×

Panel approves tax-sharing agreement with county

NEGAUNEE — A recently expanded footprint and an agreement with Marquette County could mean that Negaunee’s newly revived Downtown Development Authority could see an influx of revenue in the next few years.

The Negaunee City Council, during its first in-person meeting since March, unanimously approved a 15-year interlocal agreement with Marquette County.

Under the tax-sharing agreement, the county would continue to receive ad valorem taxes based on the 2020 taxable values of the properties within the DDA district, but the DDA would take 100% of any additional property tax capture for 10 years. In the final five years of the agreement, the county would take 50% of its share. Then, beginning in 2035 the county’s tax capture would return to normal.

City Manager Nate Heffron said Negaunee has been working with the county for about nine months and he expects the Marquette County Board of Commissioners to approve the agreement within the next few weeks.

The TIF financing mechanism works by freezing the taxable value of a property at what it was when the DDA was formed and the district established, then collecting or “capturing” any property value tax increases beyond that amount each year.

Negaunee’s expanded DDA TIF district consists of properties east of Tobin Street extending to the west city limit and includes properties north of the rail line and U.S. 41 adjacent to the Teal Lake Avenue/U.S. 41 intersection and would include some city property, Negaunee High School and what is commonly known as Cambria Location.

The city’s initial 42-acre tax increment financing district, which centered on Negaunee’s traditional downtown, would not have yielded sufficient revenue, officials have said.

In a separate agenda item, the council approved the purchase of a vote tabulator and ballot box for $5,295.

The state of Michigan will absorb half of the cost of the equipment via a grant provided by the federal Coronavirus Aid, Relief, and Economic Security Act signed into law on March 27.

According to an agenda supplement, the additional equipment is necessary due to the passage of no-reason absentee voting. The city has seen an influx of voter requests to be placed on the permanent absentee voter list.

Newsletter

Today's breaking news and more in your inbox

I'm interested in (please check all that apply)
Are you a paying subscriber to the newspaper *
   

Starting at $4.62/week.

Subscribe Today