KALAMAZOO (WKZO) — Two Kalamazoo County Commissioners say they think they have a better idea to fund phase two of WMU’s Business Techology and Research Park, and it involves the City of Kalamazoo entering into a temporary annexation of the Colony Orchard Farm from Oshtemo Township.
Republican County Commissioner Dale Shugars a former State Representative and President of the Home Builders Association, has picked up a few ideas along the way. He pitched his idea to Oshtemo Township Officials when they came to the County seeking financing this week.
Democratic Commissioner Kevin Wordleman planned separately to offer the same idea, appearing with printed explanations of what a PA 425 does and how it works. .
Public Act 425 as approved by the state, is a development tool designed for situations like this. The township has the land, the city has the infrastructure and both come out winners if they work together.
In fact the County and every other taxing unit from the downtown Library to KVCC and KRESA would come out ahead. The City would agree to annex the property for a pre-arranged period, up to 50-years. After that period, it would revert back to the Township.
The City would get a percentage of the taxes, The township would get 5 mills instead of the 1 mill they now charge because the new businesses would be taxed at the City’s rate, which is about 17 mills higher than the Township.
The higher tax rate means they could pay off the cost of installing roads and water services in say 5 years instead of 15 or 20.
Several Commissioners think that the spectacular attraction of the BTR Park, which is located right next to a freeway intersection and WMU’s School of Engineering would make the tax rate a non-issue for developers.
He says if it was annexed by the City the new businesses would be able to take advantage of the City of Kalamazoo’s lower water and sewer rates. Republican Shugars and Democrat Wordleman both came to the meeting armed to argue that it was a practical and preferable option. Both have volunteered to sit down with the parties involved to discuss it.
Shugars says local governments are facing a long term funding crisis and if they don’t start protecting their tax base, they could wind up like Detroit.
Shugars thinks the same PA 425 tool could be used by the City to develop the Eastern Hills Golf Course, partnering with Richland Township.
