Northeast Marshall Neighborhood Improvement Authority

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Northeast Marshall Neighborhood Improvement Authority PA 61 of 2007 A Neighborhood Improvement Authority (NIA) allows the use of tax increment financing to fund public improvements in a designated residential area.

Northeast Marshall Neighborhood Improvement Authority A NIA is designed to help assist economic development and redevelopment in designated residential neighborhoods.

Northeast Marshall Neighborhood Improvement Authority Neighborhood Improvements can be: Streets Sidewalks Plaza or mall Park Utility lines (Electric, Water, and Wastewater) Other public facilities

Northeast Marshall Neighborhood Improvement Authority The NIA prepares and submits a development plan and a tax increment financing plan to Marshall City Council (December 3rd). Plans are subject to public input.

Northeast Marshall Neighborhood Improvement Authority Taxing jurisdictions may opt-out during the plan adoption. KCC, Calhoun County, Ambulance Auth., and Marshall Dist. Lib.

Northeast Marshall Neighborhood Improvement Authority Frequently asked questions??? HOW MUCH WILL MY PROPERTY TAXES INCREASE IF I LIVE WITHIN THE DEVELOPMENT DISTRICT?   The amount of property taxes you pay will NOT be affected. There is no additional millage associated with an NIA. The amount of property taxes you will pay next year or five years from now will be the same amount, as adjusted for inflation, regardless of whether the NIA is approved or not.

Northeast Marshall Neighborhood Improvement Authority

Northeast Marshall Neighborhood Improvement Authority NIA Board may consist of 5-9 members plus the City Manager Initial Recommendation: City Manager Representative of Oaklawn Representative of the 8.3 Acres – Golden Rule Neighbor Ward 1 Councilperson

Northeast Marshall Neighborhood Improvement Authority Tax Increment Financing Example Sample 2018 Summer Tax Bill 2% 2018 2019 TIF Taxes Capture City General 1,234.20 1,258.88 24.68 City Leaf/Brush 35.62 36.33 0.71 City Rec 66.92 68.26 1.34 Dial-A-Ride Library Oper 120.12 122.52 SET 431.46 440.09 Calhoun ISD 225.08 229.58 KCC 129.92 132.52 2.60 School Oper Exempt School Debt 253.48 258.55 School Sinking Fund 35.95 36.67 County General Oper 386.73 394.46 7.73 2,986.40 3,046.13 38.41 Admin Fee not included in TIF calculations

Northeast Marshall Neighborhood Improvement Authority Project A 10 Single Family Homes $175,000-$225,000 Initial Taxable Value = $875,000

Northeast Marshall Neighborhood Improvement Authority Project A – Development of 10 Single Family Homes Infrastructure Improvements Include: New City Street – Mann Rd. to Michigan Ave. Sanitary Sewer System Storm Sewer System Watermain Loop Sidewalks along new city street and along Mann Rd to East Dr. Est. Infrastructure Cost: $600,000 Electric and FiberNet not included New 60-66’ City ROW

Northeast Marshall Neighborhood Improvement Authority Project B 7 Single Family 10 Duplexs 2 Quads Initial Taxable Value = $2,700,000

Northeast Marshall Neighborhood Improvement Authority Project B – Development of 35 Units Infrastructure Improvements Include: Sanitary Sewer System Watermain Loop Sidewalks along East Dr. and Mann Rd. Est. Infrastructure Cost: $375,000 Electric and FiberNet not included

Northeast Marshall Neighborhood Improvement Authority Potential Additional Projects within the Improvement Area (Projects listed in no particular order, in 2018 dollars) Treatment Location Estimate Full Depth Milling: Wooded Ln., Hill Rd., Hill Rd. Ct. $435,000 Full Depth Milling: O’Keefe Rd., Julias Pl., Mann Rd. Ct. $330,200 Full Depth Milling: Comstock Dr., Colgrove Dr. $144,000 Full Depth Milling: Mann Rd. – East to Allen, Allen – Mann to O’Keefe $150,000 2” Mill and Resurface: Woodruff Dr. $154,450 2” Mill and Resurface: East Dr. – Michigan Ave. to Sibley Ln. $211,250 2” Mill and Resurface: Forest Ct., Forest St. – East to End, Allen – Forest to O’Keefe $120,000 New Street Extension: Forest St. Extended to O’Keefe $165,000 TOTAL: $1,709,900

Northeast Marshall Neighborhood Improvement Authority ANTICIPATED CAPTURE OF TAXABLE VALUE EAST MICHIGAN NEIGHBORHOOD IMPROVEMENT AUTHORITY REAL PROPERTY YEAR FISCAL YEAR ESTIMATED TV PROJECT A PROJECT B INITIAL TV ESTIMATED 2% INFLATION 2018-2019 CAPTURED TV 1 2019/2020 $16,155,646 $0 $15,838,869 $316,777 2 2020/2021 $16,478,759 $875,000 $1,514,890 3 2021/2022 $16,808,334 $892,500 $2,700,000 $4,561,965 4 2022/2023 $17,144,501 $910,350 $2,754,000 $4,969,982 5 2023/2024 $17,487,391 $928,557 $2,809,080 $5,386,159 6 2024/2025 $17,837,139 $947,128 $2,865,262 $5,810,660 7 2025/2026 $18,193,882 $966,071 $2,922,567 $6,243,650 8 2026/2027 $18,557,759 $985,392 $2,981,018 $6,685,301 9 2027/2028 $18,928,915 $1,005,100 $3,040,639 $7,135,784 10 2028/2029 $19,307,493 $1,025,202 $3,101,451 $7,595,277 11 2029/2030 $19,693,643 $1,045,706 $3,163,480 $8,063,960 12 2030/2031 $20,087,516 $1,066,620 $3,226,750 $8,542,017 13 2031/2032 $20,489,266 $1,087,953 $3,291,285 $9,029,634 14 2032/2033 $20,899,051 $1,109,712 $3,357,111 $9,527,004 15 2033/2034 $21,317,032 $1,131,906 $3,424,253 $10,034,322 16   2034/2035 $21,743,373 $1,154,544 $3,492,738 $10,551,786 17 2035/2036 $22,178,240 $1,177,635 $3,562,593 $11,079,599 18 2036/2037 $22,621,805 $1,201,187 $3,633,845 $11,617,968 19 2037/2038 $23,074,241 $1,225,211 $3,706,521 $12,167,105 20 2038/2039 $23,535,726 $1,249,715 $3,780,652 $12,727,224

Northeast Marshall Neighborhood Improvement Authority EFFECT OF TAX CAPTURE IN DOLLARS EAST MICHIGAN NEIGHBORHOOD IMPROVEMENT AUTHORITY REAL PROPERTY CAPTURED TOTAL YEAR FISCAL YEAR ESTIMATED CITY TAX NON-CITY TAX CITY TAXES NON-CITY TAXES CAPTURED TV RATE 1 2019/2020 $316,777 19.5195 10.7849 $6,183 $3,416 $9,600 2 2020/2021 $1,514,890 $29,570 $16,338 $45,908 3 2021/2022 $4,561,965 $89,047 $49,200 $138,248 4 2022/2023 $4,969,982 $97,012 $53,601 $150,612 5 2023/2024 $5,386,159 $105,135 $58,089 $163,224 6 2024/2025 $5,810,660 $113,421 $62,667 $176,089 7 2025/2026 $6,243,650 $121,873 $67,337 $189,210 8 2026/2027 $6,685,301 $130,494 $72,100 $202,594 9 2027/2028 $7,135,784 $139,287 $76,959 $216,246 10 2028/2029 $7,595,277 $148,256 $81,914 $230,170 11 2029/2030 $8,063,960 $157,404 $86,969 $244,373 12 2030/2031 $8,542,017 $166,736 $92,125 $258,861 13 2031/2032 $9,029,634 $176,254 $97,384 $273,638 14 2032/2033 $9,527,004 $185,962 $102,748 $288,710 15 2033/2034 $10,034,322 $195,865 $108,219 $304,084 16   2034/2035 $10,551,786 $205,966 $113,800 $319,766 17 2035/2036 $11,079,599 $216,268 $119,492 $335,761 18 2036/2037 $11,617,968 $226,777 $125,299 $352,076 19 2037/2038 $12,167,105 $237,496 $131,221 $368,717 20 2038/2039 $12,727,224 $248,429 $137,262 $385,691 $2,997,435 $1,656,141 $4,653,576

Northeast Marshall Neighborhood Improvement Authority Total City Taxes Captured $2,997,435 Total Non-City Taxes Captured $1,656,141 Total $4,653,576

Northeast Marshall Neighborhood Improvement Authority Frequently asked questions??? HOW MUCH WILL MY PROPERTY TAXES INCREASE IF I LIVE WITHIN THE DEVELOPMENT DISTRICT?   The amount of property taxes you pay will NOT be affected. There is no additional millage associated with an NIA. The amount of property taxes you will pay next year or five years from now will be the same amount, as adjusted for inflation, regardless of whether the NIA is approved or not.

Northeast Marshall Neighborhood Improvement Authority HOW IS A NIA FORMED AND WHAT IS THE TIMELINE?   The first step is for City Council to adopt a resolution of intent to create the NIA and to set a public hearing. City Council on August 27, 2018 adopted the resolution of intent and set the public hearing for October 1, 2018. Not less than 60 days after the public hearing (December 3rd), City Council may adopt an ordinance establishing the NIA and formally designating the boundaries of the development district. The ordinance will then be filed with the Secretary of State and published in the Ad-Visor.

Northeast Marshall Neighborhood Improvement Authority HOW WILL I KNOW IF THE NIA IS OPERATING PROPERLY?   The NIA will be audited by the City’s auditors annually just like the Downtown Development Authority (DDA). The NIA must also submit an annual report to City Council and the State Tax Commission on the revenues collected and expenditures made.

Northeast Marshall Neighborhood Improvement Authority QUESTIONS?