REGULAR MINUTES

PERE MARQUETTE DEPOT

Tuesday, February 5, 2019

 

A meeting of the City Council of the City of Belding, Michigan was convened in open and public session at 7:00 p.m. on Tuesday, February 5, 2019.

 

Mayor Miller delivered the invocation.

 

The Mayor led the audience in the Pledge of Allegiance.

 

The City Clerk took the roll call:

 

Members Present:        Council Members Mike Scheid, Jorel Davis, Bruce Meyers,  Douglas Feehan and Brad Miller

 

Members Absent:        None

 

Approval of Agenda

 

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

 

Mayor Miller asked to add Business Item E, Resolution No. 2019-02-05, to set a public hearing on the establishment of an Industrial Development District for Granco Clark Inc.

 

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

 

            Ayes:               Council Members Scheid, Davis, Meyers, Feehan and Miller

            Nays:               None

 

Public Comments

 

There were no public comments.

 

Consent Agenda

 

1. Approve Independent Bank Checks 71577 to 71642 in the amount of $104,318.64

Approve Independent Bank – File Approval Confirmation

Approve Independent Bank – ACH Transaction Approval Confirmation

2. Approve Minutes:  Regular scheduled meeting, January 15, 2019

 

Council Member Scheid made a motion to approve the consent agenda, supported by Council Member Feehan.           

 

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

 

Ayes:               Council Members Scheid, Davis, Meyers, Feehan and Miller

Nays:               None

           

Reports by Council Liaisons

 

Council Member Scheid had no report.

 

Council Member Davis stated a ZBA meeting would be held on February 25, 2019 at 6 p.m. at the depot. 

 

Council Member Meyers stated the Rec Board meets next Monday at 6:30 p.m. at city hall.  The Housing Commission met on January 17, 2019 and discussed the RAD Conversion surveys.  The surveyor is working on finalizing the language to separate the properties for the Housing Commission and city.  Surveys were done for elevations for the flood insurance.  Those will be reviewed by FEMA.  The bills were paid. 

 

Council Member Feehan stated on February 12, 2019 at 7 p.m. there will be a program at the museum.  The talk will be sharing the speaker’s mother’s memories of the time she spent as a Polish doctor in a NAZI concentration camp. 

 

Mayor Miller stated at Library Board they amended and approved FY 2018/19 budget and approved the budget for FY 2019/20.  They elected Carla Gunderson as president.  The bills were paid.  The Planning Commission met last night.  They went through the site review plan for 416 S. Bridge and 1331 W. State.  There will be a public hearing for 416 S. Bridge at the next meeting.  There will be a public hearing for 1331 W. State on February 26.  There will be a public hearing to look at the medical marijuana ordinance.

 

Unfinished Business

 

There was no unfinished business.

 

New Business

 

A.        Alternate Start Dates for Board of Review

 

The City Clerk read the preamble to the resolution.

 

Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Feehan.

 

RESOLUTION NO. 2019-02-02

 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN TO ADOPT ALTERNATE START DATES FOR MARCH, 2019, JULY, 2019 AND DECEMBER, 2019 BOARD OF REVIEW.

 

WHEREAS,               the adoption of the alternate Board of Review dates as follows is requested, as required per State Tax Commission guidelines :

                                               

                                    For the March Board of Review, second meeting in March, can be held either the Tuesday or the Wednesday following the second Monday in March

 

                                    For the July Board of Review, an alternate date during the week of the 3^rd Monday in July, 2019

 

                                    For the December Board of review, an alternate date during the week of the 2^nd Monday in December, 2019

 

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that the listed alternate dates for the Board of Review are hereby adopted.

 

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

 

            Ayes:               Council Members Scheid, Davis, Meyers, Feehan and Miller

            Nays:               None

 

B.        Poverty Exemption Guidelines

 

The City Clerk read the preamble to the resolution.

 

Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Feehan.

 

RESOLUTION NO.  2019-02-03

 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN APPROVING THE BOARD OF REVIEW POVERTY EXEMPTION GUIDELINES.

 

WHEREAS,               the Board of Review meets in March each year to consider appeals from property owners regarding the tax assessments; and,

 

WHEREAS,               the poverty exemption guidelines are updated annually to meet federal poverty income standards and maximum threshold of residential value; and,           

 

WHEREAS,               the poverty guidelines are as follows:

                                   

 

WHEREAS,               the following Board of Review poverty exemption guidelines will apply:

1.      Applicant must own and occupy the property as a homestead.

2.      File a form provided by the City of Belding.

3.      Submit federal and state income tax returns for all persons residing in the homestead, as well as copies of any property tax credit returns.

4.      Meet federal poverty income standards.

5.      Provide driver’s license or other form of identification.

6.      Provide evidence of property ownership.

 

WHEREAS,                           applicant must meet the requirements of the asset test as follows:

 

 

                                   

WHEREAS,               under the poverty exemption guidelines the Board of Review may grant up to 100% exemption for one year.

 

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that the Board of Review poverty exemption guidelines are hereby approved.

 

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

 

            Ayes:               Council Members Scheid, Davis, Meyers, Feehan and Miller

            Nays:               None

 

C.        DART – Title VI Non-Discrimination Policy

 

The City Clerk read the preamble to the resolution.

 

Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Feehan.

 

RESOLUTION NO. 2019-02-04

 

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN ADOPTING THE MDOT TITLE VI NON-DISCRIMINATION POLICY.

 

WHEREAS,   Federal aid is contingent upon the Title VI Non-Discrimination Policy being in place; and

 

WHEREAS,   the City of Belding has been the recipient of federal aid in the past; and

 

WHEREAS,   the City of Belding anticipates the continuation of federal aid.

 

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Belding, Michigan hereby adopts the aforementioned Title VI Non-Discrimination Policy in its entirety, as well as annual updates that need to be made for compliance.

 

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

 

            Ayes:               Council Members Scheid, Davis, Meyers, Feehan and Miller

            Nays:               None

 

D.        First Reading – Ordinance No. 549 – Brentwood PILOT

 

The City Clerk read the preamble to the ordinance.

 

Council Member Scheid moved to bring the ordinance to the floor for discussion and the motion was supported by Council Member Feehan.

 

ORDINANCE NO. 549

 

AN ORDINANCE TO AUTHORIZE THE PAYMENT OF AN ANNUAL SERVICE
CHARGE IN LIEU OF TAXES FOR RESIDENTIAL UNITS SERVING LOW OR MODERATE INCOME PERSONS AND FAMILIES IN ACCORDANCE WITH THE STATE HOUSING DEVELOPMENT AUTHORITY, ACT 346 OF THE PUBLIC ACTS OF MICHIGAN OF 1966, AS AMENDED, AND MATTERS RELATED THERETO

 

THE CITY OF BELDING ORDAINS:

Section 1.        Purpose.  This Ordinance authorizes and approves an annual service charge in lieu of taxes for residential housing developments that:  (a) serve Low or Moderate Income Persons or Families (as defined in the State Housing Development Authority Act, Act 346 of the Public Acts of Michigan of 1966 (1966 PA 346, as amended; MCL125.1401 et seq, “Act 346” or the “Act”), and this Ordinance); (b) are financed with a Mortgage Loan or assisted by HUD or the Authority in accordance with Act 346; (c) are located within the City of Belding; and (d) comply with this Ordinance.

Section 2.        Title.  This Ordinance shall be known and cited as the “City of Belding – Brentwood Apartments Tax Exemption Ordinance.”

Section 3.        Preamble.        It is acknowledged that it is a proper public purpose of the State of Michigan and its political subdivisions to provide housing for low income citizens and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with Act 346.  The City is authorized by Act 346 and this Ordinance to establish or change the annual service charge to be paid in lieu of taxes by any and all classes of housing exempt from taxation under Act 346 at any amount it chooses not to exceed the taxes that would be paid but for Act 346.  It is further acknowledged that housing for low income persons and families is a public necessity, and as the City will be benefitted and improved by such housing, the encouragement of the same by providing certain real-estate tax exemptions for such housing is a valid public purpose; further, that the continuance of the provisions of this Ordinance for tax exemption and the service charge in lieu of taxes during the period contemplated in this Ordinance are essential to the determination of economic feasibility of housing developments which are constructed and financed in reliance on such tax exemption.

The City acknowledges that Brentwood Limited Dividend Housing Association Limited Partnership (the “Sponsor” as defined in Section 4 of this Ordinance) has committed to rehabilitate, own and operate a housing development identified as “Brentwood Apartments” on certain property located at 1129 Brentwood, Belding, Michigan, which is legally described in Section 4.G. of this Ordinance, to serve Low or Moderate Income Persons and Families, and that the Sponsor has offered to pay and will pay to the City, on account of the Housing Development, an annual service charge for public services in lieu of all taxes.

Section 4.        Definitions.  The terms used within this Ordinance shall have the following meanings:

            A.        “Act” means the State Housing Development Authority Act, being Act 346 of the Public Acts of Michigan of 1966, (1966 PA 346, as amended; MCL 125.1401 et seq).

            B.        “Annual Shelter Rents” means the total actual collections during each calendar year from all occupants of a housing development representing rents or occupancy charges, which rental amounts shall be exclusive of charges for gas, electricity, heat, or other utilities furnished to the occupants.

            C.        “Authority” means the Michigan State Housing Development Authority.

            D.        “Contract Rents” means the total Contract Rents (as defined by the U.S. Department of Housing and Urban Development in regulations promulgated pursuant to Section 8 of the U.S. Housing Act of 1937, as amended) received in connection with the operation of a housing project during an agreed annual period, exclusive of rents.

                        E.      “Mortgage Loan” means a loan that is Federally-Aided (as defined in Section 11 of the Act) or a loan or grant made or to be made by the Authority to the Sponsor for the construction, rehabilitation, acquisition and/or permanent financing of a housing project and secured by a mortgage on the housing project.

 

F.         “Housing Development” means 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 to improve the quality of the development as it relates to housing for persons of low income.  For the purposes of this Ordinance, “Housing Development” means Brentwood Apartments located on the property legally described as:

Land in the City of Belding, Ionia County, MI, described as follows:  Part of the Northeast 1/4 of the Northwest 1/4 of Section 10, Town 8 North, Range 8 West, described as beginning at a point on the North and South 1/4 line of said section, 380.00 feet South along the North and South 1/4 line of said Section 10, from the North 1/4 post; thence South along said North and South 1/4 line 284.50 feet; thence West and parallel with the North line of said Section 749 feet; thence North and parallel with the North and South 1/4 line 334.50 feet thence East and parallel with the North line of said Section 452.5 feet; thence South and parallel with the North and South 1/4 line 50.00 feet; thence East and parallel with the North line of said Section 296.50 feet to the Point of Beginning.

 

EXCEPTING THEREFROM

 

A strip of land 66.0 feet wide, and the centerline of which is described as: Commencing at a point on the North and South 1/4 line of said Section which is 422.0 feet South along said 1/4 line from the North 1/4 corner of said Section, thence South 89 degrees 17 minutes 50 seconds West 321.0 feet parallel with the North line of said Section, thence Southwesterly 68.39 feet on a 130.62-foot radius curve to the left, the chord of which bears South 74 degrees 17 minutes 50 seconds West 67.61 feet; thence South 59 degrees 17 minutes 50 seconds West 16.0 feet, thence Westerly 68.39 feet on a 130.62 foot radius curve to the right, the chord of which bears South 74 degrees 17 minutes 50 seconds West 67.61 feet, thence South 89 degrees 17 minutes 50 seconds West 283.52 feet to the point of ending.

 

            G.        “Low or Moderate Income Persons and Families” means persons and families eligible to move into and reside in the Housing Development.

            H.        “Sponsor” means person(s) or entities which have applied to the Authority for the Tax Credits to finance a Housing Development.  For the purposes of this Ordinance, the Sponsor is Brentwood Limited Dividend Housing Association Limited Partnership.

            I.          “Tax Credits” means the low-income housing tax credits made available by the Authority to the Sponsor for rehabilitation of the Housing Development by the Sponsor in accordance with the Low Income Housing Tax Credit Program administered by the Authority under Section 42 of the Internal Revenue Code of 1986, as amended.

            J.          “HUD” means the United States Department of Housing and Urban Development.

K.        “Utilities” means fuel, water, sanitary sewer service and/or electrical service, which are paid by the Housing Development.

Section 5.        Class of Housing Development.  It is determined that the class of housing projects to which the tax exemption shall apply and for which a service charge shall be paid in lieu of such taxes shall be housing projects for Low or Moderate Income Persons and Families that are financed with a Mortgage Loan.  It is further determined that Brentwood Apartments is of this class.   This Ordinance shall apply only to the Housing Development to the extent that the Housing Development provides housing for Low or Moderate Income Persons and Families and is financed or assisted by HUD and the Authority pursuant to the Act.

Section 6.        Establishment of Annual Service Charge.

                        A.        The City acknowledges that the Sponsor and HUD and/or the Authority have established the economic feasibility of the Housing Development in reliance upon the enactment and continuing effect of this Ordinance and the qualification of the Housing Development for exemption from all ad valorem property taxes and payment of an annual service charge in lieu of ad valorem taxes in an amount established in accordance with this Section.  In consideration of the Sponsor’s offer to rehabilitate, own and operate the Housing Development, the City agrees to accept payment of an annual service charge for public services in lieu of all ad valorem property taxes that would otherwise be assessed to the Housing Development under Michigan law.

                                    (1)        Effective upon the adoption of this ordinance and subject to the receipt by the City of the “Notification of Exemption” (or such other similar notification) by the Sponsor and/or the Authority, the annual service charge shall be equal to ten (10%) percent of Annual Shelter Rents.

            B.        The Housing Development, and the property on which it is constructed, shall be exempt from all ad valorem property taxes.The Sponsor or the Authority shall file the certified notification of the exemption with the assessing officer before November 1 of the year preceding the tax year in which the exemption is to begin.

Section 7.        Limitation on the Payment of Annual Service Charge.  Notwithstanding Section 6, if any portion of the Housing Development is occupied by other than Low or Moderate Income Persons and Families, the full amount of the taxes that would be paid on those units of the Housing Development if the Housing Development were not tax exempt shall be added to the service charge in lieu of taxes.

Section 8.        Contractual Effect of Ordinance.  Notwithstanding the provisions of Section 15(a) (5) of the Act to the contrary, and subject to the terms of this Ordinance including, but not limited to Section 11 herein, this Ordinance constitutes a contract between the City and the Sponsor to provide an exemption from ad valorem property taxes and to accept the payment of an annual service charge in lieu of such taxes, as previously described in this Ordinance.  It is expressly recognized that the Authority and HUD are third party beneficiaries to this Ordinance.

Section 9.        Payment of Service Charge.  The annual service charge in lieu of taxes shall be payable to the City in the same manner as ad valorem property taxes are payable, to the City and distributed to the several units levying the general property tax in the same proportion as paid with the general property tax in the previous calendar year and as provided by the Act.  The annual payment shall be paid on or before May 1 of each year for the previous calendar year.  Collection procedures shall be in accordance with the provisions of the General Property Tax Act (1893 PA 206, as amended; MCL 211.11, et seq.

Section 10.      Duration.  This Ordinance shall remain in effect and shall not terminate for so long as the Housing Development remains subject to a Mortgage Loan and so long as the housing development submits the required annual notification of exemption pursuant to M.C.L. 125.1415a(1), as amended but not more than 50 years.  The term of this Ordinance shall commence upon the issuance of the Notification to Local Assessor of Exemption as issued by the Authority.

Section 11.      Filing of Annual Audit.  The Sponsor, or its successor, shall file a copy of any and all annual audits required to be provided to the federal government, the State of Michigan, and/or the Authority simultaneously with the City.  The audit shall include detail with respect to occupancy of the Housing Development, Annual Shelter Rents received from the Housing Development, and the cost for utilities during the audit period.

Section 12.      Publication; Effective Date.  This Ordinance shall become effective 10 days after publication of a summary of its provisions in a newspaper of general circulation in the City.

Section 13.      Severability.  The various sections and provisions of this Ordinance shall be deemed to be severable, and should any section or provision of this Ordinance be declared by any court of competent jurisdiction to be unconstitutional or invalid the same shall not affect the validity of this Ordinance as a whole or any section or provision of this Ordinance, other than the section or provision so declared to be unconstitutional or invalid.

Section 14.      Repeal.  All ordinances or parts of ordinances in conflict with this Ordinance are repealed to the extent of such inconsistency or conflict.

            Section 15.   Effective Date.  This Ordinance shall become effective on ____________ as provided in the City Charter.

 

Virgie Ammerman, Plainwell, Hope Network, stated there are 50 affordable units in Belding.  They would like to invest in the property, preserve the Section 9 units, and compete for the tax credits.  There will be all new flooring, appliances, bathrooms, painting of trim, insulation, furnaces, siding and a new parking lot.  They have a stringent green policy.  It will be awesome for this property.  Part of the process is the granting of a PILOT. They are part of the community and this demonstrates that they are.  They will rehab all units.  They use Enterprise Green.  They have standards to meet. 

 

City Manager Niemela stated there is typically about a 10% reduction in property taxes.  In this case, the revenue will be higher than property taxes for a period of time.  It will catch up in about six to eight years.   

 

Ms. Ammerman stated the PILOT runs 15 years to match the mortgage.   About year 13, they will likely want to do it again.  They do major renovations and request a PILOT for the same process.  They move through that process on a regular basis. 

 

E.        Set Public Hearing on Establishment of Industrial Development District for Granco Clark Inc.

 

The City Clerk read the preamble to the resolution.

 

Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Feehan.

 

RESOLUTION NO. 2019-02-05

 

RESOLUTION TO SET HEARING ON ESTABLISHMENT OF

INDUSTRIAL DEVELOPMENT DISTRICT

FOR GRANCO CLARK INC.

 

WHEREAS, pursuant to Act 198 of the Public Acts of 1974, as amended ("Act 198"), Granco Clark Inc. (the "Company") has requested that the City of Belding establish an Industrial Development District in connection with property located at 7298 N. Storey Road; and

 

WHEREAS, it is necessary to hold a public hearing on the Company's request for the establishment of an industrial development district.

 

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Belding:

 

1.         That a public hearing on the Company’s request for the establishment of an industrial development district shall be held at the Pere Marquette Depot, 100 Depot Street, Belding, Michigan, at 7:00 p.m. on February 19, 2019.

 

2.         That the City Clerk shall give written notice by certified mail to the owners of all real property within the proposed industrial development district.

 

3.         That the City Clerk shall publish a notice of the hearing in the Greenville Daily News, a newspaper of general circulation in the City.

 

4.         All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be, and the same hereby are, rescinded.

 

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

 

            Ayes:               Council Members Scheid, Davis, Meyers, Feehan and Miller

            Nays:               None

 

Public Comments

 

There were no public comments.

 

City Manager Comments

 

City Manager Niemela stated MML is holding the Capital Conference on March 19 and 20 at the Lansing Center.  March 19 is the council meeting.  Most of the events are on March 20.  He asked council members to let him know if they plan to attend so he can do the registrations.   

 

Council Comments

 

Council Member Scheid asked if they could push the council meeting to Monday?  He asked that everyone have a good day. 

 

City Manager Niemela stated they could reschedule during the first meeting in March.

 

Council Member Davis had no comments.

 

Council Member Meyers had no comments.

 

Council Member Feehan thanked Ernie and the crew for the last few days.  He asked that everyone be careful tomorrow.

 

Mayor Miller thanked everyone for coming out. 

 

Adjournment

 

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

 

Ayes:               Council Members Scheid, Davis, Meyers, Feehan and Miller

            Nays:               None

           

The Mayor adjourned the meeting at 7:34 p.m.

 

 

	Brad Miller, Mayor
Kareen J. Thomas, City Clerk