REGULAR MINUTES
PERE MARQUETTE DEPOT
Tuesday, February 19, 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 19, 2019.
Council Member Scheid 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.
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
- Approve Independent Bank checks 71643 to 71715 in the amount of $90,165.02
Approve Independent Bank – File Approval Confirmation
Approve Independent Bank – ACH Transaction Approval Confirmation
- Approve Minutes: Regular scheduled meeting, February 5, 2019
- Alvah N. Belding Memorial Library Board reappointment – Janice Lamborne
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
Following is the resolution contained in the Consent Agenda.
C. Alvah N. Belding Memorial Library Board reappointment – Janice Lamborne
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN, REAPPOINTING JANICE LAMBORNE TO THE ALVAH N. BELDING MEMORIAL LIBRARY BOARD.
WHEREAS, the term of office for Janice Lamborne on the Alvah N. Belding Memorial Library Board expired on December 31, 2018; and
WHEREAS, Janice Lamborne has indicated her interest in serving another term on the board; and
WHEREAS, the City Council desires to reappoint Janice Lamborne as a member of the board; and
WHEREAS, the Alvah N. Belding Memorial Library Board members have recommended the reappointment of Janice Lamborne to the board; and,
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan, that Janice Lamborne be, and the same hereby is, reappointed as a member of the Alvah N. Belding Memorial Library Board with a term to expire on December 31, 2021.
Reports by Council Liaisons
Council Member Scheid had no report.
Council Member Davis stated the ZBA is meeting on February 25, 2019 at 6 p.m. to discuss 415 Alderman and 416 S. Bridge.
Council Member Meyers stated the February 11 meeting of the Rec Board was cancelled. The Housing Commission meets on February 21.
Council Member Feehan stated the Museum Board meeting was cancelled and they will meet next Tuesday.
Mayor Miller stated the Library Board is meeting next Monday and the Planning Commission in meeting next Tuesday.
Public Hearing
- Establishment of an Industrial Development District – Granco Clark Inc.
Mayor Miller opened the public hearing at 7:04 p.m.
City Manager Niemela stated a district was established in 2000 and then the property became part of the City of Belding. Granco Clark is working on an expansion and would like a tax abatement. The city must establish a district separately from the township.
Mayor Miller closed the public hearing at 7:05 p.m.
Unfinished Business
There was no unfinished business.
New Business
A. Establishment of an Industrial Development District – Granco Clark Inc.
Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Feehan.
RESOLUTION ESTABLISHING AN INDUSTRIAL DEVELOPMENT DISTRICT FOR GRANCO CLARK INC.
WHEREAS, pursuant to Act 198 of the Public Acts of 1974, as amended, Granco Clark Inc. has requested that the City of Belding establish an Industrial Development District, in connection with property located in the City of Belding, Ionia County, Michigan; and
WHEREAS, notice of hearing on said request was published on February 8, 2019, in the Daily News and provided in writing by mail to owners of all real property located in said proposed District, as described on Exhibit A attached hereto, setting the date of February 19, 2019 at 7:00 o’clock p.m. at the Pere Marquette Depot, 100 Depot St., Belding, Michigan, as the time and place at which those owners and any other resident or taxpayer of the City of Belding would be given and afforded an opportunity to appear and be heard with respect to the request of Granco Clark Inc. to establish an Industrial Development District; and
WHEREAS, said hearing was held on February 19, 2019 during the meeting of the City Council of the City of Belding; and
WHEREAS, Act 198 of the Public Acts of 1974, as amended, provides that a local governmental unit may establish, by resolution of its legislative body, an Industrial Development District.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Belding that in
accordance with the provisions of Act 198 of the Public Acts of 1974, as amended, the City does hereby approve the establishment of an Industrial Development District for Granco Clark Inc., which District is described on Exhibit A attached hereto.
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. Ordinance No. 549 – Brentwood 1 PILOT – Adoption
Council Member Scheid moved to bring Ordinance No. 549 to the floor for discussion, supported by Council Member Feehan.
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. “Authority” means the Michigan State Housing Development Authority.
C. “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.
D. “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.
E. “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.
F. “Low or Moderate Income Persons and Families” means persons and families eligible to move into and reside in the Housing Development.
G. “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.
H. “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.
I. “HUD” means the United States Department of Housing and Urban Development.
J. “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 Contract 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 March 6, 2019 as provided in the City Charter.
Council Member Scheid made a motion to amend Ordinance No. 549 by deleting Section 4.B. and re-lettering the remaining paragraphs, and amending Section 6.A (1) by deleting the words “Annual Shelter” and replacing them with the word “Contract”, supported by Council Member Feehan.
The question on the amendment to the ordinance was called and the result of the voting is as follows:
Ayes: Council Members Scheid, Davis, Meyers, Feehan and Miller
Nays: None
Council Member Scheid made a motion to approve the amended ordinance, supported by Council Member Feehan.
The question on the amended ordinance was called and the result of the voting is as follows:
Ayes: Council Members Scheid, Davis, Meyers, Feehan and Miller
Nays: None
C. Use of city property – Belding Beatnik Bazaar/Farmers Market
Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Feehan.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN GRANTING PERMISSION TO JENNY BENNETT FOR THE USE OF THE GATHERING PLACE FOR THE BELDING BEATNIK BAZAAR/FARMERS MARKET.
WHEREAS, Jenny Bennett submitted a Special Event Application representing the Belding Beatnik Bazaar/Farmers Market; and
WHEREAS, the events will be held at the Gathering Place from 8 a.m. to 2 p.m. on June 8, July 13, August 10, September 14 and October 12, 2019.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding,
Michigan that permission is hereby granted to Jenny Bennett representing the Belding Beatnik Bazaar/Farmers Market to use the Gathering Place from 8 a.m. to 2 p.m. on June 8, July 13, August 10, September 14 and October 12, 2019.
Council Member Meyers asked for an update on the benches.
City Manager Niemela stated some benches will be placed near the clock and Christmas tree and somewhere on the Gathering Place property along Main Street. They will look at it as the weather improves. It will cost about $1,000 a spot or less with the bench, trash container and concrete slab. If the cost is held down, they may get a couple more benches as the DDA approved a set amount.
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. Adoption of waiver of interest and penalty for Property Transfer Affidavits
Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Feehan.
RESOLUTION TO ADOPT WAIVER OF INTEREST AND PENALTY FOR PROPERTY TRANSFER AFFIDAVITS
To adopt the waiver of interest and penalty for property transfer affidavits (PTA) as follows:
WHEREAS, the Michigan State Tax Commission has published in the most recent guidelines for the next AMAR (Assessing Minimal Audit Requirements) audit cycle that included a review of the compliance of charging a fee for interest and penalty under 211.27b for not timely filing form 2766, or the adoption of a resolution to the contrary; and
WHEREAS, MCL 211.27b requires a penalty to be assessed to the buyers of properties if a Property Transfer Affidavit is not filed within 45 days of any transfer of ownership; and
WHEREAS, MCL 211.27b(1c)(1d) defines the penalties by state statute; and
WHEREAS, the AMAR audit provides for a resolution to waive penalties as deemed necessary; and
NOW THEREFORE BE IT RESOLVED that the City will adopt the penalties defined by MCL by MCL 211.27b (1c) (1d); and
BE IT FURTHER RESOLVED that the interest and penalties may be waived at the discretion of the City Assessor.
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 the city had 95% of residents without power during the recent storm. Some were without power a short time and some went four days. Some individuals were without power into Monday if there were individual problems. Branches were down on every street in the city. It will be a while before the city can clean it up. They intend to pick up everything dropped in the storm. There is no specific date, as there must be a break in the weather. It is not productive to dig it out of the snow.
Council Member Feehan asked if the city could have done something for shelters?
City Manager Niemela stated that was a challenge, as so many places were without power. He met with the County and State Emergency Management folks on Tuesday and reviewed the event. The city provided them with cost estimates to ultimately establish the emergency disaster declaration. The city can recover some expenses, such as overtime expenses, the cost of the on-call fire department, and any damaged equipment. A generator malfunctioned and there may be some cost recovery. Fuel costs can be recovered. They can’t recover regular wages and equipment use. The city has given them an estimate, but actual costs will be determined as they move forward. The event was from Wednesday through Monday. The city can reach out to volunteer groups who clean up after disasters, and they may get some resources. The state police and the county talked about what could be done for the future if it happens again. If you offer up services, you have to weather the storm. You have to accommodate them until it is over. The middle school in Greenville and Armory in Ionia were set up to handle people for the duration. The facilities at St. Joseph were considered, but it is not set up right. They need more than just a room to go in. They will look at it locally and see what could be arranged before an event. It would have been risky for people to leave their homes. It was unsafe to be outside. They will look at it seriously to see what could be done in the future.
Council Member Feehan asked if people that burn wood could come in to help and get some wood?
City Manager Niemela stated the city will reach out to the volunteers recommended by the emergency manager to assist with the cleanup. There are risks with allowing just anyone to come in. Every option is on the table. The city is liable for any injuries if the wood is placed on public property.
Board Member Meyers asked if the volunteer resources would work just on city property?
City Manager Niemela stated they could work on anything, if the property owner says OK. He would recommend leaving the debris in the yards until the weather clears.
Board Member Davis asked what the timeline was for working on the plan for the future?
City Manager Niemela stated they will be getting together, but he does not have a date to start.
Planning should be done for events that occur with the heat, as well as the cold.
Council Comments
Council Member Meyers had no comments.
Council Member Feehan had no comments.
Council Member Scheid stated he was glad to see everyone survived. He hopes the weather stays decent. He thanked everyone for attending the meeting.
Council Member Davis thanked BC Pizza, as they were feeding the linemen. There was a big outreach, so thumbs up to them. People were opening their homes to those that needed it and he wanted to thank them. He thanked everyone for being here.
Mayor Miller stated he had the opportunity to talk to John about the same thing. He asked how do they prepare for a disaster like this? They should come up with a plan prior to the event. This, as well as a boil water. Those things happen and we have to think how we communicate it to the public. Maybe the city doesn’t have a shelter, but can be a little more proactive. He thanked everyone for coming out tonight.
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 7:38 p.m.
| | Brad Miller, Mayor |
| Kareen J. Thomas, City Clerk | |
