Sample 425 Agreement for Conditional Transfer of Land

Agreement made this ____ day of _________, 20__, by and between the CITY OF __________, a Michigan municipal corporation of (address) , (city) , Michigan (hereinafter CITY), and the TOWNSHIP OF _________, County, Michigan, a Michigan municipal corporation of
(address) , (city) , Michigan (hereinafter TOWNSHIP).

WITNESSETH:

WHEREAS certain areas within the TOWNSHIP adjacent to the CITY as more particularly hereinafter described, are zoned for commercial and industrial purposes but are in need of public water and sewer services to make the same suitable for economic development, and

WHEREAS the development of such areas for commercial and industrial purposes would promote economic progress within both the CITY and TOWNSHIP by increasing the probability of such industrial and commercial development and the creation of additional employment and tax base as well as cash flow within both the CITY and TOWNSHIP, and

WHEREAS the CITY has in existence the capacity to furnish both public water and sewer service to such areas and is willing to provide such services under the terms and conditions of the within contract, and

WHEREAS the CITY and TOWNSHIP have reviewed the provisions of Act 425 of 1984 [MCL 124.21, et seq.], Act 35 of 1951, as amended (MCL 124.1, et seq.), and Act 8 of 1967 (Extra Session) MCL 124.531, et seq., pertaining to interlocal agreements, intergovernmental transfers of functions and responsibilities, and transfers of property for economic development projects and consider them useful and applicable to the purposes of the within agreement, and

WHEREAS the (property owner) ___________, of (city) , Michigan is the owner of certain territory within the TOWNSHIP which is deemed suitable for industrial and commercial development if provided with the aforementioned public water and sewer services as well as other services available to properties within the CITY, and is accordingly in favor of the within conditional transfer of such property from the TOWNSHIP to the CITY,

NOW THEREFORE pursuant to the authority contained in the foregoing Michigan Public Acts and in consideration of the covenants and conditions hereinafter contained, it is hereby agreed by and between the parties hereto as follows:
1. The territory within the TOWNSHIP described in Exhibit "A" attached hereto and made a part hereof, is hereby conditionally transferred from the jurisdiction of the TOWNSHIP to the jurisdiction of the CITY, effective on the_______ day of ________, 20_____.

2. Upon the effective date of such transfer, the CITY agrees to make available to said territory all CITY services now available to residents and property owners within the CITY, in the same manner and subject to the same conditions and limitations as are applicable to other residents and property owners within the CITY, or as may be adjusted from time to time for application

throughout the CITY to similar properties and developments. Any construction or improvements required to furnish such services including among others public water and sewer service, shall be accomplished by the CITY in such reasonable time and under such reasonable conditions and limitations as are applicable for such construction and improvement throughout the existing CITY.

3. Upon the effective date of the within transfer of jurisdiction, the CITY shall have full authority and municipal jurisdiction over said territory in the same manner as though the territory were unconditionally a part of the CITY, including among other authorities, the right and power of taxation, the levying of special assessments, police and fire protection responsibility and all CITY ordinance enforcement authority.

4. All ad valorem taxes assessed against the aforedescribed territory based upon December 31, 20__ assessed valuations shall be billed by the TOWNSHIP and retained by the TOWNSHIP. Thereafter, and during the period of the within Agreement, the TOWNSHIP shall be paid by the CITY $2.00 per $1,000 of State Equalized Valuation of said territory, and any and all taxable personal property located thereon as well as 50% of all State and federal shared revenues, if any, attributable to said territory and any personal property located thereon, or residents located therein. All payments shall be made by the CITY to the TOWNSHIP within 30 days after the receipt of same and shall be accompanied by the calculations pertinent thereto. It is understood and agreed between the parties that the foregoing payments are for the purpose of compensating the TOWNSHIP for lost revenues resulting from the transfer of the property to the CITY jurisdiction.

5. No other division of assets or liabilities between the CITY and TOWNSHIP shall result or be required because of the within transfer.

6. In the event the CITY fails to comply with its obligations set forth in the within Agreement for a period of ninety (90) days following written notification from the TOWNSHIP to the CITY of such default, the TOWNSHIP shall have the option of declaring a breach of the within Agreement and the return of the transferred territory to the TOWNSHIP, or of bringing other civil judicial proceedings such as mandamus, injunctive relief, declaratory judgment relief, or specific performance of the within Agreement obligations in the appropriate judicial forum for such proceedings.

7. The within Agreement shall continue in effect for a period of ten (10) years from the effective date hereof, at the end of which period said territory shall be automatically transferred back to the TOWNSHIP to remain a part of its jurisdiction, unless the parties hereto agree in writing to extend the period of the within Agreement for an additional number of years not exceeding forty (40).

8. In the event the aforesaid territory is not commenced to be improved for industrial and commercial purposes, as 20__, and is thereafter not continued to substantial completion by December 31, 20__, the within Agreement shall be considered null and void and the territory shall be automatically returned to the jurisdiction of the TOWNSHIP. A copy of this Agreement shall be recorded within thirty (30) days after its effective date with the Michigan Secretary of State, the Michigan State Boundary Commission, and the _________County Register of Deeds for general public notification of the terms thereof.

9. The Township Board of the TOWNSHIP and the City Counsel of the CITY shall hold at least one public hearing within its jurisdiction upon the within Agreement before executing the same, preceded by notice complying with the requirements of the Michigan Open Meetings Act.

10. It is understood and agreed the within Agreement shall not constitute a precedent for further conditional transfers of territory or the furnishing of CITY services within the TOWNSHIP and each future situation, if any, shall be considered by the parties on its merits.

11. If within thirty (30) days after the last of the foregoing public hearings have been held a petition signed by 20% or more of the registered electors residing within the property proposed to be transferred; or if no registered electors reside therein signed by persons owning 50% or more of the property to be transferred, is filed with the Township Clerk, a referendum election shall be held within the TOWNSHIP on whether or not the Agreement should be executed by the TOWNSHIP. The results of such election shall govern the execution of the Agreement by the TOWNSHIP. If no such petition is filed, the Agreement may be executed by the parties thereto.

IN WITNESS WHEREOF the parties hereto have executed the within Agreement the day and date first above written.

Signed in the presence of: CITY OF _____________________________


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By: _________________________________
its Mayor
By: __________________________________
its Clerk

TOWNSHIP OF__________________________

By: _________________________________
its Supervisor
By: _________________________________
its Clerk


PROPERTY OWNER

By: _________________________________