HOUSE BILL No. 5870 May 19, 1998, Introduced by Reps. Bobier and Wetters and referred to the Committee on Agriculture. A bill to amend 1943 PA 184, entitled "Township zoning act," by amending the title and sections 31, 32, 33, and 40 (MCL 125.301, 125.302, 125.303, and 125.310), the title and section 31 as amended and sections 32, 33, and 40 as added by 1996 PA 570, and by adding section 32a. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 TITLE 2 An act to provide for the establishment in townships of 3 zoning districts within which the proper use of land and natural 4 resources may be encouraged or regulated by ordinance, and for 5 which districts provisions may also be adopted designating the 6 location of, the size of, the uses that may be made of, the 7 minimum open spaces, sanitary, safety, and protective measures 8 thatshall beARE required for, and the maximum number of 01342'97 TMV 2 1 families that may be housed in dwellings, buildings, and 2 structures, including tents and trailer coaches, that are erected 3 or altered; to designate the use of certain state licensed resi- 4 dential facilities; to provide for a method for the adoption of 5 ordinances and amendments to ordinances; to provide for emergency 6 interim ordinances; to provide for the acquisition by purchase, 7 condemnation, or otherwise of nonconforming property; to provide 8 for the administering of ordinances adopted; to provide for con- 9 flicts with other acts, ordinances, or regulations; to provide 10 sanctions for violations; to provide for the assessment, levy, 11 and collection of taxes; to provide for the collection of fees 12 for building permits; to provide for petitions, public hearings, 13 and referenda; to provide for appeals; to authorize the purchase 14 AND TRANSFER of development rights; to authorize the issuance of 15 bonds and notes; and to provide for special assessments. 16 Sec. 31. (1) The township board of a township may adopt a 17 development rights ordinance limited to the establishment, 18 financing, and administration of a PDR program OR TDR PROGRAM, as 19 provided under this section and sections 32andTO 33.TheA 20 PDR program OR TDR PROGRAM may be used only to protect agricul- 21 tural land and other eligible land. This section and sections 32 22andTO 33 do not expand the condemnation authority of a town- 23 ship as otherwise provided for in this act. A PDR program shall 24 not acquire development rights by condemnation. This section and 25 sections 32andTO 33 do not limit any authority that may oth- 26 erwise be provided by law for a township to protect natural 01342'97 3 1 resources, preserve open space, provide for historic 2 preservation, or accomplish similar purposes. 3 (2) A township shall not establish, finance, or administer a 4 PDR program OR TDR PROGRAM unless the township board adopts a 5 development rights ordinance. If the township has a zoning ordi- 6 nance, the development rights ordinance may be adopted as part of 7 the zoning ordinance pursuant to the procedures governing adop- 8 tion of a zoning ordinance set forth in this act. Whether or not 9 the township has a zoning ordinance, the development rights ordi- 10 nance may be adopted as a separate ordinance pursuant to the pro- 11 cedures governing ordinance adoption in general. 12 (3) A township board may promote and enter into agreements 13 between counties, cities, villages, and townships for the pur- 14 chase AND TRANSFER of development rights, including 15 cross-jurisdictional purchase AND TRANSFER, subject to applicable 16 development rights ordinances of townships and similar ordinances 17 of counties, cities, and villages. 18 Sec. 32. (1) A development rights ordinanceshallMAY 19 provide for a PDR program. Under a PDR program, the township 20purchasesMAY PURCHASE development rights, but only from a 21willinglandowner WHO IS A WILLING SELLER. A development 22 rights ordinance providing for a PDR program shall specify all of 23 the following: 24 (a) The public benefits that the township may seek through 25 the purchase of development rights. 26 (b) The procedure by which the township or a landowner may 27 by application initiate a purchase of development rights. 01342'97 4 1 (c) The development rights authorized to be purchased 2 subject to a determination under standards and procedures 3 required by subdivision (d). 4 (d) The standards and procedure to be followed by the town- 5 ship board for approving, modifying, or rejecting an application 6 to purchase development rights including the determination of all 7 of the following: 8 (i) Whether to purchase development rights. 9 (ii) Which development rights to purchase. 10 (iii) The intensity of development permitted after the pur- 11 chase on the land from which the development rights are 12 purchased. 13 (iv) The price at which development rights will be purchased 14 and the method of payment. 15 (v) The procedure for ensuring that the purchase or sale of 16 development rights is legally fixed so as to run with the land. 17 (e) The circumstances under which an owner of land from 18 which development rights have been purchased under a PDR program 19 may repurchase those development rights and how the proceeds of 20 the purchase are to be used by the township. 21 (2) If the township has a zoning ordinance, the purchase of 22 development rights shall be consistent with the plan referred to 23 in section 3 upon which the zoning ordinance is based. 24 (3) Development rights acquired under a PDR program may be 25 conveyed only as provided pursuant to subsection (1)(e). 26 (4) The township shall notify each village in which is 27 located land from which development rights are proposed to be 01342'97 5 1 purchased of the receipt of an application for the purchase of 2 development rights and shall notify each such village of the dis- 3 position of that application. 4 SEC. 32A. (1) A DEVELOPMENT RIGHTS ORDINANCE MAY PROVIDE 5 FOR A TDR PROGRAM. UNDER A TDR PROGRAM, ONLY A WILLING 6 LANDOWNER'S DEVELOPMENT RIGHTS MAY BE TRANSFERRED. A DEVELOPMENT 7 RIGHTS ORDINANCE PROVIDING FOR A TDR PROGRAM SHALL SPECIFY ALL OF 8 THE FOLLOWING: 9 (A) THE PUBLIC BENEFITS THAT THE TOWNSHIP MAY SEEK THROUGH 10 THE TRANSFER OF DEVELOPMENT RIGHTS, AND THE DEVELOPMENT RIGHTS 11 AUTHORIZED TO BE TRANSFERRED. 12 (B) THE PROCEDURES TO BE FOLLOWED BY THE TOWNSHIP BOARD FOR 13 ESTABLISHING THE PRECISE LOCATION OF EACH SENDING ZONE AND 14 RECEIVING ZONE AND LIMITING THE DEVELOPMENT RIGHTS THAT MAY BE 15 TRANSFERRED TO EACH RECEIVING ZONE. THOSE PROCEDURES SHALL 16 ENSURE, BUT NEED NOT BE LIMITED TO, ALL OF THE FOLLOWING: 17 (i) CONSIDERATION OF AN ESTIMATE OF POPULATION AND ECONOMIC 18 GROWTH DURING THE NEXT 10 YEARS IN THE TOWNSHIP AND AN ESTIMATE 19 OF THE DEVELOPMENT POTENTIAL OF EACH PROPOSED SENDING ZONE AND 20 RECEIVING ZONE. 21 (ii) IF THE TOWNSHIP HAS A ZONING ORDINANCE, CONSISTENCY 22 WITH THE PLAN REFERRED TO IN SECTION 3 UPON WHICH THE ZONING 23 ORDINANCE IS BASED. 24 (iii) CONSIDERATION OF AN ESTIMATE OF THE EXISTING AND PRO- 25 POSED INFRASTRUCTURE, INCLUDING SERVICES AND FACILITIES, OF EACH 26 PROPOSED RECEIVING ZONE. 01342'97 6 1 (iv) THAT A RECEIVING ZONE BE ABLE TO ACCOMMODATE, IN TERMS 2 OF BOTH CAPACITY AND AVAILABILITY, THE INTENSITY OF DEVELOPMENT 3 ASSOCIATED WITH DEVELOPMENT RIGHTS THAT MAY BE TRANSFERRED FROM A 4 SENDING ZONE. 5 (v) AVOIDANCE OF UNDUE BURDEN UPON THE PEOPLE AND LAND 6 WITHIN THE RECEIVING ZONE. 7 (vi) CONSISTENCY WITH THE PURPOSES OF THIS SECTION AND WITH 8 THIS ACT. 9 (vii) CONSIDERATION OF THE INTENSITY OF DEVELOPMENT OTHER- 10 WISE ALLOWED UNDER APPLICABLE ZONING, BUILDING, AND OTHER ORDI- 11 NANCES BEFORE THE ADOPTION OF TDR PROGRAM PROVISIONS IN A DEVEL- 12 OPMENT RIGHTS ORDINANCE. 13 (C) THE PROCEDURE FOR A TRANSFER OF DEVELOPMENT RIGHTS, 14 INCLUDING THE PROCEDURE BY WHICH THE TOWNSHIP OR A PROPERTY OWNER 15 MAY BY APPLICATION INITIATE A TRANSFER OF DEVELOPMENT RIGHTS. 16 EXCEPT AS PROVIDED IN SUBDIVISION (E) AND SUBSECTION (3)(B), AN 17 APPLICATION TO TRANSFER DEVELOPMENT RIGHTS SHALL INCLUDE, BUT 18 NEED NOT BE LIMITED TO, THE IDENTITY OF THE LAND WITHIN A SENDING 19 ZONE FROM WHICH THE DEVELOPMENT RIGHTS ARE PROPOSED TO BE SEVERED 20 AND THE IDENTITY OF LAND WITHIN A RECEIVING ZONE TO WHICH THE 21 DEVELOPMENT RIGHTS ARE PROPOSED TO BE ATTACHED. 22 (D) THE STANDARDS AND PROCEDURE TO BE FOLLOWED BY THE TOWN- 23 SHIP BOARD FOR APPROVING, MODIFYING, OR REJECTING AN APPLICATION 24 TO TRANSFER DEVELOPMENT RIGHTS, INCLUDING THE DETERMINATION OF 25 ALL OF THE FOLLOWING: 26 (i) WHETHER TO TRANSFER DEVELOPMENT RIGHTS. 01342'97 7 1 (ii) WHICH DEVELOPMENT RIGHTS TO TRANSFER. 2 (iii) THE INTENSITY OF DEVELOPMENT PERMITTED AFTER THE 3 TRANSFER ON THE LAND FROM WHICH THE DEVELOPMENT RIGHTS ARE 4 SEVERED AND THE INTENSITY OF DEVELOPMENT PERMITTED AFTER THE 5 TRANSFER ON THE LAND TO WHICH THE DEVELOPMENT RIGHTS ARE 6 ATTACHED. 7 (iv) THE PROCEDURE FOR ENSURING THAT THE SEVERANCE OF DEVEL- 8 OPMENT RIGHTS FROM LAND IN A SENDING ZONE AND THE ATTACHMENT OF 9 THOSE DEVELOPMENT RIGHTS TO LAND IN A RECEIVING ZONE ARE LEGALLY 10 FIXED SO AS TO RUN WITH THE LAND FROM WHICH THE DEVELOPMENT 11 RIGHTS HAVE BEEN SEVERED AND TO WHICH THE DEVELOPMENT RIGHTS HAVE 12 ATTACHED. 13 (E) THE CIRCUMSTANCES UNDER WHICH A LANDOWNER FROM WHOM 14 DEVELOPMENT RIGHTS HAVE BEEN ACQUIRED UNDER A TDR PROGRAM MAY 15 REPURCHASE THOSE DEVELOPMENT RIGHTS. 16 (2) THE INTENSITY OF DEVELOPMENT ALLOWED IN A RECEIVING ZONE 17 IF DEVELOPMENT RIGHTS ARE TRANSFERRED SHALL BE GREATER THAN THE 18 INTENSITY OF DEVELOPMENT THAT WAS ALLOWED IN THAT AREA OF LAND 19 UNDER ANY APPLICABLE ZONING ORDINANCE 1 YEAR BEFORE THE DEVELOP- 20 MENT RIGHTS ORDINANCE'S TDR PROGRAM PROVISIONS WERE ADOPTED. THE 21 INTENSITY OF DEVELOPMENT ALLOWED IN A RECEIVING ZONE IF DEVELOP- 22 MENT RIGHTS ARE NOT TRANSFERRED SHALL NOT BE LESS THAN THE INTEN- 23 SITY OF DEVELOPMENT THAT WAS ALLOWED IN THAT AREA OF LAND UNDER 24 THE APPLICABLE ZONING ORDINANCE 1 YEAR BEFORE THE DEVELOPMENT 25 RIGHTS ORDINANCE'S TDR PROGRAM PROVISIONS WERE ADOPTED. 26 (3) A TOWNSHIP WITH A TDR PROGRAM MAY DO 1 OR BOTH OF THE 27 FOLLOWING: 01342'97 8 1 (A) FACILITATE TRANSFERS OF DEVELOPMENT RIGHTS DIRECTLY 2 BETWEEN WILLING LANDOWNERS AT THE PRICE AGREED UPON BY THE WILL- 3 ING LANDOWNERS. 4 (B) PURCHASE DEVELOPMENT RIGHTS IN A SENDING ZONE FROM A 5 LANDOWNER WHO IS A WILLING SELLER, TEMPORARILY HOLD THE DEVELOP- 6 MENT RIGHTS, AND SELL THE DEVELOPMENT RIGHTS TO A PURCHASER FOR 7 ATTACHMENT TO LAND IN A RECEIVING ZONE. THE PURCHASE AND SALE OF 8 DEVELOPMENT RIGHTS SHALL BE AT FAIR MARKET VALUE, BASED UPON A 9 BONA FIDE APPRAISAL. 10 (4) EXCEPT AS PROVIDED PURSUANT TO SUBSECTION (1)(E), DEVEL- 11 OPMENT RIGHTS ACQUIRED UNDER A TDR PROGRAM MAY BE SOLD ONLY TO A 12 LANDOWNER IN A RECEIVING ZONE FOR ATTACHMENT TO LAND IN A RECEIV- 13 ING ZONE. 14 (5) EXCEPT AS PROVIDED PURSUANT TO SUBSECTION (1)(E) OR 15 UNDER SUBSECTION (3)(B), DEVELOPMENT RIGHTS SHALL NOT BE SEVERED 16 UNLESS THE COUNTY HAS APPROVED THE ATTACHMENT OF THOSE DEVELOP- 17 MENT RIGHTS TO LAND IN A RECEIVING ZONE. EXCEPT FOR THE PERIOD 18 DURING WHICH DEVELOPMENT RIGHTS MAY BE TEMPORARILY HELD BY A 19 TOWNSHIP UNDER SUBSECTION (3)(B), THE SEVERANCE OF DEVELOPMENT 20 RIGHTS FROM LAND IN A SENDING ZONE SHALL BE SIMULTANEOUS WITH THE 21 ATTACHMENT OF THOSE DEVELOPMENT RIGHTS TO LAND IN A RECEIVING 22 ZONE. 23 (6) THE TOWNSHIP SHALL NOTIFY EACH VILLAGE IN WHICH IS 24 LOCATED LAND FROM WHICH DEVELOPMENT RIGHTS ARE PROPOSED TO BE 25 SEVERED OR TO WHICH DEVELOPMENT RIGHTS ARE PROPOSED TO BE 26 ATTACHED OF THE RECEIPT OF AN APPLICATION FOR THE TRANSFER OF 01342'97 9 1 DEVELOPMENT RIGHTS AND SHALL NOTIFY EACH VILLAGE OF THE 2 DISPOSITION OF THAT APPLICATION. 3 (7) A TOWNSHIP SHALL NOT APPROVE THE TRANSFER OF DEVELOPMENT 4 RIGHTS FROM OR TO LAND THAT IS SUBJECT TO THE ZONING ORDINANCE OF 5 A CITY, A VILLAGE, A COUNTY, OR ANOTHER TOWNSHIP UNLESS THE TOWN- 6 SHIP AND THE CITY, THE VILLAGE, THE COUNTY, OR THE OTHER TOWN- 7 SHIP, RESPECTIVELY, HAVE ENTERED INTO AN AGREEMENT UNDER 8 SECTION 31(3). 9 (8) A LANDOWNER MAY DEVELOP LAND WITHIN A RECEIVING ZONE AT 10 THE INTENSITY OF DEVELOPMENT ALLOWED UNDER APPLICABLE ZONING, 11 BUILDING, AND OTHER ORDINANCES APART FROM THE DEVELOPMENT RIGHTS 12 ORDINANCE OR, IF DEVELOPMENT RIGHTS ARE TRANSFERRED FROM THE 13 LAND, MAY DEVELOP THE LAND AT A HIGHER INTENSITY OF DEVELOPMENT 14 AS ALLOWED UNDER THE DEVELOPMENT RIGHTS ORDINANCE. IF DEVELOP- 15 MENT RIGHTS HAVE NOT BEEN TRANSFERRED FROM LAND IN A SENDING 16 ZONE, THE LANDOWNER MAY DEVELOP THE LAND AT THE INTENSITY OF 17 DEVELOPMENT ALLOWED UNDER APPLICABLE ZONING, BUILDING, AND OTHER 18 ORDINANCES APART FROM THE DEVELOPMENT RIGHTS ORDINANCE. 19 Sec. 33. (1) A PDR program OR, EXCEPT AS PROVIDED IN SUBDI- 20 VISION (G), A TDR PROGRAM may be financed through 1 or more of 21 the following sources: 22 (a) General appropriations by the township. 23 (b) Proceeds from the sale of development rights by the 24 township subject tosectionSECTIONS 32(3) AND 32A(4). 25 (c) Grants. 26 (d) Donations. 01342'97 10 1 (e) Bonds or notes issued under subsections (2) to (6). 2 (f) General fund revenue. 3 (g)SpecialFOR A PDR PROGRAM ONLY, SPECIAL assessments 4 under subsection (7). 5 (h) Other sources approved by the township board and permit- 6 ted by law. 7 (2) The township board may borrow money and issue bonds or 8 notes under the municipal finance act,Act No. 202 of the Public9Acts of 1943, being sections 131.1 to 139.3 of the Michigan10Compiled Laws1943 PA 202, MCL 131.1 TO 139.3, subject to the 11 general debt limit applicable to the township. The bonds or 12 notes may be revenue bonds or notes; general obligation limited 13 tax bonds or notes; subject to section 6 of article IX of the 14 state constitution of 1963, general obligation unlimited tax 15 bonds or notes; or bonds or notes to refund in advance bonds or 16 notes issued under this section. 17 (3) The township board may secure bonds or notes issued 18 under this section by mortgage, assignment, or pledge of property 19 including, but not limited to, anticipated tax collections, reve- 20 nue sharing payments, or special assessment revenues. A pledge 21 made by the township board is valid and binding from the time the 22 pledge is made. The pledge IS immediatelyshall besubject to 23 the lien of the pledge without a filing or further act. The lien 24 of the pledgeshall beIS valid and binding as against parties 25 having claims in tort, contract, or otherwise against the town- 26 ship, irrespective of whether the parties have notice of the 01342'97 11 1 lien. Filing of the resolution, the trust agreement, or another 2 instrument by which a pledge is created is not required. 3 (4) Bonds or notes issued under this section are exempt from 4 all taxation in this state except inheritance and transfer taxes, 5 and the interest on the bonds or notes is exempt from all taxa- 6 tion in this state, notwithstanding that the interest may be 7 subject to federal income tax. 8 (5) The bonds and notes issued under this section may be 9 invested in by the state treasurer and all other public officers, 10 state agencies and political subdivisions, insurance companies, 11 banks, savings and loan associations, investment companies, and 12 fiduciaries and trustees, and may be deposited with and received 13 by the state treasurer and all other public officers and the 14 agencies and political subdivisions of this state for all pur- 15 poses for which the deposit of bonds or notes is authorized. The 16 authority granted by this section is in addition to all other 17 authority granted by law. 18 (6) The township board may borrow money and issue bonds or 19 notes for refunding all or part of existing bond or note indebt- 20 edness only if the net present value of the principal and inter- 21 est to be paid on the refunding bonds or notes, excluding the 22 cost of issuance, will be less than the net present value of the 23 principal and interest to be paid on the bonds or notes being 24 refunded, as calculated using a method approved by the department 25 of treasury. 26 (7) A development rights ordinance may authorize the 27 township board to finance a PDR program by special assessments. 01342'97 12 1 In addition to meeting the requirements of section 32, the 2 development rights ordinance shall include in the procedure to 3 approve and establish a special assessment district both of the 4 following: 5 (a) The requirement that there be filed with the township 6 board a petition containing all of the following: 7 (i) A description of the development rights to be purchased, 8 including a legal description of the land from which the purchase 9 is to be made. 10 (ii) A description of the proposed special assessment 11 district. 12 (iii) The signatures of the owners of at least 66% of the 13 land area in the proposed special assessment district. 14 (iv) The amount and duration of the proposed special 15 assessments. 16 (b) The requirement that the township board specify how the 17 proposed purchase of development rights will specially benefit 18 the land in the proposed special assessment district. 19 Sec. 40. (1) As used in this act: 20 (a) "Agricultural land" means substantially undeveloped land 21 devoted to the production of plants and animals useful to humans, 22 including forage and sod crops; grains, feed crops, and field 23 crops; dairy and dairy products; poultry and poultry products; 24 livestock, including breeding and grazing of cattle, swine, and 25 similar animals; berries; herbs; flowers; seeds; grasses; nursery 26 stock; fruits; vegetables; Christmas trees; and other similar 27 uses and activities. 01342'97 13 1 (b) "Development rights" means the rights to develop land to 2 the maximum intensity of development authorized by law. 3 (c) "Development rights ordinance" means an ordinance, which 4 may comprise part of a zoning ordinance, adopted under 5 section 31. 6 (d) "Intensity of development" means the height, bulk, area, 7 density, setback, use, and other similar characteristics of 8 development. 9 (e) "Other eligible land" means land that has a common prop- 10 erty line with agricultural land from which development rights 11 have been purchased OR TRANSFERRED and that is not divided from 12 that agricultural land by a state or federal limited access 13 highway. 14 (f) "PDR program" means a program under section 32 for the 15 purchase of development rights by a township. 16 (G) "RECEIVING ZONE" MEANS AN AREA OF LAND IDENTIFIED PURSU- 17 ANT TO A DEVELOPMENT RIGHTS ORDINANCE WHERE DEVELOPMENT COULD BE 18 MORE INTENSE THAN PERMITTED BY THE DEVELOPMENT RIGHTS ATTACHED TO 19 THAT LAND WITHOUT ADVERSELY AFFECTING PUBLIC HEALTH, SAFETY, OR 20 WELFARE, AND TO WHICH DEVELOPMENT RIGHTS CAN BE TRANSFERRED FROM 21 A SENDING ZONE. 22 (H) "SENDING ZONE" MEANS AN AREA OF LAND IDENTIFIED PURSUANT 23 TO A DEVELOPMENT RIGHTS ORDINANCE WHERE DEVELOPMENT SHOULD BE 24 LESS INTENSE THAN PERMITTED BY THE DEVELOPMENT RIGHTS ATTACHED TO 25 THAT LAND TO ACHIEVE A PUBLIC BENEFIT SET FORTH IN THE DEVELOP- 26 MENT RIGHTS ORDINANCE AND FROM WHICH DEVELOPMENT RIGHTS CAN BE 27 TRANSFERRED TO A RECEIVING ZONE. 01342'97 14 1 (I) "TDR PROGRAM" MEANS A PROGRAM UNDER SECTION 32A FOR THE 2 TRANSFER OF DEVELOPMENT RIGHTS BY SEVERING DEVELOPMENT RIGHTS 3 FROM CERTAIN LAND AND ATTACHING THOSE DEVELOPMENT RIGHTS TO OTHER 4 LAND. 5 (2) This act shall be known and may be cited as the 6 "township zoning act". 01342'97 Final page. 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