Tax Jurisdictions

Midland, MI: (Feb-26-08) The Midland Cogeneration Venture brought charges against Midland County taxing jurisdictions including the city, Midland County, Midland Public Schools, Bullock Creek School District, Midland County Educational Agency, Delta College, and the state of Michigan, over money owed to the power plan on property that was over-assessed. County officials confirmed that the two parties had worked out a settlement agreement, aimed at resolving the dispute. Under the terms of the agreement, Midland County taxing jurisdictions including the city, Midland County, Midland Public Schools, Bullock Creek School District, Midland County Educational Agency, Delta College and the state of Michigan will owe $137 million to the Midland Cogeneration Venture on property that was over assessed from 2001 to 2007.

Currently, the company is valued at $1.4 billion. Through negotiations, the city and Midland Cogeneration Venture pegged the value at $473 million in 2007. In return, Midland Cogeneration stated that it will donate $10 million back to the taxing units, mostly to the schools, to offset interest that is accruing at $19,000 per day until the Michigan Tax Tribunal approves the deal. Company officials said the company would use the returned money to pay for a new $35 million boiler that will lower its operating cost and pay down financial obligations to make the plant more viable in the future. [SAGINAW NEWS: PROPERTY TAX]

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Published on Feb-27-08