This section sets forth the By-Laws of the Downtown Development Authority, providing for its operation and procedure.
(`73 Code, 13.101, § 1)
(A) Purpose. The Downtown Development Authority is organized with reference to Public Act 197 of 1975, being M.C.L.A. §§ 125.1651 - 125.1680, as amended. Its purposes will be to correct and prevent deterioration in business districts and the Cheboygan riverfront in the business district; to encourage historic preservation; to authorize the acquisition and disposal of interests in real and personal property; to authorize the creation and implementation of development plans in the districts; to promote the economic growth of the district to create a board; to prescribe its powers and duties; to authorize the levy and collection of taxes; and to authorize the use of tax increment financing and to accomplish the foregoing by the following means:
(1) Prepare an analysis of economic changes taking place in the downtown district and the waterfront of the Cheboygan River in the downtown district.
(2) Study and analyze the impact of metropolitan growth upon the downtown district and the waterfront of the Cheboygan River in the downtown district.
(3) Plan and propose the construction, the renovation, repair, remodeling, rehabilitation, restoration, preservation, or reconstruction of public facilities, existing docks, and existing building, or multiple family dwelling units which may be necessary or appropriate to the execution of a plan which, in the opinion of the Board, aids in the economic growth of the downtown district.
(4) Develop long-range plans, in cooperation with the agency which is chiefly responsible for planning in the municipality, designed to halt the deterioration of property values in the downtown district and to promote the economic growth of the downtown district, and take such steps as may be necessary to persuade property owners to implement the plans to the fullest extent possible.
(5) Implement any plan of development in the downtown district necessary to achieve the purposes of this act in accordance with the powers of the Authority as granted by this section.
(6) Make and enter into contracts necessary or incidental to the exercise of its powers and the performance of its duties.
(7) Acquire by purchase or otherwise, on terms and condition and in a manner the Authority deems proper or own, convey or otherwise dispose of, or lease as lessor or lessee, land and other property, real or personal, or rights or interests therein, which the Authority determines is reasonably necessary to achieve the purposes of this act, and to grant or acquire licenses, easements, and options with respect thereto.
(8) Improve land and construct, reconstruct, rehabilitate, restore, and improve, maintain, repair and operate any building, including multiple-family dwellings, and any necessary or desirable appurtenances thereto, within the downtown district for the use, in whole or in part, of any public or private person or corporation, or a combination thereof.
(9) Fix, charge, and collect fees, rents, and charges for the use of any building or property under its control or any part thereof, or facility therein, and pledge the fees, rents, and charges for the payment of revenue bonds issued by the Authority.
(10) Lease any building or property under its control, or any part thereof.
(11) Accept grants and donations of property, labor, or other things of value from a public or private source.
(12) Acquire and construct public facilities, boat dock facilities, and riverfront parks and boardwalks.
(13) Provide financial assistance, advisory services and reimbursement of certain expenses to persons displaced from real property or deprived of certain rights in real property pursuant to Public Act 227 of 1972, being M.C.L.A. §§ 231.321 - 231.332.
(14) To receive property taken by the City of Cheboygan under its power of eminent domain for use in an approved development on terms and conditions that it deems appropriate and as necessary for public purposes and for the benefit of the public.
(15) The activities of the authority shall be financed from one or more of the following sources:
(a) Donations to the Authority for the performance of its functions;
(b) Monies borrowed and to be repaid as authorized;
(c) Revenues from any property, building, or facility owned, leased, licensed, or operated by the Authority or under its control, subject to the limitations imposed upon the Authority by trusts or other agreements;
(d) Other types of financing as may be determined by the Authority.
(16) The Authority may borrow money and issue its negotiable revenue bonds therefor pursuant to Public Act 94 of 1933, being M.C.L.A. §§ 141.101 - 141.139, as amended. Revenue bonds issued by the Authority shall not, except as hereinafter provided, be deemed a debt of the municipality or the state. The municipality by majority vote of the members of its governing body may pledge its full faith and credit to support the Authority's revenue bonds.
(17) (a) When the Authority determines that it is necessary for the achievement of its purposes, the Authority shall prepare and submit a tax increment financing plan to the governing body of the municipality. The plan shall be pursuant to Public Act 197 of 1975, being M.C.L.A. §§ 125.1651 - 125.1680, as amended.
(b) The municipality may by resolution of its governing body authorize, issue, and sell general obligation bonds subject to the limitations herein set forth to finance the development program of the tax increment financing plan and shall pledge its full faith and credit for repayment of the bonds. The bonds shall mature in not more than 30 years and shall be subject to Public Act 202 of 1943, being M.C.L.A. §§ 131.1 - 139.3, as amended, and Public Act 197 of 1975, being M.C.L.A. §§ 125.1651 - 125.1680, as amended.
(18) Carry on any activity for the purpose above stated, either directly or as agent for or with public authorities, or in whole or in part through or by means of public authorities, individuals, corporations or other organizations.
(19) In general, and subject to such limitations and conditions as are or may be prescribed by law, to exercise such other powers which now are or hereinafter may be conferred by law upon a corporation organized pursuant to Public Act 197 of 1975, being M.C.L.A. §§ 125.1651 - 125.1680, as amended.
(`73 Code, 13.102, § 2)
(B) Directors and management. The business and affairs of the corporation shall be under the supervision and control of a Board of Directors except as otherwise provided by statute, by the Articles of Incorporation or by the By-Laws.
(1) Board of Directors.
(a) The Board of Directors of the corporation shall consist of the Chief Executive Officer of the municipality and eleven members appointed by the Chief Executive Officer of the municipality, subject to approval by the governing body of the municipality. At least seven of the members shall be persons having an interest in property located in the downtown district. Of the members first appointed, three shall be appointed for one year, three for two years, two for three years, and two for four years. A member shall hold office until the member’s successor is appointed. Thereafter, a member shall serve for a term of four years. An appointment to fill a vacancy shall be made by the Chief Executive Officer of the municipality for the unexpired term only. Members of the Board shall serve without compensation, but shall be reimbursed for actual and necessary expenses. The Chairman of the Board shall be elected by the Board.
(b) Before assuming the duties of office, a member shall qualify by taking and subscribing to the constitutional oath of office.
(c) The Board shall adopt rules governing its procedure and the holding of regular meetings, subject to the approval of the governing body. Special meetings may be held when called in the manner provided in the rules of the Board. Meetings of the Board shall be open to the public.
(d) Pursuant to notice and an opportunity to be heard, a member of the Board may be removed by the governing body.
(e) All expense items of the Authority shall be publicized monthly and the financial records shall always be open to the public.
(`73 Code, 13.103, § 3.20)
(2) Conflict of interest. A Director who has a direct interest in any matter before the corporation shall disclose his interest prior to the corporation taking any action with respect to the matter which disclosure shall become a part of the record of the corporation's official proceedings and the interested director shall further refrain from participation in the corporation's proceedings relating to the matter.
(`73 Code, 13.103, § 3.30)
(C) Officers. The officers of the corporation shall consist of a Chairman, Vice Chairman, Secretary and Treasurer.
(`73 Code, 13.104, § 4.10)
(1) Director.
(a) The Board may employ and fix the compensation of a Director, subject to approval of the governing body of the municipality.
(b) The Director shall serve at the pleasure of the Board.
(c) Before entering upon the duties of his office, the Director shall take and subscribe to the constitutional oath, and furnish bond, by posting a bond in the penal sum determined in the ordinance establishing the Authority payable to the Authority for use and benefit of the Authority, approved by the Board, and filed with the City Clerk. The premium on the bond shall be deemed an operating expense of the Authority, payable from funds available to the Authority for expenses of operation.
(d) The Director shall be the Chief Executive Officer of the Authority.
(e) Subject to the approval of the Board, the Director shall supervise, and be responsible for, the preparation of plans and the performance of the functions of the Authority in the manner authorized by this act.
(f) The Director shall attend the meetings of the Board, and shall render to the Board and to the governing body of the municipality a regular report covering the activities and financial condition of the Authority.
(g) If the Director is absent or disabled, the Board may designate a qualified person as acting Director to perform the duties of the office. Before entering upon the duties of his office, the acting Director shall take and subscribe to the oath, and furnish bond, as required of the Director.
(h) The Director shall furnish the Board with information or reports governing the operation of the Authority as the Board requires.
(2) Treasurer.
(a) The Board may employ and fix the compensation of a Treasurer, who shall keep the financial records of the Authority and who, together with the Director, shall approve all vouchers for the expenditure of funds of the Authority.
(b) The Treasurer shall perform such other duties as may be delegated to him by the Board and shall furnish bond in an amount as prescribed by the Board.
(3) Secretary. The Board may employ and fix the compensation of a Secretary, who shall maintain custody of the official seal and of records, books, documents, or other papers not required to be maintained by the Treasurer. The Secretary shall attend meetings of the Board and keep a record of its proceedings, and shall perform such other duties delegated by the Board.
(4) The Board may retain legal counsel to advise the Board in the proper performance of its duties. The legal counsel shall represent the Authority in actions brought by or against the Authority.
(5) The Board may employ other personnel deemed necessary by the Board.
(`73 Code, 13.104, § 4.20)
(D) Location of the first registered office. The location of the first registered office is:
City of Cheboygan
403 North Huron Street
Cheboygan, Michigan 49721
(213) 627-9931
(`73 Code, 13.105, § 5)
(E) Name of first registered agent. The name of the first registered agent is:
William Elliott Chlopan
City Manager/Engineer
(`73 Code, 13.106, § 6)
(F) Assets.
(1) The amount of assets which the Authority possesses is:
(a) Real property - None.
(b) Personal property - None.
(2) The Corporation will be financed from donations, gifts, grants and devises, either solicited or unsolicited, obtained from public authorities, individuals, corporations and other organizations, by earnings from its activities, borrowings and issuances of its bonds.
(3) The By-Laws of the Downtown Development Authority shall become effective ten days after adoption of this ordinance by the City Council, its publication and its final approval as provided by law.
(`73 Code, 13.107, § 7)
(G) Distribution of earnings.
(1) No part of the net earnings of the corporation shall inure to the benefit of any member, trustee, officer or director of the corporation, or any private individual (except that reasonable compensation may be paid for services rendered to or for the corporation affecting one or more of its purposes) and no member, trustee, officer or director of the corporation or any private individual shall be entitled to share in the distribution of any of the corporate assets or dissolution of the corporation. No part of the earnings shall be used for, nor shall the corporation engage in the carrying on of, propaganda, or otherwise attempting, to influence legislation, and the corporation shall not participate in or intervene in (including the publication or distribution of statements) any political campaign on behalf of any candidate for public office.
(2) Upon dissolution of the corporation or the winding up of its affairs, all property and assets of the corporation shall be distributed exclusively to the city or its successor.
(`73 Code, 13.108, § 8)
(H) Publication. These By-Laws shall be published in accordance with the provisions of Public Act 197 of 1975, being M.C.L.A. §§ 125.1651 - 125.1680, as amended.
(`73 Code, 13.109, § 9)
(I) Adoption. The initial By-Laws of the Authority were adopted by the Authority at its regular meeting of July 10, 1985, by a majority vote of the Directors present, and shall be deemed fully enforceable upon ratification by the City Council. The Board may amend or repeal the By-Laws or adopt new by-laws subject to the approval of the City Council by ordinance. The by-laws may contain any provision for the regulation and management of the Authority, not inconsistent with the law of these by-laws and Public Act 197 of 1975, being M.C.L.A. §§ 125.1651 - 125.1680, as amended.
(`73 Code, 13.110, § 10)
(Ord. eff. 9-16-85; Am. Ord. eff. 1-28-08)