Public Act 425 of 1984 authorizes two local units of government to share tax revenues resulting from new or expanding development within the areas of their jurisdictions. This agreement allows a temporary transfer of jurisdiction for land, not exceeding 50 years, from one municipality to another in place of annexation. The agreement must involve an economic development project defined by the Act as “land and existing or planned improvements suitable for use by an industrial or commercial enterprise, or housing development, or the protection of the environment, including, but not limited to, groundwater or surface water.”

Marquette Township has approached the City of Marquette to request the exploration of a 425 agreement for a potential housing project that will be located on Forestville Road. While a majority of the development will be located in Marquette Township, a portion totaling approximately 29 acres will be located within the City of Marquette. JM Longyear, the developer, will be applying for a Planned Unit Development (PUD) through Marquette Township for the project along with a request to the Township for sewer, water, and municipal services. Under the 425 agreement, the portion of property located in the City will be included in the Township PUD application. Due to the lack of direct City utilities or road access to the development, City staff supports the implementation of a 425 agreement.

As a consideration of the 425 agreement, the City will receive a portion of tax revenue generated by the development.

Approval from both the City of Marquette and Marquette Township will be required if a 425 agreement is successfully negotiated.