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:: Several
types of authorities in Wayne County hold taxing and regulatory
authority in districts as allowed for under state enabling legislation.
Downtown
Development Authorities TIFA
:: Eighteen cities in Wayne County have established
a Downtown Development Authority (DDA) or Tax Increment Financing
Authority [TIFA] district. These
districts are formed under state enabling legislation for the purpose of economic
development in a specific area of the city's downtown district.
:: These
districts allow for a self-taxing authority within their districts
which can levy a special assessment and can also capture taxes
to finance specified projects.
Detroit-Wayne
County Stadium Authority
:: Wayne County has played an active role in seeing that
stadium development occurs in downtown Detroit through its participation
on the Stadium Authority.
This politically appointed body holds the right to assemble and, if needed,
condemn land required for the economic development activity that will be generated
through the construction of two side-by-side stadiums in downtown Detroit.
Comerica Park [Tiger Stadium] was completed in 2000 and the Ford Field [Lions
Stadium] will be completed in 2002. In 1996, Wayne County voters approved a “tourist
tax” in the amount of 2 percent on rental cars and 1 percent on hotel
rooms to finance the development activities. While all property has now been
acquired for the stadiums, the authority maintains ownership of the facilities.
Brownfield
Redevelopment Authority
:: The Wayne County Brownfield Redevelopment Authority
[WCBRA] was formed in 1997 as a financing tool to assist
business owners. An agency of the Wayne
County Economic & Neighborhood Development Division, the Brownfield Development Authority
consists of ten members of the County's Economic & Neighborhood Development Corporation. The
WCBRA designates areas within a brownfield plan qualifying them for a Single
Business Tax Credit [SBT Credit] based on construction expenditures and the
ability to use tax increment financing [TIF] to capture the increase in real
and personal property tax resulting from the investment
:: Legislation
passed in 2000 broadened the eligibility for property to be designated
within a brownfield plan. Previously the benefits where only
eligible for “facilities”, which are environmentally
contaminated buildings or land. Since the 2000 amendments, property
located within a “qualified local government unit” that
is “blighted” or “functionally obsolete” may
also be eligible. Qualified local government units, also called “Core
Communities” are cities and townships designated by the
state to receive priority for various state funding tools.
:: The
SBT Credit is valued at 10 percent of the eligible investment
including demolition, construction, restoration, alteration,
renovation or improvement of buildings. The TIF can capture taxes
equivalent to the amount expended on site reclamation and public
improvements. Wayne County also provides up front loans to the
developer to be repaid through the tax capture.
:: The
City of Detroit, as well as many other Wayne County communities
have also established a Brownfield Redevelopment Authorities
which acts independently of the County’s Authority.
SmartZones
:: The SmartZone program was established in 2000 to stimulate the growth
of technology-based businesses and jobs by aiding in the creation of recognized
clusters of new and emerging businesses with a focus on private and university
research and development efforts. The Michigan Economic Development Corporation
designates SmartZones on a competitive basis. SmartZones are allowed to capture
the increase in property taxes to be used within the zone for up to 15 years.
:: Captured
revenues can be used for a variety of activities including: acquisition;
infrastructure construction; creating and operating incubators
for high-tech companies; creating publicly owned high-tech support
facilities; and marketing and promotion of SmartZones. Two SmartZones
have been awarded in Wayne County: the Wayne State University
Research and Technology Park in Detroit and the Pinnacle Aeropark
in Romulus and Huron Township. :: back to the top ::
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