The issuance of tax exempt revenue bonds has been used by several businesses in Grand Traverse County, created over 30 new jobs, increased property taxes through business expansion and, in some cases, created businesses. The issuance of the Economic Development Corporation (EDC) tax exempt revenue bonds does not commit Grand Traverse County's full faith and credit.
There are several phases to be completed in order to maintain public participation, those steps are as follows:
1st Phase (Project Area Phase)
Economic Development Corporation adopts resolution of Inducement and Intent to Issue Bonds. This resolution does the following:
Establishes public purpose by stating intent to issue bonds before construction of project is commenced.
Determines "project area" i.e. site of project.
Recommends appointment of two additional board members for this project only to sit on the EDC with the 9-member board to consider and approve the project plan. Board members must be within project area.
Grand Traverse County Board Resolution. This resolution does the following:
Determines project area.
Appoints 2 additional directors to EDC for this project only.
2nd Phase (Project Plan Phase)
The EDC meets with new appointees to review and consider approval of Project Plan. The EDC must make determination in approving project plan that the project shall not have the effect of transferring employment from another municipality.
County Board calls for public hearing on project plan.
County Clerk give public notice of hearing - 20 day notice is required prior to holding public hearing.
County Board holds public hearing and following public hearing acts on project plan.
3rd Phase (Document & Bond Phase)
The EDC adopts resolution authorizing bonds and approving legal documents.
The EDC Chairman and Secretary execute funds and documents.