REGULAR MINUTES
PERE MARQUETTE DEPOT
Tuesday, September 17, 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, September 17, 2019.
Council Member Scheid delivered the invocation.
The Mayor led the audience in the Pledge of Allegiance.
The Acting 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
None
Consent Agenda
- Approve Independent Bank Checks 72796 to 72876 in the amount of $155,735.60
Approve Independent Bank – File Approval Confirmation
Approve Independent Bank – ACH Transaction Approval Confirmation
- Approve Minutes: Regular scheduled meeting, September 3, 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 nothing to report.
Council Member Davis also had nothing to report.
Council Member Meyer reported that the Rec Board met September 9, at which they updated projects, and Housing Commission meets September 19.
Council Member Feehan had nothing to report.
Mayor Miller said he has both Library Board and Planning Commission meetings coming up, so he had nothing to report tonight.
Unfinished Business
Nothing
New Business
A. Zoning Board of Appeals appointment – Shelley Gladding
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 APPOINTING SHELLEY GLADDING TO THE ZONING BOARD OF APPEALS.
WHEREAS, a vacancy exists on the Zoning Board of Appeals; and
WHEREAS, Shelley Gladding has indicated her willingness to serve on the Zoning Board of Appeals.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that Shelley Gladding be appointed to the Zoning Board of Appeals with a term to expire on September 22, 2019.
The question on the resolution was called and the result of the voting is as follows:
Ayes: Council Members Scheid, Davis, Meyer, Feehan, and Miller
Nays: None
B. Jacklyn Apartments PILOT – adoption
Council Member Scheid moved the adoption of the ordinance and the motion was supported by Council Member Feehan.
City Manager Niemela explained that this is the second reading of the ordinance to authorize a payment in lieu of taxes.
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 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 – Jacklyn 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 Truverse Belding 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 “Jacklyn Apartments” on certain property located at 1250 Kenwood, 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. “Annual Shelter Rents” is defined as the total collection during an agreed upon annual period from or paid on behalf of all occupants of a housing project representing rent or occupancy charges, exclusive of Utilities.
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 Jacklyn Apartments located on the property legally described as:
Jacklyn I/II
City of Belding PT NW ¼ Section 10 T8N R8W Com SE Corner Lot 122 Demorest’s Addition, thence north 142.0 feet along east line lots 122 & 137 SD Plat to place of beginning; thence north 353.0 feet along east line SD Plat to northeast corner Lot 138.0, thence east 726 feet to north west corner Lot 121, thence south 23 feet along west line Lot 121, thence west 460.0 feet, thence south 330 feet, thence west 100 feet, thence south 20 feet, thence west 66 feet, thence north 20 feet, thence west 100 feet to place of beginning
Parcel: 34-401-250-000-037-00
Jacklyn III
A parcel of land situated in the northwest 1.4 section 10, T8N, R8W, City of Belding, Ionia County, Michigan, being more particularly described as follows: Commending at the southeast corner of Lot 122 of Demorest’s Additon to Belding as recorded in Ionia County, Michigan; thence easterly 266.0 feet along the north line of Kenwood Avenue ot the place of beginning thence northerly 472.0 feet parallel with the east line of the Lot 121 of said addition; thence southerly 472.0 feet along the west line of Lots 121,105 and 104 of said addition to said north line of Kenwood Avenue; thence westerly 460.0 feet along said north line to the place of beginning
Parcel: 34-401-250-000-005-00
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 Truverse Belding 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. “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 Jacklyn 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 the Authority pursuant to the Act.
Section 6. Establishment of Annual Service Charge.
A. The City acknowledges that the Sponsor 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 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 any regulatory or restricted use agreement 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, 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 September 30, 2019, which is ten days after publication, as provided in the City Charter.
The question on the ordinance was called and the result of the voting is as follows:
Ayes: Council Members Scheid, Davis, Meyer, Miller, and Feehan
Nays: None
C. Budget Amendment – FY 2019/20
Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Feehan
City Manager Niemela said there will be an excess of funds available for us to transfer from Major Street to Local Streets. They have completed Main Street all the way. They could make additional changes to other streets if this passes.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN AMENDING THE FISCAL YEAR 2019/20 BUDGET.
WHEREAS, on May 21, 2019, the Council of the City of Belding, Michigan adopted its 2019/20 Fiscal Year Budget for the administration of all funds and activities; and,
WHEREAS, unanticipated revenues and expenditures are projected which may exceed budget appropriations listed in said budget; and,
WHEREAS, the Fiscal Year 2019/20 Budget must be changed to reflect these adjustments;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that the Fiscal Year 2019/20 Budget be amended pursuant to the attached worksheet.
Council Member Meyer asked if James Street will be finished this year and Manager Niemela said that it will and they will do a block of Mary too.
The question on the resolution was called and the result of the voting is as follows:
Ayes: Council Members Scheid, Davis, Meyer, Miller, and Feehan
Nays: None
D. Approve the Purchase and Sale Agreement between the City and MCV Properties
Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Feehan
Mgr. Niemela talked about the development of the Breimayer lot. A company broke off and stopped the project. Later in July the City was contacted by real estate division of Rite Aid, and they were the ones all along who were expressing their interest in that property. They continued their desire to build a new store on that site. The offer was reviewed by our Attorney. They put in their request up to one hundred eighty days for them to do all their due diligence, although it can happen sooner than 180 days as in the offer.
Council Member Davis said he remembers that property being available for $30,000. Is the amount selling now the same? He asked also if the City has a review period other than theirs. Manager Niemela said there isn’t anything specific about a hundred and eighty days in ours. The City does not have a standard review period.
Council Member Meyer is concerned if they purchase and actually build a store or if they back out could they sell the property to someone else. Manager Niemela talked about the requirements if they back out. Council Member Meyer is concerned about them not building and reselling to someone else. Manager Niemela talked about if the property has something built on it, the City will always get property taxes regardless who builds on there.
Mayor Miller asked about the involvement of the Planning Commission once they purchase the property. Manager Niemela stated that they would have to go for a site plan review.
Council Member Davis asked if there is anything in the offer that indicates “we’re selling you this property for a future Rite Aid, and if a future Rite Aid doesn’t go in, and you sell it to somebody else that the City has first right of refusal”? Manager Niemela said there is nothing that says that.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN AUTHORIZING APPROVAL OF THE PURCHASE AND SALE AGREEMENT FOR REAL PROPERTY FROM MCV PROPERTIES.
WHEREAS, the City of Belding wishes to sell the real property, commonly known as the Breimayer Lot, to MCV Properties; and
WHEREAS, the legal description for the property to be sold to MCV Properties is included as Exhibit A in the Purchase and Sale Agreement; and
WHEREAS, the conditions of the agreement between the City of Belding and MCV Properties for the sale of the property are fully contained in the Purchase and Sale Agreement.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that approval of the Purchase and Sale Agreement is hereby granted;
and
BE IT FURTHER RESOLVED that the Mayor and City Clerk of the City of Belding, Michigan, are hereby authorized to sign the Purchase and Sale Agreement, as well as any other required documents regarding the sale of the property, on behalf of the City of Belding.
The question on the resolution was called and the result of the voting is as follows:
Ayes: Council Members Scheid, Davis, Meyer, Miller, and Feehan.
Nays: None
E. Approve transfer of property to Belding Housing Commission
Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Feehan.
Manager Niemela said we’ve been working on this forever. He found some things in the process that needed to be fixed. He talked about the properties and that one consideration in the Conversion process is that the Housing Commission must own the property in order to do the RAD conversion. It is currently owned by the City of Belding. In order to accomplish the transfer, they surveyed Belhaven 1 and 2. Belhaven One now is three parcels and has a road identified as owned by the City. The same thing was done to Belhaven Two, with three parcels there. When all is said and done the description will be long. He then talked about the survey and splits on the Woodhaven property. The City will retain some property on the south side of Woodhaven as it will be at least 200 ft. of the other well. The City will also keep a small parcel on the east end of Woodhaven. It could be used in the future as parking for Water Street Park or as a road into Woodhaven.
Council Member Meyer is glad it has moved forward and he appreciates the work done. Manager Niemela talked about all that Sharon had to do in order to accomplish this.
Council Member Davis asked if the paper will include the easements, and all legal descriptions, etc., and Manager Niemela said it would.
Mayor Miller said there is some urgency in getting this completed, and Sharon Carlson said she is hoping this Thursday it will be passed.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELDING, MICHIGAN AUTHORIZING APPROVAL OF THE TRANSFER OF PROPERTY OWNED BY THE CITY OF BELDING TO THE BELDING HOUSING COMMISSION, WITH EASEMENTS.
WHEREAS, the City of Belding wishes to transfer property to the Belding Housing Commission, with easements.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Belding, Michigan that approval of the transfer of property from the City of Belding to the Belding Housing Commission, with easements, is hereby granted; and
BE IT FURTHER RESOLVED that the Mayor and City Clerk of the City of Belding, Michigan, are hereby authorized to sign the required documents regarding the transfer of the property, on behalf of the City of Belding.
The question on the resolution was called and the result of the voting is as follows:
Ayes: Council Members Scheid, Davis, Meyer, Miller and Feehan.
Nays: None
Public Comments
Holly Noble, 12225 Sentimental Road, is with the Belding Veterans’ Park. They would like to break ground on Monday. She wonders if there is anything else that needs to be done. They are also creating a helicopter in the park and need to know if anything has to be approved through the City first. The helicopter is to be placed on a pedestal and secured. It will be one used in Vietnam. They are looking for funding in order to transfer here. Is there anything else further for them to do? Holly said they don’t have a timeline yet, although she would like it here by Memorial Day. Manager Niemela said the Council would need to pass a resolution. Holly said that it would be on a lifetime lease to this park, but the Government owns it. They would need to come present to City Council. They would place it between the WWII and Vietnam monuments. She also wondered if the Desert Storm and Desert Shield monument would have to be approved by Council She handed out descriptions. They have it ruggedly staked out now.
Gary Knowlton, 840 Morton Ave., he had a copy of the Daily News from Saturday, April 27, 2019. “Belding resident concerned about rezoned property.” He talked about the list of concerns and objections he had, and presented to the Council. He then read from the newspaper article stating that the situation would be looked at. Mr. Knowlton has not had anyone contact him regarding this, and after checking all the agendas he has not seen it scheduled for reconsideration. He feels it was done illegally. He said it is serious for him. If he is wrong, he would owe apologies. If it was done without knowing the proper route it needs to be given a look at. Money was approved for a planning consultant but nothing has happened with that yet.
Sharon Carlson, Housing Director for the City of Belding, thanked the City Council and Manager Niemela for all the work done for the property transfer. It is a longstanding relationship with the City. Public Act defines the relationship. The Housing Commission and City are locked into a law. City Council will continue to appoint the Board members. The Board will be responsible for hiring a Director, and the Director will be responsible for carrying out the administration of the program in accordance of Federal Law. Passing of the property transfer gives them the ability to leverage the property so they can make some very important rehabilitation of the units and enhance the apartments. It will allow us the opportunity to partner with some of the local banks. It’s a win-win all the way around. She gave credit to the Board for their mission of protection of property and protection of residents.
City Manager Comments
Manager Niemela said that 1) this Friday is the open house at Metron at 10:30. 2) He said that next week he will be gone. 3) From the Rec Board, recreational projects they are working on: the Kayak launch for handicapped; Greenville Foundation is helping. Bids came in about forty thousand over. It is going in Central Riverside Park. They asked Greenville if can relocate it back to East Riverside park. Central Park is really shallow requiring more work. It is a shorter distance from the parking lot in Riverside Park. It will take a little more shoreline work; grading and structure. They need to focus on users and not necessarily where it’s cheaper. He hasn’t heard anything regarding the location and are looking into additional funding to make up the cost.
Work is being done now on the Gathering Place trail. It will be a paved pathway with benches. It has to be barrier free. Trees are to be planted and there will be an observation deck by the river. He is hoping it will be completed soon.
Concrete has been poured at the basketball courts, and is curing. The next step is putting finish on it and he had chosen black and orange. However, vibrant colors run about $2,300 more. He is looking at blue with green border instead. Council Member Feehan said the colors represent Michigan and MSU.
The Rec Board did go through the Recreation Plan and chose a few items to focus on.
Mayor Miller asked if anyone had asked about signage. The applicant must do paperwork.
Council Member Davis asked about upkeep on the kayak launch and Manager Niemela said he hasn’t received any numbers yet. They are durable. Some cities leave it in the river and some take it out. A decision hasn’t been made yet. Council Member Davis would be interested in what the cost will be to the City regarding upkeep and taking it out and putting back in. He asked where the money is located in the budget; it’s in Rec budget. He asked about the paint for the basketball court too, and Manager talked about the coating being protective. Council Member Davis wondered if any thought had been given on the reapplication later.
Mayor Meyer asked Manager Niemela for an update on the pavilion. Manager Niemela said they have budgeted money for restrooms in Central Riverside Park. There is concern about putting good money into bad just to be repaired. Instead of restoring, taking it down and putting in an open air pavilion. Possibly a bathroom would be attached to the Depot with more sturdy and durable fixtures. He doesn’t know timing yet.
Manager Niemela said they are reaching out to two different Planners trying to get something this week or next.
Council Comments
Council Member Feehan had none.
Council Member Scheid thanked everyone for coming tonight and participating.
Council Member Davis also thanked everyone for coming out.
Council Member Meyer thanked City Manager for all the work on the Housing Commission, and thanked Sharon and her Board for all their work and all the people getting involved.
Mayor Miller said there are a lot of good things going on now. He thanked everyone who serves on Boards, and in making Belding a better place to live. He thanked Gary Knowlton, Holly Noble, and Sharon Carlson for feedback.
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 8:10 p.m.
| | Brad Miller, Mayor |
| Shelley Mosher, Acting City Clerk | |
