Local township trustees are talking about bring the CIA to Independence Township ? and they are not referring to the U.S. Central Intelligence Agency.
During their March 7 meeting, the Independence Twp. Board of Trustees listened to a presentation by Township Planner Dick Carlisle on ‘Corridor Improvement Authorities,? or CIA’s.
Corridor Improvement Authorities were passed into law on December 19, 2005 by Governor Jennifer Granholm in Public Act 280. The act was designed as a community development tool for Michigan commercial corridors.
In a memo dated March 2, Carlisle says CIA districts ‘function in a manner similar to a Downtown Development Authority (DDA), but with special powers, conditions and criteria unique to commercial corridors.?
On significant ‘power? is the ability for communities to create as many CIA districts as they wish, as long as no single parcel is situated within more than one CIA district.
In addition, CIA districts can cover corridors existing in more than one community. For example, Dixie Highway is a commercial corridor stretching over several communities ? locally White Lake, Independence and Springfield townships ? and can be covered by one CIA district in all of them.
On March 7, Carlisle spoke to the board regarding a possible CIA district covering the Sashabaw corridor from just north of Clarkston Road to just south of Maybee Road.
‘I think this is a wonderful opportunity to benefit from the prosperity north of Maybee Road and use that to improve south of Maybee Road,? said Carlisle. ‘This particular piece of legislation gives us some opportunities for this.?
According to Carlisle, the Sashabaw corridor has experienced over one million-square-feet of improvements, 68 percent of which is commercial. Currently, the area has $90 million in taxable value.
As for establishing a CIA, communities must fulfill seven requirements, hold a public hearing, create the district and create a CIA membership to oversee the district.
‘We are capable of meeting all the criteria to form a CIA for the Sashabaw Corridor,? Carlisle informed the board.
Carlisle also informed board members that although there are several options for financing CIA projects, the most common is through Tax Increment Financing (TIF).
According to Carlisle’s March 2 memo, when using TIF, ‘a body has the ability to capture any new tax revenues attributable to increases in value of eligible real and personal property that result from implementing the CIA development plan beyond an established date. These funds are set aside for reinvestment projects within the boundary of the CIA.?
In essence, the CIA can collect the difference in taxes when taxable values increase. For example, a corridor with a current taxable value of $70 million increases the following year to $80 million after the creation and implementation of a CIA district. The CIA is then able to capture any taxes or millages collected on the new $10 million of taxable value.
‘We’ve had experience with TIF’s before,? said Carlisle. ‘This is a direct way to put the additional revenue back into the area.?
Several board members spoke favorably of creating a CIA district along the Sashabaw Corridor.
Trustee Dan Travis motioned, and Trustee Dan Kelly seconded, to proceed researching the idea with ‘due diligence? and have Carlisle return to the board with a full report. Trustees passed the motion unanimously.