Title
Approval of 2025 Restated LDFA Plans and Tax Capture Agreement with Oakland County
Body
WHEREAS, the City of Rochester Hills (the “City”) previously established the City of Rochester Hills Local Development Finance Authority, Oakland County, Michigan (the “LDFA”) pursuant to Act 281, Public Acts of Michigan, 1986, as amended and recodified by Act No. 57, Public Acts of Michigan, 2018, as amended (collectively, the “Act”), for the purpose of facilitating projects that foster new economic growth and development and lead to the creation of new employment opportunities within the City; and
WHEREAS, pursuant to the Act, the LDFA and the City Council of the City (the “Council”) adopted the LDFA’s Development Plan and Tax Increment Financing Plan, and, subsequently, the LDFA’s Restated Development Plan and Tax Increment Financing Plan (collectively and as amended, the “Plan”), which Plan would expire by its terms on December 31, 2025; and
WHEREAS, on August 14, 2025, the LDFA approved and presented to the City a proposed 2025 Restated Development Plan and Tax Increment Financing Plan (the “2025 Restated Plan”) extending the LDFA and the Plan and providing for the improvements described in the Plan as well as new, additional improvements within the Authority District defined and described in the Plan; and
WHEREAS, the City set and provided notice of, and on September 8, 2025, held a public hearing on the 2025 Restated Plan, in accordance with the provisions of Act, at which public hearing all aspects of the 2025 Restated Plan were open for discussion and the fullest opportunity was given for the expression of opinion, argument on the merits and the introduction of documentary evidence pertinent to the 2025 Restated Plan; and
WHEREAS, authorized representatives of the City and the LDFA presented the 2025 Restated Plan to the County of Oakland’s Tax Increment Financing Review Policy Ad Hoc Committee on September 16, 2025 (the “County Committee Meeting”); and
WHEREAS, following the County Committee Meeting, the County of Oakland (the “County”) proposed a form tax sharing agreement to be entered into among the County, the City, and the LDFA relating to the capture of County operating taxes and matters related to the LDFA under the 2025 Restated Plan; and
WHEREAS, the County, the City, and the LDFA have negotiated terms of the tax sharing agreement, and the County has approved the terms of the tax sharing agreement on October 16, 2025 (the “Tax Sharing Agreement”); and
WHEREAS, the Tax Sharing Agreement has been presented to the Council; and
WHEREAS, the City desires to approve the 2025 Restated Plan and to approve the Tax Sharing Agreement.
NOW, THEREFORE, BE IT RESOLVED that:
1. The Council hereby approves the Tax Sharing Agreement and authorizes the execution and delivery of the Tax Sharing Agreement by the Mayor.
2. The 2025 Restated Plan as presented to the City Council constitutes a public purpose and the Council specifically finds that:
a. The 2025 Restated Plan meet the requirements of the Act including specifically section 412(1), (2) and (3) and section 415(2);
b. The proposed method of financing the public facilities, identified in 2025 Restated Plan is feasible and the Authority has the ability to arrange the financing as described in 2025 Restated Plan;
c. The development described in 2025 Restated Plan is reasonable and necessary to carry out the purpose of the Act;
d. The amount of captured assessed value, as defined in the Act, estimated to result from adoption of 2025 Restated Plan is reasonable;
e. Any land to be acquired under 2025 Restated Plan is reasonable and necessary to carry out the purpose of 2025 Restated Plan and the Act;
f. The 2025 Restated Plan is in reasonable accord with the City’s approved master plan;
g. Necessary public services including fire and police protection and utilities will be adequate to service the Authority District;
h. No additional changes in zoning are required at this time to implement 2025 Restated Plan; and
i. Any changes in streets and utilities required to implement 2025 Restated Plan are identified in 2025 Restated Plan.
3. The City hereby approves the 2025 Restated Plan.
4. All resolutions or parts of resolutions in conflict herewith shall be and the same are hereby rescinded.