Christopher Girdwood of Aerotropolis and Van Buren Township Supervisor Kevin McNamara explained a proposal to the Van Buren Township Local Development Finance Authority that would bring in $35 million or so over 15 years to build infrastructure to encourage development.
At the regular Oct. 10 LDFA meeting, Girdwood explained that the city of Romulus and Huron Township already have taken advantage of a new kind of LDFA through Aerotropolis.
Girdwood said there are significant needs in VBT for the land north of Willow Run Airport where there are large parcels without adequate access to sewer and water and road upgrades are needed. He said it is yet to be determined whether YCUA or SHUVA could process this sewage and so the line would go along Ecorse or Beck. He said they would keep the flow off Belleville Road.
He said Romulus and Huron Township used the Aerotropolis LDFA to support their projects. It involves capturing the State Aid Tax Revenue and Local Education Operating Funds in VBT for 15 years and then it goes back to the state.
Aerotropolis would hold the money for the township.
“No harm. No foul,” to the education system, Girdwood said, since the state would continue to fund the local district.
“The infrastructure you have in place cannot support development,” he said.
When LDFA member Doug Peters asked just how much they are trying to raise for the projects, Girdwood said $25 million to $35 million would cover the entire cost.
Van Buren Public Schools Superintendant Pete Kudlak said he was not in favor of them capturing taxes meant for education. He said it would drain the State Aid fund and districts would lose.
He said the state looks at the School Aid fund to see how much to pay the districts per pupil and the districts would get less with less in the fund.
He said the district now gets $9,150 per student and if they are looking at $9,400 next year and see the money is down, it could say no to the higher amount and just give them $9,350.
Supt. Kudlak said, “They have to backfill our dollars.”
Supervisor McNamara said there are only five of these LDFAs and Supt. Kudlak said, “Every one is draining the fund. It’s a loophole … I know it’s allowed, but it shouldn’t be.”
Kudlak said it shouldn’t come out of the School Aid fund, adding he’s not saying the project isn’t good.
Girdwood said if a battery plant comes, the township gets more tax funds.
“It doesn’t have to be funded that way,” Kudlak said.
“The general obligation bonds failed and you won’t do that again,” Girdwood said. He said the state intentionally left this to tap into. LDFAs sunset over time and the State Aid fund will grow, he said.
Kudlak said during the 15 years, the schools will get less money to pay more for salaries and other growing costs.
“The K-12 dollars should be paid on kids,” Kudlak said.
LDFA member David Schreiber said he was in favor of the new proposal.
“You shouldn’t have the K-12 students in the state funding this,” Kudlak insisted.
Schreiber said the State Aid fund doesn’t get smaller, it just doesn’t grow as fast. He said the township would get development that might not happen otherwise.
“It shouldn’t be out of this,” Kudlak insisted.
Supervisor McNamara said it will take $25 million to $35 million to do this and the township collects just $1 million a year. With the LDFA there are no bonds.
“They give us the opportunity to raise this money and I don’t want to turn my back on this,” McNamara said.
Power said one issue might support this. He said instead of building apartments and homes which would increase the number of students needing services, building plants would bring tax money.
“You’re better off not having more residents, which adds students and not tax dollars,” Power said.
“We want to put up a lasting community,” McNamara said.
Power reminded him that Visteon put out notices to new employees that they should move to Canton and Northville because they have great schools.
LDFA chairman Michael Dotson said the proposed LDFA overlays Grace Lake and the present LDFA.
Girdwood said the new LDFA, which would cover all the VBT north of the freeway, would capture 50% of the school funds. It would not interfere with the present LDFA.
Dotson said tax incentives would negate the income and Girdwood said, “We ask for no tax incentives.”
Peters asked how much depends on a bullish economy and Girdwood replied, “In the event a downtown happens, we just will get less.”
Schreiber said Michigan just lost a large Ford plant and the southern state that got it put in infrastructure over a 20-year period. He said he doesn’t know how they funded that.
“Michigan lost a “huge development because it didn’t have infrastructure,” Schreiber said.
Kudlak said he couldn’t get past the idea that the LDFA would be holding up money that helps kids learn and was “getting funding on the backs of our children. It’s ridiculous!”
“What’s next?” Peters asked and Dan Power, director of planning and economic development, said, “Timing is critical. We should try to start when we can.”
Power passed out maps of the proposed LDFA area, from I-94 to Van Born and Rawsonville to Hannan.
McNamara said this is a grandiose giveaway opportunity.
“I can’t believe they are allowing us to do this,” he said. “We’re the last of the Mohicans in Southeast Michigan … a golden diamond.”
Peters said if they go to the proper people in state government, they can get money.
Kudlak suggested finding out how the southern state got its money and Girdwood said it used tobacco and alcohol taxes to fund the infrastructure.
Peters said if there’s a financial crash, they can count on sin taxes since people drink more and smoke more during a crash.
Girdwood said Van Buren Township has this opportunity and its neighbors are doing it.
Dotson said it is not appropriate for this LDFA to move on this.
Girdwood said this would first go to the Aerotropolis LDFA board which would work together with the township on the expenses and revenues. Then they would send it to the LDFA corporate board for a public hearing. Then the corporate board would approve it and it would go to the VBT board.
“This proposal shouldn’t have come to this board,” Peters said. “We know too much.”
Kudlak asked how much Aerotropolis makes on this and Girdwood said very little and there are no extra dues. He said he asked Romulus and Huron Township if they could help with legal fees and they did.
“If we get this thing through … it could still help us out with Grace Lake,” McNamara said.
Girdwood said it could be amended.
Kudlak asked if this could happen again and Girdwood said, “Yes. Do I have an interest in that? No.” He said the township could have large, billion-dollar projects north of Willow Run.
McNamara said the VBT LDFA would take no action on this new proposal. He said he just wanted to roll it out for them so they would know what was going on.
In other action the LDFA approved the quarterly meeting dates for 2024 as: Jan. 9, April 9, July 9, and Oct. 8.
Weather