- The applicant secures financial commitment from a lending institution. When approaching a lending institution for financing, state your intent to obtain Economic Development Corporation (EDC) financing. Most institutions find this an attractive transaction because it offers them a tax shelter that in turn, allows them to provide you with financing at a lower rate.
- Submit an application to the EDC Board of Directors. This application must be filled out entirely and accompanied by the following: legal description, site plan, letter of intent from lending institution, $500 application fee.
- The EDC Board adopts the Resolution of Inducement, which designates the Project Area (legal description of the property involved in the project) and the Project District Area (the area that is affected by the project), and submits it to the City Council.
- City Council confirms the Project Area and Project District Area and appoints two additional directors to the EDC Board to serve only until the Project Plan has been completed for this particular project. In some cases, a Project District Council is required. City Council also makes this determination. If the application submitted is in order, and all requirements of Public Act 338 and the City of Livonia are met, the entire procedure can be completed within 60 to 90 days.
The sole function of the Livonia Economic Development Corporation is to help. We want to help businesses in the City secure the most attractive financing available to them and we want to help our City maintain its reputation for being one of the finer communities.
- The Bond Counsel works with the applicant to prepare a Project Plan. The Project Plan must include a certificate from the project developer stating that prevailing wages will be paid to all workers on the project. In most instances, this is union scale. It is not required that the project has a union developer but the prevailing wage must be paid. In addition, if a project is being moved from one community to another, and it will involve the transfer of more than 20 employees, approval must be secured from the community from which the project is moving before the Project Plan can be approved.
- The EDC Board approves the Project Plan and submits it to the City Council.
- City Council calls for a Public Hearing on the Project Plan, giving ten days notice to property owners in the Project District Area, publishing the notice one time in the Livonia Observer newspaper, and posting ten notices within the Project District Area ten days prior to the Public Hearing.
- City Council holds a Public Hearing and approves the Project Plan by resolution.
- The EDC Board adopts the Bond Authorizing Resolution.
- Finally, there is the closing on the sale of the Bonds.