Romulus holds public hearing on TIFA plan amendment; adoption scheduled for Nov. 24

Romulus held a special meeting and public hearing Sept. 22 to review a proposed amendment to the city’s Tax Increment Finance Authority (TIFA) plan prepared by CIB Planning (now part of OHM Advisors).

City officials said the draft amendment would extend the plan to a 30-year term, adjust district boundaries to include the City Hall complex and Fire Station 1, and add a portion of Pennsylvania Road west of Merriman to I-275. The amendment would also add project-specific tax-increment financing tools allowed under state law to support infrastructure, public buildings and economic development projects, including a planned Public Safety Headquarters.

Kevin Krause, director of Community Development and Safety, said the update is intended to “align the current plan to allow for the highest and best use of TIFA capture for the quality-of-life improvements for the citizens and the community.” Krause highlighted recent projects funded by TIFA capture, including renovations to the Department of Public Works building and animal shelter and upgrades at the Romulus Athletic Center. He also told council that the TIFA entity recently closed on 18 acres on Wick Road for the public safety headquarters.

Elena Moller Younger, a principal with OHM Advisors (CIB Planning), summarized technical changes in the draft and the financing tables. Younger said the plan’s fiscal assumptions include an assumed 2.4 percent interest rate for modeling and that the draft includes a project list (draft project descriptions appear on pages 18–20 of the plan) and revenue tables (table 3, page 33) that show estimated capture by taxing jurisdiction over the plan term. She said the amendment also adds project-specific TIF authority allowed by Public Act 57 to incentivize particular developments without reducing district-wide capture.

Council members asked for implementation details. Krause said staff will add a time-frame column to the project list and produce a second draft within about a week. He said design work for the new public safety headquarters is underway and estimated about 30 weeks of design before site work; if the schedule holds, construction could begin in late July of the following year and take about 18–24 months to complete.

Krause told council the TIFA purchase of the Wick Road property closed for $2,000,000 for 18 acres (about $100,000 per acre). He said the amendment’s boundary changes would allow TIFA capture to be used for improvements at the City Hall complex (including HVAC) and to reopen or rebuild Fire Station 1 to improve response coverage on the north side of the city.

Several council members praised use of TIFA funds to reduce pressure on the general fund and to support infrastructure and public safety. Council members also asked whether the school district would continue to be affected; staff said that historical development has begun to return tax revenues to the schools and that the state no longer authorizes creation of new TIF districts.

The public comment portion produced no speakers; the chair called for comments and none were offered. The public hearing was informational only at this meeting. Staff and consultants said they will publish an updated draft with the added time-frame column and return the plan to the council for possible adoption on Nov. 24.

Procedural motions at the meeting included a motion to accept the public hearing agenda (mover: Councilmember Krauss; support: Councilmember Abdo) which passed on a recorded voice vote, and a motion to adjourn (mover: Councilmember Wadsworth; support: Councilmember Roscoe) which also passed. No formal action was taken to adopt the TIFA plan amendment at this meeting.