VBT LDFA reelects Dotson chairman, Kudlak vice president

Although he was absent and excused from the Jan. 14 meeting of the Van Buren Township Local Development Finance Authority, Michael Dotson was reelected chairman of the LDFA for 2025.
Van Buren Public Schools Superintendent Peter Kudlak was elected to the position of vice-chairman, a position he was appointed to in late 2024.
Alex Dine was elected second vice-chairman.
Vice-chairman Kudlak presided at the 12-minute meeting in the absence of Dotson.
In other business at the meeting, the LDFA reviewed the draft synopsis of the 2024 finances prepared by Township Deputy Supervisor Dan Selman. He said all the changes are left in red ink so they can be easily seen. At the next meeting, a clean copy will be presented, he said.
The report gave an overview of the LDFA activities from its beginning to today.
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 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 oligation relating to the Series 2003 Tax Increment Bonds, the Series 2006 Tax Increment Revenue Refunding Bonds, and the Series 2015 Tax Increment Revenue Refunding Bonds issued by the township for improvements 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. 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 amount paid off was $8,216,264.35. The LDFA is currently paying semi-annual debt payments with the remaining Visteon settlement money supplemented by semi-annual tax capture revenues. As of Dec. 31, 2024, the LDFA’s cash balance was $2,672,630.88.
With the terms of the settlement agreement satisfied, the Visteon matter is now closed.
As specified in the most recent audit (2023), the primary focus of the LDFA is payment of debt obligations from tax captures. Due to this, there were no capital or promotional projects by the LDFA in 2024.
At the end of the Jan. 14 meeting, Deputy Supervisor Selman asked those present to help the township in filling a janitor’s position that is open. He said hours are 7 a.m. to 5 p.m., Monday through Thursday, and although the job is not glamorus, it is a solid job. Those interested can apply on line.
Selman said he knows he sounds like an old man when he says this, but in earlier times, people would fight for a good job like this. Now, there are no applicants.
Absent and excused from the Jan. 14 meeting besides Dotson were LDFA members Leonard Armstrong and David Schreiber.