VBT board approves Aerotropolis LDFA for north end of township

Chris Girdwood of the Detroit Aerotropolis Development Corporation explained what Local Development Finance Authority taxation would do for Van Buren Township during a workshop before the township’s regular meeting on March 3.
He said as a Next Michigan Development Corporation the township could establish a LDFA in one or more other municipalities within the same county. This one would include the cities of Taylor and Romulus.
The Aerotropolis board was to hold a public hearing for the adoption of the LDFA on March 5 and Romulus already had agreed to participate. Girdwood was off to a Taylor meeting following the Van Buren Township meeting to get its resolution in favor, as well. At its March 3 regular meeting, Van Buren Township did unanimously agree to be a part of this LDFA.
After approving the plan on March 5, Aerotropolis must notify the Michigan Economic Development Authority of the designation of the Aerotropolis Development Area.
The LDFA in Van Buren Township would be for TIF (tax increment financing) capture limited to “eligible property” north of the I-94 freeway, which includes:
• manufacturing;
• agricultural processing;
• high technology activity;
• energy production (under certain conditions);
• business incubators;
• alternative energy businesses;
• transit-oriented facilities or development; and
• eligible Next-Michigan Businesses (basically multi-modal commerce, supply chain, logistics, etc.)
Residential property is not included.
Girdwood said the $22-$25 million this will generate in Van Buren Township will get sanitary and water mains and roads to help develop the township.
He said the township has a large portion of undeveloped land with potential that needs infrastructure. Although the tax captures 50% of education funds, education funds are replenished.
He said this is different than the township’s present LDFA, put in place for Visteon Village infrastructure.
“Any school capture is ultimately made whole by the state,” Girdwood said.
He said the Romulus LDFA is for Ecorse Road, border to border, and the Taylor portion is for Inkster Road.
“State looks at regionalism as a plus,” he said.
He presented estimated tax capture charts for areas in the township, including the 73 acres of RACER property, west of Stellantis on Ecorse Road. Over 15 years it can bring in $2.5 million total income, he said.
Trustee Kevin Martin asked what if the state gives a tax cut of 50% to a business and Girdwood said they have built a six-year tax cut into the totals.
“We will not float bonds,” said treasurer Sharry Budd and supervisor Kevin McNamara agreed, “After Visteon, we won’t do bonds.”
Girdwood said after a couple of years, they will be able to go for state and federal funds to help with the infrastructure.
Girdwood said currently there is only one Aerotropolis LDFA in the state and that’s in Romulus. It’s on one business and Romulus has captured $660,000 annually from Amazon.
The new LDFA will be the second one in the state.
Girdwood said they will freeze property values north of I-94 as soon as possible to set the base. The TIF is determined on the rise in property tax values from that base.
“If the board approves it at the Aerotropolis meeting on March 5, then it’s off to the state,” he said.
At the workshop, the township board also received an hour’s worth of information from OHM Advisors on a proposed Moving Together regional public transit project. Since the state removed the option for communities to opt out of the SMART public transit plan and the tax levy, the communities of Canton, Plymouth, Plymouth Township, Northville, Northville Township, Westland and Van Buren Township put together a consortium so, if the SMART millage passes countywide in the August election as anticipated, there can be a proactive plan for transit. This was for information only.
In business at the regular 25-minute meeting that followed the one-hour-and-37-minute workshop, the board:
• Approved the first reading of a zoning ordinance amendment to add housing standards in accordance with the Michigan State Housing Development Authority Housing Readiness Program. The township had received a $45,000 grant to study its ordinances to determine how to add standards for a greater diversity in housing stock by creating additional tools;
• Approved a letter of understanding between the township and Townsend Park Homeowners Association and approval of a settlement agreement between Blue Victoria LLC, Township Park HOA, and the township. This is concerning installation of a fence around the pond and installation of lights;
• Approved a resolution for the long-term maintenance of the storm water management system at Tractor Supply at 15455 Sumpter Rd., as required by Wayne County. There also is a separate agreement with the township on the system;
• Approved receiving and filing the 2025 Planning Commission Annual Report;
• Heard supervisor McNamara announce that the county has approved the cleaning of McKinstry Drain with $3.5 million of drain improvements, and $2 million of that is coming from the county. He said that leaves $1.5 million for Van Buren Township residents to pay. He said his home has an added tax of $30 per year for 10 years. He said flood relief is coming. Work on the drain is to start this summer;
• Heard resident Reg Ion say the township put a moratorium on private prisons and should have had a moratorium on data centers in advance. “But that wouldn’t have been as much money,” Ion said. He was advised the six-month moratorium on detention centers/private prisons, also includes large industrial projects meeting certain criteria and power generation facilities. It includes any new data centers. It doesn’t include the data center already in the works;
• Heard resident Harold Innis say the government wants no stop to artificial intelligence which needs data centers. “There’s more that can be done to put brakes on this,” he said of the data center. “We’re rushing down the path too fast”; and
• Heard a resident of the city of Livonia suggest that Van Buren Township do what Livonia is doing about data centers, without explaining.