LDFA goes into closed-door session to discuss pending law suit

Van Buren Township Local Development Finance Authority (LDFA) went into an hour-long, closed-door zoom session at the beginning of its Nov. 9 meeting to discuss specific pending litigation with its attorney.
After the closed-door session, the LDFA went back into open session and comments indicated that they like the new attorney better than their former attorney because he is more aggressive.
The only litigation the LDFA is involved with is the ongoing suit against Visteon concerning what Visteon is paying to the township in taxes isn’t enough to pay the bonds sold by the LDFA to help construct Visteon Village.
Kaveh Kashef of Butzel Long had been the township’s attorney in the suit and at the LDFA’s last meeting on Sept. 14, chairman Michael Dotson said he would check to see if there was a need for a legal update for the LDFA board.
LDFA second vice chairman John Delaney said he would like to scrutinize the billable hours for the attorney. The budget shows attorney payments of $101,188.55 in 2020, $59,321.71 so far in 2021, and a figure of $50,000 projected for 2022.
Later VBT Clerk Leon Wright told the Independent that Kashef left Butzel Long and the LDFA has a new attorney on its case: Frederick “Rick” Berg of Butzel Long. Berg, who is highly regarded, is a lead attorney in the suit that got a recent financial settlement in the Flint water crisis.
In other business at the 33-minute public session on Nov. 9, the board:
• Officially approved the 2022 LDFA budget that was discussed at the LDFA’s last meeting and formally approved by the Van Buren Township Board of Trustees at its Nov. 2 meeting. It showed property tax capture ($695,000) and Local Community Stabilization Share funds ($100,500) for a total income of $795,500 and expenses of $2,567,981 which makes a negative ending fund balance of $5,758,365.39. The township is loaning, with interest, the LDFA the funds to pay the bonds;
• Approved the meeting schedule for 2022 as 2 p.m. on Jan. 11, March 8, May 10, July 12, Sept. 13 and Nov. 9. The November meeting is moved to a Wednesday because of the election. All the other meetings are on Tuesdays. Township Supervisor Kevin McNamara said he presumed Wayne County will allow in-person meetings starting in January;
• Heard Delaney ask if they will be able to use the “boomerang,” the name he has given to the curved phone that had been put in the middle of the meeting table and used to communicate with absent board members in the past. Selman said prior to COVID, people were able to meet virtually, but the legislature took a second look at that and whether you have to be in person for the vote to count. Selman said he would err on the side of caution and require a person to be in attendance for the vote to count. He said they could put out a link for the public to attend, but not board members. McNamara said Wayne County declared a health emergency so they could have virtual meetings until the end of the year. Delaney said if the LDFA doesn’t have a quorum, one could be on the phone so they could conduct business. He pointed out it was put in their bylaws in 2018. Selman said this is a grey area right now. McNamara said the Republicans wanted to kill zoom and so they changed certain things that changed the issue. He said the Public Act has not changed for the LDFA. Selman stated the township will be in compliance with the Open Meetings Act;
• Heard Selman announce that Van Buren Today magazine, which was to be published within the following two weeks, will publish two separate sections promoting Grace Lake Corporate Center (the former Visteon Village); and
• Was reminded by Delaney that former LDFA member Chuck Covington removed himself from the marketing committee three meetings earlier. Selman said Scott Medlen stepped into that place. The committee now is made up of Supervisor McNamara, Medlin, Delaney, and Dotson.
There are two current vacancies on the LDFA.