Village of Holly v. Holly Twp.
| Decision Date | 26 July 2005 |
| Docket Number | Docket No. 254379. |
| Citation | 705 N.W.2d 532,267 Mich. App. 461 |
| Parties | VILLAGE OF HOLLY and Downtown Development Authority of the Village of Holly, Plaintiffs-Appellees, v. HOLLY TOWNSHIP and Holly Township Treasurer, Defendants-Appellants. |
| Court | Michigan Supreme Court |
Simen, Figura & Parker, P.L.C. (by Richard J. Figura and Kari E. Burba), Flint, for the plaintiffs.
Adkison, Need & Allen, PLLC (by Gregory K. Need), Bloomfield Hills, for the defendants.
Tomkiw Dalton, PLC (by Daniel P. Dalton), Royal Oak, for the Michigan Downtown and Finance Authority.
Miller, Canfield, Paddock and Stone, P.L.C. (by Patrick F. McGow and Ruth H. Swartout), Detroit, for the Michigan Municipal League.
Before: SAWYER, P.J., and MARKEY and MURRAY, JJ.
In this case of first impression, we must decide whether Holly Township timely adopted a resolution to exempt its taxes from capture by the Village of Holly Downtown Development Authority. MCL 125.1653(3) provides, in pertinent part: "Not more than 60 days after a public hearing held after February 15, 1994, the governing body of a taxing jurisdiction levying ad valorem property taxes that would otherwise be subject to capture may exempt its taxes from capture by adopting a resolution to that effect and filing a copy with the clerk of the municipality proposing to create the authority." The issue on appeal is whether, despite the use of the indefinite article "a" preceding "public hearing," the Legislature intended to refer only to those public hearings necessary to create a downtown development authority or to amend the boundaries of an existing authority. By reading subsection 3 in context, we conclude that the Legislature intended to refer only to public hearings specified in MCL 125.1653. Accordingly, we reverse the trial court's judgment to the contrary.
In 1975, the Legislature adopted the downtown development authority act (the "Act"), MCL 125.1651 et seq. 1975 PA 197. As stated in its title, the Act was intended to allow the creation of downtown development authorities to, among other things, "correct and prevent deterioration in business districts; to encourage historic preservation; . . . to authorize the creation and implementation of development plans in the districts; [and] to promote the economic growth of the districts . . . ." Further, the Legislature stated that the Act was intended to "provide a means for local units of government to eliminate property value deterioration and to promote economic growth in the communities served by those local units of government." MCL 125.1651a(h). The Act provides for the funding of downtown development authorities (DDAs) by "capturing" increases in taxes on property within the boundaries of the DDA levied by other governmental bodies. In theory, the "captured" increased taxes result from the increase of property values over an initial assessed valuation attributed to economic development the DDA activities stimulate. Thus, "tax increment financing is a government financing program that contributes to economic growth and development by dedicating a portion of the increase in the tax base resulting from economic growth and development to facilities, structures, or improvements within a development area thereby facilitating economic growth and development." MCL 125.1651a(d).
The Act requires two types of public hearings. Section 3, MCL 125.1653, requires a public hearing before a municipality (a city, village, or township) creates a DDA with specified boundaries or amends an existing DDA's district boundaries. Section 18, MCL 125.1668, requires a public hearing before the governing body that created the DDA adopts an ordinance approving the DDA's development plan or tax increment financing (TIF) plan.
The village of Holly formed its DDA in 1984. In 1993, the Legislature amended the Act to add a procedure for taxing jurisdictions affected by a proposed new or expanded DDA to "opt out" and thereby prevent the DDA from capturing revenue that would otherwise go to the taxing jurisdiction. As amended by 1993 PA 323,1 § 3 of the Act provides:
(1) When the governing body of a municipality determines that it is necessary for the best interests of the public to halt property value deterioration and increase property tax valuation where possible in its business district, to eliminate the causes of that deterioration, and to promote economic growth, the governing body may, by resolution, declare its intention to create and provide for the operation of an authority.
(2) In the resolution of intent, the governing body shall set a date for the holding of a public hearing on the adoption of a proposed ordinance creating the authority and designating the boundaries of the downtown district. Notice of the public hearing shall be published twice in a newspaper of general circulation in the municipality, not less than 20 or more than 40 days before the date of the hearing. Not less than 20 days before the hearing, the governing body proposing to create the authority shall also mail notice of the hearing to the property taxpayers of record in the proposed district and for a public hearing to be held after February 15, 1994 to the governing body of each taxing jurisdiction levying taxes that would be subject to capture if the authority is established and a tax increment financing plan is approved. Failure of a property taxpayer to receive the notice shall not invalidate these proceedings. Notice of the hearing shall be posted in at least 20 conspicuous and public places in the proposed downtown district not less than 20 days before the hearing. The notice shall state the date, time, and place of the hearing, and shall describe the boundaries of the proposed downtown district. A citizen, taxpayer, or property owner of the municipality or an official from a taxing jurisdiction with millage that would be subject to capture has the right to be heard in regard to the establishment of the authority and the boundaries of the proposed downtown district. The governing body of the municipality shall not incorporate land into the downtown district not included in the description contained in the notice of public hearing, but it may eliminate described lands from the downtown district in the final determination of the boundaries.
(3) Not more than 60 days after a public hearing held after February 15, 1994, the governing body of a taxing jurisdiction levying ad valorem property taxes that would otherwise be subject to capture may exempt its taxes from capture by adopting a resolution to that effect and filing a copy with the clerk of the municipality proposing to create the authority. The resolution takes effect when filed with that clerk and remains effective until a copy of a resolution rescinding that resolution is filed with that clerk.
(4) Not less than 60 days after the public hearing, if the governing body of the municipality intends to proceed with the establishment of the authority, it shall adopt, by majority vote of its members, an ordinance establishing the authority and designating the boundaries of the downtown district within which the authority shall exercise its powers. The adoption of the ordinance is subject to any applicable statutory or charter provisions in respect to the approval or disapproval by the chief executive or other officer of the municipality and the adoption of an ordinance over his veto. This ordinance shall be filed with the secretary of state promptly after its adoption and shall be published at least once in a newspaper of general circulation in the municipality.
(5) The governing body of the municipality may alter or amend the boundaries of the downtown district to include or exclude lands from the downtown district pursuant to the same requirements for adopting the ordinance creating the authority. [MCL 125.1653, 1993 PA 323; text added or altered by that public act shown in italics.]
1993 PA 323 did not affect § 18 of the Act, which requires a public hearing before a municipality adopts an ordinance approving a DDA development plan or TIF plan. As originally enacted and at all times pertinent to this case, § 18 provides:
(1) The governing body, before adoption of an ordinance approving a development plan or tax increment financing plan, shall hold a public hearing on the development plan. Notice of the time and place of the hearing shall be given by publication twice in a newspaper of general circulation designated by the municipality, the first of which shall be not less than 20 days before the date set for the hearing. Notice of the hearing shall be posted in at least 20 conspicuous and public places in the downtown district not less than 20 days before the hearing. Notice shall also be mailed to all property taxpayers of record in the downtown district not less than 20 days before the hearing.
(2) Notice of the time and place of hearing on a development plan shall contain: a description of the proposed development area in relation to highways, streets, streams, or otherwise; a statement that maps, plats, and a description of the development plan, including the method of relocating families and individuals who may be displaced from the area, are available for public inspection at a place designated in the notice, and that all aspects of the development plan will be open for discussion at the public hearing; and other information that the governing body deems appropriate. At the time set for hearing, the governing body shall provide an opportunity for interested persons to be heard and shall receive and consider communications in writing with reference thereto. The hearing shall provide the fullest opportunity for expression of opinion, for argument on the merits, and for introduction of documentary evidence pertinent to the development plan. The...
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