Council approves 20-year LDFA extension, Oakland County agrees to higher TIF capture
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Summary
Rochester Hills approved a 20-year restated LDFA development and tax-increment financing plan that city staff said will generate an estimated $1.416 billion over the extension; Oakland County consented to increase its participation capture to 75% under the agreement.
Rochester Hills City Council unanimously approved a restated Local Development Finance Authority (LDFA) development and tax-increment financing (TIF) plan Monday that extends the district for 20 years and maintains existing boundaries, officials said.
City planning and economic-development staff told council the extension does not change zoning, boundaries or take properties; instead it updates the project and spending categories and extends the capture period. "This new LDFA plan will be for an additional 20 years, estimated at $1,416,000,000 dollars coming in," staff reported during the presentation.
Staff also announced a negotiated increase in Oakland County’s participation under a county policy clause: if the city contributes at least three times what the county contributes, the county may contributions up to 75% capture; Oakland County agreed to the 75% capture level for the Rochester Hills LDFA. Staff said the arrangement added approximately $600,000 in additional capture over the life of the LDFA compared with the prior projection.
Councilmember Moreland moved to approve the restated plan and tax-sharing agreement, Councilwoman Neubauer seconded, and the council voted unanimously to authorize the mayor to execute the tax-sharing agreement and adopt findings in staff packet.
Staff said the LDFA remains debt-free and will forward the approved restated plan to the state after local approvals.