The City of Clare formed a Local Development Finance Authority (LDFA) in 2014 the purpose of which is to provide for the acquisition, construction, installation and financing of certain public facilities as allowed within the LDFA Act necessary for the development of the LDFA District. An LDFA is a tax increment financing authority authorized under Public Act 281 of 1986 for the economic development or redevelopment of a specifically defined geographic area. Property taxes which are captured by the LDFA are only on the increased value of the developed and improved industrial property and they can only be used for the purpose of paying for the public facility improvements necessary for the development of the industrial park as defined within the LDFA Plan.
The Board of Directors of the City's LDFA is comprised of eleven members, seven appointed by the Mayor, one from the Clare County Board of Commissioners, two from Clare Public Schools and one from Mid Michigan Community College. The geographic District of the City of Clare's Local Development Finance Authority consists of the entire sixty (60) acre North Industrial Park located on Colonville Road. The LDFA Board of Directors meets on at least an annual basis.