Background information on the Millage
(A pdf of this document is - here)
Project Description and Cost Summary as recommended and prepared by
the City of Traverse City and Charter Township of Garfield Recreational Authority
Presented May 18, 2004
Adopted June 22, 2004
Members:
Ross Biederman - Chair
Jennifer Jaffe
Brian Bourdages
Ralph Soffredine
Brad Barnes
Tim Hughes
Michael Groleau
Item #1
Commons Property Acquisition and Barns Preservation Project
Description of Project:
Purchase of property to be placed into public use; installation of water, sewer and road infrastructure; stabilization and development of "Barns" to point of non-deterioration; transfer of property to either the City of Traverse City or Charter Township of Garfield if and when the Recreational Authority ceases operation.
Location of Project: Grand Traverse Commons along Silver Lake Road
Acres: 54.7 acres
Jurisdiction: Garfield Township and City of Traverse City
Ownership: Grand Traverse Commons Redevelopment Corporation
Capital Cost: Property Acquisition $ 1
Property and Facility Development $ 650,000
Total $ 650,001
Property and Facility Development Estimates breakdown:
Water Main $ 90,000
Sewer Main $168,000
Franke Road Extension $282,000
Barn Stabilization $250,000
Sub-total $790,000
Less City Contribution for Franke Road ($140,000)
Total $ 650,000
Water, Sewer and Road estimates calculated by City Engineering and includes a 20% Engineering/Contingency. Two assumptions: road connection will be a typical 24' wide bituminous mat with 4' shoulders and alignment selected will not involve wetland mitigation; sewer main will pump north into the TBA/Commons sanitary sewer, which will require City to assume ownership of what is now a privately owned sewer. Base estimates for Barn stabilization and development cost from Rolling Centuries Historical Farm Redevelopment Costs of 10/17/02 and assumes the roof work on one of the “barns” has been completed. General Operation and Maintenance cost are not included in these figures.
Item #2
Hickory Meadows (Property next to Hickory Hills) Acquisition Project
Description of Project:
Purchase of property to be placed into passive public use; a conservation easement to be placed on the property; transfer to Charter Township of Garfield if and when Recreational Authority ceases operation.
Location of Project: West of Traverse City with access via Randolph Street and trail head acquisition from M-72; adjoins Hickory Hills owned by City of Traverse City
Jurisdiction: Garfield Township
Acres: 117 acres
Ownership: GDO Investments (Oleson), John Wilson, and William Wilson; Option Agreement with GDO Investments (majority of property) in place and held by Grand Traverse Regional Land Conservancy; no agreements with Wilson’s
Capital Cost: Oleson Property Acquisition $2,900,000
Wilson Properties Acquisition $100,000
Total $3,000,000
Project only covers the acquisition of the property. General Operation and Maintenance cost are not included with these figures.
Item #3
West Bay Water Front (Smith-Barney Building) Property Acquisition Project
Description of Project:
Purchase of property to be used for public open space; demolition of existing building and land restoration; transfer of property to City of Traverse City with condition that land is placed into parkland status if and when Recreation Authority ceases operation.>
Location of Project: Grandview Parkway on West Grand Traverse Bay
Jurisdiction: City of Traverse City
Acres: .52 acres
Ownership: Edward and Benjamin Maier; Option Agreement in place and held by Grand Traverse Regional Land Conservancy
Capital Cost: Property Acquisition $2,600,000
Building/Site Demolition/Reclaim $102,000
Total $2,702,000
Demolition cost estimated by City Engineering and includes a 20% Engineering and Contingency. Estimate also includes cost to cover possible environmental issues associated with demolition; will require the hiring of consultant to undertake assessment (included in the 20%). General Operation and Maintenance cost are not included with these figures.
Item #4
Authority General Administrative, Operation and Maintenance and Property Development
Description of Item: General administrative, operation and maintenance, and property development of the Recreational Authority.
Provides for the general administrative, development and maintenance not included in the previous items of the Recreational Authority and properties acquired. Administrative functions could be handled by the Authority by hiring personnel or through an intergovernmental agreement with either the City of Traverse City or Garfield Township. Development and maintenance cost would include improvements and maintenance of properties.
Administrative functions would include:
- general and financial management of board functions
- general legal and auditing services
- property & liability insurance, board liability insurance
- property maintenance and oversight (staff or contract)
- development/construction oversight
- utilities (when applicable)
General Administrative, Operation and Maintenance Cost: $ 125,000
Summary of All Items
| Item Capital Projects General Admin | Operation and Maintenance | |
| #1 | $ 650,001 | $ 0 |
| #2 | $ 3,000,000 | $ 0 |
| #3 | $ 2,702,000 | $ 0 |
| #4 | $ 0 | $ 125,000 |
| Total | $6,352,001 | $ 125,000 |
The capital projects would be financed through a 20-year General Obligation Bond as provided under Section 123.1151 and 123.1153 of the Recreational Authorities Act. The proposed bond issue will not exceed $6,650,000 for 20 years. The average millage rate for the debt service is estimated to be .2727 mills. Using this average millage rate, the tax levy on property valued at $100,000, with a taxable value of $50,000, is estimated to be $13.64 per year.
The General Administration and Operation and Maintenance functions would be provided through an operational millage as provided for under Section 123.1141 of the Recreational Authorities Act. The proposed millage rate is estimated to be .10 mills for 20 years. Using this millage rate, the tax levy on property valued at $100,000, with a taxable value of $50,000, is estimated to be $5.00 per year.
The combine millage as indicated above would average a total rate of .3727 mills. The tax levy on property valued at $100,000, with a taxable value of $50,000, is estimated to total $18.64 per year.