Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
City approves DDA tax-capture sharing deal to reimburse Station 65 Brownfield developer
Summary
To allow the Brownfield Authority to reimburse the Station 65 developer, the commission approved a sharing agreement that will return a portion of the DDA's captured assessed value for 65 Market Street; staff said the total reimbursement would be about $180,000, split as approximately $17,000–$20,000 annually for five to six years.
The Mount Clemens City Commission approved a tax-capture sharing agreement with the Downtown Development Authority (DDA) on March 20 to allow captured assessed value from 65 Market Street to be shared back with the city so the Brownfield Authority can properly reimburse Station 65 (Partners in Architecture) for eligible Brownfield expenses.
Staff explained that when the Brownfield plan was approved in 2009, tax-increment projections assumed the DDA plan would expire in 2021, which would have left taxes available for Brownfield capture. Because the DDA plan was extended through 2041, capture went to the DDA instead. The sharing agreement returns a portion of the DDA's captured assessed value so the Brownfield Authority can fulfill its reimbursement obligations.
Speakers said the total Brownfield reimbursement would be approximately $180,000, with the city/DDA share equating to roughly $17,000–$20,000 annually over five to six years, a change explained as revenue the DDA had not previously received. Council members said the agreement was common practice for Brownfield plans nested inside a DDA district and approved the measure unanimously.
