City of Flushing s1

City of Flushing

Neighborhood Improvement Authority

-DRAFT 2-

Development Plan

and

Tax Increment Finance Plan

Prepared by: Brad Barrett, city manager

November 2016

-DRAFT 2-

City of Flushing

City Council

Kevin Keane, mayor

Richard Bade, mayor pro tem

Karianne Martus

John Gault

Teresa Salem

David Detman

George Gray

Neighborhood Improvement Authority Stakeholder Group

Jim Tabazewski – Coutant Street property owner

Pam Palinsky – Parks and Recreation Committee

Rick Zorn – Woodland Ponds Drive property owner

Cliff Bira – Holy Cross Lutheran Church

Brad Barrett – city manager

Kevin Keane – mayor

TABLE OF CONTENTS

I. OVERVIEW OF DEVELOPMENT AND TAX INCREMENT FINANCE PLAN 4

INTRODUCTION 4

BACKGROUND AND NEED FOR THE PLAN 5

DEVELOPMENT PLAN PROCESS 5

TAX INCREMENT FINANCE PLAN PROCESS 7

II. DEVELOPMENT PLAN 8

1. Water Tower and Building 10

2. Parks and Recreation 11

3. Infrastructure Improvements 11

4. Planning / Economic Development Analysis 11

5. Administration 11

6. Miscellaneous 11

TABLE 1: ESTIMATED COST OF PROPOSED PROJECT IMPROVEMENTS 12

II. TAX INCREMENT FINANCING PLAN 17

1. TAX INCREMENT PROCEDURE 17

2. TOTAL POTENTIAL REVENUE 18

3. BONDED INDEBTEDNESS TO BE INCURRED 18

4. DURATION OF PROGRAM 19

TABLE 2: ANTICIPATED CAPTURE OF TAXABLE VALUE NEIGHBORHOOD IMPROVEMENT AUTHORITY 20

TABLE 3: EFFECT OF TAX CAPTURE ON GOVERNMENT ENTITIES NEIGHBORHOOD IMPROVEMENT AUTHORITY 22

TABLE 4: GOVERNMENT ENTITIES WITH TAX LEVIES AS OF 2016 LEVIED IN THE NEIGHBORHOOD IMPROVEMENT AUTHORITY 28

C. EXHIBITS A-F 29

I. OVERVIEW OF DEVELOPMENT AND TAX INCREMENT FINANCE PLAN

INTRODUCTION

The City of Flushing is located in northeast region of Genesee County. The city encompasses 3.79 square miles and is bounded by Carpenter Road to the north, Seymour Road to the west, River Road to the south and Elms Road to the east. Per the 2010 US Census, there were 8,389 people living in the city.

Per the City of Flushing Master Plan, there are twelve identified neighborhoods. The proposed Development / TIF Plan is for the Sunnyside Neighborhood. The neighborhood is in the northeast section of the city, north of Coutant Street and east of Warren Avenue. This neighborhood has gradually expanded northward since the 1960’s. The neighborhood generally includes typical suburban type homes on medium sized lots with sidewalks and paved streets. Residential development did occur around the former gravel pit and is referenced as Woodland Ponds properties. This area also includes Springview Elementary School, Fostrian Nursing Home, Eastview Park and Waterworks Park.

The Neighborhood Improvement Authority is authorized under Public Act 61 of 2007, as amended. The Neighborhood Improvement Authority is under the supervision and control of a board consisting of the chief executive officer of the city (mayor) or their assignee and not less than 5 members. The board derives its powers per MCL 125.2917, as amended.

Benefits of a Neighborhood Improvement Authority include the following, however are not limited to:

1. Use tax increment financing to complete improvement projects according to local priority while leveraging other funding sources, such as private, state, federal and philanthropic

2. Create a clear plan to improve the district, implemented through private / public partnerships

3. Encourages home ownership by bringing more people into the district to live, work and play

4. Encourages property improvements and development, thus generating more property tax revenues

5. Promotes interest in mixed use development

6. Creates an enhanced neighborhood that retains residents

7. Promote open green space that can be used for recreation and preserve natural habitat

BACKGROUND AND NEED FOR THE PLAN

The Flushing City Council, having determined that it is necessary and in the best interest of the public to redevelop its residential neighborhoods and to promote economic growth, adopted a resolution on September 12, 2016, declaring its intention to create and provide for the operation of the Neighborhood Improvement Authority within the City of Flushing pursuant to and in accordance with the provisions of Public Act 61 of 2007. For purposes of complying with the Act, the City Council designated as the proposed development area generally includes parcels surrounded by Coutant Street, Elms Road and Sunnyside Drive in the City of Flushing.

In accordance with Public Act 61 of 2007, as amended, on October 10, 2016 the City Council held a public hearing to introduce an ordinance that would create the Neighborhood Improvement Authority. On November 14, 2016 the City Council adopted an ordinance establishing a Neighborhood Improvement Authority and created a Board for the authority.

The District is located in the northeast portion of Flushing and includes properties bordering Coutant Street, Elms Road and Sunnyside Drive. A District Map is included as Exhibit A. The list of parcels of land included within the district is included as Exhibit B.

DEVELOPMENT PLAN PROCESS

To meet the requirements of Public Act 61 of 2007, as amended, it is necessary to prepare a Development Plan and TIF Plan for the Corridor Improvement Authority to adhere to when implementing and financing the improvements within the District.

Among the primary goals of the Neighborhood Improvement Authority to deliver a neighborhood master plan to include, but not limited to:

1. Smart Growth

Providence guidance for compatible land use development

2. Increased Property Values

Deter economic decline and foster conditions that improve property values

3. Neighborhood Recreation

Improve and add recreational options and facilities that also link to other recreation options in the community

4. Enhance the appearance and infrastructure in the neighborhood and preserve unique features/characteristics

The organization of the Development Plan and TIF Plan are in accordance with the requirements and follow the format presented in Public Act 61 of 2007, as amended. The Development Plan must include:

1. The designation of boundaries of the development area in relation to highways, streets, streams, or otherwise

2. The location and extent of existing streets and other public facilities within the development area, designating the location, character and extent of the categories of public and private land uses then existing and proposed for the development area, including residential, recreational, commercial, industrial, educational and other uses and including a legal description of the development area

3. A description of existing improvements in the development area to be demolished, repaired or altered, a description of any repairs and alterations and an estimate of the time required for completion

4. The location, extent, character and estimated cost of the improvements including rehabilitation contemplated for the development area and an estimate of the time required for completion

5. A statement of the construction or stages of construction planned and the estimated time of completion of each stage

6. A description of any parts of the development area to be left as open space and the use contemplated for the space

7. A description of any portions of the development area that the authority desires to sell, donate, exchange or lease to or from the municipality and the proposed terms

8. A description of desired zoning changes and changes in streets, street levels, intersection or utilities

9. An estimate of the cost of the development, a statement of the proposed method of financing the development and the ability of the authority to arrange the financing

10. Designation of the person or persons, natural or corporate, to whom all or a portion of the development is to be leased, sold, or conveyed in any manner and for whose benefit the project is being undertaken if that information is available to the authority

11. The procedures for bidding, for the leasing, purchasing or conveying in any manner of all or a portion of the development upon its completion, if there is no express or implied agreement between the authority and person, natural or corporate, that all or a portion of the development will be leased, sold, or conveyed in any manner to those persons

12. The requirement that amendments to an approved development plan or tax increment plan must be submitted by the authority to the governing body for approval or rejection

13. Other material that the authority, local public agency or governing body considers pertinent

TAX INCREMENT FINANCE PLAN PROCESS

The TIF Plan provides a summary of methods proposed to generate the revenue needed to fund the proposed projects. As outlined in the TIF Plan, funding for projects will be generated through tax increment financing, grants, local cooperation and funding eligible under Section 11 of Public Act 61 of 2007, as amended.

The Tax Increment Finance Plan (TIF Plan) has been prepared utilizing a base year (2016) taxable value for the District of $6,870,234. The base year taxable value has been broken down between real property at $6,442,834 and personal property at $427,400. Property value growth is calculated based on an annual inflationary growth in the District. Over the twenty year development period, the estimated incremental tax revenues generated within the District is $736,632.

It is the intent of the City of Flushing and the Neighborhood Improvement Authority to finance the proposed projects from incremental tax revenues generated and captured from within the District. At this time, there are no plans for a special assessment. The authority will pursue all available grants and financing options to assist with covering a portion of costs associated with capital improvements.

II. DEVELOPMENT PLAN

The presentation of the Development Plan follows the statutory requirements of Public Act 61 of 2007, as amended, specifically Section 17(2)(a) through (m). (MCL 125.2927 Development plan; preparation; contents).

Public Act 61 of 2007, as amended, requires that a development plan contain all of the following:

1. The designation of boundaries of the development area in relation to highways, streets, streams, or otherwise

4. The location, extent, character and estimated cost of the improvements including rehabilitation contemplated for the development area and an estimated of the time required for completion

5. A statement of the construction or stages of construction planned and the estimated time of completion of each stage

6. A description of any parts of the development area to be left as open space and the use contemplated for the space

7. A description of any portions of the development area that the authority desires to sell, donate, exchange or lease to or from the municipality and the proposed terms

8. A description of desired zoning changes and changes in streets, street levels, intersection or utilities

9. An estimate of the cost of the development, a statement of the proposed method of financing, the development and the ability of the authority to arrange the financing

12. The requirement that amendments to an approved development plan or tax increment plan must be submitted by the authority to the governing body for approval or rejection

13. Other material that the authority, local public agency or governing body considers pertinent

Following is the specific information required in each of the subsections under Section 17 of the Neighborhood Improvement Act for the Neighborhood Improvement Development Plan:

THE DESIGNATION OF BOUNDARIES OF THE DEVELOPMENT AREA IN RELATION TO HIGHWAYS, STREETS, STREAMS, OR OTHERWISE

At the November 14, 2016 regular Flushing City Council meeting, an ordinance was adopted creating the Neighborhood Improvement Authority and establishing the boundaries of the development area, now identified as the District. A map is included as Exhibit A which outlines the boundaries of the District in relation to the adjacent highways, streets and streams.

THE LOCATION AND EXTENT OF EXISTING STREETS AND OTHER PUBLIC FACILITIES WITHIN THE DEVELOPMENT AREA, DESIGNATING THE LOCATION, CHARACTER AND EXTENT OF THE CATEGORIES OF PUBLIC AND PRIVATE LAND USES THEN EXISTING AND PROPOSED FOR THE DEVELOPMENT AREA, INCLUDING RESIDENTIAL, RECREATIONAL, COMMERCIAL, INDUSTRIAL, EDUCATIONAL AND OTHER USES AND INCLUDING A LEGAL DESCRIPTION OF THE DEVELOPMENT AREA

Land Uses and Streets within the District

The existing land use map for the City of Flushing is included as Exhibit C. This map was updated in September 1998 from the 1992 WBDC Group Map. The City of Flushing Zoning Map is included as Exhibit D. This map was adopted in November 2002 and has been amended since then. The City of Flushing Future Land Use updated September 1998 and included as Exhibit E.

The District is comprised of land zoned as Single Family Residential (R-1) and High Density Residential (R-3B). There are two public parks (Waterworks Park and Eastview Park), one elementary school (Springview Elementary School) and one church (Holy Cross Lutheran Church) in the district.

Existing Streets

The development area contains sections of the following streets under the authority of the City of Flushing:

Sunnyside Drive 2 lanes local road

Coutant Street* 2 lanes major road

Kapp Court 2 lanes local road

Crestview Street 2 lanes local road

Woodland Ponds Drive 2 lanes local road

Springview Drive 2 lanes local road

Bonnie Sue Drive 2 lanes local road

* eligible for federal aid

Public Facilities

The development area contains the following public facilities: