Grand Rapids
Michigan

GR Agenda Item

Amended and Restated Grand Rapids SmartZone Agreement with the Michigan Economic Development Corporation

Information

Department:Economic Development StaffSponsors:
Category:Agenda Action Request

Content A

Attached is a resolution which would approve an Amended and Restated Grand Rapids SmartZonesm Agreement (the “Agreement”) between the Grand Rapids SmartZone Local Development Finance Authority (the “Grand Rapids SmartZonesm LDFA”), the City of Grand Rapids (the “City”) and the Michigan Economic Development Corporation (the “MEDC”). 

 

On January 15, 2016, the Grand Rapids SmartZonesm LDFA approved the Amended 2016 Development Plan and Tax Increment Financing Plan (the “Plans”), which in conjunction with the approved application to designate the Holland Satellite SmartZonesm LDFA, allows the Grand Rapids SmartZonesm LDFA a 15-year extension of state/local school tax increment capture in the Grand Rapids SmartZonesm Certified Technology Park (the “CTP”).  The Grand Rapids City Commission approved the Plans on April 26, 2016, and the MEDC and Michigan State Treasurer ratified the Plans on November 10, 2016 and December 15, 2016, respectively.  Execution of the attached Agreement is the final step in the process to extend the Grand Rapids SmartZonesm LDFA for another 15-year period.

 

The Agreement extends school tax increment capture in the CTP at a rate of fifty percent (50%) from taxable value derived in the first fifteen years of the Grand Rapids SmartZonesm LDFA’s existence.  The Agreement limits new tax increment capture with 2016 as the base year to a rate of twenty-five percent (25%).  The Grand Rapids SmartZonesm LDFA will continue to capture one hundred percent (100%) of local taxes, with the exception of new special voted millages.

 

Staff recommends approval and recommendation of the attached Agreement to the City Commission.

 

KLW/cb

 

Attachments

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CITY OF GRAND RAPIDS SMARTZONESM

LOCAL DEVELOPMENT FINANCE AUTHORITY

 

RESOLUTION APPROVING AND RECOMMENDING TO THE CITY COMMISSION AN AMENDED AND RESTATED GRAND RAPIDS SMARTZONESM AGREEMENT

 

              Boardmember              , supported by Boardmember               , moved the adoption of the following resolution:

 

              WHEREAS:

 

1.     The Grand Rapids City Commission on October 16, 2001, established the City of Grand Rapids SmartZoneSM Local Development Finance Authority (the “SmartZoneSM LDFA”), designated the SmartZoneSM LDFA District, and appointed members to the SmartZoneSM LDFA Board in accordance with the Local Development Financing Act, Act 281 of the Public Acts of Michigan of 1986, as amended specifically by Act 248 of the Public Acts of Michigan of 2000, MCL 125.2151, et seq. (collectively, the “Act”); and

 

2.     The Grand Rapids City Commission on November 19, 2002, approved the amended Development Plan and Tax Increment Financing Plan to include the Plymouth Satellite SmartZoneSM District in the City of Grand Rapids; and

 

3.     The Grand Rapids City Commission on October 7, 2014, approved the designation of the Holland Satellite SmartZoneSM District in the City of Holland and Holland Township, Michigan, pursuant to the terms and conditions of the Agreement Designating Satellite SmartZoneSM District between the City of Grand Rapids and the Holland SmartZoneSM Local Development Finance Authority; and

 

4.     To accomplish the purposes of the Act within the SmartZoneSM District and Certified Technology Park, the SmartZoneSM LDFA has caused to be prepared the 2016 Amended Development Plan and Tax Increment Financing Plan in accordance with the requirements of the Act, which include expansion of the Authority District and Certified Technology Park, and eliminate the Plymouth Satellite SmartZoneSM District in the City of Grand Rapids; and

 

5.     The 2016 Amended Development Plan and Tax Increment Financing Plan were approved by the SmartZoneSM LDFA on January 15, 2016, the Grand Rapids City Commission on April 26, 2016, the Michigan Economic Development Corporation (the “MEDC”) on November 10, 2016, and the Michigan State Treasurer on December 15, 2016; and

 

6.     To accomplish the purposes of the Act within the SmartZoneSM District and Certified Technology Park for another 15-year period, the MEDC has caused to be prepared an Amended and Restated Grand Rapids SmartZoneSM Agreement to be executed between the SmartZoneSM LDFA, the Grand Rapids City Commission, and the MEDC; therefore

 

              RESOLVED:

 

1.     That the Amended and Restated Grand Rapids SmartZoneSM Agreement is hereby approved and recommended to the Grand Rapids City Commission for approval; and

 

2.     That all resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same are hereby rescinded.

 

 

YEAS:                            Boardmembers                                                                                                                              

 

NAYS:              Boardmember                                                                                                                              

 

ABSTAIN:              Boardmembers                                                                                                                              

 

ABSENT:              Boardmembers                                                                                                                              

 

 

RESOLUTION DECLARED ADOPTED.

 

 

Dated:  March 17, 2017                                                                                                                                           

                                                                                                  James Bachmeier, Secretary

 

 

CERTIFICATION

 

              I, the undersigned duly qualified and acting Secretary of the City of Grand Rapids SmartZoneSM Local Development Finance Authority (the "Authority"), do hereby certify that the foregoing is a true and complete copy of a resolution adopted by the Board of Directors of the Authority at a meeting held on March 17, 2017, and that public notice of said meeting was given pursuant to, and in accordance with, Act 267 of the Public Acts of Michigan of 1976, as amended.

 

 

Dated:  March 17, 2017                                                                                                                                           

                                                                                                  James Bachmeier, Secretary