VBT LDFA keeps watch on upcoming shortfall on Visteon bonds

At its regular meeting Nov. 14, the Van Buren Township Local Development Finance Authority approved its 2019 budget that shows a shortfall of $639,157 for its October payment on the Visteon bonds and a loan from the township’s long-term debt fund to cover the payment in case Visteon continues to refuse to help pay.
Supervisor Kevin McNamara said it will be a loan with interest and he is targeting the July LDFA meeting to approve the loan document. He stressed they will ask Visteon first for help with the payment.
When asked by LDFA member Doug Peters who will write up the loan document, Director of Planning and Economic Development Ron Akers said township attorney Patrick McCauley and attorney Kaveh Kashef could work together.
Supervisor McNamara said he would like to get a new attorney who knows about these kinds of issues.
“Not Kaveh,” said Peters, a retired attorney, noting McCauley represents the township and Kashef is representing the LDFA.
In discussing the law suit against Visteon, McNamara said Kashef made the oral argument before the Michigan Supreme Court on Oct. 9, seeking an appeal of the suit that failed at the circuit court and appeals court levels. The court’s decision as to whether it will hear the appeal is pending.
“We thought we did great,” said McNamara, who said he attended the court hearing in person.
It was noted Supreme Court Justice Bernstein tried to give Visteon counsel, but they wouldn’t take it. The big issue was if the township’s loss was “ripe.”
“If we lose, it doesn’t matter,” Peters said of the Supreme Court ruling. “We’re going to be ripe soon enough, in October 2019.”
“We need a schedule of what’s taking place,” said LDFA chairman Michael Dotson and Akers assured him he would prepare the information.
Dotson also noted they need to keep the community aware of “this amazing location over there,” referring to Grace Lake Corporate Center, previously called Visteon Village and built with the help of VBT bonds.
“Grace Lake benefits the LDFA,” Dotson said.
LDFA secretary John Delaney said he would like to have a copy of the oral argument before the Michigan Supreme Court for the LDFA records, apart from township records. He was told it is on You Tube and they could get a copy.
Akers pointed out the state statute on LDFAs requires its budget to be submitted to the township board for approval first and then adopted by the LDFA board. This exact budget was before the LDFA on July 24 and then the VBT board approved it Oct. 16.
The LDFA board also approved its 2019 meetings, all at 2 p.m., for: Jan. 8, March 12, May 14, July 9, Sept. 10 and Nov. 13. Informational meetings required by the state will be a part of the March 12 and Sept. 10 meetings.
Delaney said he would like to see a meeting of the Marketing subcommittee and Dotson said he would set a meeting. Dotson, Delaney, and Chuck Covington serve on that subcommittee.
The LDFA also welcomed new member, Dave Schriber, representing Wayne County. He has been Wayne County Economic Development Manager for a year and a half and before that worked in business development for Oakland County for 30 years.