The LDFA was created with the intention of eliminating the causes of unemployment, underemployment, and joblessness by promoting and overseeing programs that seek to contribute to economic growth and development by dedicating a portion of the tax base resulting from the economic growth and development to certain public facilities and structures or improvements of the type designed and dedicated to public use and thereby facilitate certain projects which create economic growth and development. 

The board members of the Local Development Finance Authority also serve as the board of the Owosso Brownfield Redevelopment Authority.

The LDFA does not have any current projects. The most recently completed project was the successful expansion of Woodward Furniture from South Elm St. to Delaney Road in 1996. The district was closed in 2009 when all financing obligations were retired.