ADOPTED - OCTOBER 12, 2010
Agenda Item No. 7
Introduced by the County Services and Finance Committees of the:
INGHAM COUNTY BOARD OF COMMISSIONERS
RESOLUTION APPROVING THE 2010 AMENDMENT #2 TO THE BROWNFIELD REDEVELOPMENT PLAN FOR INGHAM COUNTY LAND BANK AUTHORITY PARCELS IN LANSING CITY ONLY
RESOLUTION #10-323
WHEREAS, on November 13, 2001, pursuant to the Brownfield Redevelopment Financing Act, PA 381 of 1996, as amended (“the Act”), the Ingham County Board of Commissioners adopted Resolution #01-328 creating the Ingham County Brownfield Redevelopment Authority (the “ICBRA”), in order to promote the redevelopment of environmentally distressed, functionally obsolete, and/or blighted areas of the County; and
WHEREAS, the Board of Commissioners approved the Brownfield Plan for Redevelopment of Ingham County Land Bank Fast Track Authority Parcels in Lansing City Only (“the Plan”) on October 28, 2008, (Resolution #08-291) and 2010 Amendment #1 on February 23, 2010 (Resolution #10-046) in order to restore environmental and economic viability of those properties pursuant to the Act; and
WHEREAS, the ICBRA prepared and recommends for the Ingham County Board of Commissioners’ approval, a 2010 Amendment #2 to that Plan that includes revisions in the estimates of captured taxable values or tax increment revenues and eligible expenses for eligible properties within the Plan as well as anticipated financing mechanisms; and
WHEREAS, in accordance with Sections 13(10) and 14(1) of the Act, the ICBRA has provided notices to the public and all taxing jurisdictions affected by the Plan and provided reasonable opportunities to express views and recommendations about the Plan; and
WHEREAS, the Ingham County Board of Commissioners has determined the following:
a. The Amended Plan meets the requirements in Section 13 of the Act;
b. The proposed method of financing the costs of the eligible activities is feasible;
c. The costs of eligible activities proposed are reasonable and necessary to carry out the purposes of the Act;
d. The captured taxable value estimated to result from the Plan’s adoption is reasonable;
e. The Plan, in accordance with the Act, constitutes a public purpose; and
WHEREAS, as a result of its review of the Plan Amendment #2 and upon consideration of the views and recommendations of the City of Lansing, affected taxing jurisdictions and the public, the Ingham County Board of Commissioners desires to proceed with approval of the Plan Amendment #2.
THEREFORE BE IT RESOLVED, that pursuant to the authority vested in the Ingham County Board of Commissioners by the Act, and pursuant to and in accordance with the provisions of Section 14 of the Act, the Plan is hereby approved in the form attached as Exhibit “A” to this Resolution.
BE IT FURTHER RESOLVED, that should any section, clause or phrase of this Resolution be declared by the Courts to be invalid, the same shall not affect the validity of this Resolution as a whole nor any part thereof
ADOPTED - OCTOBER 12, 2010
Agenda Item No. 7
RESOLUTION #10-323
other than the part so declared to be invalid and all resolutions or parts of resolutions in conflict with any of the provisions of this Resolution are hereby repealed.
COUNTY SERVICES: Yeas: Copedge, Schor, Celentino, Grebner, McGrain, Vickers
Nays: None Absent: None Approved 10/5/10
FINANCE: Yeas: Grebner, Tennis, Schor, Holman, Dougan
Nays: None Absent: Bahar-Cook Approved 10/6/10
Exhibit A:
AMENDMENT 2 TO THE COUNTY OF INGHAM BROWNFIELD REDEVELOPMENT AUTHORITY PLAN FOR
REDEVELOPMENT OF INGHAM COUNTY LAND BANK FAST TRACK AUTHORITY PARCELS IN THE CITY OF LANSING ONLY
DATE: September, 2010
Introduction and Purpose:
The City of Lansing and Ingham County Commissioners originally approved this Plan in October 2008. The properties listed in this plan are eligible for a brownfield plan because they are under the control of a Land Bank. Each year, as properties go into tax foreclosure, they can come under the control of the Ingham County Land Bank. The Land Bank may then use this Brownfield Financing mechanism, along with other financing, to redevelop these properties and bring them into productive, tax generating uses. The eligible activities as defined by PA 381 of 1996, allows the Land Bank to pay for those eligible activities with this financing.
This Plan is amended regularly because new properties can enter the Land Bank and become eligible for inclusion in the Plan every year. The last amendment, with new properties added, was approved earlier this year. But, upon close review of the Plan we have recognized a flaw in the financial tables for the Plan. The original Plan, and the amendment was developed with estimates of tax increment capture that have not materialized in our recent economic climate. Also, the Plan did not accurately predict the improved taxable value of a number of commercial redevelopment sites in the Plan, particularly in the newly active School for the Blind area as well as around the DeLuxe Inn property in mid-city. In order to correct structural limitation of the Plan, and to assure that the Plan includes reasonable estimates of tax increment revenue captures, we have prepared this amendment to replace the financial table in the Lansing Only Plan. This is a copy of the proposed amended Plan and information regarding it.
Objectives and goals of Plan: In this Amendment #2 of the Land Bank BRA Lansing Only Plan, an improved estimate of the values of redeveloped property in the Plan will correct inaccurate estimates and will also provide a solid Plan upon which we can seek approval for state tax capture with an Act 381 work plan to the state as well as a bond to finance the remediation activities for redevelopment of Plan properties.
What are the Amendments: This amended version includes an increase in the estimated tax capture and eligible costs over the life of the Plan that is based on inclusion of more accurate estimated values of properties already listed in the Plan. The result is a Plan that includes 567 total eligible parcels, all within the City of Lansing boundaries, with environmental concerns that can be addressed by the Land Bank with this finance plan. And, using actual property values and the cost of eligible activities undertaken in 2009, the tax capture and eligible activities tables have been recalculated to provide more realistic Plan financials. The revised Plan estimated only $2,325,791 in total tax increment revenue. This revision estimates a total tax increment of $5,867,369 over the same time (2009-2025).
About the revised values of parcels:
Of the newly eligible parcels added to the Plan earlier this year, five (5) were commercial properties including the Deluxe Inn and others in that area impacted by those dilapidated commercial properties. The properties amended into the Plan earlier this year were developed with the City of Lansing staff to include parcels in priority neighborhoods and complementary to the Neighborhood Stabilization Program (NSP). Some of these will generate more revenue after redevelopment than we originally estimated.
Tax Captures (See Appendix C of the Plan):
The amended Plan’s estimated total Tax Increment (TIF) revenue 2009-2025 is $5,867,369 with the County tax capture at $429,948 and the City’s total capture at $777,528 for commercial properties and $1.04M for residential tax increments (2009-2025).
Eligible Activities: The list of activities eligible and planned for funding under this plan is in Table 1 of the Plan on page 2.
Outcomes: The Land Bank has had impressive success rehabilitating, renovating, or demolishing dilapidated and abandoned structures throughout the city. With the Brownfield finance plan, the Land Bank will be able to leverage federal and state funds to remediate and redevelop the City of Lansing. Stabilizing and revitalizing neighborhoods can mean demolishing property to create a fresh start. During the first two years of Land Bank activity there were a total of 16 demolitions. The DeLuxe Inn will be the next large demolition project under this program.
Other Amendments: The following additional amendments to the Plan are hereby made by this Amendment #2:
1. The following is hereby substituted for and in place of paragraph 2(G) on page 4 of Amendment #1:
Interest and other bond expenses incurred on debts and bonds of the Authority for the projects described in this Plan shall be reimbursed from any or all sources of tax increment revenue captured under this Plan as determined by the Authority and may be paid from proceeds of such debts and bonds.
2. The following is hereby substituted for and in place of paragraph 4 on page 4 of Amendment #1:
No advances have been made by or anticipated from the County or the Authority for the costs of eligible activities under the Plan. This Plan may be financed in whole or in part by the issuance of bonds or notes of the Authority as authorized by Act 381 or other applicable law. Such notes or bonds may be secured in whole or in part by tax increment revenues, which tax increment revenues may exclude tax increment revenues derived from "taxes levied for school operating purposes" as defined in Act 381 if so determined by the Authority.
3. The following is hereby substituted for and in place of paragraph 5 on page 4 of Amendment #1:
The Authority expects to issue bonds or notes in one or more series pursuant to Act 381 or other applicable law to pay all or part of the costs of the projects described in this Plan. The maximum amount of such note or bonded indebtedness to be incurred shall not exceed $3,500,000 in aggregate principal amount.