LDFA discusses bylaw wording in case it pays off its debt

John Delaney, second vice chairman of the Van Buren Township Local Development Finance Authority, had a question about what the LDFA would do in the future if it paid off its big debt and got some money to spend.
He asked the question at the end of the LDFA’s in-person meeting on March 8.
He said his thinking on this started when he asked what they will do with the money from the sale of the LDFA property to DTE. He was told everything is needed to pay down the debt from the Visteon bond and it wouldn’t be wise to borrow money from VBT and pay interest on it when the DTE money could help pay down the debt.
“But later, if we weren’t in arrears, what would we do with money?” Delaney asked. He suggested the LDFA be proactive and not wait. Such a procedure is not mentioned in the bylaws.
VBT Supervisor Kevin McNamara, who sits on the LDFA, said the LDFA sets its budget and the township board approves it.
“If you had a great idea, you’d have to convince four of seven board members to approve it,” Supervisor McNamara said, reminding him the LDFA is borrowing $1.7 million from the township every year until the bonds are paid off.
LDFA vice chairman Doug Peters, a retired attorney, said they could just add a sentence to the LDFA bylaws saying anything beyond the debt could be spent by “the ordinary and usual budget process.”
Peters said, also, he thinks the LDFA should have $1,000 set aside in the budget for incidental activities, “so we don’t have to borrow or get donations.” He referred to what Delaney had to do to raise funds to put on the Sept. 11 program at Grace Lake last fall.
In other business at the March 8 meeting, the LDFA:
• Heard Deputy Supervisor Dan Selman give a synopsis of LDFA activities in 2021 as required by Public Act 57. The report is also required to be posted on the township website. He said the primary focus of the LDFA at this time is the payment of the debt obligations as a result of the Visteon public improvements. The report says, “The LDFA will continue to pursue legal action against the original developer pursuant to the shortfall.” Two information sessions are required per year and notices were sent out to all the taxing authorities;
• Heard a brief report from LDFA chairman Michael Dotson on the subcommittee which was formed to explore use and development of Grace Lake Corporate Center (the former Visteon Village). They have some ideas and others with ideas are asked to let them know. The idea to move the Forgotten Harvest free food lines each Tuesday afternoon to Grace Lake during construction of the VBT Community Center, was shared by Deputy Selman. Delaney said he wants to set up a ceremony for the Boy Scouts who helped put on the Sept. 11 program at Grace Lake and give them certificates.