Local Development Finance Authority ~ Prime Property
Companies that should apply for LDFA consideration include: Manufacturing, Agricultural Processing, High Technology Corporations (SmartZones), Energy Production and Business Incubators.
Any city, village or urban township, is eligible to create an LDFA district. In addition, any next Michigan development corporation is also eligible. A municipality may join with one or more municipalities in the same county to establish an additional authority only if in a certified technology park or certified alternative energy park. Definitions of urban townships can be found on the following page.
The activities of the authority can be financed through one or more of the following sources:
- Proceeds of tax increment bonds.
- Tax increment revenues received following the completion of a tax increment financial plan.
- Proceeds of revenue bonds.
- Contributions to the authority for the performance of its functions.
- 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.
- Legislature appropriations for insufficient tax increment revenues.
- Loans from the Michigan Strategic Fund or the Michigan Economic Development Corporation.
Properties eligible for tax increment capture are structures, buildings, land improvements and other real property and equipment located within a district, whose primary use is either manufacturing, high technology, value added agricultural processing or energy production.
WHAT ACTIVITIES IN THE DEVELOPMENT PLAN ARE ELIGIBLE FOR FUNDING?
- Public infrastructure improvements that directly benefit the district, including a street, road, bridge, storm water or sanitary sewer, sewage treatment facility, water line, water tower, etc. Railroads and utility lines (electric and telecommunication are also eligible).
- Acquisition of land, demolition, site preparation and relocation costs.
- Administrative costs.
- Certified alternative energy parks and certified technology park development.
For more information regarding access to low interest rates for fixed asset purchasing and capital financing please contact LDFA Chairman R.P. Lilly email@example.com