The Local Development Financing Act, Public Act 281 of 1986, as amended, allows a city, village, or urban township to utilize tax increment financing to fund public infrastructure improvements. This tool is designed to promote economic growth and job creation. Communities across Michigan have utilized LDFA districts to extend sewer and water lines, to construct roads, and to service manufacturing, agricultural processing, and high technology operations.
The financing mechanism allows for the capture of the incremental growth of local property taxes over a period of time to fund public infrastructure improvements. By leveraging future tax increments, the LDFA is able to finance these public improvements, which can lead to new development opportunities within the community.
The Local Development Finance Authority board, which also serves as the City’s Brownfield Authority board, is charged with making and implementing a Development Plan, and the corresponding financing, to promote economic development and create jobs in the City of Hastings. The Authority oversees and recommends to the City projects to develop City property zoned industrial including the City’s Industrial Park on Star School Road. The Authority is eligible to receive State and Federal grants for economic development projects. A tax increment finance district is established which provides funds to the LDFA which are also used to finance these projects.
The City of Hastings Local Development Finance Authority’s Development and Financing Plan was adopted on February 8, 1993 and has been amended two times: first amendment adopted August 24, 1998; second amendment adopted August 13, 2001; to facilitate additional projects, estimate costs, determine priority and establish timelines for completion.
The LDFA has identified certain priority industrial improvement needs that require its attention, participation, support, involvement, and encouragement and it is these priorities toward which the plan is directed. The annual budget reflects the plan’s goals. Objectives will be determined yearly in order to accomplish the implementation of the plan. Staff and the LDFA will then seek to fund those objectives and complete them within the subject budget year.