Transitions, Taxations, and Timeliness

[XLFD]

Transitions

My last surviving parent, my mother, died in February of this year.  Losing a parent is traumatic enough, but dealing with all the issues regarding the funeral arrangements, estate, the trust she left behind, and all the other new responsibilities of the household she ran can be overwhelming.  It involved a lot of sorting through records and learning new things which are difficult enough when your head is not clouded with grief.  

I learned early this morning that I had apparently made a rather important omission of sorts.  It wasn't the only one, as there had been some monthly bills that my mom had at her house during the early part of the year that didn't get taken care of immediately because it wasn't clear at first whether she paid them.  

My birthday happens to be in March and that meant that I likely received a notice from the secretary of state's office to renew my car's registration and/or my driver's license around this time; I would have likely got something from my insurance company too with the cost of my car insurance for the next year.  It's a form of transportation that I rarely used over the non-wintry months, preferring to ride bicycles and walk.

The fog in my memory of that time had me believing that I had took care of those expenses just like many of the others that were new to me, but I have to believe now that I had either placed them in a file folder out of the way of all the challenges in front of me, or accidentally threw them out with other insignificant records.  Whatever the case, those items had been ignored, and I really can blame nobody other than myself and my inconsistent recollections.

After a long Monday night of poring over some FOIA responses and doing article research, I noticed the weather was windy and could develop into rain at any moment.  I decided to take the car from my mother's old house on Pine Street to my place on Dowland Street.  It was after 3 AM, and according to the Ludington police officer who pulled me over from behind, I didn't come to a complete stop on Foster Street-- and he noticed my tags were outdated.

Learning that last fact and looking in my glove compartment for what may have been the first time in the year, I came to a quick realization that I had never took care of these three necessities of driving like I had imagined I did, and I explained it briefly and contritely.  The LPD officer was polite and professional and eventually wrote me a citation for the three offenses, and I walked the rest of the three blocks to get to my home.  

As he extended me the courtesy of not towing my vehicle or taking me in for the two omissions that are low-level misdemeanors, I made sure this morning and early afternoon to spare no expense in order to get the vehicle insured, get my license renewed, and get a new registration sticker-- as I would have liked to have done back in February or March.  

Because I didn't, I now face potentially large fines and the embarrassment of breaking the law for not timely getting things taken care of when I should have.  

Taxations

The Ludington Downtown Development Authority (DDA) had likely been talking long before their December 3. 2018 meeting about renewing the Tax Increment Financing (TIF) Plan that will expire on October 25, 2019.  They talked of the need for a citizen's council and knew they had that deadline almost a year away.  The initial TIF Plan dated 8-29-2019 presented to the public and taxing authorities before the 'public hearing' that took place on September 23, 2019, was crafted to be a 46 year plan that captured 20% of the tax increases of the downtown area, projected to start bringing in over $200,000 per year by 2041 to the DDA in order to bring in over $9.4 million during those 46 years.  They only had designs on $4.7 million of that money in the plan, meaning that the administrative costs would assuredly take the rest.  

The September hearing was illegal, however, as the downtown citizen's council had only been around for 14 days and the plan needed to have a public hearing 90 days after formation of that council.  The one meeting of the official citizen's council had plenty of discussion on downtown issues, directed by Community Development Director Heather Tykoski, but failed to look at any aspects of the TIF plan at all which had numerous irregularities that were retained when the unlawful hearing was convened.  

On October 14th, the Ludington City Council had a first reading of a completely revised TIF Plan which was projected out 16 years, this time at a consistent 12% tax capture rate.  The plan would optimistically raise $1.1 million over those years and fall far short of the $4.7 million in improvements it had detailed therein, a leftover of the 46 year plan.  Legacy Park improvements, slated at $2.5 million total, cannot even get half done in 15 years if all of the money from the TIF Plan was solely devoted to that task.

Even had the September public hearing been lawful, which it wasn't, the huge changes between the 46 year plan presented there for discussion and the 16 year plan introduced at the October meeting in an ordinance were enough to necessitate a second public hearing properly noticed to the public in accordance with the law, and a new notice to the taxing authorities whose 'tax increment burden' actually went down nearly 90% between the two plans.

This is due to MCL 125.4214(5) which says that after a public hearing has been held:  "A tax increment financing plan may be modified if the modification is approved by the governing body upon notice and after public hearings and agreements as are required for approval of the original plan."  This is why it is a good idea not to wait until the last moment to get these passed, because you're likely to get in time trouble, which the City of Ludington has found itself in the midst of.  

The reason they strongly desire to hold a special meeting on or before October 25 is because they will lose the 1989 baseline for capturing taxes in the downtown area and that baseline will move up to 2019 (or potentially 2020).  So instead of getting around $70,000 from a 12% TIF, they will be lucky to get a couple of thousand for the first years.  That's quite a penalty.

 

Timeliness

Earlier this year, I had every intention of getting my driver's license and tag renewed and purchasing car insurance.  I failed in being orderly, timely, or cautious enough to make sure that happened.  My failure led to me being found out by the city police who caught me in that omission.  I am now faced with a potentially daunting penalty for my oversight.  

Late last year, the DDA had every intention of getting their TIF plan completed, reviewed and voted on by October 25th of this year.  They failed in being orderly, timely, or cautious enough to make sure that happened.  Their failure led to them being found out by me who caught them in that omission.  They are now faced with a potential daunting penalty for their oversight.  

I will admit my negligence in abiding by the rules and accept the punishment as provided by law.  Will the DDA do the same?

[Du Wright]

Brain overload. Well the good of it is that you didn't have an accident and find out in a catastrophic accident that you didn't have insurance--it could have been much worse that way. Fines are tiny compared to not having insurance. And you weren't drinking at 3 a.m., that could have been worse. Glad your encounter with the LPD was cordial. It could have been worse if you had assaulted the officer. You probably won't forget again but some insurance agents, call and give a reminder or late notice. Mine calls me if I forget. That's good service! Also consider autopay on house and car insurance!

[XLFD]

My encounters with LPD since 2016 have been extremely cordial, and I don't know whether it's their changes in personnel or policy. I do know that some of the more suspect officers have been weeded out, and their replacements seem to be more professional and eclectic in their approaches. The ones who have been there a while are solid officers, and ones I actually trust more than many of the road patrol for the sheriff's office. This has strictly been my own observations in their conduct around me; others might disagree, but the lack of use of force lawsuits lately are a good sign.
I've never been happy with Michigan auto insurance. Back around ten years ago, when I was riding 9000 miles on my bicycle and only about 5% of that in my car, I was effectively paying a couple dollars for every mile I drove with my car. My brother living in Illinois and using his newer and fancier car to drive 30,000 miles in harsher traffic conditions and better terms of insurance was paying a couple pennies per mile. Because I try to save dough, I usually get something bare-bones on-line with long-distance agents, and the service is generally lacking.  

[Freedom Seeker]

We, the people, will pay the taxes and fines, but the government or those connected to it get immunity, reenactment, forgiveness and leniency. Work for the government!

[Willy]

Sorry but there is no comparison between your situation and The TIF. The TIF involved many people who were in charge of carrying out duties they were assigned. Theirs was a lack of keeping track of a timeline and doing their duties and was just  plain incompetence. You on the other hand just failed to keep track of what I consider over burdensome taxes and fees in the form of Government documents which are completely unnecessary and for which the only reason for their existence is to further burden the citizens and keep the cash flowing into the States Treasury.

[XLFD]

You are extremely perceptive at times, Willy.  Their comedy of errors throughout this process flowered at their special meeting at 5 PM on Thursday.  I went there, the only citizen who went if you don't count Noah Hausmann of the COLDNews, and really the only additional official present other than the usual bench-sitters in front, was Heather Tykoski.  I made what I thought was a very spirited and knowledgeable presentation of how the TIF Plan was deficient in many ways as to form and legality, quoting state law throughout and applying it to the plan as presented. 

Councilor Serna had a few good questions about it, but the DDA was too well represented with Brandy and Steve Miller, Les Johnson, and a sympathetic Richard Wilson (whose college that he's a trustee at will lose about $300,000 over the term of this TIF scheme) arguing to break several laws just to get this passed before October 25 and retain the 1989 baseline.

They will find themselves seriously challenged, and they will rue the day they tried to break so many state laws in their greed for more tax money.  Lest we forget, the DDA will take around $40,000 per year from the County, WSCC and LMTA, and those holes in their respective budgets will need to be filled with more money coming from the usual source.

[Du Wright]

With the representation of three dual positions on the DDA and the city council, and at least two other business owners on the council, it is no wonder the DDA rules in this town. If only the DDA were accountable for infrastructure and other city-wide needs, we might have had some attention the past 12 or more years. I can understand the point of a separate tax for the DDA if businesses were completely a ramshackle ghost town, but it seems they are flourishing, and doing much better than our roads, sewers, and sidewalks and the rest of the general citizenry.

[Freedom Seeker]

Sounds like you have a plan up your sleeve, X. The law of the DDA is much more comprehensive than what our DDA acts out. It seems the DDA is mostly dedicated to marketing events which clog our streets with tourists (which should be a function of the Tourism board anyway?). But that clog of tourists fills the restaurants and bars and keeps the businesses profitable and the 100 or so businesses have a bigger voice in this city than the 8000 taxpayers.

Then there were a couple of facade projects, let's not forget, one which benefitted the treasurer of the DDA, and the other benefitted another high-profile advocate of DDA. For that corruption alone, the DDA should have been disbanded, yet the city attorney blathers in circles and confuses the audience that it was ok.

[XLFD]

If the city CDD and council can't follow the simple steps of approving an amended TIF Plan correctly, I will attempt the more complex task of having the state treasury department step in and make them do it correctly.  

When the department of the treasury gets an earful of the many ways the DDA and city council violated this act, they are mandated by law to act.  I will make sure they do their job.

[Freedom Seeker]

Wow! That clause should make Richard Wilson talk square rather than circles, unless there is some kind of built-in reenactment or other leniency. This will be interesting.