Governor Rick Snyder has signed a bill into law to help Houghton make bond payments it was in danger of defaulting on.
The bill comes from a drop in Houghton Downtown Development Authority revenue when Michigan Tech bought a building in the city’s DDA district.
When the building left the city tax roll, Houghton’s 1994 Capital Appreciation Bond payment more than doubled to $205,000.
That jump was going to prevent the city from making its next scheduled payment, due this Sunday.
The bill comes out of the state House.
It allows the debt to be restructured through the capture of school taxes by the DDA up to a limit of $750,000.
State Rep Matt Huuki of Atlantic Mine sponsored the bill.