Tax capture district plans to widen Brown Rd., beautify Baldwin

By Meg Peters
Review Co-Editor
For the past 15 to 20 years, much of the Orion border along the Brown Rd. corridor has remained untouched, some is even dilapidated, and some, due to parcel sizing and infrastructure, has been difficult to develop.
Orion Township can stay on this path, Supervisor Chris Barnett said at the public hearing Monday night, or it can establish new economic tools to bring investment to the area.
One such tool, which trustees and the public discussed during the hearing, is forming the Brown Road Corridor Improvement Authority (CIA) in a district covering Brown and Baldwin Rd.
The topic is not new, and was first discussed back in May, however with the public hearing now under their belt, Orion Township legally has 60 days to form a resolution of creation, set the boundaries of the district, chisel out the language and plan, and approve, or slash, the CIA.
CIAs run much like a downtown development authority (DDA) in that they are funded by tax increment financing (TIF) in order to keep new revenues of that specific district in that specific district.
As part of the plan, which will be created by a committee, all the revenue will be spent on certain projects.
The biggest item the board wants on the plan is the widening of Brown Rd.
Orion’s main focus for the corridor, being recently rezoned as the BIZ Brown Road Innovation Zoning District, is to attract large, quality developments. Large, quality developments need heavy-duty roads. This is something that is not currently offered throughout the length of Brown Rd., which narrows to two lanes in its midsection.
‘The estimate ranges from the high $3 millions to up to $6 million to widen Brown Rd, so realistically it would be really difficult to widen that road through normal means. This would be a great tool,? Barnett said.
He also said that one of the biggest concerns developers have in looking at Brown Rd. property is that the available infrastructure won’t be able to handle large-scale developments, and all the flocking shoppers.
‘This allows us to address some of those concerns and make it more developable.?
Other items on the CIA bucket list include beautifying Baldwin Rd., which already has plans for widening from two to four lanes beginning in 2017. Two of the five roundabouts included in the federally funded Baldwin Rd. widening project could be part of the Brown Road CIA, and an opportunity to have mowed boulevards, trees, lights and walk-ability, Barnett said.
The CIA program was originally enacted in 2005 to reverse the deterioration of existing business districts and instead promote economic development in targeted areas.
Like the Lake Orion DDA, the CIA program would capture monetary increases in the tax base before they are dispersed to local tax entities, but only on properties in that district.
So, if trustees approve the resolution to create a plan, and then approve that plan within the current tax year, 2015 would establish the rates of the ‘base? tax year.
All increases in the taxable value of the Brown Rd. CIA district, whether from inflation or new investment, would be captured by the district to be spent in the district.
‘Let’s just say a developer comes in and wants to build a retail facility on a piece of property in the district. Their taxes aren’t going to be any higher than anyone else’s?, but this allows us to take 50 percent of the increases,? Barnett said. ?
The township’s plan is to capture 50 percent of the tax base increases’increases above what the base year established? for a period of 15 years.
Tax captures would be diverted from the local taxing authorities, excluding the intermediate school district, the zoo authority and the art institute. There’s zero net effect on the residents or the businesses in the district, the actual millage rates would not increase, and unless you live in the district you will not be contributing to the CIA.
There were a few questions at the public hearing, and near ten members of the community approached the bench.
‘I’m just really curious, what happens to all these houses in this whole proposal? What happens to the property owners, are they proposing to buy our houses, and buy our land?? asked Judah resident Jan Holdsworth.
‘This doesn’t give us authority to force someone out of your home, and if you do want to sell this might be a tool to help you,? Barnett said.
‘Are you going to allow big-box to cover this whole area, and not piece me out? I live right next to Taco Bell there, so I live next to that construction every day,? resident Gary Marlin said.
Barnett said there have been developers calling about the Brown Rd. land every day, including big box companies, multi-family businesses, and smaller scale retail.
‘What we’re trying to prevent is a mile long strip mall and a big wasteland in the back. I don’t think that’s good planning, that’s why we brought in our consultants and are proposing this CIA to not let that happen.?
There were also questions as to why the township would take funds from its police, fire, library and safety path millages.
‘It’s not taking away, it’s only on the increase in property value from the base,? Barnett said. ‘This could actually be more revenue generating for the county, for the library, the other entities, than doing nothing because it’s only a 15 year capture, in 15 years the development could be full on.?
The public hearing was only the first step. Following the hearing, trustees approved the township attorney to create a resolution establishing the Brown Rd. CIA.
From there, Barnett will appoint the CIA board, the board meets and creates the plan, rules and requirements, and presents that plan to the board for approval or denial.
The plan can be simple and straightforward, including just the district map and TIF language, or it can include other authorities, such as the power to bond or request special assessments within the district.