior to the public hearing, the City Council provided reasonable opportunity to the taxing jurisdictions levying taxes that would be subject to capture under the Plan to meet with the City Council, and it fully informed the taxing jurisdictions of the fiscal and economic implications of the Plan; and

WHEREAS, the City Council has provided the fullest opportunity for interested persons to be heard, whether in person or in writing, for expression of opinion, for argument on the merits, and for introduction of documentary evidence pertinent to the Plan.

THE CITY OF BELDING ORDAINS:

Section 1. Approval of Plan and Finding of Public Purpose. In accordance with Act 197, the City Council finds that the Downtown Development and Tax Increment Financing Plan, as proposed, constitutes a public purpose and will be a benefit to the City and its residents, and accordingly, the Council hereby approves the Plan. With the following amendments:

(a)    Page 8, Section D, paragraph 3. Remove paragraph as follows:

The DDA has determined that the taking of privately-owned properties may be necessary in order to accomplish the land use and economic development objectives of the Plan.  Per section The City may take private property for the purpose of transfer to the DDA, and may transfer the property to the DDA for use in an approved development, on terms and conditions the City deems appropriate, and the use shall be considered necessary for public purposes and for the benefit of the public.

(b)   Page 15, Section K, item 8. Revise as follows:

The tax shall Levy up to 2 mills in the Downtown District, the final decision of the amount of the levy and timing, if ever, shall be determined by the DDA Board. Per Section 125.1662 of Act 197 of 1975, an authority, with the approval of the municipal governing body may levy an ad valorem tax on the real and tangible personal property not exempt by law and as finally equalized in the downtown district. The tax levy shall be not more than 2 mills.

Section 2. Findings in Accordance with Act 197. In approving the Plan, the City Council makes the following additional findings, in accordance with Section 19 of the Act:

(a) The Plan meets the requirements set forth in Section 17(2) of the Act.

(b) The proposed method of financing the activities, projects and improvements proposed in the Plan is feasible, and the DDA has the ability to arrange the financing.

 (c) The activities, projects and improvements proposed in the Plan are reasonable and necessary to carry out the purposes of the Act.

(d) The acquisition of any land within the development area by the DDA, if accomplished in accordance with the Plan, would be reasonably necessary to carry out the purposes of the Plan and of the Act in an efficient and economically satisfactory manner.

(e) The activities, projects and improvements proposed in the Plan are in accord with the City of Belding Master Plan.

(f) Public services will be adequate to service the development area.

Section 3. Transmission of Tax Increment Revenues to the DDA. The City Clerk is hereby authorized and directed to provide to the County Treasurer copies of all information necessary to enable the City and County Treasurers to transmit tax increment revenues to the DDA in accordance with Section 15 of the Act.

Section 4. Effective Date. This Ordinance shall be declared an emergency ordinance and will become effective immediately upon its publication, or the publication of a summary of its provisions, in a local newspaper of general circulation within the City.

Council Member Lallo stated they need things to attract them downtown.  Signage may not be enough.  They need to offer more, like events in the park, holiday time decorations, etc., to attract them down this way.

Council Member Jones stated they have to work on the whole town, and they have to start some place.  They have the DDA in place to get started on this program.  There may be other creative financing for other areas of town, like commercial, industrial, retail and residential, for new development.  It is a good starting step to proceed.

Council Member Cooper stated the base value was from 2006.  They were hoping the taxes on the properties in the DDA were above the base.  Some had a negative capture so they were below the base.  The base will change with the properties coming out.  The boundary of the DDA and the capture area are independent of each other.  The capture area can be changed at any time.

Mayor Gunderson stated this locks them in for 30 years.  The capture area can be changed.

Council Member Scheid stated they have good draws for the downtown like the parks, trail, library, Belrockton and depot, even if the business district is not the only draw.  There is a use for the wayfinding signs.

Mayor Gunderson stated there are several things the DDA plan will do.  Restructuring the capture area will help a lot.  It is a 30 year plan.  This has been quite a process for city council, city hall, DDA and residents.  They will get some positive capture and bring it back to the area that needs it, within the DDA.

The question on the ordinance was called and the result of the voting is as follows:

            Ayes:               Council Members Cooper, Scheid, Lallo, Jones and Gunderson.

            Nays:               None

Council Comments

Council Member Jones stated he wished to thank his wife and the Garden Club who cleaned up the landscaping at the corner of Bridge and Congress Streets today.  They hope to tackle some more.  They also do the flowers at the cemeteries in town and the library.  He had an email from a constituent about a city wide garage sale this year, and the city sponsoring it.  He feels it would be more appropriate for the Chamber of Commerce to be involved, it would be a good project for them. 

City Manager Brown stated it was a Chamber program, but drifted to city hall last year. 

Council Member Scheid stated they have to get the maps out this year to different locations, because they had to pick them up in the mall lot last year. 

Council Member Jones stated he received a letter today which he will give to Bruce.  The person had concerns about sidewalk and driveway regulations. 

Council Members Cooper, Scheid and Lallo thanked Sharon for the DDA plan. 

The garage sale signs were in the right of way and the police took them down.  There needs to be communication.  If it is enforced, do it all the time. 

Mayor Gunderson stated it would move this city forward to bring people downtown.  It will revitalize the area.   They will try to write grants.  Signage will be a big thing.  He thanked everyone for their time and effort on this.

Adjournment

Council Member Scheid moved to adjourn the meeting, supported by Council Member Cooper.

Ayes:               Council Members Cooper, Scheid, Lallo, Jones and Gunderson.

            Nays:               None.

The Mayor adjourned the meeting at 7:52 p.m.