Pa 425 Master Agreement between marshall township and the city of marshall

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​MASTER 425 DEVELOPMENT AGREEMENT CITY OF MARSHALL/MARSHALL TOWNSHIP 

AGREEMENT, made and entered into on this day of February, 2022, amending an 
agreement first made March 14, 2006, and renewed for a ten year period by and between the City of Marshall, a Michigan municipal corporation, having offices at 323 West Michigan Avenue, Marshall, Michigan 49068 (the "City"), and the Township of Marshall, a township duly organized pursuant to the laws of the State of Michigan, and existing in Calhoun County, Michigan, having offices at 13551 Myron Avery Drive, Marshall, Michigan 49068 (the “Township”). 

WHEREAS, extensive property suitable for industrial, commercial and residential development within the jurisdiction of the Township lies to the north, west and south of the City, and 
WHEREAS, the amount of comparable development property lying within the City is limited, and 
WHEREAS, the City has excess sewage treatment and water supply capacity capable of serving the development areas in the Township, which may require additional infrastructure considerations depending on the nature of the development; and 
WHEREAS, the Township does not have sewage treatment or water purification plants or distribution systems, and 
WHEREAS, the City and the Township have in the past entered into agreements pursuant Act 425 of the Public Acts of 1984 (“425 Agreements") to bring sewer and water to available developmental lands in the Township, and 
WHEREAS, the terms of each individual 425 Agreement have either been individually negotiated over considerable periods of time prior to the 2006 Master Agreement or were entered into pursuant to the agreement which became effective in March of 2016, and 
WHEREAS, it would be in the economic best interest of the residents of the City and Township if the City utilities systems served the development lands in the Township, and 
WHEREAS, it is the desire of the City and the Township to update the renewed Master 425 
Agreement which would affect all development lands in the Township thereby assuring prospective 
1 developers of Township land of the availability of utilities without the previous delays incurred in the negotiation of individual 425 Agreements, and 
WHEREAS, the Township and City, through negotiations, have reached an agreement to be utilized in all 425 Agreements to be executed between the Township and the City. NOW, THEREFORE, for and in consideration of the Township's agreement not to develop its own sewer and water system, either individually or in conjunction with an adjoining township or municipality, for the period of this agreement and the City's agreement to supply sewer and water, if capacity is available, to Township lands, BE IT AGREED AS FOLLOWS: 
1. Term of Agreement. This Agreement shall extend through December 31, 2029, and will automatically renew every ten (10) years unless a ninety (90) day notice in writing is given by either of the parties. Automatic renewal periods shall not extend this agreement beyond 2079. 
2. Joint Municipal Planning Commission. A Joint Municipal Planning Commission (“JPC”) shall be has been formed pursuant to Public Act 226 of 2003 (MCL 125.131 et seq.) and will be maintained as long as there is a 425 Agreement between the City and Township. The JPC shall have an equal number of members from both the Township and the City and shall control all land usages for lands subject to a 425 Agreement between the City and Township regardless of whether the 425 
Agreement is dated prior to or subsequent to the date of this Agreement. The details of the organization and conduct of the JPC are on Schedule A attached hereto. 
3. Definitions. The definition of residentially zoned lands lying South of I-94 and East of I-69 and commercial and industrial lands regardless of location shall be the definition given those land usages in the Marshall City Zoning Ordinance as currently defined. The definition of residentially zoned lands lying North of I-94 or West of I-69 shall be the definition given those land usages in the Marshall Township Zoning Ordinance as currently defined. 

In the event a zoning ordinance is amended and a definition changed, the definition shall not be changed for the purpose of this Agreement without the mutual consent of the City and Township. 
2 The definition of utility system or utilities system shall be the infrastructure required to provide, operate and maintain a City provided utility. 
The definition of utility or utilities shall be the City's municipally provided sewer, water, electricity and/or broadband FiberNet systems as may be specifically referred to in an individual Public Act 425 agreement. 
4. Ceresco Exception. The Township area known as the unincorporated village of Ceresco and defined as the area extending approximately one quarter mile in diameter from the intersection of 12 Mile Road and C Drive North may, contrary to the terms of this Agreement, seek sewer and water services from a source other than the City of Marshall in the event such services are made available at a more economical cost than comparable services in the City of Marshall. 
5. Economic Development. 
The Township Board of Trustees shall designate an economic 
development officer, with whom the City shall share all development inquiries and who shall receive notice of and be entitled to participate in all meetings with prospective developers. This representative shall be subject to the same confidentiality rules and regulations as are the City's 
paid economic developers. In the event the Township has a representative serving on the Board of Directors of the Marshall Area Economic Development Authority, that person shall be the Township's designee under this provision. 
6. Property Owner Request. In the event an owner of property located in the Township requests sewer and water services from the City and the City has adequate capacity to service the property owner's development, the City and Township shall enter into a 425 Agreement based upon the terms and 
conditions herein contained provided the cost of extending the sewer and water to the property 
owner is not paid by either the City or Township. 
7. City Restrictions. During the term of this Agreement, the City shall not: 
a. Enter into a 425 Agreement with any other city, township or other governmental 
subdivision ("foreign 425 Agreement") except upon the same terms and conditions as those 
detailed in this Agreement for Township lands lying west of 1-69 and north of I-94 unless 3 * the City agrees to amend the existing 425 Agreements with the Township permitting the 
township to incorporate into all its existing 425 Agreements one or more of the provisions 
of the Foreign 425 Agreement. 
b. Utilize this Master 425 Development Agreement or an individual 425 agreement as a basis 
to provide City electric power service to a customer already receiving electric power 
service from another utility without the written consent of the other utility. For purposes of 
this agreement, the term "customer" shall mean the building or facilities served rather than 
the individual, association, partnership, corporation, governmental body, or other person 
or entity taking service. 
8. Township Restrictions. During the term of this Agreement, the Township shall not: 
a. Enter into a 425 Agreement with any other township, city or other governmental 
subdivision other than the City of Marshall pursuant to this Agreement without the express 
written consent of the City. 
b. Construct or develop a sewage treatment plant, water purification plant or sewer and/or 
water distribution systems or enter into any agreement for the development, construction 
and/or supplying of these facilities to service Township properties unless the City refuses to increase capacity after a capacity analysis study of the system indicates the inadequacy of the system to handle the Township's request or the City refuses to proceed with a capacity analysis study of the system within one hundred twenty (120) days after the Township's request that capacity be increased. 
9. Terms and Conditions of Individual 425 Agreements. The individual 425 Agreements to be entered into pursuant to this Agreement shall, depending upon the location and usage of the lands, provide as follows: 
a. For commercial and industrial properties east of I-69 and south of I-94: 
1) 
Agreements shall be for a term of fifty (50) years after which the property shall 
remain in the City. 
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2) 
3) 
4) 
The Township shall receive from the City's tax millage four (4) mills on industrial 
property and four (4) mills on commercial property for the term of the 425 
Agreement. 
The cost for the extension of sewer and water lines shall be paid by the land owner 
and/or additional new users. 
An existing building which is zoned commercial or industrial or is a 
nonconforming commercial or industrial use, if utilized for any purpose or if 
connected to a septic tank or drain field, that is within three hundred feet (300') of 
the sewage lines once installed must tie into the sewer and water system upon 
failure of its existing sewage system under a separate 425 Agreement complying 
with the terms of this Master Agreement. 
5) 
The burden of all tax abatements shall be shared by the City and the Township in 
the same percentages as the millage is shared. 
6) 
Utility rates shall not be greater than the rates charged in the City for similar City 
7) 
users. 
Users, pursuant to this Agreement, shall contribute to repairs and capital 
improvements to the sewage treatment facilities, water purification plant, well 
facilities, and distribution systems in the same manner as similar users within the 
City of Marshall. 
b. For commercial and industrial properties west of I-69 or north of 1-94: 
1) 
Agreements shall be for a term of fifty (50) years after which the property shall be 
transferred back to the Township and the City shall own the utility infrastructure 
which will encourage the City and the Township to negotiate extensions of the 
Agreement upon expiration of the fifty (50) year term. 
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2) 
3) 
4) 
The Township shall receive from the City's tax millage four (4) mills on industrial 
property and four (4) mills on commercial property for the term of the 425 
Agreement. 
The costs for the extension of sewer and water distribution systems shall be paid 
by the land owner and/or additional new users. 
An existing business (commercial or industrial) which is zoned commercial or 
industrial or is a nonconforming commercial or industrial use, if utilized for any 
purpose or if connected to a septic tank or drain field, that is within three hundred 
feet (300') of the sewage lines once installed must tie into the sewer and water 
system upon failure of its existing sewage system under a separate 425 Agreement 
complying with the terms of this Master Agreement. 
5) 
The burden of all tax abatements shall be shared by the City and the Township in 
the same percentages as the millage is shared. 
6) 
Utility rates shall not be greater than the rates charged in the City for similar City 
users. 
C. 
7) 
Users, pursuant to this Agreement, shall contribute to repairs and capital 
improvements to the sewage treatment facilities, water purification plant, well 
facilities, and distribution systems in the same manner as similar users within the 
City of Marshall. 
For new residential developments that are east of I-69 and south of I-94: 
(1) 
(2) 
For the purpose of this paragraph residential development shall be defined as a 
single-family residence on a lot less than five (5) acres in size or multi-family 
residences on a lot which averages less than five (5) acres per residence but does 
not qualify as commercial pursuant to paragraph c(8). 
Agreements shall be for a term of fifty (50) year after which the property shall 
remain in the City. 
6 
(3) 
The Township shall receive from the City's tax millage two (2) mills on residential 
property for the term of the 425 Agreement. 
(4) 
The cost for the extension of sewer and water distribution systems shall be paid by 
the land owner and/or additional new users. 
(5) 
Utility rates shall not be greater than the rates charged in the City for similar City 
(6) 
(7) 
users. 
Users, pursuant to this Agreement, shall contribute to repairs and capital 
improvements to the sewage treatment facilities, water purification plant, well 
facilities, and distribution systems in the same manner as similar users within the 
City of Marshall. 
A Multi-family development shall be deemed commercial for purposes of this 
Agreement if it contains more than four (4) residences on one (1) tax parcel and 
shall be developed in accordance with the provisions of this Agreement dealing 
with commercial property lying east of I-69 and south of I-94. 
(8) 
The burden of all tax abatements shall be shared by the City and the Township in 
the same percentages as the millage is shared. 
10. The following developments shall not require a 425 Agreement but shall be entitled to receive City 
sewer and water services upon the terms and conditions set forth: 
a. 
For new single-family residential developments west of I-69 or north of 1-94: 
1) 
If requested by the developer, the Township shall form a sewer district comparable 
to the Lyon Lake Sanitary Sewer District which shall be accepted by the City. 
2) 
The property shall remain in the Township. 
3) 
The cost for extension of sewer shall be paid by the developer or users. 
4) 
A Multi-family development shall for purposes of this agreement be deemed 
commercial if it contains more than four (4) residences on one (1) tax parcel and 
7 
5) 
shall be developed in accordance with the provisions of this Agreement dealing 
with commercial property lying north of I-94 and west of I-69. 
Single-family residential users shall contribute to repairs and capital improvements 
to the sewage treatment facilities, water purification plant, well facilities, and 
distribution systems in the same manner as similar users within the City. 
b. For developed residential property within the Township regardless of location: 
1) 
2) 
3) 
4) 
5) 
The City shall extend sewer and water lines to developed residential areas in the 
Township pursuant to the provisions of Public Act 129 of 1943 (MCLA 123.231 
et seq.) upon the request of the Township or upon a petition being filed with the 
Township and the City and signed by two-thirds (2/3) of the property owners 
within 200 feet of the proposed sewer main. 
All property owners signing the Petition shall be required to tie into the sewer and 
water system. A non-signing property owner with a residence within 200 feet of 
a sewage line once installed must tie into the sewer and water system upon failure 
of the residence's existing sewer system. 
The total cost for extending the distribution lines to developed residential areas 
including but not limited to bonding, engineering and construction shall be the 
responsibility of the users to be served by the extended distribution lines. 
The water and/or sewer system shall be installed according to City specifications 
and ownership of the water and/or sewer systems shall be conveyed to the City 
upon the City approving of the installation. The City, upon becoming the owner 
of the water and/or sewer lines, shall thereafter be responsible for the maintenance 
of the lines. Users on the new water and/or sewer lines shall pay water and/or sewer utility rates as stated in the City's rate ordinance in effect at that time 
00 
8 
11. Additional 425 Agreement's Provisions. The 425 Agreements executed pursuant to this Agreement shall be in the form of Schedule B or Schedule C (whichever is applicable) attached hereto with the additional applicable provisions of this Agreement incorporated therein depending upon the property's location and use. All existing 425 Agreements will be adjusted to increase all Commercial and Industrial to four (4) mills beginning with the 2019 tax year. 
12. Entity Exempt from Paying Property Taxes. In the event that a property owner, that is exempt from paying property taxes, requests that the property it owns be part of a 425 agreement; and enters into a municipal services agreement or a payment in lieu of taxes with the City, the City will pass thru to the Township twenty-five percent (25%) of the annual services agreement payment and/or twenty-five (25%) of the payment in lieu of taxes. 
13. Existing 425 Agreements. All existing 425 Agreements executed between the City and the Township shall remain in full force and effect as modified by applying the changes required by the original 2006 Master Agreement and the 2019 revisions thereto and all payments provided therein shall continue to the Township with the exception of the State Farm Mutual Automobile Insurance Company Property (Agreement dated June 21, 1992 on property located in the Southwest quadrant 
of the I-94/Old US 27 interchange lying North of F Drive North and East of 16 1⁄2 Mile Road). 
("State Farm") 
The State Farm Agreement shall be amended when the land is developed to provide that all provisions thereof shall be in accordance with the terms and conditions of this Master 425 Development Agreement with an effective date on the date the property is developed and extending for a period of fifty (50) years thereafter. For the purposes of this paragraph, "developed" shall mean the date on which improvements to the land are incorporated into the taxable value and equal more than five percent (5%) of the real estate value incorporated into the taxable value. Until amended, the City shall continue to make millage payments in accordance with the existing 
Agreement. This Agreement amends the June 21, 1992, former State Farm property agreement by deleting Section 3.B. that terminates the State Farm Agreement on December 30, 2021. 
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14. City Sewer and Water Capacity. In the event there is a question as to whether or not the capacity of the City sewage treatment plant, wells, water purification plant or distribution systems is adequate to handle the requested Township services, the issue of capacity shall be determined by an independent consultant agreeable to both the Township and the City. The cost of the consultant shall be paid one-half (2) by the Township and one-half (2) by the City. In the event the City and 
the Township cannot agree upon a consultant, a consultant shall be selected by the Calhoun County Administrator/Controller. 
15. Legality of Provision. In the event any provision of this Agreement shall be contrary to public policy, as determined by a court of competent jurisdiction, or laws of the State of Michigan, such provisions, except items 7 and 8, shall be stricken from Agreement and all remaining paragraphs and parts thereof shall be fully enforceable. In the event paragraph 7 or 8 or any portion of either 
is declared contrary to public policy or the laws of the State of Michigan, this Agreement shall be void. 
Chusty a Ramey 
Executed in the presence of: 
Muth. But 
a 
Chusty A Ramey 
CITY OF MARSHALL 
By: 
The Dal 
Thomas Tarkiewicze 
Its: Manager 
CITY OF MARSHALL 
By: 
Lusha Nelson 
Trisha Nelson 
Its: Clerk 
STATE OF MICHIGAN 
COUNTY OF CALHOUN 
) ss. ) 
On this 9th day of February, 2022, before me, a Notary Public, in and for said County, personally appeared Tom Tarkiewicz, Trisha Nelson, who each being first duly sworn, stated that they are respectively the City Manager and the Clerk of the City of Marshall, are authorized to execute the foregoing agreement on behalf of the City of Marshall and that each has done so as the free act and deed of said City of Marshall. 
TRACY L. HALL 
Notary Public - State of Michigan County of Calhoun 
My Commission Expires 10/19/2025 Acting in the County of Calhoun 
Tracy A Hall 
Tracy Hall Notary Public 
Calhoun County, Michigan 
My Commission Expires: 10-19-2025 Acting in the County of Calhoun
Executed in the presence of: J Pal Qua 
MARSHALL TOWNSHIP 
By: ул Julef 
Its: Supervisor 
Executed in the presence of: 
உ lad Ove 
MARSHALL TOWNSHIP 
By: