By Dennis Volkert
A public hearing was held Wednesday at a meeting of Sturgis City Commission, regarding boundaries for Local Development Finance Authority, as part of a development plan.
Commissioners approved adoption of a resolution approving amendments to the development plan and tax increment financing plan, also called TIF.
Local Development Finance Authority, or LDFA, is an economic development tool that allows entities to acquire property, issue bonds and use tax financing to fund public infrastructure improvements for eligible property.
In 2008, the city created an LDFA toward completion of an expansion project by Americraft Carton. Funds were used as payback for a Michigan Economic Development Corporation Loan for the project. The authority district was amended in 2018 and in 2022 to expand the authority’s boundaries and add new projects to the development plan.
In 2021, two parcels near the Indiana border, which are being developed as Stateline Business Park for commercial and industrial development, were purchased by Sturgis Economic Development Corporation. At the time, those were not within the city limits.
Some projects in the current development plan have a connection to that area, so city officials believe this is a good time to add the parcels to the LDFA boundaries, said Kenneth Rhodes, city clerk/treasurer.
The only changes in the development and TIF plans amend the boundary map to include those parcels. No projects have been added or amended.
The previous plan projected LDFA to capture at least $12 million during the next 27 years and outline multiple projects to be completed with the funds.
“It is difficult to quantify the capture amount with the addition of the Stateline Business Park to the plan, but it should exceed the previous projections,” Rhodes said.
Based on requirements of the recodified tax increment financing act, a public hearing is required when the local municipality is creating or amending an LDFA.
The city commission set the public hearing regarding revisions to LDFA boundaries and amendments to the development and TIF plans.
Additional news from the meeting and notable dates:
- The board approved a waiver of special assessment related to Sturgis Improvement Association, specific to special assessment cost for Stapleton Industrial Park. SIA is a longtime association that acquires property for industrial development and uses funds from those transactions to facilitate economic development.
- During public comment, resident Bennett Ahrens addressed the board regarding details of the city’s zoning ordinance for secondary buildings on private property. Ahrens believes aspects of the code are vague, specifically a rule pertaining to color-matching. Informally, commissioners agreed the topic could be reviewed soon, in collaboration with Sturgis Planning Commission.
- Mayor Frank Perez told commissioners he has received multiple calls from residents commending municipal workers for the city’s leaf-collection process.
- City hall is closed Dec. 22-25 in observance of the Christmas holiday.
- The next city commission meeting is scheduled for Dec. 20. It is the final regular meeting for 2023.