PLAN AMENDMENTS
DEVELOPMENT AND TAX INCREMENT FINANCING PLAN OF THE DOWNTOWN DEVELOPMENT AUTHORITY OF THE CITY OF WYANDOTTE, MICHIGAN

DOWNTOWN CITIZENS ADVISORY COUNCIL (DCAC) Recommended Approval on July 1, 2003
 

DOWNTOWN DEVELOPMENT AUTHORITY
Adopted – May 12, 2003

 CITY COUNCIL
Adopted – July 21, 2003
 

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Honorable Leonard T. Sabuda, Mayor

City Council
Todd Browning - James DeSana - Johnny Kolakowski
Mark A. Paryaski - Patrick J. Sutka - Tom Talluto 

Other Elected Officials
William R. Griggs, City Clerk
Andrew A. Swiecki, City Treasurer
Colleen Keehn, City Assessor 

Downtown Development Authority
Greg Arnoldy, Co-Chair - Tina Snider, Co-Chair
Sam Darany - Bob Groat - Greg Hornby
Peter Lubaway - Jerry McDonald - Jeff Olstein
Gilbert Rose - John Rusu

 City Administration
Mark A. Kowalewski, City Engineer
Todd A. Drysdale, Director of Finance & Administration
Joseph M. Voszatka, Community Development Director 

Bond Counsel
Miller, Canfield, Paddock and Stone, P.L.C.

 Downtown Citizens Advisory Council (DCAC)
Ray Bartolo - Dale Brennan - John Finazzo
Peter Lubaway - George McEachran - Doris Michael
Gilbert Rose - Thomas Stanko - Norm Walker

 

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DOWNTOWN DEVELOPMENT AUTHORITY 

2003 PLAN AMENDMENTS
 

Introduction

Pursuant to Act 197, Public Acts of Michigan, 1975, as amended (the “Act”), the City of Wyandotte established the Wyandotte Downtown Development Authority (the “DDA”).  Pursuant to Act 197, the City approved the Development Plan and Tax Increment Financing Plan (the “Plan”) for the Downtown Development Area by an ordinance adopted on May 16, 1988.

  
Purpose of the Amended Plan

The substance of the amendments are: 1) to increase the estimated cost for facilities, improvements, programs and activities by $104.4 million in order to provide financing capability for facilities, improvements, programs and activities that the City may undertake during the next 30 years; 2) to thereby increase the Downtown Development Area Total from $26.3 million to $130.7 million; and 3) to extend the duration of the Development and Tax Increment Financing Plan from 2008 to 2034.

Amendments

1.  The Development Plan (Section 17 (2)(c) of the Act) is amended as follows:

A description of existing improvements in the development area to be demolished, repaired, or altered, a description of any repairs and alterations, and an estimate of the time required for completion is amended to include that which is listed in Exhibit A.

2.  The Development Plan (Section 17 (2)(d) of the Act) is amended as follows:

The location, extent, character and estimated cost of the improvements including rehabilitation contemplated for the development area and an estimate of the time required for completion is amended to include that which is listed in Exhibit A.

3.  The Development Plan (Section 17 (2)(e) of the Act) is amended as follows:

Statement of the construction or stages of construction planned, and the estimated time of completion of each stage is amended to include that which is listed in Exhibit A.

4.      Pursuant to Section 17 (2)(i) of the Act, the Development Plan is amended to reflect the following:

Estimate of the cost of development, a statement of proposed method of financing the development, and the ability of the Authority to arrange the financing:

The total cost for undertaking the projects identified in Exhibit A is approximately $104,395,000.

In addition to the methods of financing listed in the previously approved Plan, the activities of the Authority and the development of public improvements shall be financed from one or more of the following sources: (1) contributions to the Authority for the performance of its functions; (2) revenues from any property, building, or facility owned, leased, licensed, or operated by the authority or under its control, subject to the limitations imposed upon the authority by trusts or other agreements; (3) tax increments received pursuant to a tax increment financing plan; (4) proceeds of tax increment bonds; (5) proceeds of revenue bonds; (6) interest earnings; (7) money obtained form any other sources approved by the governing body of the municipality; (8) grants from federal, state or private sources; and (9) bequests.

The ability of the Authority to arrange the financing is considered to be established on the basis of tax increment revenues currently available to the Authority.

5.      Pursuant to Section 14 (1) of the Act, the Tax Increment Financing Plan shall be amended as follows:

A.  The maximum amount of bonded indebtedness to be incurred by, or on behalf of, the DDA is $104,395,000.

B.  This Plan shall not expire until September 30, 2034.

C.  An estimate of the captured assessed value for each year of the Plan is shown in Table 2 as attached hereto.  Data in Table 1 attached hereto reveal that the entire Downtown Development Area had a calculated initial value of $21,823,713.  The estimated captured taxable value through the year 2034 is presented in Table 2.  Growth is based upon a growth rate of 2.5 percent.  The DDA shall capture all the assessed value (be it greater than or less than the estimates shown in Table 2) in each year of the Plan and utilize captured value in accordance with this Plan as amended.

D.     The estimated tax increment revenues for each year of the Plan is shown in Table 4 attached hereto.  Data in Table 3 attached hereto reveal the applicable millage rates available for application by the DDA for fiscal year end 2002.  Data in Table 2 show the estimated captured value for homestead and non-homestead properties in Downtown Development Area for the lifetime of this Plan.

E.   An estimate of the impact of tax increment financing on the revenues of all taxing jurisdictions in which the eligible property is located is shown in Table 4 attached hereto.

EXHIBIT A