Michael Dotson re-elected chairperson of VBT LDFA for 2026

Michael Dotson was re-elected chairman of the Van Buren Township Local Development Financial Authority for 2026 at its regular meeting on Jan. 13.
Re-elected as vice chairman was Pete Kudlak, superintendent of the Van Buren Public Schools, and re-elected as second vice-chairman was Alex Dine.
Also on the agenda was the LDFA’s review of the 2025 Draft Synopsis of Activities as submitted by Van Buren Township deputy supervisor Dan Selman.
The synopsis explained the original purpose of the LDFA was to finance and construct eligible public improvements for the Visteon Village project which was completed in 2004. In order to complete the public improvements, the LDFA established a development plan and tax increment financing plan which identified the improvements, estimated the costs of the improvements and estimated the amount of tax revenue the authority would capture based on the proposed improvements.
In order to finance the construction of the public improvements, the LDFA issued bonds to cover the costs of the improvements and those bonds were guaranteed by the township’s ability to tax. Those public improvements have been completed.
Due to economic conditions, the LDFA was unable to capture sufficient tax revenue to cover scheduled debt service due to the shortfall, which occurred on Oct. 1, 2019. This triggered a continuation of litigation over a longstanding legal dispute with the LDFA and township against the original developer Visteon, over the obligation relating to the Series 2003 Tax Increment Bond, the Series 2006 Tax Increment Revenue Refunding Bonds, and the Series 2015 Tax Increment Revenue Refunding Bonds issued by the township for improvement on certain real property for the development of Visteon Village, now known as Grace Lake Corporate Center.
In 2019, the LDFA and the township structured a loan agreement with “advances” from the township to the LDFA to cover the shortfall amount of the debt service. As detailed in the loan agreement, the LDFA agreed to pay interest on the township’s shortfall payments until they are reimbursed at an annual interest rate equal to the average interest rate that the township is earning on the investment of its General Fund monies.
These “advances” were necessary to meet the bond obligations due on April 1 and Oct. 1 each year until the bond obligation is fulfilled.
In 2023, the township and LDFA reached a settlement agreement with Visteon. The terms of the settlement were that Visteon agreed to pay the sum of $12 million to Van Buren Township in two installments of $6 million. In return, the township and LDFA agreed to release Visteon of any future obligations related to assisting in the repayment of the bonds.
On July 1, 2023, the township received the first installment of $6 million. On July 3, 2024, the township received the second installment of $6 million.
Per legal counsel, the settlement funds went toward repayment of the “advances” for the debt service. The principal and interest among paid off was $8,216,264.35. The LDFA is currently paying semi-annual debt payment with the remaining Visteon settlement money supplemented by semi-annual tax capture revenues.
With the terms of the settlement agreement satisfied, the Visteon matter is now closed.
As of Dec. 31, 2025, the LDFA’s cash balance was $1,044,611.40 which will continue to be directed toward future debt obligations.
As specified in the most recent annual audit in 2024, the primary focus of the LDFA is payment of debt obligations from tax captures. Due to this, there were no other capital or promotional projects by the LDFA in 2025.