City of Flint, Michigan

Third Floor, City Hall

1101 S. Saginaw Street
Flint Michigan 46502
www. cityofflint. corn

Meeting Agenda Final -

Monday, February 27, 2017

5:30 PM

Council Chambers

CITY COUNCIL

Kerry L. Nelson, President, Ward 3

Vicki VanBuren, Vice President, Ward 8

Eric Mays, Ward I Jacqueline Poplar, Ward 2

Kate Fields, Ward 4 Wantwaz D. Davis, Ward 5
Herbert J. Winfrey, Ward 6 Monica Galloway, Ward 7
Scoff Kincaid, Ward 9

lnez M. Brown, City Clerk

CITY COUNCIL Meeting Agenda Final
- February 27, 2017

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

SPECIAL ORDER

170104 Special Order/Genesee Conservation District

A Special Order as requested by Council President Nelson to allow for a

presentation from the Genesee Conservation District on the removal of street
trees within the city.

PRESENTATION OF COMMITTEEICOUNCIL MINUTES

170109 Summary Minutes/Flint City Council/Regular Meeting/February 13, 2017

Summary Minutes of the Flint City Council regular meeting held Monday,
February 13, 2017, at 6:04 p.m., in the City Council Chambers, 3rd Floor, City
Hall.

PUBLIC HEARINGS

170092.4 Public Hearing/Ordinance No. 170092

A Public Hearing for Ordinance No. 170092, an ordinance to amend Chapter

18 (Taxation; Funds; Purchasing), Article I (In General), Section 18-4.1
(Service Charge in Lieu of Taxes for Housing Facilities for Certain Persons), of
the Code of the City of Flint by adding a new subsection (u), concerning
Berkley Place Apartments (Communities First, Inc.).

170093.4 Public Hearing/Ordinance No. 170093

A Public Hearing for Ordinance No. 170093, an ordinance to amend Chapter

18 (Taxation; Funds; Purchasing), Article I (In General), Section 18-4.7 (Same
- Duration), of the Code of the City of Flint concerning the duration of tax
incentives.

PUBLIC COMMENT
Per the amended Rules Governing Meetings of the Council (as adopted by the City
Council on Monday, April27, 2015), members of the public may address the Council
for three (3) minutes on ANY ITEM PERTAINING TO THIS A GENDA.

PETITIONS AND UNOFFICIAL COMMUNICATIONS

None
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CITY COUNCIL Meeting Agenda Final
- February 27, 2017

COMMUNICATIONS FROM CITY OFFICIALS

None

ADDITIONAL COMMUNICATION

APPOINTMENTS
None

APPOINTMENTS (May Be Referred from Special Affairs)

170108 Appointment/Board of Review/Dione Freeman

Resolution approving the appointment of Dione Freeman (1801 Woodlin

Drive, Flint, Ml Ward 1) to the Board of Review for a three-year term
-

commencing January 1,2017, and expiring December 31, 2020, as requested

by 1st Ward City Councilperson Eric Mays. [NOTE: By way of background,
Ms. Freeman is replacing Chia Morgan, whose term expired December31,
2016.]

LICENSES

RESOLUTIONS
170097 CO#3/ContractiWilliam E. Walter/HVAC Support Services

Resolution resolving that the proper City Official are hereby authorized to
enter into change order #3 to the contract with William E. Walter for additional
HVAC support services, as requested by Utilities and Maintenance, in the
amount of $15,000.00, for a total aggregate amount of $338,000.00 [General
Fund Acct. No. 101-753.200-801.000]. [Administration Submission No.
CA347201 7.]

170098 Argus-Hazco/Self-Contained Breathing Apparatus (SCBA)

Resolution authorizing the Department of Purchases & Supplies, upon City

Councils approval, to issue, a purchase order to Argus-Hazco for
Self-Contained Breathing Apparatus (SCBA), as requested by the Fire
Department, in an amount NOT-TO-EXCEED $251,390.00 [General Fund
Acct. No. 101-338.201-977.000]. [Administration Submission No. CA348201 6.]

170099 Public Hearing Date/Commercial Rehabilitation Exemption Certificate/615 S.

Saginaw Street

Resolution resolving that the appropriate officials do all things necessary to set
a Public Hearing date of March 27, 2017, to consider the approval of a
Commercial Rehabilitation (Exemption Certificate) application for the Flint
City of Flint, Michigan Page 3 Printed on 2/25/2017
CITY COUNCIL Meeting Agenda- Final February 27, 2017

Ferris Building, located at 615 S. Saginaw Street, with said hearing to be held
at 5:30 p.m. in City Council Chambers, City HaIl, 1101 S. Saginaw Street,
Flint, as requested by the Department of Community and Economic
Development (DCED), and that notice of the hearing shall be published in an
official paper of general circulation not less than ten (10) days prior to said
hearing. [Administration Submission No. CA349201 7.]

RESOLUTIONS (May Be Referred from Special Affairs)

170105 ContractiLiquiForce Services (USA), lnc./Storm and Sewer Relining

Resolution resolving that the proper City Official are authorized to enter into a
contract with LiquiForce Services (USA), Inc. for storm and sewer relining for
the period ending June 30, 2018, as requested by Purchasing, in an amount
NOT-TO-EXCEED $2,500,000.00 [Sewer Fund Acct. No.
590-540.300-801.000 = $500,000.00/FY2O1 7; Sewer Fund = $2,000,000.00
pending FY2018 Budget]. [Administration Submission No. CA3522017]

170106 Professional Services Agreement (PSA)/Executive Assistant to the City

Ad ministrator/Schuyler Davis

Resolution resolving that the Administration, on behalf of the City, enters into a
Professional Services Agreement (PSA) with Schuyler Davis as Executive
Assistant to the City Administrator, commencing February 3,2017, and ending
February 3, 2018, with agreed upon compensation at an hourly rate of
$20186, and compensation drawn fromAcct. No. 101-172-100.702.000, and
a W-2 Form provided for income tax and accounting purposes.
[Administration Submission No. CA353201 7]

170107 Charitable Gaming License/State of Michigan Lottery Charitable Gaming

Division/Bruin Club of Genesee County

Resolution recognizing the Bruin Club of Genesee County as a non-profit

organization operating in the City of Flint for the purpose of bbtaining a
charitable gaming license, issued by the Michigan Lottery Charitable Gaming
Division, relative to conducting licensed gaming events, as allowed by Act 382
of the PublicActs of 1972, as amended. [Administration Submission No.
CA3542017]

LIQUOR LICENSES

ORDINANCES First Reading

-

ORDINANCES Second Reading

-

170092 AmendmentlOrdinance/Chapter 18 (Taxation; Funds; Purchasing)/Article I (In

General)/Section 18-4.1 (Service Charge in Lieu of Taxes for Housing
Facilities for Certain Persons)

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CITY COUNCIL Meeting Agenda Final - February 27, 2017

An ordinance to amend Chapter 18 (Taxation; Funds; Purchasing), Article I (In

General), Section 18-4.1 (Service Charge in Lieu of Taxes for Housing
Facilities for Certain Persons), of the Code of the City of Flint by adding a new
subsection (u), concerning Berkley Place Apartments (Communities First, Inc.).

170093 Amendment/Ordinance/Chapter 18 (Taxation; Funds; Purchasing)/Article I (In

General)/Section 18-4.7 (Same Duration)
-

An ordinance to amend Chapter 18 (Taxation; Funds; Purchasing), Article I (In

General), Section 18-4.7 (Same Duration), of the Code of the City of Flint
-

concerning the duration of tax incentives.

PUBLIC SPEAKERS
Per the amended Rules Governing Meetings of the Council (as adopted by the City
Council on Monday, April 27, 2015), members of the public may address the Council
for three (3) minutes IN GENERAL.

ADDITIONAL COUNCIL DISCUSSION

ADJOURNMENT

City of Flint, Michigan Page 5 Printed on 2/25/2017

 1T0109
an City of Flint, Michigan
Summary Meeting Minutes For F~y~arnt4~5~2
CITY COUNCIL
Kerry L. Nelson, President, Ward 3
Vicki VanBuren, Vice President Ward 8

Eric Mays~ Ward I Jacqueline Poplai Ward 2

Kate Fields, Ward 4 Wan twaz D. Davis, Ward 5
Herbert J. Win frey, Ward 6 Monica Galloway, Ward 7
Scott Kincaid, Ward 9

lnez M. Brown, City Clerk

Monday, February 13, 2017 6:04 PM Council Chambers

SUMMARY FOR 2-27-2017 CITY COUNCIL AGENDA

170095 Special Order/Update/Water Credits and Source Water

A Special Order as requested by Councilperson Mays to allow for a brief

update by Interim Chief Financial Officer David Sabuda regarding the
decisions made by State officials to end the water relief credits being applied
to the accounts of Flint water customers and the end of funding for the source
water from the Great Lakes Water Authority.
Presented

170084 Summary Minutes/Flint City Council/Special Meeting/January 19, 2017

Summary Minutes of the Flint City Council special meeting held Thursday,
January 19, 2017, at 2:07 p.m., in the City Council Chambers, 3rd Floor, City
Hall.
A motion was made by Councilperson Kincaid, seconded by Councilperson
Galloway, that this matter be Placed on File. The motion carried by the following
vote:
Aye: 9- Councilperson Mays, Councilperson Poplar, President Nelson,
Council person Fields, Council person Davis, Councilperson Winfrey,
Councilperson Galloway, Vice President VanBuren and Councilperson
Kincaid

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CITY COUNCIL Summary Meeting Minutes For February 13, 2017

170085 Surtimary Minutes/Flint City Council/Regular Meeting/January 23, 2017

Summary Minutes of the Flint City Council regular meeting held Monday,
January 23, 2017, at 6:17 p.m., in the City Council Chambers, 3rd Floor, City
Hall.
A motion was made by Councilperson Kincaid, seconded by Councilperson
Galloway, that this mailer be Placed on File. The motion carried by the following
vote:
Aye: 9- Councilperson Mays, Councilperson Poplar, President Nelson,
Council person Fields, Council person Davis, Councilperson Winfrey,
Council person Galloway, Vice President VanBuren and Councilperson
Kincaid

170092 AmendmentiOrdinance/Chapter 18 (Taxation; Funds; Purchasing)/Article I (In

General)/Section 18-4.1 (Service Charge in Lieu of Taxes for Housing Facilities
for Certain Persons)

An ordinance to amend Chapter 18 (Taxation; Funds; Purchasing), Article I (In

General), Section 18-4.1 (Service Charge in Lieu of Taxes for Housing
Facilities for Certain Persons), of the Code of the City of Flint by adding a new
subsection (u), concerning Berkley Place Apartments (Communities First, Inc.).
A motion was made by Councilperson Winfrey, seconded by Councilperson
Kincaid, that this matter be ACKNOWLEDGED FOR FIRST READING. The motion
carried by the following vote:
Aye: 9- Councilperson Mays, Councilperson Poplar, President Nelson,
Council person Fields, Councilperson Davis, Councilperson Winfrey,
Council person Galloway, Vice President VanBuren and Councilperson
Kincaid

170093 AmendmentlOrdinance/Chapter 18 (Taxation; Funds; Purchasing)/Article I (In

General)/Section 18-4.7 (Same Duration)
-

An ordinance to amend Chapter 18 (Taxation; Funds; Purchasing), Article I (In

General), Section 18-4.7 (Same Duration), of the Code of the City of Flint
-

concerning the duration of tax incentives.

A motion was made by Councilperson Winfrey, seconded by Councilperson
Kincaid, that this matter be ACKNOWLEDGED FOR FIRST READING. The motion
carried by the following vote:
Aye: 9- Councilperson Mays, Councilperson Poplar, President Nelson,
Councilperson Fields, Councilperson Davis, Councilperson Winfrey,
Council person Galloway, Vice President VanBuren and Council person
Kincaid

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CITY COUNCIL Summary Meeting Minutes For February 13, 2017

170086 Store Opening/Comcast

Communication received January 23, 2016, re: Comcast is continuing its

investment in the Flint area with the opening of a new Xfinity Store in the
Target Plaza, G-3567 Miller Road, Flint, on January 16, 2017.
This Mailer was Placed on File on the Consent Agenda.

170087 Channel Lineup Change/Comcast

Communication received January 23, 2016, re: A change in the Comcast

channel lineup beginning January 24, 2017.
This Matter was Placed on File on the Consent Agenda.

170088 Notice of Public Hearing/Michigan Public Service Commission [MPSC]

Notice of Public Hearing received January 23, 2017, re: Michigan Public
Service Commission notice of hearing for the electric customers of Consumers
Energy Company, Case No. U-18195, to be held January 12, 2017, at 9:00
a.m., MPSC, Lansing.
This Mailer was Placed on File on the Consent Agenda.

170089 Notice of Public Hearing/Michigan Public Service Commission [MPSC]

Notice of Public Hearing received January 23, 2017, re: Michigan Public
Service Commission notice of hearing for the gas customers of Consumers
Energy Company, Case No. U-i 8151, to be held February 2, 2017, at 10:00
a.m., MPSC, Lansing.
This Mailer was Placed on File on the Consent Agenda.

170091 Appointment/Board of Review/Clarence Campbell

Resolution approving the appointment of Clarence Campbell (2217 Dakota

Avenue, Flint, Ml Ward 4) to the Board of Review for the remainder of a
-

three-year term, commencing immediately upon adoption of this resolution and

expiring December31, 2018, as requested by 4th Ward City Councilperson
Kate Fields. [NOTE: By way of background, Mr. Campbell will serve the
remainder of Katherine Coles term that expired December31, 2015, although
she continued to serve on the Board.]
A motion was made by Councilperson Fields, seconded by Councilperson
Kincaid, that this mailer be Approved. The motion carried by the following vote:
Aye: 9- Councilperson Mays, Councilperson Poplar, President Nelson,
Councilperson Fields, Councilperson Davis, Councilperson Winfrey,
Councilperson Galloway, Vice President VanBuren and Councilperson
Kincaid

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CITY COUNCIL Summary Meeting Minutes For February 13, 2017

170079 Policies & Guidelines/City of Flint Board of Review/Consideration of Poverty

Exemption Applications

Resolution resolving that to be eligible for consideration of a hardship

exemption pursuant to MCL 211 .7u in the City of Flint that a person must be
the owner and must occupy the property as a homestead, as defined, for
which the exemption is requested; file a completed and notarized application;
submit copies of federal and state income tax returns for all persons that
resided in the homestead, including property tax credit forms and/or Statement
of Benefits paid from the Michigan Department of Social Services or Social
Security Administration; and meet City of Flint poverty income standards (see
attached), AND, resolving that the City of Flint Board of Review may deviate
from the established policy and guidelines only for substantial and compelling
reasons, and that the applicant will be notified in writing the reasons for
deviating from the policy and guidelines for hardship exemption, AND,
resolving that to conform with the provisions of Public Act 390 of 1994, this
resolution is hereby given immediate effect, as requested by the Assessment
Division.
This Matter was ADOPTED BY THE MASTER RESOLUTION on the Consent
Agenda.

170080 FY2016-2017/Budget Amendment/Transfer of Funds/Arcadis of Michigan LLC

Resolution resolving that the Flint City Council hereby approves recognizing
the use of $819,490.00 of the $120 million federal Water Infrastructure
Improvements for the Nation Act (WIIN) and accompanying State grant match,
AND resolving that the appropriate city officials are authorized to do all things
necessary to amend the 2016-2017 adopted budget to include revenue and
expenditure appropriation for Change Order #1 to (the contract) forArcadis of
Michigan LLC, forwater distribution system optimization, in the amount of
$819,490.00 in the Water Fund under City of Flint Grant Code if
SDEQ17-OPTIM, to comply with the grant agreement(s), and to make
remaining funds available in any subsequent fiscal years that the funds remain
available by the grantor, as requested by Finance. [Administration Submission
No. CA3452017.1
This Mailer was ADOPTED BY THE MASTER RESOLUTION on the Consent
Agenda.

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CITY COUNCIL Summary Meeting Minutes For February 13, 2017

170081 CO#1/ContractiArcadis of Michigan LLC/Municipal Water Distribution System

Optimization Engineering Services

Resolution resolving that the proper city officials are hereby authorized to issue
change order #1 to the contract with Arcadis of Michigan LLC for
aforementioned additional services to the municipal water distribution system
optimization engineering services contract, in an amount NOT-TO-EXCEED
$819,490.00, as requested by the Finance [Water Fund Acct. No.
591-545.300-801.000]. [NOTE: A change order is being requested to expand
the scope of service to include additional testing to optimize corrosion
replacement for the citys water distribution system, development of an asset
management program and capital plan for rehabilitation and replacement for
the citys water distribution system, water distribution system hydraulic
modeling for the purposes of optimizing system operation, additional
distribution system water quality support, additional public relations assistance
and training of distribution system operations personnel.]
This Matter was ADOPTED BY THE MASTER RESOLUTION on the Consent
Agenda.

170090 Permit Request/Right-of-Way Work/State-Owned Trunklines

Resolution resolving that the Traffic and Sign Coordinator is authorized to do

all things necessary to to apply for the necessary permit to perform street lane
closures within the State Highway Right-of-Way on behalf of the City of Flint.
[Administration Submission No. CA3462017]
This Matter was ADOPTED BY THE MASTER RESOLUTION on the Consent
Agenda.

170094 Settlement/Robert Duby v. City of Flint/Workers Compensation Claim No.

Wi 3003205

Resolution resolving that the City Administrator authorizes settlement in the

workers compensation matter of Robert Duby v. City of Flint, Workers
Compensation Claim No. W13003205, in the amount of $36,400.00, in
satisfaction of any and all claims arising out of said workers compensation
matter, with payment drawn from appropriated funds in Litigation and Suits
Line Item No. 677-266.200-956.300. [NOTE: An Executive Session was
presented regarding this matter on February 13, 20171 [Administration
Submission No. CA3432017]
This Matter was ADOPTED BY THE MASTER RESOLUTION on the Consent
Agenda.

City of Flint, Michigan Page 5 Printed on 2/25/2017

 /10097
(Proposal #15000552) SIIEMI$SION No.: CU Sy 7201?
PRESENTED: ~Z /6-17
ADOPTED: _____________________

BY THE MAYOR:

RESOLUTION TO WILLIAM E. WALTRR FOR HVAC SUPPORT SERVICES

RESOLUTION

On January 11, 2017, the Proper City Officials were authorized to enter into contracts for
Utilities and change order #2 for Facilities Maintenance with William E. Walter, 1921 Howard Ave., Flint,
Michigan for the final year of a three year HVAC support services in an amount not to exceed $323,000.00
as requested by the Utilities Department and Maintenance; and

Due to unforeseen boiler issues at City Hall, the Maintenance Department is requesting
additional services in the amount of $15,000.00. Funding for said services will come from the following
account: 101-753.200401.000; and

ff15 RESOLVED, that the Proper City Officials, are hereby authorized to enter into change
order #3 to the contract with William E. Walter for additIonal HVAC support services in the amount of
$ 15,00Q.00 for a total aggregate amount of $338,000.00. (General Fund)

OVEI) HASING DEPT.: Al OVE AS TO FINANCE: APPROVED A$T() FORM:

Derrick Joucs. PnrchLiij~~armgcr n~ dl. Snbuda, Chief Fbuascial Officer

Chief L.cgal Officer

tok cc~.c~e.t
K*f~n W. Wcnvc~ Muyor

CITY COUNCIL: RECEIVERSHIP TRANSITION ADVISORY

BOARD:

Kerry Nelsen Council President

FY17 -KRN
 RESOLUTION STAFF REVIEW

DATE: February 16, 2017

Agenda Item Title: William E. Walter

Prepared By: Kathryn Neumann for Sylvester Jones

Background/Summary of Proposed Action: Due to the age of Flint City Hall, and the
possible damage to the pipes because of the corrosive water, Maintenance has had an
unprecedented number of burst pipes and boiler issues. William E. Walter is the
approved contractor to fix plumbing issues. The current contract has been exhausted,
and more monies are needed to ensure any issues that may come up between now and
June 30 are fixed.

Financial Implications: Funding is available in the account listed below.

Budgeted Expenditure? Yes ~ NoEl Please explain if no:

Account No.: 101-753.200-930.000

Pre..encumbered? Yes ~ No El Requisition # 147000142

Other Implications (i.e., collective bargaining): None

Staff Recommendation: Recommend Approval

Staff Person: ~2-~c_ ~ c~1~

Lee Osborne, Supervisor
 /70o9t
(Bid #17000049) SUBMISSION NO.:__________________

PRESENTED: (2- f~ -1?

ADOPTED: ______________________

RESOLUTION TO ARGUS-HAZCO FOR SELF-CONTAINED

BREATHING APPARATUS (SCBA)

BY THE MAYOR;

RESOLUTION

The Department of Purchases & Supplies has solicited a bid for Self-Contained Breathing
Apparatus (SCBA) as requested by the Fire Department; and

Argus-Hazeo, 46400 Continental Dr., Chesterfield, Michigan was the lowest responsive
bidder from two bids that were received for said requirements. Funding for said services will come from
account 101-338.201-977.000; and

IT IS RESOLVED, that the Department of Purchases & Supplies, upon City Councils
approval, are hereby authorized to issue a purchase order to Argus-Hazco for Self-Contained Breathing
Apparatus (SCBA), in an amount not to exceed $251,390.00. (General Fund)

PURCIIASINGDEPT.: ZOVED~~~E~CE: . PPROVEI)ASTOFO I:

S es, Fur asing Manager Davi L. Sabuda, Chief Financial Officer ~ ct~Legai Officer

~. . 1- 1--
~&~ra-s.,~~- %_r. %~ rcco-enL -

Karen W. %Veaver

CITY COUNCIL: RECEIVERSHIP TRANSITION ADVISORY

BOARD:

Kerry Nelson, Council President

FY17 - KRN
 RESOLUTION STAFF R]WIEW FORM

DATE: February 15, 2017

Agenda Item Title: Argus-Bazeo, Scott SCBA Equipment

(SeIfContained Breathing Apparatus)

Prepared Dv: 1). Dunlap Fire Department

Backgronnd/Summary of Proposed Action: The Fire Department is seeking approval for a

purchase order to replace aging equipment that is in excess of the National Fire Protection
Associations (NFPA) recommended years of service. The Department has also recently hired 36
fire fighters and trainees that need to be properly equipped to effectively pertbrm their job duties.

Fhianeiml Implications:

Budileted Expenditure: YcsX_ No_ Please explain, if no:

Acconnt #: 101-338.201-977.000 in the amount of $251 ,390~00

Pre-eneunthered: Yes X No____ Requisition # 160000623

Other Implications (i.e., collective bargaining): None

Staff Recommendation: Recommend Approval

Staff Person: _______________________

(Dept ec Adorizecl Stafi)

 SEALED BIDS RECEIVED PURCHASING DEPARTMENT ON FEBRUARY 9, 2017
FOR SELF CONTAINED BREATHING APPARATUS (SCBA)
BID #17-049

ARGUS-HAZCO PRESSURE VESSEL TESTING

46400 Continental Dr. 34740 Gratiot Ave.
Chesterfield, MI CLinton Twp, MI

$251,390.00 $170,179.00*

* Vendor bid on an alternate product that was not as specified.

 /700 99
Resolution No. eASY? tQof7
Presented: 2/~ -/2
Adopted

Resolution Setting Hearing Date to Consider the Approval of a

Commercial Rehabilitation Application
(Flint Ferris Building, 615 S. Saginaw - P.A. 210 of 2005)
By the Mayor:

Owners of said property filed an application with the Flint City Clerk for a Commercial
Rehabilitation Exemption for a commercial facility located at 615 S. Saginaw and
located within the Commercial Rehabilitation District established on January 9, 2017,
legally described on the Attachment.

Before acting upon the request, the City of Flint, pursuant to Public Act 210 of 2005,
shall afford an opportunity for a hearing on the approval of the Commercial
Rehabilitation Exemption Application, at which time the owners and other interested
parties may appear and be heard.

IT IS RESOLVED, that the appropriate City officials do all things necessary to set a
public hearing date of March 27, 2017 to consider the approval of a Commercial
Rehabilitation application for the Flint Ferris Building located at 615 S. Saginaw St. The
Hearing is to be held at 5:30 p.m. in the Council Chamber of Flint City Hall, 1101 S.
Saginaw Street, Flint, Michigan. The notice of such hearing shall be published in an
official paper of general circulation not less than ten (10) days prior.

APPROVED AS TO FORM: ADMINISTRATION

Legal Karen W. Weaver, Mayor

CITY COUNCIL

Kerry Nelson, President

 RESOLUTION STAFF REVIEW FORM
DATE
February 13, 2017
Ay<da Item Title:
~i. Resolution Setting Hearing Date to Consider Approval of a Commercial
Rehabilitation Exemption Application (Flint Ferris Building, L.L.C. P.A. 210 of 2005)
-

2. Resolution Approving the Application for a Commercial Rehabilitation Exemption

Certificate for the Flint Ferris Building (Flint Ferris Building P.A. 210 of 2005)

Prepared By
Community and Economic Development Division Planning and Development
-

Background
To apply for the tax exemption, a Commercial Rehabilitation District must first be
established. Such district is established only after a public hearing is held to allow the
public, along with taxing jurisdictions, and the assessor, the opportunity to comment.
Once established, the owner/taxpayer of property proposed for rehabilitation and
located within the district can file an application for a Commercial Rehabilitation
Exemption Certificate. The district was established on January 9, 2017.
Commercial Rehabilitation Act 210 of 2005, encourages the rehab of commercial
property by freezing the taxable value of the building and exempting the taxes
generated by the new investment for a period of up to 10 years.
See attachment for additional information on a commercial Rehab exemption Certificate
and for the general description of the proposed rehab project.
Financial Implications (Analysis):
If granted; the Commercial Rehab Exemption Certificate will allow for an exemption of
ad valorem taxes on the building only, during the two (2) year exemption period. It will
also allow the owner/developer to leverage $1 .2M from the State of Ml for this project.
The buildings current taxable value listed in the assessors records will become the
frozen value at which the property will be taxed for the two year term of this exemption.
It is expected that once the building has been rehabbed, the Overall taxable value will
increase, thus generating a net gain in tax revenue after the expiration of the exemption
term.
Staff Review Reso for Commercial Rehab Application Flint Ferris Bldg. L.L.C
-

February 13, 2017 Page Two

Tax revenue generated from the $134,400 property value during the most recent tax
year is as follows:
Tax Season Tax Revenue
Winter 2016 $558.63
Summer 2016 $7,002.88
TOTAL $1,561.51

Budgeted Expenditure: Yes____ No X Please explain, if no: N/A

Account #: N!A

Date reviewed and approved by Carissa Dotson N/A

Pre-encumbered: Yes ____ No Requisition # N/A

Other Implications (i.e., collective bargaining: There are no known implications

Staff Recommendation:
The Administration recommends approval.
 ATTACHMENT

The Land Situated in the City of Flint, County of Genesee, State of Michigan described
as follows:
Lot 3, Block 3 of Village of Flint River, excepting therefrom the Southerly 22 feet thereof,
as recorded in Liber A of Plats, Page(s) 129, Genesee County Records.

Commonly known as: 615 S. Saginaw St., Flint, Ml 48502


ORDINANCE NO.
An ordinance to amend the Code of the
City of Flint by amending Chapter 18,
Taxation; Funds; Purchasing; Article I, In
General; Section 18-4.1, Service Charge in
Lieu of Taxes for Housing Facifities for
Certain Persons.
IT IS HEREBY ORDAINED BY PEOPLE OF
THE CITY OF FLINT:
Sec. 1. That the provisions of Chapter
18, Taxation; Funds; Purchasing; Article I, In
General; Section 18-4.1, Service Charge in
Lieu of Taxes for Housing Facifities for
Certain Persons, shall be amended by adding
subsection (u), which shall read in its entirety
as follows:
(U) THE CITY ACKNOWLEDGES
THAT COMMUNITIES FIRST, INC., A
MICHIGAN NONPROFIT CORPORATION
(THE SPONSOR) HAS OFFERED,
SUBJECT TO RECEIPT OF A MORTGAGE
LOAN AND/OR ALLOCATION OF LOW
INCOME HOUSING TAX CREDITS FROM
THE MICHIGAN STATE HOUSING
DEVELOPMENT AUTHORITY
(MSHDA), TO ERECT, OWN AND
OPERATE A HOUSING PROJECT
IDENTIFIED AS BERKLEY PLACE
APARTMENTS (THE PROJECT) ON
CERTAIN PROPERTY LOCATED IN THE
CITY TO SERVE PERSONS AND
FAMILIES OF LOW INCOME, AND THAT
THE SPONSOR HAS OFFERED TO PAY
THE CITY ON ACCOUNT OF THIS
HOUSING DEVELOPMENT AN ANNUAL
SERVICE CHARGE FOR PUBLIC
SERVICES IN LIEU OF AD VALOREM
TAXES.
/700fl
THE CITY ACKNOWLEDGES THAT
THE PARTNERSHIP SHALL BE
AFFORDED TAX BENEFITS OF PAYING A
SERVICE CHARGE IN LIEU OF AD
VALOREM TAXES (BUT NOT IN LIEU OF
PAYMENT OF SPECIAL ASSESSMENTS
INCLUDING, BUT NOT LIMITED TO THE
STREET LIGHTING SPECIAL
ASSESSMENT). THE CITY FURTHER
ACKNOWLEDGES THAT THE
PARTNERSHIP FITS WITHIN THE CLASS
AS DESCRIBED IN 18-4.3 BELOW. THE
ANNUAL SERVICE CHARGE FOR THE
CLASS OF PERSONS OF LOW AND
MODERATE INCOME SHALL BE EQUAL
TO FOUR PERCENT (4%) OF THE
ANNUAL SHELTER RENTS, EXCLUSIVE
OF CHARGES FOR GAS, ELECTRICITY,
HEAT, OR OTHER UTILITIES
FURNISHED TO THE OCCUPANTS,
INCLUDING THE PORTION OF RENT
PAYABLE UNDER ANY
GOVERNMENTAL SUBSIDY.
NOTWITHSTANDING THE FOREGOING,
THE ANNUAL SERVICE CHARGE SHALL
NOT EXCEED AD VALOREM PROPERTY
TAXES THAT WOULD BE ASSESSED OR
PAID ABSENT THIS TAX EXEMPTION.
Sec. 2. This ordinance shall become
effective immediately upon publication.
Adopted this __________ day of
.2017A.D.
Dr. Karen W. Weaver, Mayor
Inez Brown, City Clerk

ORDINANCE NO.
An ordinance to amend the Code of the
City of Flint by amending Chapter 18,
Taxation; Funds; Purchasing; Article I, In
General; Section 18-4.7, Same Duration.
IT IS HEREBY ORDAINED BY PEOPLE OF
THE CITY OF FLINT:
Sec. 1. That the provisions of Chapter
18, Taxation; Funds; Purchasing; Article I, In
General; Section 18-4.7, Same Duration, by
further, that with respect to the Project Coolidge
amending in part and restating Section 18-4.7,
which shall read in its entirety as follows:
/70093
with respect to the River Village Project. Provided
fiwther, that construction or renovation of the
housing project commences on or before February
28, 2012. Provided further, that with respect to
Court Street Village, construction of the housing
project commences on or before October 30,
2009; and that, with respect to Avon Park, that
construction commences on or before October 30,
1994. Provided further, that with respect to
Frontier Development Group, LLClPhoenix
Apartments, construction of the housing project
commences on or before July 1, 2014. Provided
Park Apartments, construction of the housing
project commences on or before August 1,2019.

18-4.7 SAME - DURATION. Sec. 2. This ordinance shall become

effective immediately upon publication.
This ordinance, Sections 18-4.1 through
18-4.7, shall remain in effect and shall not Adopted this _________ day of
terminate so long as the Authority-aided or
federally-aided mortgage loan remains 2017 A.D.
outstanding and the unpaid 1-IUD mortgage
insurance is still operative or the Authority or
1-IUD have any interest in the property; provided, Dr/Karen W. Weaver, Mayor
that construction or renovation or a housing
development commences within one year from APPROVED AS TO ORM:
the effective date of this ordinance. The tax
incentive provided in Sections 18-4.1 through 18-
4.7 shall remain in effect and shall not terminate gela W eeler, Legal Officer
with respect to any particular housing
development so long as EITHER, (A) the
Authority-aided or federally-aided mortgage loan
remains outstanding and unpaid for that particular
housing development or for so long as HUD or the
Authority shall have any interest in the property
of a particular housing development, OR (B)
THE PASSAGE OF THIRTY (30) YEARS
AFTER APPROVAL OF THE RESPECTIVE
PILOT, REGARDLESS OF ANY
CONTINUED AUTHORITY-AIDED or
FEDERALLY-AIDED MORTGAGE LOAN,
WHICHEVER OCCURS FIRST. Provided,