(A) It is acknowledged that it is a proper public purpose of the state and its political subdivisions to provide housing for low income citizens and to encourage the development of such housing by providing for a service charge in lieu of property taxes in accordance with Public Act 346 of 1966, being M.C.L.A. §§ 125.1404 through 125.1499. The city is authorized by Public Act 346 of 1966, being M.C.L.A. §§ 125.1404 through 125.1499 and this subchapter to establish or change the annual service charge to be paid in lieu of taxes by any and all classes of housing exempt from taxation under Public Act 346 of 1966, being M.C.L.A. §§ 125.1404 through 125.1499 at any amount it chooses not to exceed the taxes that would be paid but for Public Act 346 of 1966, being M.C.L.A. §§ 125.1404 through 125.1499. It is further acknowledged that housing for low income persons and families is a public necessity and, as the city will be benefitted and improved by such housing, the encouragement of the same by providing certain real estate tax exemptions for such housing is a valid public purpose; further, that the continuance of the provisions of this subchapter for tax exemption and the service charge in lieu of taxes during the period contemplated in this subchapter are essential to the determination of economic feasibility of housing developments which are constructed and financed in reliance on such tax exemption.
(B) The city acknowledges that Venture Willow Haven LDHA LP (the “sponsor” as defined in § 30.48) has committed to construct, own, and operate a housing development identified as “Venture Willow Haven LDHA LP” on certain property located on 815 S. Bridge within the city which is legally described in the definition for “housing development” in § 30.48, to serve low income or moderate income persons, and that the sponsor has offered to pay and will pay to the city, on account of the housing development, an annual service charge for public services in lieu of all taxes.
(Ord. 334, passed 2-13-2012)