Local Development Finance Authority (LDFA)
Establishment of Authority
Pursuant to the provisions of Act No. 281, Public Acts of Michigan, 1986 ("Act 281"), the City of Cadillac established a Local Development Finance Authority of the City of Cadillac ("Authority") after a public hearing held on October 15, 1990. The Authority was established for the purpose of acquiring, constructing, installing and equipping a groundwater treatment facility in order to provide water to the district and simultaneously to decontaminate the groundwater in the area for the purpose of enabling future development.
Creation of Tax Increment Financing Plan
In order to facilitate the decontamination of the groundwater in the Harry Vanderjagt Industrial Park, the Authority board approved a Tax Increment Financing (TIF) and Development Plan (PDF) on March 15, 1991. This 30-year TIF plan was subsequently approved by the Cadillac City Council on April 8, 1991. The plan first captured taxes in accordance with the TIF plan in 1992.
The TIF plan program shall be in effect from 1991 through 2021, and TIF funds received under this plan shall be spent only in accordance with the area Development Plan.
Structure of LDFA
The LDFA is led by a 10-member Board of the Authority. Seven members are appointed by the City Manager, one member by the Wexford County Board of Commissioners, and two members by the Cadillac Area Public Schools Superintendent. All appointments are subject to approval by the Cadillac City Council. The Authority's primary role is to carry out the Development Plan and promote economic growth in accordance with the Plan and the laws of the State of Michigan.
The Board of the Authority meets as necessary and as determined by the Chairperson of the board. As required by recent State legislation (Michigan Public Act 57 of 2018) the Authority will hold two annual informational meetings. Informational meetings are meetings for the purpose of informing the public of the goals and direction of the authority, including projects to be undertaken in the coming year. They are not for the purpose of voting on policy, budgets or other operational matters.
The Authority approves an annual budget, which is subsequently approved and adopted by the City Council. All financial statements of the authority are audited annually as well, and included in the Comprehensive Annual Financial Report that is completed by the City of Cadillac each year.