Sylvan and Lima Townships Form a 425 Agreement

Sylvan and Lima townships have entered into a unique agreement with the aim of promoting economic development projects.

At their June 10 meeting, the Sylvan Township Board approved a 425 Agreement between Sylvan and Lima Townships to transfer property conditionally for the purpose of economic development projects.  Sylvan Township Supervisor Amanda Nimke said properties “in each township form a continuous area south of I-94 and east of M-52, which will be jointly planned and zoned, share revenue, and utilize extension of the sewer and water utilities from Sylvan Township.”

The Lima Township Board approved the 425 Agreement at June 9meeting. In Michigan, Legislative Act 425 “enables two or more local units of government to transfer property conditionally by written agreement between the affected local units of government for the purpose of economic development projects.”

Both boards held public hearings on the agreement.

Nimke said this initiative “is an excellent opportunity for our neighboring jurisdictions to engage in good-faith regional collaboration and planning.” 

“Sylvan Township recently adopted an update to our Master Plan and planned for Commercial Use and Mixed-Housing in the area due to its location adjacent to I-94 and M-52,” Nimke said. “We look forward to input from Lima Township representatives, and the potential to bring commercial services to the area and address local housing needs.”

The agreement will be in place for 15-years, Nimke said, and after that period the properties will either revert back to their original townships or they can agree to extend it.