Local Development Finance Authority
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Meetings held the 3rd Friday of every month at 7:15 a.m. in City Hall.
A Local Development Finance Authority (LDFA) is enabled to establish area boundaries, create and implement a development plan, acquire and dispose of interests in real and personal property, issue bonds and use tax increment financing to fund public infrastructure improvements for eligible property.
They are designed as tools to promote economic growth and job creation, to provide a means for local units of government to eliminate the conditions of unemployment, underemployment, and joblessness and to promote economic growth.
Properties eligible for tax increment capture are structures, buildings, land improvements and other real property and equipment located within a district, whose primary use is either manufacturing, high technology, value added agricultural processing or energy production.
The Eaton Rapids Local Development Finance Authority shall exercise such powers and duties as provided and in accordance with the terms of Act 57 of the Public Acts 2018; including but not limited to the definition of a development area; the origination of a development plan; and, the implementation of a development program as provided in this act. For more information about the LDFA, see state Act 281 of 1986 and Act 57 of 2018.
If you are interested in becoming a member, please fill out the general application and submit it to the City Clerk.
The Local Development Financing Act (LDFA), Public Act 281 of 1986, was enacted by the Michigan Legislature in the Fall of 1986 and became effective February 1, 1987. The purpose of the Act was to provide for establishment of Local Development Finance Authorities and to authorize the authorities to create and implement plans to prevent conditions of unemployment and promote economic growth. In addition the Act authorized and permitted the use of tax increment financing.
Tax increment financing allows a local government to finance public improvements in a designated area by capturing a portion of the property taxes levied on any increase in property taxes within the area. In order to become effective, a tax increment financing plan must be adopted by the governing body, which in the case of the City of Eaton Rapids is the City Council. After adoption of the plan, the Board of the Local Development Financing Authority may implement the plan and direct the use of the tax increment revenue generated by the plan.
In 1993 the City of Eaton Rapids embarked upon the development of the Island City Industrial Park. The Park had one major anchor tenant, Magnesium Products of America. The City established a Local Development Financing Authority along with a development plan and tax increment financing plan for the Park area. The Authority was charged with overseeing the implementation of the plan which included purchasing land and constructing roads and utilities to serve the Park. The work was financed through the sale of bonds and state and federal grants. Tax increment revenues were pledged to fund repayment of the bonds and cover other costs.
The Park has been very successful and has produced tax increment revenue in excess of the initial costs. Some of the excess revenue has been used to improve the infrastructure in the Park and to purchase additional industrial park land adjacent to the existing Enterprise Industrial Park, which in turn has allowed URV to come to Eaton Rapids. The development and tax increment financing plan was amended to include the additional land.
The Board of the Local Development Financing Authority recognizes that its jurisdiction and authority over the use of tax increment revenues is governed by the Local Development Financing Authority Act as well as the development and tax increment financing plan as adopted and amended by the City Council. In order to fulfill its duties in a manner which is both beneficial to the City and within its jurisdiction and authority, the Board has determined that it is necessary to adopt a policy for its use of tax increment revenues. The policy is meant to guide the Board in making decisions on the funding of activities and projects, as well as to communicate to the City Council and the citizens of the City the criteria used by the Board in making its funding decisions.
Eaton Rapids Township
Eaton County Board of Commissioners
The Term of Office for the Commissioner Members are Four Years.