Summary
The Leelanau Township Board reviewed a presentation on Public Act 188 of 1954, which authorizes townships to create special assessment districts (SADs) for public improvements, with specific application to proposed Cherry Homes public road improvements. The presentation outlined the legal process for establishing an SAD, including initiation methods, petition requirements, resolution procedures, and the two-hearing public notice process. No formal board action or vote was recorded in this document.
Infrastructure Projects
The presentation focused on procedures for improving public roads within the Cherry Homes area under MCL 41.772(c), which permits SADs for "construction, improvement, and maintenance of public roads." Two methods for initiating an SAD were described: the Township Board adopting a resolution of intent on its own, or via citizen petition. The recommended petition threshold is signatures from record owners representing not less than 50% of total frontage on the road within the district, though the Township may require a higher threshold; an SAD cannot be blocked once the 50% threshold is met.
The Resolution of Intent, adopted at an open meeting without a public hearing, would tentatively declare the Board's intent to fund the improvement, require preliminary plans and cost estimates, tentatively designate assessed parcels, and set the date of the first public hearing.
PA 188 requires a two-hearing process. The first hearing requires notice published twice in a local newspaper, with the first notice at least 10 days before the hearing, plus first-class mail notice to affected property owners at least 10 days prior. Notices must include the date, time, and location of the hearing, a description of the improvement, and the SAD boundaries. The second public hearing establishes the tax roll and definitively sets the assessment for each property. The Township is advised to work with Bond Counsel and a Municipal Financial Advisor before holding the public hearings. The presentation noted an SAD's duration typically corresponds to the life of the asset, approximately 15 years.
Action Items
- Determine whether the SAD for Cherry Homes road improvements will be initiated by Board resolution or by citizen petition.
- If petition-based, confirm the required signature threshold (recommended at least 50% of total road frontage).
- Obtain preliminary plans and cost estimates for the road improvements prior to adopting a Resolution of Intent.
- Engage Bond Counsel and a Municipal Financial Advisor before scheduling the public hearings.
- Schedule and provide required notices (newspaper publication and first-class mail) for the first and second public hearings.