The Economic Development Corporations Act (Act 338 of 1974) allows municipalities to establish Economic Development Corporations (“EDCs”) in order to alleviate and prevent conditions of unemployment and assist and retain local industrial and commercial enterprises. To strengthen and revitalize the economy of Battle Creek, the City established the Economic Development Corporation of Battle Creek in 1976. The EDC has not been active in recent years and the terms of almost all of the existing board members have expired.
Recently, it came to light that the EDC is needed to authorize the signing of documents clearing a couple of title issues for American Fitbrit/Hoover Universal, in the industrial park. The EDC is party to two mortgages and is needed to discharge the mortgages and possibly execute deeds. Finance Director Linda Morrison has indicated that there is no record of outstanding debt owed by American Fitbrit/Hoover Universal to the Economic Development Corporation, clearing the way for the action.
In order to address the issue, the City is seeking to update the EDC membership. Once a new board is appointed they will be asked to address the mortgages. While no additional action is required of the board at this time, the city would also like to update the membership in anticipation of updating the EDC plan in the future. Doing so will allow the city to continue to utilize this important economic development tool as needed.
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