1. Northeast Marshall Neighborhood Improvement Authority

2. Northeast Marshall Neighborhood Improvement Authority
Staff researched
Neighborhood Enterprise Zones
Corridor Improvement District
Opportunity Zones
Principal Shopping Districts
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Neighborhood Improvement Authority

3. 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.

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

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

6. 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.

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

8. 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.

9. Northeast Marshall Neighborhood Improvement Authority

10. 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

11. 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

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

13. 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

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

15. 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

16. 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

17. 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
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

18. 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
$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

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

20. 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.

21. 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, adopted the resolution of intent and set the public hearing for October 1, 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.

22. 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.

23. Northeast Marshall Neighborhood Improvement Authority
QUESTIONS?