St. Joseph - Harbor Village - Appearance and Answer with Exhibit A 425 Agreement 8-26-25.pdf
Harbor Village At Harbor Shores LLC, Petitioner Vs. City Of Benton Harbor, Respondent · 25-001739-TT
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STATE OF MICHIGAN MICHIGAN OFFICE OF ADMINISTRATIVE HEARINGS AND RULES MICHIGAN TAX TRIBUNAL HARBOR VILLAGE AT HARBOR SHORES, LLC, Petitioner, v CITY OF BENTON HARBOR, Respondent. MTT Docket No. 25-001739-TT PPN: 11-54-9425-3415-00-0 (City of Benton Harbor for tax billing purposes) PPN: 11-76-3400-0015-00-0 (City of St. Joseph parcel number) / Adam J. Brody (P62035) Deborah I. Ondersma (P55907) VARNUM, LLP Attorneys for Petitioner 333 Bridge ST, NW P.O. Box 352 Grand Rapids, MI 49501-0352 ajbrody@varnumlaw.com diondersma@varnumlaw.com Toby Koenig (P72367) BLOOM SLUGGETT, PC Attorney for Respondent 161 Ottawa Ave. NW, Suite 400 Grand Rapids, MI 49503 (616) 965-9343 toby@bloomsluggett.com / APPEARANCE NOW COMES attorney Toby Koenig, of the law firm of Bloom Sluggett, PC, and hereby enters his appearance on behalf of Respondent in this matter. Dated: August 26, 2025 Respectfully submitted, BLOOM SLUGGETT, PC /s/ Toby Koenig Toby Koenig (P72367) Attorney for Respondent 161 Ottawa Ave. NW, Suite 400 Grand Rapids, MI 49503 (616) 965-9340
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2 4903-3076-8481, v. 1 STATE OF MICHIGAN MICHIGAN OFFICE OF ADMINISTRATIVE HEARINGS AND RULES MICHIGAN TAX TRIBUNAL HARBOR VILLAGE AT HARBOR SHORES, LLC, Petitioner, v CITY OF BENTON HARBOR, Respondent. MTT Docket No. PPN: 11-54-9425-3415-00-0 (City of Benton Harbor for tax billing purposes) PPN: 11-76-3400-0015-00-1 (City of St. Joseph parcel number) / MTT Docket No. PPN: 11-54-9425-3415-00-0 (City of Benton Harbor for tax billing purposes) PPN: 11-76-3400-0015-00-0 (City of St. Joseph parcel number) Adam J. Brody (P62035) Deborah I. Ondersma (P55907) VARNUM, LLP Attorneys for Petitioner 333 Bridge Street, NW P.O. Box 352 Grand Rapids, MI 49501-0352 ajbrody@varnumlaw.com diondersma@varnumlaw.com Toby Koenig (P72367) BLOOM SLUGGETT, PC Attorney for Respondent 161 Ottawa Ave. NW, Suite 400 Grand Rapids, MI 49503 (616) 965-9343 toby@bloomsluggett.com / RESPONDENT’S ANSWER TO PETITION AND AFFIRMATIVE DEFENSES NOTE: The subject property is part of a 425 Agreement between the City of St. Joseph and the City of Benton Harbor. The City of St. Joseph is filing this Answer to Petitioner’s Petition as Respondent because the City of St. Joseph is the assessing unit. The City of Benton Harbor is responsible only to mail the tax bills. The 425 Agreement is attached as “Exhibit A” to this Answer. Respondent through its attorneys hereby submits its Answer to Petition and Affirmative Defenses as follows: 1. Admitted. 2. Respondent admits the subject property’s parcel number and property address, and that the subject property is subject to a “425 Agreement” pursuant to PA 425 of 1984
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3 4903-3076-8481, v. 1 between the City of St. Joseph and the City of Benton Harbor, Berrien County, Michigan. Petitioner’s allegation as to its party in interest status involves a legal conclusion to which no response is required. 3. Denied that the City of Benton Harbor assesses the subject property; rather, pursuant to the 425 Agreement, the City of St. Joseph establishes the assessment. Admitted that the City of Benton Harbor levies and collects the property taxes on the subject property. 4. Admitted. 5. Admitted. 6. Admitted. 7. Admitted that Petitioner protested the 2025 assessment to the 2025 March Board of Review and that the Board of Review denied the requested relief. The remaining allegations contain a conclusion of law to which no response is required. 8. Admitted. 9. Denied that Respondent City of Benton Harbor established the values in Paragraph 9 of the petition in that the City of St. Joseph established the values for the ad valorem roll. Admitted that the values alleged correctly reflect the subject property’s assessment on the ad valorem property tax roll for the tax year at issue. 10. Denied as untrue. 11. Respondent admits that Petitioner contends the values in dispute, but denies that the property is improperly assessed and further denies that Petitioner is entitled to any relief. 12. Paragraph 12 contains a request for relief to which no response is required, to the extent a response is required, Respondent denies that Petitioner is entitled to any relief. 13. Paragraph 13 contains a restatement of Petitioner’s claim to which no response is required; to the extent a response is required, Respondent denies as untrue in that the property was properly assessed and Petitioner is not entitled to any relief. 14. Denied as untrue. AFFIRMATIVE DEFENSES 1. Petitioner has failed to state a claim upon which relief can be granted. 2. Petitioner’s claims against Respondent are barred because the valuation methods used comply with the Constitution, state law, and prevailing State Tax Commission procedures.
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4 4903-3076-8481, v. 1 3. Respondent’s assessment reflects 50% of the subject property’s true cash value, and the values on the roll, including the taxable value, comply with the General Property Tax Act. 4. Petitioner has failed to allege facts to support standing to bring this appeal or that it is a proper party-in-interest. 5. Petitioner has failed to allege facts to support its allegation that the taxable value of the subject property is improper. 6. Respondent reserves the right to identify further affirmative defenses as may become known through discovery. WHEREFORE, Respondent requests that the Tribunal dismiss Petitioner’s petition with prejudice and award Respondent its costs, attorney fees, and all such further and additional relief as this Tribunal may deem appropriate. Dated: August 26, 2025 Respectfully submitted, BLOOM SLUGGETT, PC /s/ Toby Koenig Toby Koenig (P72367) Attorney for Respondent PROOF OF SERVICE Tonya Voakes, being duly sworn, deposes and says that she is employed by Bloom Sluggett, PC, and that on August 26, 2025, she served a copy of Respondent’s Appearance and Respondent’s Answer to Petition with Affirmative Defenses by First Class and electronic mail upon: Adam J. Brody (P62035) Deborah I. Ondersma (P55907) VARNUM, LLP Attorneys for Petitioner 333 Bridge Street, NW P.O. Box 352 Grand Rapids, MI 49501-0352 ajbrody@varnumlaw.com diondersma@varnumlaw.com /s/ Tonya Voakes Tonya Voakes
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EXHIBIT A EXHIBIT A
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ECEILVED aPRD 9 2006 * ~ B RECEIVED APR 2 8 ig Lord 0, Jarvis Register OF Deeds q Berrien County, Mishigan y / i Res $61 1 Recon desl Nee fetata erik 8, A amr aT of paki | Libs 2708 Page obits ie é ‘ inl & F24a EG F2ARBRideog Liber 2708 Page 1171 FINAL DEVELOPMENT GOOPERATION AGREEMENT AMONG BENTON HARBOR, 87, JOSEPH AND HARBOR SHORES - OOMMUNITY REDEVELOPMENT, ING. This Davelopmant Soaperation Agreement Is made as of Novamtber 3, 2008, batwaan the City of Benton Harbor, a Michigan munielpal corporation, the principal businesa address of whieh ts 200 E. Wail Straet, P.O, Box 648, Benton Harbor, Mi 49028-0848 Atin.: City Manager (“Benton Harbor”), tha City of St. Joseph, a Michigan munlolpal corporation, the principal business address of which Is 700 Broad Street, 8. Joseph, Ml 49085-1278, Attn: City Manager (St. Joseph"); and Harbor Shores Community Redevelopment, Ine, a Michigan nonprofit corporation, the principal business addrane of which is 900 Fifth Thitd Center, 114 Lyon Street, NW, Grand Rapids, Mi 49609-2487; attn: Mr. John G. Cameron, vr, (the ‘Davelaper’), RECITALS A. The parties desire, through cooperation, to foster quality economic development to benefit tha respactiva communities to bring about the enhancement of the tax bases of both communities, and to thereby create jobs and provide services and produits to the residents, property awhers, and visitors of hoth communities, . Bi The Developer has propasad an edenomia development projact, the construction coste of which are estimated to total between $400 and $300 million, #9 be tocated In Banton Harbar, In Benton Charter Township, and, after the termination of thia Agreement, in Bt, doseph, to Consist af: * Approximately 1,000 residential housing units Including units in multiple miderise buildings, residential town homes, single famiily residences, realdantla! above retail and a continuing care development faciity; + Commertial development to include about 200,000 square feet of space, including retail, ; aris and antertalnment space; . Marines will be included with access Via the St. Jageph and Faw Paw Rivers ta Lake ehigen: + A prarnier hotel containing approximately 480 hatal rooms with a 20,000 équare foot ballroom/eonferanca center, an Indoar water park and a spaditnass center: + Asmaller boutlque hotel with approximately 120 rooms! + Upgrades to the existing Jean Kiock Park: and ¢ Apremlar, Jack Nicklaus Signature 18-hole golf course: (the “Project) which will require the conditional transfer of cartain Properly depicted on the attached Exhibii A and described on tha attached Exhibit B (the “Conditionally Transferred Property”) from &t, Joseph to Benton Harber , AGREEMENT NOW, THEREFORE, In exchange for the consideration in and refarrad to by this Agreement, the parties agras a6 follows: 10d LEE, 9002 9% ~dy LLbP-GR6-GL9: X24 FILL OO¥OIHO renin
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‘pier; 2705 Page: 1172 Liber/Page stamp electronically added ' ca ‘ FINAL a ARTICLE| Purpose, Authority, Representations and Findings 1.1 Purpose, This Agreement is intended to fully effect and fully addrasé all matters conceming the conditional transfer of the Conditionally Transferred Property from the jurisdiction of St. Joseph to the jurisdiction of Benton Marhor. . 1.2 Authority, This Agreement is made pursuant to 1984 PA, 425, as amended, MCL 124.21 ef seg, (“Act 426"), as well as the general authority of 1909 P.A, 279, MCL 117.4 ef seq. (‘Act 279"), as amended, and the city charters of each of the cities. 1.3 Eindings and Representations. Benton Harbor and St. Jozeph, by action of each of their respective city commissions in approving this Agreement, have each made the following findings and representations. (a) Laoal Unite, Each party, as a home rule city organized and existing under Act 279, Is 4 “local unit” as defined by Act 425, (6) Prolect. The Project is an “economic development project" as defined In Act 425, (c) Service Oasirad. Because Benton Harbor ls “qualified local governmental unit" as defined in 1996 PA. 381, as amended, MCL 125.2651 @f seq. (“Act 381"), the Developer may and wishes to take advantage of certaln opportunities for funding aspects of the Project on the Conditionally Transferred Property that are only avaliable under applicable if the Conditionally Transferred Property is located In Benton Harbor, (4) Considered Factors. Benton Harbor and St. Joseph have, as required by. Act bt considered certain factors prior to entering into this written contract, including the allowing. (1) | Gomposition of the population; population density; land area and land uses; assessed valuation; topography, natural boundaries and drainage basing; * past and probable future growth, including population increase and business, commercial, and industrial development in the Conditionally Transferred Properly; and the comparative data for St, Joseph and the portion of St. Jasaph ramalning after the transfer of the Conditionally Transferred Property. (2) Need for organizad ‘community servicea; tha present costs and adequacy of governmental services In the Conditionally Transferred Praperty; the probable future need for services In the Conditionally Transferred Property; the practicabllity of supplying such services to the Conditionally Transferred - Praperty; the probabie effect of the transfer and of altamnative courses of action on the cost and adequacy of services in the Conditionally Transferred Property and on the remaining partion of St. Joseph the probable changa In taxes and tax rates in the Conditionally Transferred Property in relation to the benefits expected to acerue from the transfer; and the financial ability of Benton Harbor to provide and maintain services in the Conditionally Transfarred Property. (3) The general effect of the conditional transfer upon Benton Harbor and St, Joseph and the relationship of the conditional transfer to any established land ise plans. (e) Bublie-Hearing, Pursuant to Act 425, the Benton Harbor City Commission held public hearings on Septamber 26, 2008 and October 3, 2008, and the St. Josaph City Commission held a public hearing on September 26, 2005, regarding the conditional a Da tO'd LESEL 9002 9% dy ~ LEER 285-919:x84 TULL O8¥OIHO
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transfer of the Conditionally Transferred Property and the other provisions of this
Agreement, notices of which public hearnga were given in the manner provided by the
Open Meatings Act, Act 287 of the Public Acts of Michigan of 1976, a amended,
()
-
Malority Vote,
The Benton Harbor City Commission and the St, Joseph City
Commission each decided, by majority vote of the members elected and serving on
eaoh body, to enter into thls Agreement,
.
(9)
Hearlngs,
Notice
and
No Referendum.
Neither the Benton Harbor
City
Gommiséion nor the St. Joseph City Commission adopted a resolution ealling for a
referendum ori the conditional transfer
to be made pursuant to thla Agraemant, and more
than 30 days have elapsed since the latter of the public hearings was held ragarding this
Agreement and since the respective sity commissions adopted resolutions Indleating
thelr intention to enter into this Agreement and neither the Benton Harber City Clerk nor
the St. Joseph City Clerk has received a petition calling for a referendum on this
Agreement or tha conditional tranafer of property pursuant to this Agreement.
14
St. Joseph Representation Conceming Property for Transfer,
St. Joseph represents and
covenants that it has not rapresented to any obliges, lenders, bond holders or creditors that it
ls dependent upon any revenue from the Conditionally Transferred Property to ‘meet any
obligations of St. Joseph or any entity created or controlled by St. Joseph.
St, Joseph further
represents and covenants that It knows of no special assessments which have been levied
against the Conditionally Transfarred Property,
However, St. Jopaph has two voted debt
miliage levies pursuant to which it has issued bonds and pledged its full falth and cradit for their
repayment.
ARTICLE fl
Transfer
and Effects
2.1
Transfer of Property.
The Conditionally Transferred Property is hereby conditionally.
transferred from the jurisdiction of St. Josaph to the jurisdiction of Benton Harbar.
;
2.2
Effect of Transfer.
Exeept as otherwise specifically provided in this. Agreement, tha
Conditionally Transferred Property shall, for all purposes, ba within the jurisdictian of Benton
Harbor and St. Joseph shall have no further jurisdiction over that property.
(a)
Zoning
of Transferred Ares.
Unless and
until rezoned,
the Conditionally
Transferred Property will retali
its existing zoning under the
St. Joseph's Zoning
Ordinance,
St Joseph shall continue to have jurisdiction over zoning of and 8t,
Josaph’s zoning ordinance shall apply to the zoning of the Conditlonally Transferred
Property.
To the extent St. Joseph's zoning ordinance requires notloa of any proposed
action affecting the Conditionally Traneferred Property to be given to any persons, St.
Joseph shall also provide Benton Harbors City Manager with that notices,
(b)
Governmental Servicas,
In order to assure continulty after the expiration of the
term of this Agreement and due to the proximity of municipal services and consequent
éfficiency In previding such services, governmental services shall be provided to the
Conditionally Transferred Property as follows:
{1}
The Daveloper shall construct and ingtall the public water distribution and
sanitary sewer collection and disposal lines, valves, pumps and othar facilities.
Once constructed, they shall be connected to the St. Joseph water and sanitary
sewer sysiems
and
St.
Joseph
shalt
be
responsible
for
their
operation,
maintenance, repair and replacement,
The Developer (Including any successor
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Likeh 2705 Page: 1174 Liber/Page stamp slectronisally added ¥ aé . 0'd FINAL developers, property owners, or occupants, as provided under the applicable St, Joseph ordinanda afd regulations) shall pay any applicable connection fees, rates and chargea for connecting to the St. Josaph systems. The water distribution and sanitary sewer collection and disposal lines, valves, pumps and other facilities to ba constructed pursuant ta this provision shall ba canstructed in accordance with St. Joseph's standards and all plans and specifications shall be submitted to, raviawed and approved by St. Joseph's engineers prior to stating. any construction. St. Joseph shail have a right (but not any obligation) to Inspect all such water distribution and sanitary sewer collection and disposal lines, valves, pumps and other facilities as they are being constructed and, prior to connection to the St, Joseph system, St. Joseph shall be provided “as built" drawings depicting such water distribution and sanitary sewer collection and disposal lines, valves, pumps and other facilities as actually constructed. (2) St Joseph shall provide law enforcamant, fire protection, fire code administration and enforcamant, and construction cede (and property maintenance code) administration and enforcement. This Agreement shall not affect any existing mutual aid agreements Ifvolving the parties. (8) Recognizing that the Conditionally Transferred Property lias In Benton Hatbor's jurisdiction and go there may be actions that can only be taken by Benton Harbor, the parties shall, to the extent feasible, jointly and cooperatively provida aconomic development servicas, (4) The party responsible under this agreement to provida any governmental services to the Conditionally Transferred Property area and Its ocaupants shall provide such services on the same basis and to the sarne extent as that party provides such governmental services to other property within its jurisdictional limits. The assessments, rates, fees and charges, if any, for al) such services shall be as established by the responsible party as otherwise applicable within the legal limits of that party, (a) bility and Enforcement of Ordinances. The Condltlonatly Transferred Property will be treated as If t were within the jurisdictional limits of St. Joseph for the purpose of applying and enforcing all ordinances, rules, and regulations, St. Joseph shall be responsible for enforcing all such ordinancas, rules and regulations. (d) Taxes. For the purposes of all taxation, including, without limitation, ad valorem real and personal property taxes, income taxes, hotel/motel tax, ete., the Conditionally Transferred Property shall be considered as being within the Jurisdictional limite of Benton Harbor. However, any property taxes levied against the Conditionally Transferred Property of St. Joseph's tax roll for 2005 and prior years shail remain a ilen on the affected parcel(s) in the Conditionally Transferred Property and, when collected, such taxes, including any applicable penatties, Interest and administration fees shail ba remitied to St. Joseph. Moreover, St. Josaph shall provide-asseseing services for the Conditionally Transferred Property and prepare that portion of Benton Harbor's real and personal (including any industrial facilities, lessee-yser, or similar) property tax rolls. (8) Special Agsezaments. The Conditionally Transferred Property shail be within the legal limits and jurisdiction of Benton Harbor for purposes of spacial assessments, However, because the Conditionally Transferred Property will return 16 the jurisdiction of St, Joseph at the termination of this Agreement, Benton Harbor shall not levy any special » Aw bE} 9002 92 dy LLEP-286-9} 9: x84 FILL OS¥O1HO
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* Liber: 2706 Page: 1176 LiberPage sternp electronically added iy ” 2.3 FINAL assessments againet the Conditionally Transferred Property without St. Joseph's prior approval by a resolution of the St. Jesaph City Cornmisaian, Vating. Any parsens residing on the Conditionally Transferred Property shall be entitlad to vote on the same basis ag al! other persons residing within the lagal limits of St Joseph, The partias recognize that because at the termination of this Agreement, the Conditionally Transferred Property will once again lie within St. Joseph's jursdictional. limits, the long-term interests of those registered electors who may reside on the Conditionally Tranaferred Property will likely be to have Input into St. Josaph electoral matters. In addition, St. Joseph will be adopting, implementing and enforcing the ordinancas and policias, Including utility policias, affecting tha Gonditlonally Transfarred Property during the term of this Agreement, The parties therefore determined that, on balance, the intereate of those registered electors who may reside on the Conditionally Transferred Property are more likely advanced by providing they are electors in St. Jogeph during the term of this Agreament, if = court of competent jurisdiction determines that the voting rights of the registared electors rasiding on the Conditionally Transferred Property should be different than as provided in this provision, this provision shall be revised in accordance with such court’s opinion and ordér and tha remainder of this Agreement shall be unaffected by such court's determination. (9) Park Admissions, Residents of the Conditionally Transferred Property shall be considered residents of both Benton Harbor and St, Joseph for purposes of library and park privileges in either community. (h) Gurrent Grants, St, Joseph shall continue to administer and implement twa Michigan Department of Environmental Quality grants wholly or partlally granted to benefit the Conditionally Transferrad Property. Sharing of Revenues, Revenues from the Conditionally Transferred Property shail be shared by the City and the Township during the term of this Agreement and any ranewals as ‘ollowa: G0°d (a) Fermuta for Sharing Ad Valoram Property Taxes, (1) Ad valorem real and personal property taxes (including, without limitation, any industrial factities taxes or other property taxes in lieu of abated ad valorem real and personal property taxes) levied against property within Benton Harbor shall apply in tha Conditlonally Transferred Property. Benton Harbor will be responsible for collecting all ad valorem real and personal property taxes (Including all industrial facilities and similar raplacement property taxes) levied against the Conditionally Transferred Property and may retaln ali such taxes which ara collected in excess of the amounts to be remitted to St. Joseph under this Agreement. Benton Harbor shall pay to the St. Joseph from the ad valorem real and personal property taxes (indluding all Industrial facilities and similar replacement property taxes) Benton Harbor collects from the Conditionally Transferred Property an amount equivalent to whatever tillage rate fa levied in St. Jaseph during that tax year for operating purposes (currently 15.86 mills) levied against the taxable value of the Conditionally Transferred Property or any portion of the Conditionally Transferred Property to the extent that taxable value Ig not Included in the "captured taxable value" as defined In Act 361, St. Joseph shail notify Benton Harbor of St. Joseph's general operating millage rate not later than June 1 of each year. The 2008 taxable value of tha Conditionally Transferred Property is $565,019. Excapt as provided in subsection 2.3(d), If ~ Be LbEb 9002 92 4dy LLEV-@BE-GEO:Xey THLE L OO¥OTHO
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Benton Harbor’s millaga rate is lees than the total millage rate levied by St.
°
Joseph ag described In this éubsection and the following subsection 2,3(a)(2) of
this Agreament, the amount Benton Harbor remits to St. Joseph pursuant to this
subsection and subsection 2.3(a)(2) of this Agreement shail ba limited to the total
amount
of the
taxes
collected
by Benton
Harbor from
the
Conditionally
Transferred Property,
(2)
Banton Harbor shall also remit to St. Joseph from the ad valorem real and
personal property taxes (including all industrial facilities and similar replacement
roperty taxes) Benton Harbor collects from the
Conditionally Transferred
roperty an amount equivalent to whatever voted debt millaga rate (currently
1.98 mills) is levied in St, Joseph during that tax year Javied against the taxable
value of the Conditionally Transferred: Property or any portlon of the Conditionally
Transferred Property to the extent that taxable value
in not Included
in the
“captured taxable value” as defined in Act 381. Except ag provided In subsection
2.3(d), if Benton Harbor's millage rate is less than the totai millage rate levied by
St, Joseph as described
In
this subsection and
the preceding subsection
2.3(a)(1) of this Agreement, the amount Benton Harbor remits to St. Joseph
pursuant to this subsection and subsection 2.3(a)(1) of this Agreement shail.
ba
limited to the total amount of the taxes collected by Benton Harbor from the
Conditionally Transferred Praperty.
(8)
The amounts to be remitted to St. Joseph shalt be pald within 30 days of
the data upon which they are collected from the taxpayer or, upon settlement
with the Berrien County Treasurer and payment from the delinquent tax revolving
fund, Any amount not paid to St. Joseph within that 30-day period shall bear
interest at a rate of 1.0% per month until paid,
(4)
If, subsequent to the remittance of such taxes to St. Joseph, a challenge
by an owner of property within the Conditionally Transferred Property results In a
determination that taxes are to be refunded, and Banton Harbor, for that or
another reason, such as the return of the property for delinquent taxes,
Is
required to refund all or 8 portion of those taxes to the property owner, then upen
hotice from Benton Harbor, St. Joseph shail promptly repay to Benton Harbor St,
Joseph's pro rata share of any such tax refund together with St. Joseph’s share
of any Interest due on the tax refund,
{5)
Benton Harbor shall annually provide to St. Joseph a parcel-by-parcel
accounting of the state equalized value, taxable value, taxes Jeviad and taxes
and other amount collected, including the collection date for each tax numbered
parcel of property within the Conditionally Transferred Property.
(8)
Benton Harbor shall also, within 5 business days of Benton Harbors
receipt of tham, provide the St. Joseph Clty Manager with a copy of all property
tax
Valuation
appeals,
all
claims
for
tax
exemptions,
all
notices
from
governmental agencies
or offidals,
and
any
other written communication
ragarding or affecting the taxation of the Conditionally Transfarred Property.
If
Benton Harbor chooses not to contest any action by or on behalf of a taxpayer or
property owner with respect to the taxation of any part of tha Conditionally
Traneferred Property, St. Joseph shall be given the opportunity to do so for
Benton Harbor and may direct any such action on Benton Harbors behalf,
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Benton Harbor shall, to the extent possibie, preserve for St. Jaseph at least 10
busines days in which to make a timely response to any such action.
(7)
Upon the filing
of any application
or request for
a discretionary tax
abatement or tax exemption (under 1974 P.A.
198, as amended,
or other
applicable statute) for any parcel within the Conditionally Transferred Property,
Benton Harbor shall give to St. Joseph written notice of that request and of the.
date and time of the hearing on that request,
If St. Joseph oblects in writing to
the granting of the proposed tax abatement, Benton Harbor shall not grant the
proposed tax abatement.
(8),
Because
St, Joseph
will be providing
tax assessing and
tax
roll
preparation services while Benton Harbor will be collecting the taxes, the parties
shall equaily share any property tax administration fees which Benton Harbor
collects as It collects the ad valorem real and personal property taxea (including
all industrial facllitlas and similar replacement property taxes) levied against the
Conditionally Transferred Property.
(b)
Stata and Federal Revenue Sharing,
Because St. Joseph will be providing
police, fire, and other municipal services to the Conditionally Transferred Property under
the terms of this Agreement, Benton Harbor shall, within 30 days of Benton Harbors
recalpt of such funds, rémit to St. Joseph state revenue sharing funds generated as a
result of the conditional trangfer of the Conditionally Transferred Property to Benton
Harbor.
The amount of revenue sharing funds to be remitted to St. Joseph shall he
calculated based on lower of the revenue sharing amounts computed using the formula
appileable to Banton Harbor and the formula applicable to St. Joseph. For purposes of
such galculations it shall be assumed that any Increases in valuation, any Increases in
population, any increases in street mileage, and any other aspect of the Project would
have ocourred on the Conditionally Transferred Property
If
It remained within St.
Joseph's jurisdiction,
Thus, St. Joseph shall receive such funds as if the Project had
been developed and occupied on the Conditionally Transferred Property while
it was
within St. Joseph's jurisdiction,
,
(c)
Act54 Funds, Because St. Jogeph will be plowing and maintaining the local and
major streets within the Conditionally Transferred Property, Benton Harbor shall, within
80 days of Its receipt of such funds, remit to St. Joseph all major and local street funds
Benton Harbor receives under 1951 F.A. 51, a3 amandead, MCL 247.651 ef seq. (“Act
51") due to the conditional transfer of the Conditionally Transferred Property to the
juriediction of Benton Harbor, The amount of Act 51 funds to be remitted to St. Joseph
shall 6@ calculatad based on lower of the amounts computed using the formuta
applicable to Banton Harbor and the formula applicable to St Joseph.
For purposes of
such calculations it shall he assumed that any Increases in valuation, any increases in
population, any Increases in straet mileage, and any other aspect of the Project would
have accurred on
the Conditionally Transferred Property
If
it remained within
St.
Jogeph’s jurisdiction,
Thus, &t. Joseph shall receive such funda as if the Project had
been developed and occupied on the Conditionally Transferred Property while it was
within St Joseph's jurisdiction.
;
{¢)
Replacement
of Property Taxas,
If Benton Harbor, because of changes In law,
no longer levies property taxes or levies a decraased level of property taxes ad Benton
Harbor receives revenues It lg not currently receiving (i@,, It le not currently receiving
such revenues at all ar is curranily recelving them at a lower level) from other sourees,
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"Liher: 2705 Page: 1178 Liher/Page stamp electronically added 80d FINAL auch as Income taxes, sales taxes, value added taxes, revenue sharing, or other sources of municipal revenues that in whole or in part have the effect of replacing the property tax ravanues, Benton Harbor shall annually or more frequently pay to St. Joseph, within 80 days of the recelpt of those other revenues, & portion of those new revenues equal in proportion that St. Joseph's property tax revenues has to the other property tax revenues generated from the Conditionally Transferrad Property irnmadiately before the reduction in ad valorem property tax receipts from the property in the Conditionally Transferred Property that results from the change in law. (0) Gifts, Grants, Ete.. Unless specifically made fo St. Joseph, all gifts, granta, assistance funds, bequests, or other funds from any private or public source given as a result of the Conditionally Transferred Property and any activity performed upen or within the Conditionally Transferred Property, the ocoupancy of the Conditionally Transfarred Property, or for any other reason arising from the exletence or juriediction of the Conditionally Transferred Property shall belong to Benton Harbor. Unless otherwise : agreed by the parties, the party that is tha recipient of the gift, grant or assistance funds shall have tha obligation to comply with the terme of any such grant, gift or assistance and the other parties to this Agreement shail hava no such obligation. ARTICLE II! Brownfield Funding 3.1 Acknowledgement. The parties understand that, pursuant fo tha Act 384, certain portions of the Conditionally Transferred Property are considered contaminated and are therefore “facilities,” are “adjacent or contiguous’ to such contaminated property (facilities), or are “functionally obsolete" or “blighted” all as defined under Act 381. Therefore, pursuant to Act 381, the Berrien County Brownfield Redevelopment Authority (the “BCBRA”) is authorized to and will be Implementing a brownfield plan covering the Conditionally Transferred Property pursuant to which it will capture tax increment revenues resulting from the Increased value of the real and personal property In the Conditionally Transferred Property ocdurring after 2005, Thoae captured tax revenues, Initially collected by Benton Harbor and remitted to the BCBRA, will be used by the BCBRA fo relmburse the Developer for the costs incurred by the Develaper for “eligible activities,” as “ellgibla activities" are defined In Act 381 as of the date of this Agreement, on of related to the Conditionally Transferred Property. ; 3.2 Limitations. Tha Developer agrees for itself and any its successors in interest to the Project that: (a) Reimbursement Limitation, Unlees the St. Joseph City Commission and the Benton Harbor City Commission otherwise consent by duly adopted resolutions, neither tha Developer nor any of its successors in interest to any portion of the Project will seek to be relmbursed from brownfiald tax Increment revenues tore than a total of $70 million for all “eligible activities” as “eligible activities’ are defined in Act 381 as of the date of this Agreement, plus interast at a rate not to exceed 4.5% per annum If it is not subject to federal income taxation under tha United Statas Internal Revenue Code or at a rate not to exceed 6.0% per annum if it is subject to federal income taxation under the United States Intemal Revenue Code. Interest shall not begin to accrue until 30 days after the properly completed request for reimbursement ia filed with the BCBRA, (>) Timetimitation, Uniess the St, Joseph City Commission and the Benton Harbor City Commission otherwise consent by duly adopted resolutions, neither the Developer hor any of its successors In interest to any portion of the Project will seek any ~§- bEEL 9002 9% 4dy ALL P-@86-94-9: X84 TULL OOYOIHO
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‘Libér: 2708 Page: 1179 Liber/Page stamp electronically added Ly ‘ . FINAL reimbursement from brownfield tax Increment ravenuee to ba made from any taxes ievied after Dacembear 30, 2025, ; (c) — Limitations on Types af Goats, (1) Unless the St. Joseph City Commission and the Benton Harber City Commigsion otherwise consent by duly adopted resofutiong, neither tha Developer nor any of Its successors in interest to any portion of the Project will - seek any reimbursement from brownfield tax increment revenues to be made for any Project costs (including Interest) except those costs (including Interest) which state agencles of competent jurisdiction have approved the capture of school operating taxes and use of those captured school operating taxes together with othér captured tax Increment revenues to pay. (2) Unless the St. Joseph City Commission and the Benton Harbor City Commission otherwise consent by duly adopted resolutions, neither the Developer hor any of Its suiccesgors in interest to any portion of the Project will geek any reimbursement fram brownfield tax increment revenues to be made for any Project costs except costs incurred for “eligible activities” as “eligible activities” are defined in Act 381 as of the date of this Agreament, together with Interast at a rate not to exceed 4.5% per annum if it is not subject to federal Income taxation under tha United States Internal Revenue Gode or at a rate not to excaed 6.0% par annum if It is subject te federal income taxation under the _ United States Internal Revenue Code. Interest shail not begin to accrue until 30 days after the properly completed raquest for relmbursement Is filed with the BCBRA. . . (3) The Developer shall assure the St. Joseph Clty Manager is notified in writing of any proposed amendments to any BCBRA plan related to the Conditionally Transferred Property or the Project in the sare. manner and at the game time as any owner of the affected property would be fotifled of any such proposed amendments, The Developer may fulfill this requirement by delivering ta the City Manager any notices the Developer receives (officially or non- officially) In connection with any such proposed brownfield plan amendment. In addition, the Developer shall assure the City receives a copy of and haa an opportunity ta cammant on any proposed brownfield work plan related to the Conditionally Transferred Property or the Project at least 7 days before that plan ie submitted to any state agency for review and/or approval. (4) ‘Ifa state agency of competent jurisdiction conducts a review or audit of payments for reimbursement mada to the Develgper (or its suceassor or assigns) pursuant to this Agreement and determines payments were improperly made or if a court of competent jurisdiction renders such an opinion that payments for reimbursement were Improper under applicable law, the Developer shall within 30 days after any such determination is made ramit to the BCBRA any such amounts improperly paid together with any required Interest, costs or penalties imposed on the BCBRA. However, the Developer shall have the right, at the Developer's expense and, unloss repayment is required by an order from an agency of court of competent juradiction, before any such repayment is made, to appeal on behalf of the BCBRA or either of the other parties to this Agreement, any such determination made by that state agency of court. . “nr 60°d bESEk 9002 9% 4d¥ LLLP-286-919: x84 TILA L QOYO HHO
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Liban 2708 Page: 1180 Liber/Page stamp ale a7 Oh'd etronically added FINAL 3.3 Administrative Expenses. The parties shall use their reasonable best efforts to aseura that any Brownfield Authority administrative or operating expenses paid from tax Increment revenues generated by the Projact are used only for those Incremental administrative and operating axpensas directly related to the Project. 3.4 Accounting, The partlos shall use their reasonable best efforts to aasure there is a full and complete annual accounting, prepared by the BCBRA with the assistance of the parties, . provided to all the parties, which is complated, on a parcel-by-parcel basis where applicable, for all property valuations, tax assasamants, tax levies, tax collections, tax increment disbursements, reimbursements to the Developer or others, BCBRA administrative and operating expenses, tax increment revenues retained by the BCBRA, . ARTICLE iv Tamm and Termination 4.1 Term. Unless the St. Joseph City Commission and the Benton Harbor City Commission otherwise consent by duly adopted rasotutions to extend ite term or unless tt [3 eariier terminated as provided in this article V, this Agreement shail terminate at 14:59 p.m. on Dacamber 30, 2025. 4.2 Early Termination, This Agreement shall terminate earlier under any of the following circumstancas, (a) This Agreement shall terminate when reimbursements total the amount of the: reimbursement limitation provided in subsection: 3,2(a) of this Agraement, (b) Regardless of whether or not they total the amount of the reimbursement lirnitation provided in subsection 3.2(a) of this Agreement, this Agreement shall terminate at such time a¢ the Developer has been relmbursed all of the costs for which ralmbursement Is permitted under subsection 3,2(¢) of this Agreement. (c) This Agreement shall terminate with respect to any portion of the Conditionally Transferred Property which is not Included In an approved BCBRA brownfield plan, which includes aid is intended to benafit the Project, by December 30, 2007, 4.3 Jurigdiction of Property at Termination, Upon the termination of this Agraement or upon ite termination with respect to any portion of the Conditionally Transferred pment Conditionally Transferred Property or the affected portion thereof shall for all purposes be within the lagal Iimits and Jurisdiction af St. Joseph. ARTICLE V Miscallaneous 5.1 Notlees. Any notice, demand, or communication required, permittad, or desired to ba given under this Agreement shall be deemed effectively givan when personally delivered or mailed by first-class malt addressed to those addresses first provided above. The parties may, by written notice, designate any further or different address to which subsequent notices, demands, or communications may be given. 6.2 Interpretation. The article and other headings in thls Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement, This Agreament is the ontire agreement betwean the parties with respect to ite sublect matter. it supersedes and replaces all previous or contemporaneous, express or implied, written or oral statements, covenants, representations or agreements. Se, no aral statements or prior or contemporaneaus written material not specifically incorporated in this Agreement shall be of any “10+ HEEL 9002 9% 4dy LL}V-@86-819: X84 FULL QOYOTHO
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* Liners 2705 Page: 1181
'
lh d
Liber/Page stamp eleotronically added
FINAL
forea and effect, and both parties anecifically ackriowledge, in antering into and executing this
Agreement, they are relying selely upon the representations and agreements contained in thie
Agreement and no others, This Agreement may not be amended except in writing signed by tha
partias following public hearings before and resolutions adopted by the Benton Harbor City
Commission and the St. Joseph City Commission.
This Agreement may be exeauitad in any
number of counterparts aad each such counterpart shall be considered & valid original.
All the
parties consultad fegal counsel and had input inte the drafting of this Agraemant,
{It should
therefore be construed as if it ware mutually drafted,
§.3
5.4
Remedias,
(a)
Notification and Meeting.
Before a party may undertake any lagal or equitable
action purguant te or to enforce any provision of this Agreement, thet party shall first
notify in writing the other partles of the basis for the claim, Including detalled recitations
of the facts and the law upon which the elaiming party Is relying. The party(ias) receiving
guch claim letter shall, within 21 days of recalving the claim, respond
in writing
identifying those issues on which there is agreement and stating in detail the facts and
law upon which the responding party({les) is(are) relying.
The parties shall echedule a
meeting to ogcur within 14 days after the date the response is due to discuss and seek
to resolve the dispute. These time frames may be adjusted by the written consent of the
parties.
(o)
Equilable Remedies Appropriata,
The parties agree that ramedies at law are
Inadequate and tha parties shall hava the right to all equitable remedies including,
without limitation, mandamus, specific performances and injunctive relief.
(c)
Gost Resavery,
To the extent ret prohibited by law, Benton Harbor and St,
Joseph agree that the prevailing party in any actlon brought by either of tham against the
other pursuant to or to anforca any provision of thia Agreement may, in addition to any
other remedy to which it may be entitled, recover Its actual reasonable costs, Including,
without iimitation, actual. reasonable filing fees, attorney fees, expert consulting and
witness costs, discovery coats, Investigative costs,. professional fees and any other
expanses Incurred to investigate, bring, maintain or defend any such action from ita firt
acorual or first notice thereof through all appellate and any collection proceedings,
Filing and
Effective
Data,
(a)
_Initie| Filing and Effective Date,
In accordance with Act 425, following the parties
execution of this Agreement, a duplicate original of the Agreement shalt be filed with the
Berrien County Clerk, with the Michigan Searetary of State, with the State Boundary
Commission, and with the Michigan Department of Treasury. This Agreement, certified
by such County Clerk or Secretary of State, shall be prima facie evidence of the
conditional transfer of the areas pursuant to this Agreement.
This Agreement shall ba
éffactive at 12:01 a.m. on November 3, 2005, provided it has bean filed with the County
Clerk and Secretary of State.
(6)
Additlonal Filing. The partles agree to the filing of additional documents, such as
notices, forrns and reports that may be required or requested by county, state or other
agencies to giva full effect and to fully implement this Agreement,
“44 -
HEEL 9002 9% Jay
LLW)-296-919:Xe4
FULL OOWOTHOPage 17
’ Liber: 2708 Page: 1182 Liber/Page stamp alectronically addec- + + FINAL The parties have executed this Agreement as of the date first written above by authority of the respective city commissions of each party. GITY OF BENTON HARBOR CITY OF ST, JOSEPH ae liye — & J. Goff, “o Oh, Hetircte. Pegoy A. Block, Clerk HARBOR SHORES COMMUNITY REDEVELOPMENT, INC. LA D, pie fel President By: Rober LaForest, Secretary ~412. ahd EEL 9002 92 408 dL }P-286-Gh 9: XeY JILEL OO¥OIHO
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‘Liber: 2705 Page: 1183 Liber/Page stamp electronically added 4 Acknowledged before me in Bereta _ County, Michigan on April , 2008, by Wilse Canke, not individually, but as Mayor of the City of Benton Harbor, Notary publi, State of Michigan, County of Heat My commission expires ieee Acting in the County of _ Reser pein Acknowledged before me in Batten, county, Michigan on April ao , 2008, by Joyce Taylor, not individually, out as Clerk of the City of Benton arbor. . Notary public, My commissien expires Acting in the County of 2-47 “nee a 7, bs f A, iF F ; a State of Michi an Founty of Heute =43- fied LETEL 9002 9@ 4dy 2LEP-2B5-91 3: x84 FILL OO¥OTHO
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‘Liber: 2708 Page: 1164 Liker/Page stamp slactronically added note 4 ' Acknowledged before me in Sere er, County, Michigan on Anti 22, 2008, by Mary J. Goff, not individually, ‘but as Mayor of the City of St. Joseph. % 4 Be 7 Notary public, State of Michi an, 7H pile of fond” My commisgion expires Acting in the County of Acknowledged befora me indereten , County, Michigan on April 70 , 2008, by Peggy A. Block, not individually, but as Clerk of the City of St. Joseph. Notary public, Slate of Michi an, County of ten My commission expires ener Acting in the County of -14- vied LEE} 9002 92 40 LLLP-@8G- G19: X24 TILL Od¥olHo
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‘Liber! 2705 Page: 1188 Liber/Page stamp electrontoally added Adknowladged before me in Ser VP) County, Michigan on April > _, 2008, by D. Jeffrey Noel, not Individually, but as President of Harbor Shores Community Redevelopment, Inc. Notary public, State of Michigan, County of tied My commission expires 2 /:]1 ae Acting in the County of fy é¢7"e%, Acknowledged before me in Berton County, Michigan on April , 2006, by Robert LaForest, not individually, but as Secretary of the Harbor Shores Community Redevelopment, Inc. fay red on ts hc) Notary public, State of Michigan, County of tient My commission expires lables i erty Acting in the County of Gh Drafted By and Retum To: Alligon J, Mulder Warner Norcross & Judd LLP 900 Fifth Third Genter 411 Lyon Street NW Grand Rapide, Michigan 49503 Telephone (816) 752-2000 1260338 18+ Gt'd Lhe} 9002 92 4d¥ LLLD-286-B19: X84 FTLLL O8¥O1HO
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‘Liber: 2705 Paga: 1186 Liber/Page stamp electronically added e t t FINAL EXHIBIT A MAP OF CONDITIONALLY TRANSFERRED PROPERTY Sea following page. “$d HEEL 9002 92 Ady LLLD-@86-91.g: xed FILS L OOYQIHO
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‘Liber: 2705 Page: 1187 Liber/Page starnp alestronisally addad wd & | 3 | ret | o£ of ae & | § wy 3 : ‘ ty “ GS eof} Ye, a: |e G Ty . ‘e : * 5 3 . SAT NOLen ——l » YO V1 Lhd LEEEb 9002 92 40y LLEP-286-919: X24 TILL 89D 1H0 Liber: 2708 Page: 1187 Liber/Page stamp elestronically addad SKETCH OF EXHIBIT A WHiTwAR DRSVE IT NoLan ST. JOSEPH RIvER Ld LL 9002 92 Jay « 40 - 1 LEHY-286-019: XR] TILE 0993 1HD
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"Liber; 2706 Page: 1188 Liber/Page atamp electronically added e $h'd FINAL EXHIBIT B DESCRIPTION OF CONDITIONALLY TRANSFERRED PROPERTY All of that property withln the City of St. Joseph in Township 4 South, Range 19 Wast, Section 13 lying easterly of the Paw Paw River; and all of that property within the City of St. Joseph in Township 4 South, Range 19 West, Sections 13, 23 and 24 lying northerly and westerly of the St. Joseph River and tha center line of the Old Paw Paw River and southerly and easterly of the following meander line: commencing at the intersection of the easterly Right-of-Way line of Upton Drive extended and the northerly line of the St. Jogeph River channel, thence northerly along sald easterly line extended to the northerly Right-of-Way line of the CSX Rallroad extended, thence easterly along the northerly Right-of-Way line of the OSX Railroad to the wasterly Right-of.Way line of atate highway M-63, thenea nartherly along sald westerly Right-ot- Way ling to the northerly haundary of the City of St. Joseph. Lh:eb 9002 9% Jdy LLLP-@86-9)9: X24 TUL OOVOTHO