[HISTORY: Adopted by the Village Council of the Village of New Haven as indicated in article histories. Amendments noted where applicable.]
[Adopted 3-14-2006 by Ord. No. 292]
This article shall be known and may be cited as the "Downtown Development Authority Ordinance."
The terms used in this article shall have the same meaning as given to them in Act 197 or as hereinafter in this section, unless the context clearly indicates to the contrary. As used in this article, the following terms shall have the meanings indicated:
- ACT 197
- Act No. 197 of the Public Acts of Michigan of 1975, as now in effect or hereinafter amended.
- The Downtown Development Authority of the Village of New Haven created by this article.
- BOARD or BOARD OF DIRECTORS
- The Board of Directors of the Authority, the governing body of the Authority.
- CHIEF EXECUTIVE OFFICER
- The President of the Village.
- COUNCIL or COUNCIL OF THE VILLAGE OF NEW HAVEN
- The legislative body of the Village.
- DOWNTOWN DISTRICT
- The downtown district designated by this article as now existing or hereafter amended and as defined in the annexed Exhibit A, which is incorporated by reference in to the text of this article.
- The Village of New Haven, Michigan.
The Village Council of the Village hereby determines that it is necessary for the best interests of the Village to halt property value deterioration and increase property tax valuation where possible in the business district of the Village, to eliminate the causes of that deterioration and to promote economic growth by establishing a downtown development authority pursuant to Act 197.
There is hereby created pursuant to Act 197 a Downtown Development Authority for the Village. The Authority shall be a public body corporate and shall be known and exercise its powers under the title of "Downtown Development Authority of the Village of New Haven." The Authority may adopt a seal, may sue and be sued in any court of this state and shall possess all of the powers necessary to carry out the purpose of its incorporation as provided by this article and Act 197. The enumeration of a power in this article or in Act 197 shall not be construed as a limitation upon the general powers of the Authority.
The downtown district in which the Authority shall exercise its powers as provided by Act 197 shall consist of the described territory in the Village, subject to such changes as may hereinafter be made pursuant to this chapter and Act 197, as set forth in Exhibit A, attached hereto and made a part hereof.
The Authority shall be under supervision and control of a Board of Directors consisting of the Village President and eight members as provided by Act 197. The members shall be appointed by the Chief Executive Officer, subject to approval by the Council, and shall hold office for the terms provided in Act 197. All members shall hold office until the member's successor is appointed.
The Authority may employ and fix the compensation of a director, subject to the approval of the Council, and a treasurer and secretary. The director shall furnish bond in the amount of $100, and the treasurer shall furnish bond in such amounts as prescribed by the Board. The bonds shall be in such form as may be approved by the Board, including coverage in the form of a blanket policy carried by the Authority or the Village.
Except as specifically otherwise provided in this article, the Authority shall have all powers provided by the law, subject to the limitations imposed by law and herein.
The fiscal year of the Authority shall begin on April 1 of each year and end on March 31 of each year, or such other fiscal year as may hereafter be adopted by the Village.
The Board shall annually prepare a budget and shall submit it to the Council on the same date that the proposed budget for the Village is required to be submitted to the Council. The Board shall not finally adopt a budget for any fiscal year until the budget has been approved by the Council. The Board may, however, temporarily adopt a budget in connection with the operation of any improvements which have been financed by revenue bonds where required to do so by the ordinance authorizing the revenue bonds.
The Authority shall submit financial reports to the Council at the same time and on the same basis as departments of the Village are required to submit reports. The Authority shall be audited annually by the same independent auditors auditing the Village, and copies of the audit report shall be filed with the Council.
[Adopted 3-14-2006 by Ord. No. 293]
The terms in this article shall have the following meaning unless the context clearly required otherwise:
- BASE YEAR ASSESSMENT ROLL
- The base year assessment roll prepared by the Village Assessor in accordance with § 34-14 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 development area exceeds the initial assessed value.
- DEVELOPMENT AREA
- The area legally described in the development plan.
- DEVELOPMENT PLAN
- The "Tax Increment And Development Plan – Village of New Haven Downtown Development Area," as amended and transmitted to the Village Council by the Downtown Development Authority for public hearing, as modified by action of the Council and confirmed by this article, copies of which are on file in the office of the Village Clerk.
- INITIAL ASSESSED VALUE
- The most recent assessed value, as finally equalized, of all the taxable property within the boundaries of the development area at the time of adoption of this article.
- PROJECT FUND
- The Downtown Development Authority Project Fund established pursuant to § 34-16 of this article.
- TAXING JURISDICTION
- Each unit of government levying an ad valorem property tax on property in the development area.
The development plan as amended by the Village Council is hereby approved and adopted. The duration of the plan shall be 20 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 Village Clerk's office and cross-indexed to this article.
The boundaries of the development area as set forth in the development plan are hereby adopted and confirmed.
Within 60 days of the effective date of this article, the Assessor shall prepare the initial base year assessment roll. The initial base year assessment roll shall list each taxing jurisdiction in which the development area is located, the initial assessed value of the 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 Village 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 in the development plan approved by this article.
Each year, within 15 days following final equalization of property in the 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 depositary bank account or accounts in a bank or banks approved by the Director of Finance of the Village, to be designated the “Downtown Development Authority Project Fund.” All moneys received by the Downtown Development Authority pursuant to the development plan shall be deposited in the project fund. All moneys in that fund and earnings thereon shall be used only in accordance with the development plan and this article.
The Village and County Treasurer 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 project fund. The payments shall be made on the date or dates on which the Village and County Treasurers are required to remit taxes to each of the taxing jurisdictions.
The money credited to the project fund and on hand therein from time to time shall annually be used in the following manner and following order of priority:
First, to pay into the debt retirement fund, or funds, for all outstanding debts established pursuant to this plan an amount equal to the interest and principal coming due prior to the next collection of taxes.
Second, to reimburse the Village for funds advanced to make preliminary plans and improvements necessary in the development area in accordance with this plan.
Third, to pay the administrative and operating costs of the Downtown Development Authority and city for the development area, including planning and promotion, to the extent provided in the annual budget of the Tax Increment Finance Authority.
Fourth, to establish a reserve account for payment of one year's principal and interest on debts encountered pursuant to this plan.
Fifth, to pay, to the extent determined desirable by the Downtown Development Authority and approved by the city, the cost of improvements as set forth in the development plan, to the extent those costs are not financed from the proceeds of bonds.
Sixth, to establish a sinking fund or a set-aside account to be used to retire the debt incurred pursuant to this plan at the earliest possible date.
Within 90 days after the end of each fiscal year, the Downtown Development Authority shall submit to the Village Council, with copies to each taxing jurisdiction, a report on the status of the project 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 development area, the captured assessed value of the development area, the tax increments received and the amount of any surplus from the prior year, and any additional information required by the Village Council or deemed appropriate by the Downtown Development Authority. The Secretary 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 Village.
Any surplus money in the project fund at the end of the year, as shown by the annual report of the Downtown Development Authority, shall be paid by the Authority to the Village or County Treasurer, as the case may be, and rebated by them to the appropriate taxing jurisdiction.