City Council

MANISTEE CITY COUNCIL WORK SESSION AGENDA Tuesday, November 26, 2019 - 7:00 p.m. - Council Chambers, City Hall I. Call to Order. II. Work Session Items. a.) PUBLIC COMMENTS ON WORK SESSION RELATED ITEMS. b.) SUBSTANCE EDUCATION AND AWARENESS SEA YOUTH PRESENTATION. c.) DISCUSSION ON DOWNTOWN DEVELOPMENT AUTHORITY TIF PLAN. d.) CHAMBER QUARTERLY ECONOMIC DEVELOPMENT UPDATE – Marc Miller. e.) DISCUSSION ON DRAFT COST RECOVERY ORDINANCE – Public Safety Director Tim Kozal. f.) DISCUSSION ON INCREASING THE NUMBER OF RECREATIONAL MARIHUANA LICENSES. g.) DISCUSSION ON MARIHUANA GROW LICENSES. h.) DISCUSSION ON SAFE HARBOR AND HOMELESSNESS. i.) DISCUSSION ON COUNTY RESOLUTION DECLARING GREAT LAKES COAST A DISASTER AREA. – City Manager Thad Taylor. j.) OTHER. III. Adjourn. TNT:cl Attachments: 1. Draft DDA TIF Plan 2. Draft Cost Recovery Ordinance 3. County Resolution Work Session Packet Page 1 Amended and Restated Development Plan and Tax Increment Financing Plan 2019 City of Manistee Manistee County, Michigan Manistee Downtown Development Authority Adopted XXXXXX XX, 2019 DRAFT ~1~ 11.194.2019 Work Session Packet Page 2 BLANK PAGE DRAFT ~2~ 11.194.2019 Work Session Packet Page 3  City of Manistee Manistee County, Michigan Downtown Development Authority AMENDED and RESTATED DEVELOPMENT PLAN and TAX INCREMENT FINANCING PLAN Adopted XX-XX-2019 City Council Roger Zielinski, Mayor Lynda Beaton, Mayor Pro‐Tem Dale R. Cooper Jermaine Cipcic Michael Szymanski James Grabowski Erin Martin Pontiac Thad Taylor, City Manager Manistee Downtown Development Authority Rachel Brooks, Chairperson Kyle Mosher, Vice-Chairperson Barry Lind, Secretary Valarie Bergstrom, Treasurer Tamara DePonio T. Eftaxiadis Karen Goodman Thad Taylor Jodi Walter Caitlyn Berard, Executive Director TABLE OF CONTENTS BACKGROUND AND PURPOSE Purpose of the Tax Increment Financing Authority Creation of the Tax Increment Financing Authority Basis for the Development Plan and Tax Increment Financing Plan GENERAL DEVELOPMENT PLAN General Development Plan for the Manistee Downtown Development District DEVELOPMENT PLAN 1. Designation of Boundaries of the Development Plan Legal Description 2A. Location and Extent of Existing Streets and other Facilities 2B Existing Public and Private Land Uses within the Development Area 2C Existing Improvements to be Demolished, Repaired or Altered 2D Location, Extent, Character and Estimated Cost of Improvements DRAFT ~3~ 11.194.2019 Work Session Packet Page 4 2E Statement of the Construction or Stages of Construction Planned 2F Parts of the Development to be Left as Open Space 2G Portions of the Development Area to Sell, Donate, Exchange or Lease 2H Desired Zoning Changes and Changes in Streets 2I Estimate of the Cost of Development, Proposed Method of Financing 2J Designation of Person(s) To Benefit from Improvements 2K Procedures for Bidding Conveyance of Property 2L Estimate Number of Persons Residing in the Development Area 2M Plan for Establishing Priority for the Relocation of Persons Displaced 2N Provision for the Costs of Relocation 2O. A Plan for Compliance with Act 227 of PA of 1972 TAX INCREMENT FINANCING PLAN 1. Definitions as Used in This Plan 2. Purpose of the Tax Increment Financing Plan 3. Explanation of the Tax Increment Procedure 4. Taxing Jurisdictions Agreements 5. Property Valuations and Captured Revenue 6. Maximum Indebtedness 7. Use of Captured Revenues 8. Duration of the Program 9. Plan Impact on Local Taxing Jurisdictions 10. Release of Captured Revenues 11. Assumptions of Tax Increment Financing Plan 12. Operating Agreement Between DDA and Local Unit of Government 13. Relationship of the TIF Plan with Other Funding Programs 14. Relationship to Community Master Plan 15. Submission of an Annual Reports to the Governing Body and State Tax Commission MAPS/GRAPHIC 1 Manistee Downtown Development Authority District 2 Manistee DDA Development Boundary 3 Proposed Projects TABLES 1 Estimated Cost and Phasing of Improvements 2A Allocation of Capital Projects and Initiatives by Project Category and Priority 3 Forecast Taxable Valuation Growth Rate 4 Anticipated Captured Taxable Valuation 5 Anticipated Captured Revenue 6 Anticipated Millage to Be Captured 7 Captured Tax Increment Revenue by Municipality EXHIBITS and ADOPTION DOCUMENTATION Notice of Public Hearing Advertisement Letters to affected Property Owners regarding the Public Hearing City Council Public Hearing Meeting Minutes XX‐XX‐2019 City Council Meeting Minutes Adopting Ordinance Amendment XX‐XX‐2019 DRAFT ~4~ 11.194.2019 Work Session Packet Page 5 BACKGROUND AND PURPOSE Purpose of the Downtown Development Authority Act The State of Michigan Public Acts of 2018, Act 57, referred to as the Tax Increment Authority Act, incorporates PA 57 of 2018, formerly referred to as the Downtown Development Authority Act. Part 2 of PA 57 of 2018, contains the provisions for Downtown Development Authorities. Downtown Development Authorities were created in part to correct and prevent deterioration of business districts; to promote economic growth and revitalization; to encourage historic preservation; to authorize the acquisition and disposal of interests in real and personal property; to authorize the creation of the authority; to authorize the levy and collection of taxes, the issuance of bonds and the use of tax increment financing in the accomplishment of specific downtown development activities contained in locally-adopted development plans. The Act seeks to attack problems of urban decline, strengthen existing areas and encourage new private developments in the downtown districts of Michigan communities. It seeks to accomplish this goal by providing communities with the necessary legal, monetary and organizational tools to revitalize downtown districts either through public-initiated projects or in concert with privately motivated development projects. Creation of the Manistee Downtown Development Authority On April 2, 1985, the City of Manistee adopted an ordinance to add Chapter 282 to its Code of Ordinances, which established the Manistee Downtown Development Authority (DDA). A copy of this Ordinance is included under Exhibit 1 Title 8, Chapter 282, Boards, Commissions and Authorities, and can be found on the City’s web site under the “Codified Ordinances” Administrative Section – Downtown Development Authority. The Authority was given all the powers and duties prescribed for a Downtown Development Authority pursuant to the Act. Basis for The Development Plan and Tax Increment Financing Plan Act 57 of Public Acts of 2018, the Tax Increment Financing Act (“Act 57”), provides the legal mechanism for local officials to address the need for economic development in the central business district. Refer to Map 1: DDA District for a more detailed depiction of the properties within the DDA District. The initial Development Plan and Tax Increment Financing Plan was adopted on April 2, 1985 (unnumbered ordinance) and amended on March 30, 1989 (unnumbered ordinance) and September 16, 2008 (Ordinance 08-07). For purposes of designating a Development Plan District and for establishing a Tax Increment Financing Plan, the Act refers to a "downtown district" as being in a business district that is specifically designated by ordinance of the governing body of the municipality and a "business district" as being an area in the downtown of a municipality zoned and used principally for business. Tax Increment Financing can be used to provide the necessary funds for project implementation. By definition, a tax increment financing plan seeks to capitalize on and make use of the increased tax base created by economic development within the boundaries of a downtown district. The legal basis of support for the Development Plan and Tax Increment Financing Plan is identified in Act 57 0f 2018, specifically Part 2 which relates to the DDA. DRAFT ~5~ 11.194.2019 Work Session Packet Page 6 Since 1985, the DDA has utilized tax increment financing to implement variety of capital improvement projects within the DDA District. DRAFT ~6~ 11.194.2019 Work Session Packet Page 7 GENERAL DEVELOPMENT PLAN GENERAL DEVELOPMENT PLAN FOR THE MANISTEE DDA The need for establishing the DDA District is founded on the basis that the future success of Manistee's efforts to revitalize its commercial area will depend, in large measure, on the readiness and ability of its public corporate entity to initiate public improvements that strengthen the commercial area, and to encourage and participate where feasible in the development of new private uses that clearly demonstrate the creation of new jobs, the attraction of new business, and the generation of additional tax revenues. Map 1 shows the geographic limits of the DDA effective as of April 2, 1985. The Development Area District, or boundary, (Map 2) must be equal to or less than the geographic limits of the DDA District. Map 1 City of Manistee DDA DISTRICT Area within blue outline and shaded light red Source: City of Manistee; prepared by Spicer Group, November 2018 DRAFT ~7~ 11.194.2019 Work Session Packet Page 8 DEVELOPMENT PLAN 1. Designation of Boundaries of the Development Area The Development Area boundary is located within the jurisdictional limits of the City of Manistee and the DDA. The City of Manistee established the DDA pursuant to Act 57 of 2018 through adoption and publication of an ordinance on April 2, 1985. The DDA District boundary and the Development Area boundary are illustrated on Map 2 below. As in most DDAs the DDA district and the Development Area District are one in the same. Map 2 City of Manistee DDA and TAX INCREMENT FINANCING PLAN BOUNDARY Area within blue outline and shaded light red Source: City of Manistee; prepared by Spicer Group, November 2018 DRAFT ~8~ 11.194.2019 Work Session Packet Page 9 Legal Description of the Development Area The DDA shall exercise its powers and duties within the downtown development district, being specifically described as follows: All of Blocks 1, 2, 3, 4, 5, 8, 9 AND Lots 1, 2, 3, 4, the North 56 feet of Lot 8 and the East 85 feet of the South 66 feet of said Lot 8 and the North 39 feet of the East 67.5 feet of Lot 7 of Block 7, Filer and Tyson’s Addition to the Village (now City) of Manistee, as recorded in Manistee County Records. All of Delos L. Filer’s Subdivision of Block No. 6 of Filer and Tyson’s Addition to the Village (now City) of Manistee, as recorded in Manistee County Records. All Green and Milmoe’s Addition to the City of Manistee, as recorded in Manistee County Records. All of Blocks 1, 2, 3, 6 and 7 of Holden and Green in the Village (Now City) of Manistee, as recorded in Manistee County Records. All of George W. Willard’s Subdivision of Blocks 4 and 8 of Green’s Addition to the Village (Now City) of Manistee, as recorded in Manistee County Records. All of Block 1 and 12, Lots 1, 2, 3, 4, 5 and 6 of Block 6; All that part of Blocks 7, 8, 11 and 14 lying West of Cypress Street (US-31); Lots 8 and 9 of said Block 14; Lots 1, 2, 3, 4, 5, 6, 7, 8 and 9, Block 13; Part of Reservation lying North of River Street between Division Street and Cypress Street; Part of the reservation, commencing at the intersection of the North line of Mason Street and the West line of Jones Street, thence West on the North line of Mason Street 62 ft, thence Northerly parallel with the West line of Jones Street 290 ft to the dock line, Easterly along the dock line 68.42 ft to the extension of the West line of Jones Street, Southerly to the POB; Filer and Smith’s Addition to the Village (now City) of Manistee, as recorded in Manistee County Records. All of M.S. Tyson and Co’s New Addition to the Village (Now City) of Manistee, as recorded in Manistee County Records. All of Blocks 10 and 16, Lot 1 and 2 of Block 15, All of Block 9, EXCEPT Lots 9, 10 and 11, Lots 1 and 19 of Block 8 and Lots 2, 3, and 4 of Block 14, Amended Engelmann’s Addition to the Village (Now City) of Manistee, as recorded in Manistee County Records. Lot 1 of Block 3, Mark S. Tyson and Co’s Addition to the Village (Now City) of Manistee, as recorded in Manistee County, Michigan. All of Block 5 and Lots 1, 2 and 3 of Block 3, Ramsdell and Benedict’s North Addition to the Village (Now City) of Manistee, as recorded in Manistee County Records. Part of the Southwest 1/4 of Section 1, T.21 N.-R.17 W., City of Manistee, Manistee County, Michigan, lying Easterly of Memorial Drive and Cleveland Street, Southerly of the Extension of Lincoln Street and Westerly of Manistee River AND ALSO land Lying East of Blocks 8, 9 and 10 of Amended Engelmann’s Addition to the Village (Now City) of Manistee, as recorded in Manistee County Records, lying West of Cypress Street and North of memorial Drive. DRAFT ~9~ 11.194.2019 Work Session Packet Page 10 Part of the Northeast 1/4 of Section 11, T.21 N.-R.17 W., City of Manistee, Manistee County, Michigan, described as part of Government Lot 1, commencing 33 feet West and 33 feet South of Northeast Corner; thence West, 157 feet; thence South, 230 feet; thence West, 60 feet; thence South to the North line of Manistee River; thence East along said River to a point directly South of Point of Beginning; thence North to the point of beginning. Part of Northwest 1/4 of Section 12, T.21 N.-R.17 W., City of Manistee, Manistee County, Michigan, described as Part of Government Lot 2, Commencing 2 Rods South & 2 Rods East of the Northwest Corner of said Lot 2; thence South, 183 feet; thence East, 132 feet; thence North, 183 feet; thence West, 132 feet to the point of beginning. AND, that part lying North of Manistee River, South of Memorial drive and East of Maple Street of said Section 12. 1 1 City of Manistee; provided April 10, 2019; prepared by Spicer Group 2A. Location and Extent of Existing Streets and other Public Facilities within the Development Area; Location, Character and Extent of Existing Public and Private Land Uses. Due to the Manistee River, the two-primary north-south corridors through the DDA Development Area are US-31 (Cypress Street) and Washington Street (north of the river) / Maple Street (south of the river). Both streets have drawbridges to allow Great Lakes freighters access to Manistee Lake and Lake Michigan. East – west corridors through the Development Area include River Street (downtown’s main street) and 1st Street due to offsetting streets through the commercial and residential neighborhoods south of the Manistee River. The development area is fully serviced with municipal water, sanitary sewer and storm sewer facilities, as well as electrical and gas services. Existing land uses within the Development Area are comprised of public and private uses. These land uses include retail businesses, offices, parking, churches, and residential properties. Collectively, these land uses create a mixed-use and walkable downtown and business district. 2B. Existing Public and Private Land Uses within the Development Area. Public Land Uses City of Manistee City Hall, Manistee County Library and U.S. Post Office are within the boundaries of the Manistee DDA District. Veterans Park which is located along the north bank of the Manistee River between US-31 and Washington Street provides an open pavilion for summer entertainment venues and a Farmers’ Market. The Manistee Municipal Marina is located on River Street just west of Oak Street. Lastly, there are several public parking lots in the DDA Development Area with many located on the south side of the district behind buildings on the south side of River Street. Private Land Uses A. Residential – There are various residential, primarily single-family homes located within the DDA District. 1 City of Manistee; provided April 10, 2019; prepared by Spicer Group DRAFT ~ 10 ~ 11.194.2019 Work Session Packet Page 11  B. Commercial - Most of the property within the DDA District and Development Area consists of commercial property. These commercial uses include professional, retail, banking, and service businesses. C. Industrial - There are no current industrial uses within the DDA District or Development Area boundaries, however, there are several sites that have contained industrial-related businesses at one time, and some would be considered “brownfields.” Recreational Uses Recreational uses within the development area consist of the Veteran Park located along Memorial Drive on the north side of the Manistee River and Manistee Municipal Marina located on River Street on the south side of the Manistee River. Although not considered a recreational park, the Manistee River Riverwalk along the south bank of the Manistee River provides pedestrian access to the river, as well as, adjacent businesses. Quasi-Public Uses There are no quasi-public uses in the Development Area. Educational Uses There are no current educational uses in the Development Area. West Shore Community College has purchased a building within the DDA District on River St., with the intentions of hosting classes and office space for local non-profits, but is not yet established. Vacant Land There are no large vacant parcels of undeveloped property in the Development Area. 2C. Existing Improvements in the Development Area to be Demolished, Repaired or Altered and Time Required for Completion. It is contemplated by the DDA that portions of the existing Riverwalk along the south bank of the Manistee River will require repair which may involve demolition of an existing improvement. Anticipated schedule for completion would depend on the scope of the project. In addition, refurbishment of Veterans Park is considered and would include demolition of the existing walks, decks and railings. The major focus of this project is to make the park, which is a favorite event venue, ADA compliant. The Development Plan also envisions that the existing River Street streetscape will likely need some level of refurbishment due to its age and condition of the sidewalks. 2D. The Location, Extent, Character and Estimated Cost of Improvements including Rehabilitation for the Development Area. The table below outlines the project name, description and estimated cost for those projects identified by the DDA Board. DRAFT ~ 11 ~ 11.194.2019 Work Session Packet Page 12 Under the Project Name, the project will be identified as EDS if it is identified as a goal within the City of Manistee Economic Development Strategy. This document, prepared by Place + Main Advisors July 2019; is a living document adopted by the DDA on October 9th, 2019. Table 1 Estimated Cost and Phasing of Improvements Project Name Description Probable Cost Riverwalk The Riverwalk is not currently meeting its capacity to draw visitors downtown. The Riverwalk could be a destination and driving factor for the business district with the scenic walks near the Manistee River leading to Lake Michigan. In order to become a destination feature, businesses on the north side of the River Street need to also have a river orientation. River Façade and Deck Grants Provide funds to establish a cost-sharing $400,000 EDS: Facade grant program focused on the renovation of buildings facades along the Manistee River and adjacent decks that tie into the Riverwalk. Dock Installation and Funds to maintain docks and provide for the $100,000 Maintenance installation of new docks to encourage EDS: Façade transient boaters to dock and access the downtown for shopping, dining and entertainment. Conceptual Plans and Pre- Funds that can be used by the DDA to assist $50,000 Development Studies with conceptual planning and pre- EDS: Placemaking development studies for properties along the Manistee River. Riverwalk Capital Funds for capital improvements of the $700,000 Improvements Manistee Riverwalk EDS: Placemaking WSCC Riverwalk Plaza Funds for the enhancement of the $250,000 Riverwalk adjacent to the WSCC property Project Name Description Probable Cost Gateway to Downtown According to MDOT Annual Average Daily Traffic report, nearly 16,000 vehicles pass through the intersection of River Street and Cypress Street. This intersection is the primary gateway to downtown Manistee, and it should be reconfigured as such. Intersection Enhancements Funding available for the enhancement of $200,000 EDS: Placemaking safety, engagement and activation of the intersection indicated in the MSU Study. DRAFT ~ 12 ~ 11.194.2019 Work Session Packet Page 13 Project Name Description Probable Cost Streetscape The streetscape along River Street needs to be maintained, improved and enhanced to last an additional 25 years. Improving pedestrian traffic flows, aesthetics, providing 21st century amenities, and managing parking, specifically on River Street is important to offering a quality environment for businesses to be successful. Update and Refurbishment of Improvements to the existing streetscape $1,400,000 Streetscape to possibly include efficient LED lighting, EDS: Placemaking public Wi-Fi, and sound system. Most of this funding is targeted for the repair or replacement of existing streetscape infrastructure. Project Name Description Probable Cost Redevelopment Projects Over the length of the Development Plan there are several properties that will take significant resources to redevelop. Additionally, the east side of the district contains most of the available parking and by creating parking on Water Street on the west end of the district that would effectively address parking concerns and eliminate blight. Property Acquisition Provide funds to acquire properties within $500,000 EDS: Place: Housing: 2 the district when opportunities arise in the downtown area for the purpose of directing redevelopment efforts on the properties. Project Name Description Probable Cost Downtown Building Programs In addition to improvements to the public infrastructure (public realm), funds will be targeted to assist private property owners in the renovation, preservation, and repurposing of buildings. These include improvements to facades, compliance with building and fire codes, and repurposing upper stories for residential apartments. Façade Program Annual allocation of funds to assist property $600,000 EDS: Facade owners with façade improvements consistent with the Secretary of Interior Standards for historic renovations. WSCC Façade Enhancements Funds for the façade enhancements of the $600,000 new WSCC buildings in the Downtown District. Rental Rehab Program Provide cost-sharing funding to property $600,000 EDS: Target Vacant Buildings owners for conversion of underutilized or functionally obsolete space for new apartments. Project Name Description Probable Cost Promotion, Marketing, and Events The downtown is a collection of individual businesses that advertise and market their specific services and merchandise. The DDA’s role is to market and promote the overall downtown area and the facilitation of events. DRAFT ~ 13 ~ 11.194.2019 Work Session Packet Page 14 Marketing of the Downtown This entails a professional approach to $250,000 Development District promotion of the DDA district. EDS: Business Development Events This entails the marketing / facilitation $125,000 EDS: Business Development and/or support of events within the DDA district. DRAFT ~ 14 ~ 11.194.2019 Work Session Packet Page 15  Project Name Description Probable Cost Administrative Downtown Decorations Provide funding for downtown $550,000 EDS: Placemaking beautification including the annual flower boxes, holiday decorations, banners, etc. Parking Management Funding availability for parking-related $100,000 issues such as signage, studies, and enforcement. DDA Admin Expenses Office expenses $375,000 DDA Administrative payroll and Funding for DDA staff including contracted $2,750,000 contracted services services. Note: The scope and cost of the project may vary depending on the final design of each component. Project descriptions reflect the overall scope of the projects envisioned by the Manistee DDA. The DDA recognizes that market forces, private investment, future public-private partnerships, and legislative amendments may result in changes to the final design and cost, consistent with overall concepts embodied in this Development Plan and Tax Increment Financing Plan. 2E A Statement of the Construction or Stages of Construction Planned, and the Estimated Time of Completion. The DDA Board met to review the results of the board prioritization survey and discuss the extent, probable cost and timing of projects and programs. The table below outlines the project name, description, priority and timing assigned for those projects by the DDA Board. Overall summary of the proposed development plan projects and programs is: Table 2A Allocations and timeline for Priority Projects DRAFT ~ 15 ~ 11.194.2019 Work Session Packet Page 16  DDA TIF PROJECTS BUDGET PRIORITY/ALLOCATION TOTAL BUDGET PROJECT CATEGORY High (1-5 yrs) Medium (6-10 yrs) Low (11-20 yrs) (21-25 yrs) (25 yr plan) Riverwalk $ 550,000 $ 400,000 $ 500,000 $ 50,000 $ 1,500,000 River Façade & Deck Grants $ 100,000 $ 100,000 $ 200,000 $ - $ 400,000 Dock Install/Maintain $ - $ 50,000 $ 50,000 $ - $ 100,000 Concept Plans $ - $ 50,000 $ - $ - $ 50,000 Riverwalk Capital Improvements $ 200,000 $ 200,000 $ 250,000 $ 50,000 $ 700,000 WSCC Riverwalk Plaza $ 250,000 $ - $ - $ - $ 250,000 Gateway to Downtown $ 100,000 $ 100,000 $ - $ - $ 200,000 Intersection Enhancem. $ 100,000 $ 100,000 $ - $ - $ 200,000 Streetscape $ 200,000 $ 400,000 $ 750,000 $ 50,000 $ 1,400,000 Update & Refurbishment $ 200,000 $ 400,000 $ 750,000 $ 50,000 $ 1,400,000 Redevelopment $ 100,000 $ 100,000 $ 200,000 $ 100,000 $ 500,000 Property Acquisition $ 100,000 $ 100,000 $ 200,000 $ 100,000 $ 500,000 Downtown Bldgs $ 900,000 $ 300,000 $ 500,000 $ 100,000 $ 1,800,000 Façade Program $ 150,000 $ 150,000 $ 200,000 $ 100,000 $ 600,000 WSCC Façade Enhancements $ 600,000 $ - $ - $ - $ 600,000 Rental Rehab Program $ 150,000 $ 150,000 $ 300,000 $ - $ 600,000 Promotion, Marketing & Events $ 75,000 $ 75,000 $ 150,000 $ 75,000 $ 375,000 Marketing $ 50,000 $ 50,000 $ 100,000 $ 50,000 $ 250,000 Events $ 25,000 $ 25,000 $ 50,000 $ 25,000 $ 125,000 ADMIN $ 735,000 $ 735,000 $ 1,570,000 $ 735,000 $ 3,775,000 Downtown Decorations $ 110,000 $ 110,000 $ 220,000 $ 110,000 $ 550,000 Parking Management $ - $ - $ 100,000 $ - $ 100,000 DDA Admin Expenses $ 75,000 $ 75,000 $ 150,000 $ 75,000 $ 375,000 DDA Admin Payroll & Services $ 550,000 $ 550,000 $ 1,100,000 $ 550,000 $ 2,750,000 TOTALS $ 2,660,000 $ 2,110,000 $ 3,670,000 $ 1,110,000 $ 9,550,000 November 19th, 2019 High (1-5 yrs) Medium (6-10 yrs) Low (11-20 yrs) (21-25 yrs) Projected TIF Revenue $ 6,346,678 Projected Deficit $ (3,203,322) 2F. Parts of the Development Area to be Left as Open Space and Contemplated Use. In reference to the public improvements outlined, open space within the DDA District and Development Area will be confined to rights-of-way, plazas, and parks within the District. Additional properties may be acquired by the DDA in the future to be developed to and used as “open” spaces. To increase engagement and activation of spaces if not already stimulated. 2G. Portions of the Development Area which the Authority desires to Sell, Donate, Exchange, or Lease to or From the Municipality and the Proposed Terms. There are no parcels currently that the DDA plans to acquire, sell, donate, exchange, or lease from/to the Municipality, as part of this Development Plan. 2H. Desired Zoning Changes and Changes in Streets, Street Levels, Intersections and Utilities. The Development Plan proposes no zoning changes proposed within the Development Area. The current zoning of “commercial” and “office” accommodates existing and future land uses in the subject area. 2I. An Estimate of the Cost of the Development, Proposed Method of Financing and Ability of the Authority to Arrange the Financing. DRAFT ~ 16 ~ 11.194.2019 Work Session Packet Page 17 Financing for the public improvement projects outlined in Section 5 would be provided through funds generated by the Tax Increment Financing Plan induced by annual increases in property valuations within the Development Area. The amount of the funding will be predicated on the stability of the taxable valuation base of the downtown area and the extent of new future redevelopment and rehabilitation projects. Sources of funding may include tax increment revenues on a “pay-as-you-go” basis, the issuance of bonds by the DDA or City and other sources approved by the City in accordance with the Act 57 of 2018. 2J. Designation of Person or Persons, Natural or Corporate, to whom all or a portion of the Development is to be Leased, Sold, or Conveyed in any manner and for whose benefit the Project is being undertaken, if that information is available to the Authority. The public improvements undertaken pursuant to this Development Plan will remain in public ownership for the public benefit. 2K. The Procedures for Bidding for the Leasing, Purchasing, or Conveying of all or a portion of the Development upon its completion, if there is no expressed or implied Agreement between the Authority and Persons, Natural or Corporate, that all or a portion of the Development will be Leased, Sold, or Conveyed to those Persons. At present there are no agreements for property conveyance between the City of Manistee, Manistee DDA or any person(s), natural or corporation. The Development Plan utilizes a voluntary acquisition strategy to acquire property within the Development Area. Acquisition of such property would be on a negotiated basis between the Downtown Development Authority and the interested party. Any such sale, lease or exchange shall be conducted by the DDA pursuant to requirements specified in Act 57 of 2018 with the consent of the City Commission. If needed, more detailed procedures will be developed prior to the transactions, in accordance with applicable city policy and Michigan state law. 2L. Estimates of the Number of Persons residing in the Development Area and the Number of Families and Individuals to be Displaced. Based upon a review of the properties within the DDA District and Development Area in it is estimated that there are more than 100 individuals who reside within the Development Area. As a result, the City Council will need to establish a Development Area Citizens Council to review and comment on the Development Plan. The Development Area Citizens Council shall consist of not less than 9 members who reside within the development area and are at least 18 years old. The Development Plan does not require the acquisition and clearance of occupied residential property or the displacement of individuals and families within the DDA District and Development Area. 2M. A Plan for Establishing Priority for the Relocation of Persons Displaced by the Development in any New Housing in the Development Area. The Development Plan does not require the acquisition and clearance of occupied residential property or the displacement of individuals and families. As a result, a plan for compliance Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 is not addressed. DRAFT ~ 17 ~ 11.194.2019 Work Session Packet Page 18 2N. Provision for the Costs of Relocating Persons Displaced by the Development, and Financial Assistance and Reimbursement of Expenses, including Litigation expenses and expenses incident to the Transfer of Title in accordance with the Standards and Provisions of the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. The Development Plan does not require the acquisition and clearance of occupied residential property or the displacement of individuals and families. As a result, a plan for compliance Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 is not addressed. 2O. A Plan for compliance with Act 227 of the Public Acts of 1972. Act 227 of Public Acts of 1972 is an Act to provide financial assistance; advisory services and reimbursement of certain expenses to persons displaced from real property or deprived of certain rights in real property. This Act requires procedures and policies comparable to the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Because the Development Plan does not require the acquisition of property and displacement of persons a plan for compliance with Act 227 is not addressed. DRAFT ~ 18 ~ 11.194.2019 Work Session Packet Page 19 TAX INCREMENT FINANCING PLAN 1. Definitions as Used in This Plan. a. "Captured assessed value" means the amount in any 1 year by which the current assessed value of the project area, including the assessed value of property for which specific local taxes are paid in lieu of property taxes as determined in subdivision (c), exceeds the initial assessed value. The state tax commission shall prescribe the method for calculating captured assessed value. b. "Assessed value" means the assessed value, as equalized, as follows: (i) For valuations made before January 1, 1995, the state equalized valuation as determined under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. (ii) For valuations made after December 31, 1994, the taxable value as determined under section 27a of the general property tax 15 act, 1893 PA 206, MCL 211.27a. c. "Initial assessed value" means the assessed value, as equalized, of all the taxable property within the boundaries of the development area at the time the ordinance establishing the tax increment financing plan is approved, as shown by the most recent assessment roll of the municipality for which equalization has been completed at the time the resolution is adopted. Property exempt from taxation at the time of the determination of the initial assessed value shall be included as zero. For the purpose of determining initial assessed value, property for which a specific local tax is paid in lieu of a property tax shall not be property that is exempt from taxation. The initial assessed value of property for which a specific local tax was paid in lieu of a property tax shall be determined as provided in subdivision d. d. "Specific local tax" means a tax levied under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the technology park development act, 1984 PA 385, MCL 207.701 To 207.718, Section 5 of the State Essential Services Assessment Act, 2014 PA 92, MCL 14 211.1055, Section 5 Of The Alternative State Essential Services 15 Assessment Act, 2014 PA 93, MCL 211.1075, and 1953 PA 189, MCL 211.181 to 211.182.. The initial assessed value or current assessed value of property subject to a specific local tax shall be the quotient of the specific local tax paid divided by the ad valorem millage rate. However, after 1993, the state tax commission shall prescribe the method for calculating the initial assessed value and current assessed value of property for which a specific local tax was paid in lieu of a property tax. d. "Tax increment revenues" means the amount of ad valorem property taxes and specific local taxes attributable to the application of the levy of all taxing jurisdictions upon the captured assessed value of real and personal property in the development area, subject to the following requirements addressed in MCL 125.4201, Section 201 (cc). 2. Purpose of the Tax Increment Financing Plan The Manistee Downtown Development District was created on April 2, 1985 and was established because the downtown area experienced notable property value deterioration. In order to halt property tax value deterioration, increase property tax valuations and facilitate the overall economic growth of its business district, it is deemed to be beneficial and necessary to create and provide for the operation of a downtown development authority in the City under the provisions of Act 197 Public Acts of Michigan, 1975 as amended now known as Act 57 of 2018 (“the Act”). On March 30, 1989, March 30, 1989, and September 16, 2008 there were amendments to the DDA District as well as the Development Plan and Tax Increment Financing Plan. DRAFT ~ 19 ~ 11.194.2019 Work Session Packet Page 20 The Authority has determined that the extension, or amended and restated tax increment financing plan, is necessary for the achievement of the purposes of the Act and it is authorized to prepare and submit said plan to the governing body. The Tax Increment Financing Plan (the "Plan"), set forth herein includes the Development Plan, a detailed explanation of the tax increment procedure, the maximum amount of bonded indebtedness to be incurred, the duration of the program, the impact of tax increment financing on the assessed values of all taxing jurisdictions in which the development area is located and a statement of the portion of the captured assessed value to be used by the Authority. 3. Explanation of the Tax Increment Procedure The theory of tax increment financing holds that investment in necessary capital improvements in a designated area within a municipality will result in greater property tax revenues from that area than would otherwise occur if no special development were undertaken. This section is intended to explain the tax increment procedure. a. In order to provide a Downtown Development Authority with the means of financing development proposals, the Act affords the opportunity to undertake tax increment financing of development programs. These programs must be identified in a tax increment financing plan, which has been approved by the governing body of a municipality. Tax increment financing permits the Authority to capture incremental tax revenues attributable to increases in value of real and personal property located within an approved development area. The increases in property value may be attributable to new construction, rehabilitation, remodeling, alterations, additions or any other factors that cause growth in value. b. At the time the resolution or ordinance establishing a tax increment financing plan is adopted, the sum of the most recently taxable values, as equalized, of those taxable properties located within the development area is established as the "Initial Taxable Value" (the "ITV). Property exempt from taxation at the time of determination of the Initial Taxable value is included as zero. In each subsequent year, the total real and personal property within the District, including abated property on separate rolls, is established as the "Current Taxable value." c. The amount by which the total taxable value exceeds the ITV is the Captured Taxable Value (the "CTV"). During the period in which a tax increment financing plan is in effect, local taxing jurisdictions continue to receive ad valorem taxes based on the ITV. Property taxes paid on a predetermined portion of the CTV in years subsequent to the adoption of tax increment financing plan, however, are payable to an authority for the purposes established in the tax increment financing plan. 4. Taxing Jurisdiction Agreements. Tax increment revenues for the Downtown Development Authority result from the application of the general tax rates of the incorporated municipalities and all other political subdivisions which levy taxes in the development area to the captured assessed value. Since the Plan may provide for the use of all or part of the captured tax increment revenue, the DDA may enter into agreements with any of the taxing units to share a portion of the revenue of the District. The only tax sharing agreement to date is with the Manistee Brownfield Redevelopment Authority for the South Washington Street Area Redevelopment Plan and all other future agreements with the City of Manistee. South Washington Street Area Redevelopment Plan The City of Manistee and the Manistee Brownfield Redevelopment Authority approved a redevelopment project known as the South Washington Street Area Redevelopment Project within the DDA District. This project involved six parcels; five of which are in the DDA District and DDA Development Area. These parcels include: DRAFT ~ 20 ~ 11.194.2019 Work Session Packet Page 21 Parcel 1 - #51-211-100-0 (River Parc Place LLC), Parcel 2 - #51-211-100-02 (North Channel Investors LLC), Parcel 3 - #51-211-100-03 (Former Groves Property), Parcel 4 - #51-211-100-01 (Former Groves Property), Parcel 5 - #51-211-105-01 (City of Manistee), and Parcel 6 -#51-101-350-01 (City of Manistee, Memorial Park). All parcels noted except for Parcel 5 are in the DDA District. Parcels 1 through 4 were acquired by Manistee Investment Partners LLC to redevelop the properties, including the historic furniture manufacturing building, into a mixed-use project. As a result of this redevelopment this property now includes a micro-brewery and restaurant, and residential apartments and condominiums. As noted in the Brownfield Redevelopment Plan, “the project is catalytic for this area of the City's Downtown District due to the expected increased economic and building redevelopment activity. Furthermore, this project is compatible with the City’s and the MSDDA’s vision for the South Washington Street Area as expressed in the “Manistee North Corridor Placemaking Project” plan prepared by Beckett & Raeder for the MSDDA in September 2012.”2 The Brownfield Plan was adopted and the increase in taxable valuation resulting for the project will be captured by the Manistee Brownfield Redevelopment Authority for a period of thirty (30) years or until the eligible costs outlined in the plan are paid. The duration of the brownfield plan extends from 2014 through 2044. After this period the DDA would be allocated the incremental revenues. 5. Property Valuations and Captured Revenue. The property valuation on which tax increment revenues will be captured is the difference between the Initial Taxable Valuation and the Current Taxable Valuation. The purpose of this section is to set forth the Initial Taxable Valuation, the projected Captured Taxable Valuation and the anticipated increment revenues to be received by the Authority from the local taxing jurisdictions including the City of Manistee, Manistee County, Manistee County Public Library, West Shore Community College, and any other authorities or special tax districts that may be eligible to levy property taxes within the boundaries of the Downtown Development Authority, herein collectively referred to as the "Local Taxing Jurisdictions." a. The Initial Taxable Valuation is established based on the 1985 state equalized valuations on real and personal property and on all non-exempt parcels within that portion of the Development Area as of December 31, 1984 finalized in May 1985. The Initial Taxable Valuation of the Authority for the 1985 district is outlined below: Base Year and Taxable Real and Personal Property Valuations City of Manistee 1985 Taxable 2019 Taxable (12-31-1984) (12-31-2018) Real Property Taxable Valuation $5,232,516 $15,035,440 Personal Property Taxable Valuation $784,425 $683,500 Total Taxable Valuation $6,016,941 $15,718,940 b. The anticipated Captured Assessed Value is equivalent to the annual total assessed value within the Development Area boundaries less the Initial Assessed Value as described above. The tax increment revenues are then the product of all millages levied by all taxing units in the Development Area on the CAV. The CAV is projected based on several factors including historical growth patterns, recent construction trends, economic indicators and the impact of certain development projects anticipated to be undertaken by the Downtown Development Authority. Since the enactment of Proposal A in 1994, the Consumers Price Index (CPI), which is the basis for taxable valuation 2 South Washington Street Area Redevelopment Project; prepared for the City of Manistee Brownfield Redevelopment Authority, July 2014, page 3. DRAFT ~ 21 ~ 11.194.2019 Work Session Packet Page 22  adjustments, has averaged 2.4%. For projection purposes, the taxable growth is estimated to stabilize at low growth increases with flat rate of .25% for years 2019-2039. Growth rates do not include taxable valuation resulting from new construction, redevelopment, or the conversion of tax-exempt properties to taxable parcels. In addition, the forecast includes an anticipated reduction of $400,000 in personal property tax valuation resulting from Proposal 14-1. c. Although Personal Property Tax (PPT)Taxable Valuation is captured by the DDA it is not factored into the forecast due to reporting and reimbursement requirements provided through Act 86 of 2014; the Local Community Stabilization Authority Act. According to the Michigan Department of Treasury documents the Manistee DDA received a 2017 PPT reimbursement of $23,230.44 and a 2018 reimbursement of $14,947.89. Table 3 Forecast Taxable Valuation Growth Rate growth rates Fiscal Year District 2019 - 2044 0.25% A more detailed depiction of the Captured Taxable Valuations can be found in Table 4. c. The Authority will receive that portion of the tax levy of all taxing jurisdictions paid each year on the Captured Assessed Value of the eligible property included in the Development Area. The Authority may use the revenues for any legal purpose as is established under the Act including the payment of principal and interest on bonds. DRAFT ~ 22 ~ 11.194.2019 Work Session Packet Page 23 Table 4 Anticipated Captured Taxable Valuation Fiscal Tax Roll Annual Taxable South Brownfield Captured Year Assessment Taxable Growth Valuation Washington Capture from Valuation July-June Date (+ / - ) Brownfield South Washington DDA - 1985 - 86 12-31-84 $ - 1 2019 - 20 12-31-18 $ 15,035,440 $ 2,013,948 $ 1,662,616 $ 8,140,308 2 2020 - 21 12-31-19 0.25% $ 15,073,029 $ 2,018,983 $ 1,667,651 $ 8,172,862 3 2021 - 22 12-31-20 0.25% $ 15,110,711 $ 2,024,030 $ 1,672,698 $ 8,205,497 4 2022 - 23 12-31-21 0.25% $ 15,148,488 $ 2,029,090 $ 1,677,758 $ 8,238,214 5 2023 - 24 12-31-22 0.25% $ 15,186,359 $ 2,034,163 $ 1,682,831 $ 8,271,012 6 2024 - 25 12-31-23 0.25% $ 15,224,325 $ 2,039,249 $ 1,687,917 $ 8,303,893 7 2025 - 26 12-31-24 0.25% $ 15,262,386 $ 2,044,347 $ 1,693,015 $ 8,336,855 8 2026 - 27 12-31-25 0.25% $ 15,300,542 $ 2,049,458 $ 1,698,126 $ 8,369,900 9 2027 - 28 12-31-26 0.25% $ 15,338,793 $ 2,054,581 $ 1,703,249 $ 8,403,028 10 2028 - 29 12-31-27 0.25% $ 15,377,140 $ 2,059,718 $ 1,708,386 $ 8,436,239 11 2029 - 30 12-31-28 0.25% $ 15,415,583 $ 2,064,867 $ 1,713,535 $ 8,469,532 12 2030 - 31 12-31-29 0.25% $ 15,454,122 $ 2,070,029 $ 1,718,697 $ 8,502,909 13 2031 - 32 12-31-30 0.25% $ 15,492,757 $ 2,075,204 $ 1,723,872 $ 8,536,369 14 2032 - 33 12-31-31 0.25% $ 15,531,489 $ 2,080,392 $ 1,729,060 $ 8,569,913 15 2033 - 34 12-31-32 0.25% $ 15,570,318 $ 2,085,593 $ 1,734,261 $ 8,603,541 16 2034 - 35 12-31-33 0.25% $ 15,609,244 $ 2,090,807 $ 1,739,475 $ 8,637,253 17 2035 - 36 12-31-34 0.25% $ 15,648,267 $ 2,096,034 $ 1,744,702 $ 8,671,049 18 2036 - 37 12-31-35 0.25% $ 15,687,387 $ 2,101,274 $ 1,749,942 $ 8,704,929 19 2037 - 38 12-31-36 0.25% $ 15,726,606 $ 2,106,527 $ 1,755,195 $ 8,738,895 20 2038 - 39 12-31-37 0.25% $ 15,765,922 $ 2,111,794 $ 1,760,462 $ 8,772,945 21 2039 - 40 12-31-38 0.25% $ 15,805,337 $ 2,117,073 $ 1,765,741 $ 8,807,080 22 2040 - 41 12-31-39 0.25% $ 15,844,851 $ 2,122,366 $ 1,771,034 $ 8,841,301 23 2041 - 42 12-31-40 0.25% $ 15,884,463 $ 2,127,672 $ 1,776,340 $ 8,875,607 24 2042 - 43 12-31-41 0.25% $ 15,924,174 $ 2,132,991 $ 1,781,659 $ 8,909,999 25 2043 - 44 12-31-42 0.25% $ 15,963,984 $ 2,138,323 $ 1,786,991 $ 8,944,477 The Treasurer will collect the general property taxes from property owners in the DDA. After taxes are collected, the Treasurer will deduct that portion of the total tax revenues that is derived from captured assessed value of the DDA and distribute them to the DDA to use for purposes outlined in the development plan. Table 6 outlines the 2019 millage rates for all Local Taxing Jurisdictions in the DDA taken from the Manistee County Millage Report which are then used to create the revenue forecast enumerated in Table 5 below. DRAFT ~ 23 ~ 11.194.2019 Work Session Packet Page 24 Table 5 Anticipated Captured Revenue Fiscal Captured City of Manistee West Shore Captured Year Valuation Manistee County Comm College Revenue July-June DDA - 1985 86 1 2019 - 20 $ 8,140,308 $ 153,943 $ 62,925 $ 25,159 $ 242,027 2 2020 - 21 $ 8,172,862 $ 154,559 $ 63,176 $ 25,260 $ 242,995 3 2021 - 22 $ 8,205,497 $ 155,176 $ 63,428 $ 25,361 $ 243,965 4 2022 23 $ 8,238,214 $ 155,795 $ 63,681 $ 25,462 $ 244,938 5 2023 24 $ 8,271,012 $ 156,415 $ 63,935 $ 25,563 $ 245,913 6 2024 - 25 $ 8,303,893 $ 157,037 $ 64,189 $ 25,665 $ 246,891 7 2025 - 26 $ 8,336,855 $ 157,660 $ 64,444 $ 25,767 $ 247,871 8 2026 - 27 $ 8,369,900 $ 158,285 $ 64,699 $ 25,869 $ 248,853 9 2027 - 28 $ 8,403,028 $ 158,911 $ 64,955 $ 25,971 $ 249,838 10 2028 - 29 $ 8,436,239 $ 159,539 $ 65,212 $ 26,074 $ 250,825 11 2029 - 30 $ 8,469,532 $ 160,169 $ 65,469 $ 26,177 $ 251,815 12 2030 - 31 $ 8,502,909 $ 160,800 $ 65,727 $ 26,280 $ 252,808 13 2031 - 32 $ 8,536,369 $ 161,433 $ 65,986 $ 26,383 $ 253,802 14 2032 - 33 $ 8,569,913 $ 162,067 $ 66,245 $ 26,487 $ 254,800 15 2033 - 34 $ 8,603,541 $ 162,703 $ 66,505 $ 26,591 $ 255,800 16 2034 - 35 $ 8,637,253 $ 163,341 $ 66,766 $ 26,695 $ 256,802 17 2035 - 36 $ 8,671,049 $ 163,980 $ 67,027 $ 26,800 $ 257,807 18 2036 - 37 $ 8,704,929 $ 164,621 $ 67,289 $ 26,904 $ 258,814 19 2037 - 38 $ 8,738,895 $ 165,263 $ 67,552 $ 27,009 $ 259,824 20 2038 - 39 $ 8,772,945 $ 165,907 $ 67,815 $ 27,115 $ 260,836 21 2039 - 40 $ 8,807,080 $ 166,552 $ 68,079 $ 27,200 $ 261,851 22 2040 - 41 $ 8,841,301 $ 167,200 $ 68,343 $ 27,326 $ 262,869 23 2041 - 42 $ 8,875,607 $ 167,848 $ 68,608 $ 27,432 $ 263,889 24 2042 - 43 $ 8,909,999 $ 168,499 $ 68,874 $ 27,538 $ 264,911 25 2043 - 44 $ 8,944,477 $ 169,151 $ 69,141 $ 27,645 $ 265,936 $ 4,036,853 $ 1,650,073 $ 659,732 $ 6,346,678 64% 26% 10% 100% 6. Maximum Indebtedness It is anticipated that the maximum amount of indebtedness to be incurred, if any, based on 2019 costs will not exceed $5,000,000 for projects identified in the Development Plan. A description of the various projects and the actual amounts expected to be financed are as set forth Revenues captured will be used to leverage other funding sources and accomplish projects in the Development Area. 7. Use of Captured Revenues DRAFT ~ 24 ~ 11.194.2019 Work Session Packet Page 25 Revenues captured through this Tax Increment Plan will be used to finance those improvements and projects outlined in Table 1 and Table 2 of the Development Plan in accordance with procedures specified in this Plan. Further, captured revenues can be used for the following: • Finance current financial obligations of DDA; • Capital Improvement reimbursement to the City for public services expenses over approved capital improvements costs resulting from DDA-related capital project improvements; • Capital Improvements of streetscape, landscaping, public parking lots, parks, Riverwalk and pedestrian plazas; • Pay for costs incurred by the City/DDA in implementing both the Development Plan and the Tax Increment Financing Plan; • Funding for DDA administrative staff and associated office expenses; • Marketing, promotions and events costs; • Special purpose grant and loan programs; and • Pay for costs associated with the administration and operation of the Development and Tax Increment Plan and its associated projects and programs. In addition, the Development Plan encourages the use of Tax Increment Financing Plan revenues to support public improvements associated with private redevelopment and new development projects. Table 1 enumerates the forecasted “uses” of the tax increment revenue and the amount available for capital projects. 8. Duration of the Program The Development Plan and Tax Increment Financing Plan shall extend through December 31, 2044, or the completion of the projects described in the Development Plan, whichever is earlier. Table 6 Anticipated Millage to Be Captured Name of Unit of Government Anticipated Millage of Use Anticipated Mileage in Unit of Government City of Manistee 18.9112 Operating 17.7612 Refuse 1.1500 Manistee County 7.7300 Operating 5.5000 Medical Care Voted 0.5000 911 Voted 1.0000 Dial-A-Ride 0.3300 Council of Aging 0.3000 Conservation District 0.1000 West Shore Community College 3.0907 Operating 3.0907 Total 29.7319 9. Plan Impact on Local Taxing Jurisdictions The Authority recognizes that future development in the City's business district will not be likely in the absence of tax increment financing. The Authority also recognizes that enhancement of the value of nearby property will indirectly benefit all local governmental units included in this plan. It is expected DRAFT ~ 25 ~ 11.194.2019 Work Session Packet Page 26 that the effected local taxing jurisdictions will not experience a gain in property tax revenues from the Development Area during the duration of the plan and should realize increased property tax revenues thereafter as a result of activities financed by the plan. Further, tax increment revenues captured from this plan will not be used to offset normal City operations. Table 7 Captured Tax Increment Revenue by Municipality Name of Municipality Captured Amounts Captured Percentages City of Manistee $4,036,852.91 64% County of Manistee $1,650,073.66 26% West Shore Community College $659,751.96 10% Totals $6,346,678.53 100% 10. Release of Captured Revenues When the Development and Financing Plans have been accomplished, the captured revenue is released, and the local taxing jurisdictions receive all the taxes levied on it from that point on. 11. Assumptions of Tax Increment Financing Plan. The following assumptions were considered in the formulation of the Tax Increment Financing Plan for the Manistee Downtown Development Authority: A. Property valuations are based on an annual growth rate of one quarter of one percent (1/4 of 1%). B. The Downtown Development Authority will not spend any funds outside of those annually approved through the budget process and shall not commit to any loans, leases, or purchases without enough evidence of adequate revenue source to support the proposal. C. Costs provided for the various DDA projects and programs enumerated in Table 2 are estimated costs in 2019 dollars. Final costs are determined after final design and the acceptance of bids at the time of construction. The effects of inflation may also have an undetermined amount of influence on these cost figures. 12. Operating Agreement between Downtown Development Authority and Local Unit of Government Regarding Use of Tax Increment Revenues. The DDA may enter into an agreement or agreements with the City of Manistee Brownfield Redevelopment Authority to exclude from DDA TIF capture revenues generated by Brownfield redevelopment projects within the DDA Development Area. 13. Relationship of the Tax Increment Financing Plan with Other Funding Programs. As discussed in the Development Plan, the revitalization of the downtown business district will include tax increment financing and other forms of intergovernmental financing such as grants, special assessments, and loans. It is strongly recommended that tax increment financing revenues be used to leverage public funds and private financing in order to implement the planned program. 14. Relationship to Community Master Plan DRAFT ~ 26 ~ 11.194.2019 Work Session Packet Page 27 The Development Plan indicates the need to revitalize the business areas of the community, which is an integral component of the community’s redevelopment program and master plan. If it is determined that any portions of the Development Plan conflict with the provisions of the Community Master Plan, then the Development Plan shall be adopted as a component of the Master Plan pursuant to Section 39 of Act 33 of 2008; the Michigan Planning Enabling Act. 15. Submission of an Annual Report to Governing Body and State Tax Commission. Annually the Authority shall submit to the City of Manistee and the State Tax Commission a report on the status of the tax increment financing account. The report shall include those items enumerated in Part 9 of Public Act 57 of 2018. Further, the report shall be published in a newspaper of general circulation. DRAFT ~ 27 ~ 11.194.2019 Work Session Packet Page 28  ORDINANCE 19-24 AN ORDINANCE TO ADD CHAPTER 1064 – CHARGES FOR FIRE RUNS AND EMERGENCY SERVICES, TO THE CITY MANISTEE CODIFIED ORDINANCES AUTHORIZING THE RECOVERY OF CERTAIN COSTS FOR FIRE RUNS AND EMERGENCY SERVICES AS AUTHORIZED BY MICHIGAN COMPILED LAW 41.806a, TO PROVIDE FOR COLLECTION OF CHARGES, TO PROVIDE FOR EXEMPTIONS, TO REPEAL ALL ORDINANCES IN CONFLICT HEREWITH AND TO PROVIDE AN EFFECTIVE DATE THE CITY OF MANISTEE ORDAINS: Section 1. Chapter 1064 is added to read as follows: Chapter 1064 Charges for Fire Runs and Emergency Services 1064.01 Statement of Purpose 1064.07 Non-Exclusive Charges 1064.02 Definitions 1064.08 Multiple Responsible Persons 1064.03 Cost Recovery Charges 1064.09 Non-Applicability of No Fault Act 1064.04 Time for Payment of Cost 1064.10 Non-Applicability of Natural Recovery Charges Resources and Environmental Protection Act 1064.05 Collection of Charges 1064.11 No Limitation of Liability 1064.06 Exemptions 1064.12 Severability CROSS REFERENCES Michigan Police and Fire Protection Act, MCL 41.806a Michigan No Fault Act, MCL 500.3101 et seq. Natural Resources and Environmental Protection Act, MCL 324.101 et seq. 1064.01 STATEMENT OF PURPOSE This Chapter is adopted to enable the City of Manistee (the “City") to bill for and collect "cost recovery charges," as defined herein, from those receiving direct benefits from fire department services and other emergency services provided by the City. It is expressly the purpose of this Chapter to provide for and promote the safety and welfare of the general public. 02644852 1 Work Session Packet Page 29 1064.02 DEFINITIONS A. “Bomb threat” means the verbal, electronic or written threat of a bomb or other explosive device which, if discharged as threatened, would violate a federal, state, or local law. B. “City” means the City of Manistee and all of its departments, specifically including its police and fire departments. C. “Cost recovery charges” include the non-exhaustive list of fire protection services and other emergency services enumerated in Section 1064.03 of this Chapter. D. “Demolition of a structure” means the tearing down of a structure damaged by fire that must, as determined by the City Fire Chief of Public Safety Director, be promptly demolished to protect public safety. E. “Receiving a direct benefit” means causing, requesting, or being involved in an accident or incident within the City limits that causes a response by the City (i.e. a fire run) to provide fire or other emergency services. F. “Downed power line or other non-HAZMAT public utility hazard response” means the disabling of any transmission, distribution, or service line, cable, conduit, pipeline, wire or the like used to provide, collect, or transport electricity, natural gas, communication or electronic signals (including, but not limited to, telephone, computer, cable television, and stereo signals or electronic impulses), water or sanitary or storm sewage if the owner or party responsible for the maintenance of such utility line does not respond within one hour to a request to repair or correct such failure. G. “Excessive requests” for emergency assistance means any request for emergency assistance, except for medical assistance requests, made to a particular location if emergency assistance has been requested to such location more than three times in the preceding thirty days. H. “False alarm” means any automated or manual device that requests or summons emergency assistance whether such device is activated intentionally or otherwise, in the absence of an actual need for emergency assistance. The determination that there was no actual need for emergency assistance shall be made by the City Fire Chief or Public Safety Director. A false alarm shall not be deemed to have occurred if: (i) it was caused by an act of God, i.e. a lightning storm; or (ii) it originates from a motor vehicle or building alarm system and it has not occurred more frequently than three times within thirty days or four times within a calendar year. I. “Motor vehicle” means any self-propelled or towed vehicle designed or used on the public streets, roads, and highways to transport passengers or property which is required to be registered for use upon such public streets, roads, and highways. For the purposes of this 2 02644852 1 Work Session Packet Page 30  Chapter, all trailers and appurtenances attached to any motor vehicle are deemed to be a motor vehicle. J. “Responsible person” means an individual, firm, corporation, association, partnership, entity, consortium, or joint venture responsible for cost recovery charges and receiving a direct benefit from the fire protection services, city public works and/or other emergency services provided by the City, and the heirs, estates, successors, and assigns of such responsible person(s), subject to any limitations expressly stated in Section 1064.06 (Exemptions) and 1064.08 (Multiple Responsible Persons) of this Chapter. 1064.03 COST RECOVERY CHARGES Subject to Section 1064.06 of this Chapter (Exemptions), the following is a non-exhaustive list of fire protection services and other emergency services that, when provided by the City within the City limits, are billable and collectible as "cost recovery charges" in accordance with the City's resolution adopting a fee schedule for the cost recovery charges described in this Chapter. A. Responding to a multi or single motor vehicle and/or pedestrian accident, or other incident involving motor(s) and/or pedestrian(s). B. Responding to a grass, rubbish, motor vehicle, aircraft, train, tree or forest, house, multiple- family building, hotel, motel, or other commercial establishment fire. C. Responding to a downed power line or other non-HAZMAT public utility hazard response. D. Responding to a false alarm. E. Responding to excessive requests for emergency assistance. F. Responding to a bomb threat. G. Demolition of a structure. H. Other emergency rescue service(s). I. Other services not specifically listed that are determined by the City Fire Chief or Public Safety Director to be fire protection or other emergency services. 1064.04 TIME FOR PAYMENT OF COST RECOVERY CHARGES The cost recovery charges under this Chapter are due and payable by the responsible person(s) within 30 days from the date on the City's invoice mailed to the responsible person(s) at his/her/its last known address. 3 02644852 1 Work Session Packet Page 31 1064.05 COLLECTION OF CHARGES If payment is not made within 30 days from the date on the City's invoice mailed to the responsible person(s) at his/her/its last known address, such cost recovery charges are collectible through proceedings in the 85th District Court or in any court of competent jurisdiction as a matured debt and the City shall have any and all other remedies provided by and subject to law for the collection of such charges. After the time limit for payment provided in Section 1064.04 of this Chapter (Time for Payment of Cost Recovery Charges), unpaid cost recovery charges constitute a lien upon the real property of the responsible person(s) in the City from which, upon which, or related to which, the cost recovery charges were incurred. Such lien shall be the same character and effect as a lien created by City Charter for city real property taxes, and shall include accrued interest and penalties. The City Treasurer shall, prior to March 1 of each year, certify to the City Assessor the fact that such cost recovery charges are delinquent and unpaid. The City Assessor shall then enter the delinquent amount on the next general ad valorem tax roll as a charge against the affected property, and the lien thereon shall be enforced in the same manner as provided and allowed by law for delinquent and unpaid real property taxes. 1064.06 EXEMPTIONS The following properties and services are exempt from cost recovery charges under this Chapter: 1. Responding to a fire involving City buildings, grounds, and/or property. 2. Responding to a fire or providing other emergency services that are provided and performed outside of the City. Notwithstanding such exemption for services provided outside of the City, the City and other municipalities may adopt (an) ordinance(s) to impose fees for fire and emergency service runs within their respective territories under MCL 41.801 et seq., as amended. 3. Responding to a fire or providing other emergency services within the City limits that are provided to or performed for a resident of the City. This exemption is made due to the fact that City residents provide pro rata support for fire and other emergency services through taxes paid to the City. Provided, however, that this exemption does not apply if the City responds to a fire or provides other emergency services resulting from recurrent false alarms or excessive requests for other emergency services. 1064.07 NON-EXCLUSIVE CHARGES Cost recovery charges are not the only charges that may be made by the City for the costs and expenses of providing fire protection and other emergency services within the City limits. Additional charges may be collected by the City through general taxation after an approving vote of the electorate or by a special assessment established under the applicable Michigan statute(s). General fund appropriates may also be made to cover 4 02644852 1 Work Session Packet Page 32 such additional costs and expenses of providing fire protection and other emergency services. 1064.08 MULTIPLE RESPONSIBLE PERSONS When a particular fire protection or other emergency service rendered by the City directly benefits more than one person, each person so benefited is liable for the payment of the full charge for such service. Provided, however, that if a court of competent jurisdiction determines that one or more persons who received fire protection or other emergency service rendered by the City was at fault for the incident resulting in such service, the other person(s) involved in the incident shall not be considered "responsible persons" for the purposes of this Chapter. The interpretation and application of this section is delegated to the City Fire Chief or Public Safety Director, subject only to written appeal within the time limits for payment in Section 1064.04 of this Chapter (Time for Payment of Cost Recovery Charges) to the City Council, which written appeal tolls the time limit for payment, and shall be administered so that cost recovery charges shall only be collected from the recipients of the service. 1064.09 NON-APPLICABILITY OF NO FAULT ACT This Chapter provides authority to the City to collect "cost recovery charges" for fire and emergency services provided by the City, and within the City, to a responsible person(s). No claim under this Chapter is for, or relates to, property damage(s). Michigan's No Fault Act, as amended, MCL 500.3101 et seq., does not apply to, conflict with, or preempt this Chapter 1064.10 NON-APPLICABILITY OF NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION ACT This Chapter provides authority to the City to collect "cost recovery charges" for fire and emergency services provided by the City, and within the City, to a responsible person(s). No claim under this Chapter is for, or relates to, the cleanup or remediation of hazardous substances, as defined in Part 201 of the Natural Resources and Environmental Protection Act, as amended, MCL 324.20101 et seq. Michigan's Natural Resources and Environmental Protection Act, as amended, MCL 324.20101 et seq., does not apply to, conflict with, or preempt this Chapter. 1064.11 NO LIMITATION OF LIABILITY The collection of cost recovery charges pursuant to this Chapter does not limit the liability of a responsible person under applicable local, state, or federal law. 5 02644852 1 Work Session Packet Page 33 1064.12 SEVERABILITY If any provision or part of this Chapter is declared invalid or unenforceable by a court of competent jurisdiction, the validity or enforceability of the balance of the ordinance is not affected and remains in full force and effect. Section 2. All ordinances and/or parts of ordinances inconsistent with this ordinance are hereby repealed. Section 3. Effective Date; Publication. This Ordinance shall be effective ten (10) days after its enactment as provided in Section 4-3 of the City of Manistee Charter. The City Clerk shall cause a copy of this Ordinance to be published in a newspaper circulated in the City of Manistee, stating the date of the enactment and effective date of the Ordinance, a brief notice as to the subject matter of the Ordinance and such other facts as the City Clerk shall deem pertinent. A copy of the Ordinance shall be made available for public use and inspection at the office of the Manistee City Clerk. MADE, PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF MANISTEE, MANISTEE COUNTY, MICHIGAN, THIS _____ DAY OF __________, 2019. ENACTMENT DATE: ____________________________ CERTIFICATION STATE OF MICHIGAN ) ) ss. COUNTY OF MANISTEE ) I, the undersigned, the duly qualified and acting Clerk of City of Manistee, do hereby certify that the foregoing is a true and complete copy of the Ordinance adopted by the Manistee City Council at a regular meeting held on the ___ day of ___________, 2019, the original of which is on file in my office. Public notice of said meeting was given pursuant to and in compliance with the Open Meetings Act, being Act No. 267, Public Acts of Michigan, 1976, as amended, including in the case of a special or rescheduled meeting notice by publication or posting at least eighteen (18) hours prior to the time set for the meeting. IN WITNESS WHEREOF, I have hereunto affixed my official signature this ____ day of __________, 2019. ____________________________________ Heather Pefley, City Clerk 6 02644852 1 Work Session Packet Page 34 Work Session Packet Page 35 Work Session Packet Page 36