WORK SESSION TOPICS MAY 9, 2016

1. Potential Next Meeting Agenda Items: a. Potential Charter Amendment 10 minutes

Discuss Charter Committee’s recommendation regarding a potential Charter Amendment regarding number of signatures needed for initiative/referendum Attachment-Memo from Charter Committee

b. Amendment to CMU Infrastructure Agreement 10 minutes

Discuss proposed amendment to agreement related to zoning of CMU owned land in the Smartzone/University Park area

2. Future Agenda Items:

a. Economic Development Tools 20-30 minutes

Finance Director Mary Ann Kornexl, Economic Development Director Bill Mrdeza, and MMDC CEO Jim McBryde will provide information on tools available. Attachment-Tax Increment Districts data and descriptions on some of the development tools

3. Commissioner Ideas for Potential Future Topics:

Commissioners to discuss ideas for future topics for work session or staff research Attachment-Current tentative list

MEMORANDUM

TO: Nancy Ridley, City Manager City Commission FROM: Charter Committee DATE: May 2, 2016 SUBJECT: Charter Committee Recommendation The Charter Committee met Thursday, April 21, 2016. Committee members are Commissioners Madaj, Gillis, and Kulick. Staff liaison is City Clerk Jeremy Howard. Commissioner Madaj raised the possible amendments of a directly elected Mayor and/or electing the City Commission by wards. Commissioner Madaj continued that given these types of proposals, he would suggest further discussion on these issues in 2017. The Committee discussed Article VI, Sec. 3 of the City Charter, as amended in 2008. After discussion, the Committee recommends the following amendment:

(A) Initiative and referendum petitions must be signed by qualified, registered electors of the City equal to not less than 18% 10% of the number of votes cast for candidates for the office of governor at the last preceding general election in the City, but in no case less than six hundred (600). (B) All papers of a petition shall be uniform in size and style and shall be executed in ink or indelible pencil, followed by the address of the person signing. Throughout their circulation, the petitions shall contain or have attached the full text of the ordinance proposed or sought to be reconsidered. (C) Each paper of a petition shall have attached, when filed, an affidavit executed by the circulator thereof stating that the circulator personally circulated the paper, the number of signatures thereon, that all the were affixed in the circulator's presence, that the circulator believes them to be the genuine signatures of the persons whose names they purport to be, and that each signer had an opportunity before signing to read the full text of the ordinance proposed or sought to be reconsidered. (D) Referendum petitions must be filed within thirty (30) days after the Commission adopts the ordinance sought to be reconsidered. Initiative petitions must be filed within one hundred and eighty (180) days after filing of the affidavit of the petitioner's committee.

Commissioners Madaj and Gillis concurred in the recommendation. Commissioner Kulick would leave Article VI, Sec. 3 unchanged.

Commissioner Madaj raised the idea that the Committee review either the City’s Ethics Policy or Chapter 30 (Commission) of the Code of Ordinances, per suggestion. Commissioner Madaj will request input for possible issues to review as to these matters, and the Committee will meet again to review any issues provided.

TIF Capture - City Commission Work session April 25, 2016

TIF Example

Initial Taxable Value= $1,000,000 • Current Taxable Value= $1,250,000 • Captured Value= $250,000 • Tax Capture = $250,000 x captured mills x capture rate • Share Incremental Taxes

TIFA/DDA/LDFA Plans

> Mission Street DDA

Established 1990

• Expires 2017

• 892 parcels

• $32M base value

$70M current value

• Capture rate 28%

Captured Mills 26.8996

• Tax Capture $274,000

> Central Business District TIFA

• Established 1984

Expires 2025

584 parcels

• $6M base value

• $15M current value

• Captured Mills 26.8996

• Capture rate 82%

Tax Capture $216,000

> Industrial Park North TIFA

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Established 1985

Expires 2027

27 Parcels

Current no Capture

:.. University Park LDFA (SmartZone)

• Established 2000

• Expires 2025

• 31 parcels

$13M base value

• $18M current value

• Capture rate 75% non-school & 50% school

• Captured mills 56.1981

• Tax Capture $167,000

Brownfield Plans - must be functionally obsolete or contaminated sites

:.. Current Capturing Plans

• Budget Inn

• 600 W Pickard Street

• 315 May Street

320 West Broadway

• Western Island

• Firstbank Mission Street

• South point Village

y Current Plans without Capture

• Mission/Cherry

• Broomfield Lofts (Charter)

• Casa Loma Ranches

• 612 W Pickard

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City of Mt. Pleasant

Economic Development Incentive Programs The City of Mt. Pleasant has a number of incentives available for qualified development projects. Below is a general listing of such incentives, the p rocedure for applying for them, and their applicabil ity.

For additional information, contact William R. Mrdeza, Director of Community Services and Economic Development, at (989) 779-5311 or wmrdeza@mt-pleasant.org.

Mission/Pickard Corridor Site Amenities: Incentive funds come from a portion of taxes generated in the Downtown Development Authority (DOA) District encompassing the Mission and Pickard Street boundaries and must be approved by the DOA Board of Directors prior to beginning any work. Typically, these incentives include a 50% cost share on decorative fencing, decorative entry walls, bike racks, and similar amenity improvements. In addition, the closure of existing driveways and/or consolidation of driveways between businesses are eligible for a 100% incentive from the DOA, assuming the proposed work is consistent with the recommendations of MDOT's US 127 BR/M-20 Access Management Plan for the corridor. Guidelines for applying for consideration of these incentive funds are available on the City's website at: http:ljwww.mt-pleasant.org/docs/board/DDA CorridorlmprovementlncentiveGuidelines.pdf. Contact William Mrdeza at (989) 779-5311 or wmrdeza@mt-pleasant.org for more information.

Grid Streets and Cross Connections: The DDA is interested in improving traffic flow and safety along the Mission Street corridor, especially in the area south of Bellows Street. This area was targeted due to high traffic volumes, few signalized intersections, and few alternative travel routes because of the large "super block" configuration of the transportation network in this area. Projects that consider allowing the construction of cross connections across private property consistent with the intent of the City's Master Plan for Mission Street in this area are eligible for consideration by the DOA for funding the construction of new streets or cross access roads. Typically, these w ill connect Mission Street with East Campus Drive, or provide for cross connections between businesses in this area in an effort to keep short trips off of Mission and to provide alternates to stacked traffic at the few signalized intersections. Benefits to new construction projects include more favorable consideration by the Planning Commission as an application under the more flexible guidelines of the Mission Overlay d istrict, and for both new and existing projects, location on a new City street will provide increased access and visibility for businesses. More information including eligibility consideration is available from William Mrdeza at wmrdeza@mt-pleasant.org or (989) 779-5311.

Downtown Fa~ade Improvements: The purpose of the Downtown Fa<;ade Improvement Program is to provide financial assistance, via both grants and zero-interest loans, to property and business owners within the Central Business District-Tax Increment Finance Authority (CBD-TIFA) District in Mt. Pleasant for physical improvements to their properties.The program consists of two parts: architectural design assistance and construction. Using the design professionals contracted by the City, a fa<;ade design is created in cooperation with the property owner within an agreed-upon budget. The cost of the design assistance is provided by City incentive funds, while financial assistance for construction can include a zero­interest loan through the City, and/or a grant through the MEDC Community Development Block Grant program, depending on the specifics of the project. More information is available through Michelle Sponseller at (989) 779-5348 or msponseller@mt-pleasant.org.

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City of Mt. Ple11sn11t Economic Development Incentive Programs

Rental Rehab Program: This program is specific to property located in the downtown Central Business District. Property owners with upper floor space which is conducive to residential housing units may be eligible for assistance with converting new or upgrading existing residential space in these upper story units. The City has partnered with the Michigan State Housing Development Authority (MSHDA) to make financial assistance available to eligible applicants. Under the program, up to $45,000 per unit is available for creating new upper floor residential units, while up to $25,000 per unit is available for upgrading new existing residential space. More information, including program guidelines and application procedures are available from Michelle Sponseller, Downtown Development Director at (989) 779-5348 or msponseller@mt-pleasant.org.

Economic Development Fund: In 2008 the City established an Economic Development Fund as a means of investing itself out of the economic recession occurring during that t ime. The fund is administered by the City's Economic Development Corporation after making an appropriation request from the City Commission for qualifying projects. Projects which create jobs and propose significant economic investment within the City may be eligible for incentives through this fund. Decisions regarding eligibility for these incentive funds, as well as the amount potentially available, are made on a case by case basis by the EDC. Initial discussions regarding the use of these funds for a potential project begin by contacting William Mrdeza at (989) 779-53 11 or wmrdeza@mt-pleasant.org.

Brownfield Redevelopment: As a Core Community, Mt . Pleasant is el igible to make use of Brownfield Redevelopment funds for eligible projects, including those that are funct ionally obsolete or contain environmental conditions which need to be remediated. Eligible projects include those that involve an investment which will generate sufficient taxes over a 10-12 year period to repay the cost of eligible reimbursable expenses. Program guidelines fo llow the requirements contained in Public Act 381. For more information, contact William Mrdeza at (989) 779-531 1 or wmrdeza@mt-pleasant.org.

Other Incentive Assistance: Other financial and workforce incentive assistance is available through a variety of state programs, depending on the specific nature of the project. Examples include Industrial Facilities Tax Abatements (PA 198), MEDC Community Development Block Grants, Obsolete Property Rehabilitation Act (OPRA), Neighborhood Enterprise Zone (NEZ), and others. More information specific to these programs and their eligibility for a particular project is available by contacting William Mrdeza at (989) 779-5311 or wmrdeza@mt-pleasant.org.

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I LPROP 198 of 197

Industrial property tax abatements provide incentives for eligible businesses to make new investments in Michigan. These abatements encourage Michigan manufacturers to build new plants, expand existing plants, renovate aging plants, or add new m achinery and equipment. High technology operations are also eligible for the abatement.

High-technology activity is defined in the Michigan Economic Growth Authority (MEGA) Act as: advanced computing, advanced materials, biotechnology, electronic device technology, engineering or laboratory testing related to product research and development and advanced vehicles technology or technology that assists in the assessment or prevention of threats or damage to human health or the environment. Abatements under PA 198 can significantly reduce property taxes on new investment for eligible firms.

ESTABLISHING THE DISTRICT Tax benefits are granted by the legislative body of the city, township or village in which the investment will be located . A public hearing is held and a resolution is adopted to approve the establishment of an Industrial ·Development District (for a new project) or a Plant Rehabilitation District (for a rehabilitation project). A written request to establish the district must be filed with the clerk of the Local unit of government prior to commencement of construction, alteration or installation of equipment.

Once the district is established, the company may apply for an abatement on real and personal property taxes for up to 12 years.

APPLICATION PROCESS Industrial property tax abatements must be approved at both the local and state levels. The eligible business files an application (Michigan Department of Treasury Form 1012) with the local clerk after the district has been established and no later than s ize months after commencement of the project. The local unit adopts a

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resolution approving the application and determines the length of years for the abatement. After a local public hearing, the application is filed and reviewed by the State Tax Commission (STC) and the Michigan Economic Development Corporation"' (MEDC). The STC then grants final approval applications with required attachments must be received by the STC no later t_han October 31, in order to receive consideration and action by D ecember 31.

Applications to the STC must include an agreement signed by the local unit and the operator of the facility outlining the conditions of the abatement. This shall include an affidavit that no payment of any kind in excess of the fee allowed under the act has been made or promised in exchange for favorable consideration of exemption application.

Once approved, the firm pays an Industrial Facilities Tax (IFT), instead of property tax, which reflects the abatement savings .

ELIGIBLE FACILITIES Industrial plants eligible for tax abatement are those that primarily manufacture or process goods or materials by physical or chemical change. Related facilities of Michigan manufacturers such as offices, engineering, research and development, warehousing or parts distribution are also eligible for exemption.

Research and development laborci tories, high-tech facil ities and large communication centers can qualify throughout Michigan.

Facilities used for warehousing, distribution or logistics purposes can be eligible if they locate in specific border counties. At Least 90 percent of the property, excluding the surrounding green space, must be used for a vvarehouse, distributio n, logistics or communication center and occupy a building or structure that is more than 100,000 square feet. Eligibl e border counties include

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Berrien, Branch, Cass, Chippewa, Dickinson, Gogebic, Hillsdale, Iron, Lenawee, Menominee, Monroe, St. Clair, St. Joseph, and Wayne.

The exemption applies to buildings, building improvements, machinery, equipment, furniture and fixtures. Real and personal property are eligible whether owned or leased (provided the lessee is liable for payment of taxes on the property).

The exemption covers only the specific project that is the subject of the application. Any buildings and equipment that existed prior to construction of a new facility are not exempt. If the project is rehabilitation, the value of any pre-existing obsolete property is exempt from ad valorem property taxes, but will be used as the base for IFT. Similarly, any structures or equipment added after completion of the project are fully taxable.

TAX IMPACT Real and Non-industrial Personal Property IFT Treatment The IFT on a new plant and non-industrial personal property, such as some high-tech personal property, is computed at half the local property tax mileage rate. 'This amounts to a reduction in property taxes of approximately 50 percent. In addition, the 6-mill SET may be abated 100 percent, 50 percent or not at all. Any SET abatement must be negotiated with the MEDC.

Rehabilitation of Real or Personal Property IFT Treatment For an obsolete plant or machinery that is being replaced or restored, the IFT is frozen at the assessed value of the plant prior to improvement. This results in a 100 percent exemption from property tax on the value of the improvements.

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Speculative Building IFT Treatment In order for a speculative building to qualify for abatement, the local unit must approve a resolution declaring it is a speculative building prior to identifying occupants. Initial construction and finishing costs would be eligible for a reduction in property taxes of approximately 50 percent.

Commercial Personal Property Tax Relief Commercial personal property will receive an automatic reduction of 12 mills for local school on their property tax bill.

Extension Under Personal Property Tax Reform Personal property abated under PA 198 and eligible in the future for the Personal Property Tax (PPT) exemption will automatically continue to be abated under PA 198 until that property may be claimed as exempt form the PPT in the current tax year. Businesses with IFT until the property becomes eligible for the PPT exemption.

For more information, contact the MEDC customer contact center at 517.373. 9808 or visit our website at v..rww.michiganbusiness.org.

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MICHi N BUSI S DEVE 0 M GR W~

OVERVIEW The Michigan Business Development Program is an incentive program available from the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation (MEDC). The program is designed to provide grants, loans or other economic assistance to businesses for highly competitive projects in Michigan that create jobs and/or

provide investment.

ELIGIBILITY The Michigan Business Development Program (MBDP) is available to eligible businesses that create qualified new jobs and/or make qualified new investment in Michigan. The qualified new jobs must be held by Michigan residents of the Applicant company and be in addition to those maintained in Michigan prior to the project. Eligible investment includes investment made by the business in Michigan in support of the project and approved by the MSF. Preference may be given to businesses in need of additional assistance for deal closing and second stage company gap financing.

Any business seeking to qualify for MSF support on the basis of job creation must create a minimum of 50 qualified new jobs. Unless a project is in a rural county {a county with a population of 90,000 or less) or qualifies as a high-technology activity, in which case the business must create a minimum of 25 qualified new jobs. High- technology activities are defined in the Michigan Economic Growth Authority Act, Public Act 24 of 1995, although it does not include tool and die unless the eligible business meets a different high-technology definition.

PROGRAM PROVISIONS AND GUIDELINES MSF support in the form of a grant will be performance based, with preference given to eligible businesses seeking to locate or expand in lvlichigan rather than in another state. Grants will include flexible terms and conditions, and will include repayment provisions under circumstances approved by the MSF.

MSF support in the form of a loan shall also be performance based, with preference given to qualified businesses needing assistance to expand in Michigan. Loans may include flexible terms and conditions, including below market interest rates, extended grace and repayment provisions, forgivable terms and flexible security requirements. Loans will also include provisions requiring repayment of loan funds under circumstances approved by the MSF.

©2016 Mich igan Economic Development Corporation'"'

A commitment of staff, financial, or economic support by the local municipality is required for all projects.

The MSF may consider the following factors when considering a project for MSF support: • Out-of-state competition •Net-positive return to Michigan • Level of eligible investment in the project • Near-term projects with identified financial support • Business diversification • Re-use of existing facilities • Near-term job creation

•Level of wages for new jobs • Employer provided benefits • Strong links to Michigan suppliers • Whether the project is in a distressed or targeted community

TI1e MSF will not provide support under this program for retail or retention projects. MSF support for any project may not exceed $10,000,000.

FEES For incentive assistance using loans-reasonable closing fees will apply and be determined on a project by project basis.

PROCESS All projects are subject to an application and due diligence process conducted by the MEDC. Projects that receive MEDC support will require MSF approval and an agreement between the MSF and the qualified business. Note: TI1e following steps are offered as general guidelines to provide guidance o n the typical approval process. • Application • Qualified business due diligence

• MSF approval • Agreement between the MSF and qualified business • Milestones and disbu rsements • Reporting and compliance

To receive consideration for funding under the Michigan Business Development Program, initial contact should be made with your local economic development office or the MEDC business development manager assigned to your territory. You may also contact the MEDC customer contact center at 517.373.9808 or visit our website at www.michiganbusiness.org.

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MICl-llGAN COMMUNITY REVITALIZATION PROGRAM

The Michigan Community Revitalization Program (MCRP) is an incentive program available from the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation (MEDC), designed to promote community revitalization that wiU accelerate private investment in areas of historical disinvestment; contribute to Michigan's reinvention as a vital, job generating state; foster redevelopment of functionally obsolete or historic properties; reduce blight; and protect the natural resources of this state. TI1e program is designed to provide grants, loans, or other economic assistance for eligible investment projects in Michigan.

·, • - ~ - 1 F U I. A person or two (2) or more persons may apply to the MSF for approval of MCRP incentives associated with a project.

TI1e applicant shall include documentation establishing that the project is located on eligible property, meaning property meeting one or more of the following conditions (MCL 125.2090a(e)): • Facility; '" Historic resource; • Blighted; • Functionally obsolete; or • Adjacent or contiguous to a property described

above, if the development of the adjacent or contiguous property is estimated to increase the taxable value of the property described above.

.· l.IGI '~ "".! i1: .' ""Tt l ~llT Eligible investment to an eligible property is considered based on one or more of the following categories as further determined by the MSF Board (MCL 125.2090a(d)): • Any alteration, construction, improvement,

© 2015 Michigan Economic Development Corporation"'

demolition or rehabilitation of buildings; • Site improvement • TI1e addition of machinery, equipment or fixtures;

and • Architectural, engineering, surveying and similar

professional fees for a project but not certain soft costs of the eligible investment.

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..... r- ~ , TI1e MSF's support will not exceed 25% of the total eligible investment for a single project, and in no event

. exceed a total of $10,000,000 for loan agreements or $1,000,000 for grant agreements, or $10,000,000 for a combination of support. Any grant or loan under the program will be performance based. Grants and loans will include flexible terms and conditions and may be assignable upon approval of the MSF. Loan terms and conditions may include below market interest rates, extended grace and repayment provisions, forgivable terms and no security or some secuxity (which may be subordinated). As required by the Act, all written agreements will include a repayment provision for failure to comply with the provisions outlined in the written agreement. The Program will also consider awards to projects where the MSF will purchase a share, or participate, in a Senior Loan facility or contrib ute equity into the project all on terms acceptable to the MSF.

TI1c MSF shall consider the following factors when considering a project for MSF Support: • Projects which include revitalization of regional

urban areas shall be given preference for MSF support;

• MSF support shall not include support for economic based projects that are not located in a downtown or traditional commercial center and that do not primarily promote the desired revitalization of urban areas;

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• The importance of the project to the community in which it is located;

• Whether the project will act as a catalyst for additional revitalization of the commWlity in which it is located;

• TI1e amount of local community and financial support for the project;

• The applicant's financial need for the incentive; • TI1e extent of reuse of vacant buildings and reuse of

historical buildings and redevelopment of blighted property;

• The level and extent of environmental contamination; • Creation of jobs; • The level of private sector and other contributions,

including federal resources; • Whether the project is financially and economically

sound; • Whether the project increases the density of the area; • Whether the project promotes mixed-use

development and walkable communities; • Whether the project converts abandoned public

buildings to private use; • Whether the project promotes sustainable

development; • Whether the project involves the rehabilitation of a

historic resource meeting the Federal Secretary of the Interior's Standards for rehabilitation and guidelines for rehabilitating historic buildings, 36 CFR 67;

• W hether the project addresses area wide redevelopment;

• \Vhether the project addresses underserved markets of commerce; and

• Whether the project will compete with or affect existing Michigan businesses within the same industry.

MSF support will be memorialized by final written grant, loan or other economic assistance agreement with terms and conditions in accordance with the MCRP guidelines and otherwise satisfactory to the MSF including, without limitation, requiring p erformance based milestones which will govern disbursements and periodic reporting of data during project revitalization efforts and after completion of the project. Financial information and any

©2015 Michigan Economic Development Corporation"'

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other information required to facilitate reporting to the MSF Board and the Michigan Legislature will be included in the agreement.

Fees may be charged for loan or other economic assistance projects to cover third-party expenses and other administrative costs.

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All projects are subject to an application and due diligence process conducted by the MEDC. Projects that receive MEDC support will require the MSF's approval and an agreement behveen the MSF and the qualified business. TI1e following steps are offered as general guidelines on typical steps, timelines and responsibilities.

1. Contact your local community for review and evaluation. If support is confirmed at local level, contact Community Assistance Team (CATeam) Specialist for review and evaluation of the project.

2. If the project evaluation is determined to meet the criteria of the MCRP, the applicant shall receive and complete the Application.

3. Following submission of the Application and supporting documents, the CATeam Specialist will present the project to MEDC staff for support to move the project forward.

4 . If supported, the project will undergo a needs analysis i11 conjunction with a Community Development Incentives Specialist and the project's regional CATeam Specialist. Based on the fin ding of the review, a Letter of Interest (LOI) will be provided to the project with a preliminary incentive structure identified. 1he LOI will include a detailed listing of the required financial due diligence and legislative requirements needed to move the project forward within a specified time period.

5. Final application and due diligence materials are submitted and reviewed and the final award amount is determined.

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6. All projects seeking approval will be considered by the MSF with recommendation of support by MEDC staff. Approvals and timelines will depend on the size and type of the incentive request. If approved, an agreement will be executed that establishes milestones to be met in order for incentive proceeds to be disbursed at project completion.

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For more information on the MCRP incentives, please contact the CATeam Specialist assigned to your territory. Also, you can contact the MEDC Customer Contact Center at 517.373.9808. -

.;U.,,t"'')Jl I G S1F I Tl! Public Act 252 of 2011

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SURVEY OF EcoNoM1c DEVELOPMENT PROGRAMS 1N M1cH1GAN

ENAllUNG LEGISLATION; STATUTORY CITATION:

SUMMARY PROGRAM DESCRIPTION:

EUGIBIUTY AND BENEFlTS:

2000 PA 146; as amended by 2004 PA 251, 2006 PA 70, 2007 PA 193, 2010 PA 137, 2011 PA 272, 2013 PA 265 ; M.C.L. 125.2781 et seq.

A tax abatement program targeted specifically at the rehabilitation and reuse of obsolete structures. Qualified structures in approved Obsolete Property Rehabilitation Districts can receive significant property tax breaks on the improved value of the rehabilitated property.

Properties eligible for obsolete property exemption certificates must be commercial prop­erties or commercial housing properties located within a qualified local governmental unit that meet the definition of"blighted" or"functional obsolescence" as provided for within the Brownfield Redevelopment Financing Act of 1996; or be a "facility" as defined by the Natural Resources and Environmental Protection Act of 1994, Part 201.

See Appendix E for a definition and list of current "qualified local governmental units." See Appendix F for the definitions of "blighted,'' "functional obsolescence," and "facility."

Qualified obsolete property rehabilitation projects in qualified local units of government are eligible for a 1- to 12-year tax exemption certificate that would freeze the property at its pre-rehabilitated value, effectively allowing the rehabilitation to be property tax-free, with the exception of school operating taxes. The State Treasurer may waive 112 of the school operating taxes for a period of 6 years for up to 25 projects per year.

TERMS AND PERFORMANCE GUARANTEES: Local units may establish 1 or more Obsolete Property Rehabilitation Districts if a portion of

a parcel or tract of land within the district is either:

• Obsolete property in an area characterized as obsolete commercial or commercial housing property, or

• Obsolete commercial property that was owned by a qualified local governmental unit before June 6, 2000, but that has since been conveyed to a private owner.

Owners of obsolete property within a district may apply for an Obsolete Property Exemption Certificate. Applicants must demonstrate that completion of the rehabilitation will lead to increased commercial activity, the creation or retention of jobs, or an increase in residency. Applicants must also show that "but for" the exemption, the rehabilitation would not occur. Applicants must not be delinquent in payment of any taxes related to the property. The legis­lative body of the qualified local governmental unit will approve or disapprove the application for an exemption certificate; if approved, the local unit will forward the application to the State Tax Commission for final approval or disapproval. ·

Exemption certificates remain in effect for a period of at least 1 year, but no more than 12 years, as determined by the legislative body of the qualified local governmental unit. Certif­icates may be extended, but shall not exceed 12 years after the rehabilitation is complete. Certificates may be revoked if the proposed rehabilitation does not occur within the time authorized.

Qualified local governmental units that grant Obsolete Property Exemption Certificates must submit annual reports to the State Tax Commission on the status of each exemption. The current sunset date for obsolete property tax exemptions is December 31, 2016.

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May 5, 2016

Tentative Topics for Work Sessions

May 9 Work Session Topics

1. Potential Charter Amendment 2. Amendment to the Infrastructure Agreement with Central Michigan

University (CMU) 3. Economic Development Tools

May 23 Work Session Topics

1. Airport staffing/projections 2. Goal priority setting 3. Downtown Incubator Program (?)

June 13 Work Session Topics

1. Dias configuration-desired outcomes

June 27 Work Session Topics

1. ZBA appeal form

Future Meetings Potential List

1. Public input/community engagement models 2. Changes to Purchasing Policy 3. City Commission committee structure/function

Note: A special work session to discuss the Capital Improvement Plan (including funding for new sidewalks and snow clearing) is being considered.