Local Development Finance Authority (LDFA) & Brownfield Redevelopment Authority (BRA)
LDFA and BRA meetings are the 4th Thursday of the month at 8:00 AM in the Conference Room, 2nd floor of City Hall.
LOCAL DEVELOPMENT FINANCE AUTHORITY
The Local Development Financing Act, Public Act 281 of 1986, as amended, allows a city, village, or urban township to utilize tax increment financing to fund public infrastructure improvements. This tool is designed to promote economic growth and job creation. Communities across Michigan have utilized LDFA districts to extend sewer and water lines, to construct roads, and to service manufacturing, agricultural processing, and high technology operations.
The financing mechanism allows for the capture of the incremental growth of local property taxes over a period of time to fund public infrastructure improvements. By leveraging future tax increments, the LDFA is able to finance these public improvements, which can lead to new development opportunities within the community.
The Local Development Finance Authority board, which also serves as the City’s Brownfield Authority board, is charged with making and implementing a Development Plan, and the corresponding financing, to promote economic development and create jobs in the City of Hastings. The Authority oversees and recommends to the City projects to develop City property zoned industrial including the City’s Industrial Park on Star School Road. The Authority is eligible to receive State and Federal grants for economic development projects. A tax increment finance district is established which provides funds to the LDFA which are also used to finance these projects.
The City of Hastings Local Development Finance Authority’s Development and Financing Plan was adopted on February 8, 1993 and has been amended two times:
- first amendment adopted August 24, 1998
- second amendment adopted August 13, 2001
To facilitate additional projects, estimate costs, determine priority and establish timelines for completion.
The LDFA has identified certain priority industrial improvement needs that require its attention, participation, support, involvement, and encouragement and it is these priorities toward which the plan is directed. The annual budget reflects the plan’s goals. Objectives will be determined yearly in order to accomplish the implementation of the plan. Staff and the LDFA will then seek to fund those objectives and complete them within the subject budget year.
BROWNFIELD REDEVELOPMENT AUTHORITY (BRA)
Under the Brownfield Redevelopment Act PA 381 of 1996, as amended, a municipality may create a Brownfield Redevelopment Authority (BRA) to develop and implement Brownfield projects.
A “brownfield” is a previously developed parcel or parcels that may present certain hindrances, including environmental issues, to use for new development. Brownfield redevelopment may use Tax Increment Financing (TIF). This tool is designed to promote economic growth, support job creation, and business retention. Communities across Michigan have utilized BRA districts to incentivize the redevelopment of the built environment.
The City of Hastings BRA reviews proposals for the redevelopment of eligible property and determines what financial incentives are necessary to assist the redevelopment. The Authority prepares a plan that identifies the Brownfield projects. Each project section of the plan includes the description of the eligible property, the eligible activities, the TIF approach to be taken and other issues related to the subject parcels. The Authority then recommends that the City Council hold a public hearing regarding the plan and subsequently act to approve modifications or deny the plan. The Authority recommends revisions to the plan as new projects are submitted or revisions are requested on existing plans
Focus development in existing service areas, enhance tax base through private development, receive multiple taxing jurisdiction participation in redevelopment financing, redevelop functionally obsolete properties, and remove blight.
Support individual project based Brownfield Plans as they are proposed for eligible sites within the City.