April 21, 2005, Introduced by Senators BRATER, SCOTT, OLSHOVE, CHERRY, JACOBS, LELAND, BARCIA, BASHAM, BERNERO, CLARK-COLEMAN, CLARKE and THOMAS and referred to the Committee on Appropriations.
A bill to amend 1975 PA 197, entitled
"An act to provide for the establishment of a downtown development
authority; to prescribe its powers and duties; to correct and
prevent deterioration in business districts; to encourage historic
preservation; to authorize the acquisition and disposal of
interests in real and personal property; to authorize the creation
and implementation of development plans in the districts; to
promote the economic growth of the districts; to create a board; to
prescribe its powers and duties; to authorize the levy and
collection of taxes; to authorize the issuance of bonds and other
evidences of indebtedness; to authorize the use of tax increment
financing; to reimburse downtown development authorities for
certain losses of tax increment revenues; and to prescribe the
powers and duties of certain state officials,"
by amending sections 1 and 3 (MCL 125.1651 and 125.1653), section 1
as amended by 2004 PA 196 and section 3 as amended by 2004 PA 521,
and by adding section 3e.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Advance" means a transfer of funds made by a municipality
to an authority or to another person on behalf of the authority in
anticipation of repayment by the authority. Evidence of the intent
to repay an advance may include, but is not limited to, an executed
agreement to repay, provisions contained in a tax increment
financing plan approved prior to the advance, or a resolution of
the authority or the municipality.
(b) "Assessed value" means 1 of the following:
(i) For valuations made before January 1, 1995, the state
equalized valuation as determined under the general property tax
act, 1893 PA 206, MCL 211.1 to 211.157.
(ii) For valuations made after December 31, 1994, the taxable
value as determined under section 27a of the general property tax
act, 1893 PA 206, MCL 211.27a.
(c) "Authority" means a downtown development authority created
pursuant to this act.
(d) "Board" means the governing body of an authority.
(e) "Business district" means an area in the downtown of a
municipality zoned and used principally for business.
(f) "Captured assessed value" means the amount in any 1 year
by which the current assessed value of the project area, including
the assessed value of property for which specific local taxes are
paid in lieu of property taxes as determined in subdivision (y),
exceeds the initial assessed value. The state tax commission shall
prescribe the method for calculating captured assessed value.
(g) "Chief executive officer" means the mayor or city manager
of a city, the president or village manager of a village, or the
supervisor of a township or, if designated by the township board
for purposes of this act, the township superintendent or township
manager of a township.
(h) "Development area" means that area to which a development
plan is applicable.
(i) "Development plan" means that information and those
requirements for a development plan set forth in section 17.
(j) "Development program" means the implementation of the
development plan.
(k) "Downtown district" means that part of an area in a
business district that is specifically designated by ordinance of
the governing body of the municipality pursuant to this act. A
downtown district may include 1 or more separate and distinct
geographic areas in a business district as determined by the
municipality if the municipality is a city that surrounds another
city and that other city lies between the 2 separate and distinct
geographic areas. If the downtown district contains more than 1
separate and distinct geographic area in the downtown district, the
separate and distinct geographic areas shall be considered 1
downtown district.
(l) "Eligible advance" means an advance made before August 19,
1993.
(m) "Eligible obligation" means an obligation issued or
incurred by an authority or by a municipality on behalf of an
authority before August 19, 1993 and its subsequent refunding by a
qualified refunding obligation. Eligible obligation includes an
authority's written agreement entered into before August 19, 1993
to pay an obligation issued after August 18, 1993 and before
December 31, 1996 by another entity on behalf of the authority.
(n) "Fire alarm system" means a system designed to detect and
annunciate the presence of fire, or by-products of fire. Fire alarm
system includes smoke detectors.
(o) "Fiscal year" means the fiscal year of the authority.
(p) "Governing body of a municipality" means the elected body
of a municipality having legislative powers.
(q) "Initial assessed value" means the assessed value, as
equalized, of all the taxable property within the boundaries of the
development area at the time the ordinance establishing the tax
increment financing plan is approved, as shown by the most recent
assessment roll of the municipality for which equalization has been
completed at the time the resolution is adopted. Property exempt
from taxation at the time of the determination of the initial
assessed value shall be included as zero. For the purpose of
determining initial assessed value, property for which a specific
local tax is paid in lieu of a property tax shall not be considered
to be property that is exempt from taxation. The initial assessed
value of property for which a specific local tax was paid in lieu
of a property tax shall be determined as provided in subdivision
(y). In the case of a municipality having a population of less than
35,000 that established an authority prior to 1985, created a
district or districts, and approved a development plan or tax
increment financing plan or amendments to a plan, and which plan or
tax increment financing plan or amendments to a plan, and which
plan expired by its terms December 31, 1991, the initial assessed
value for the purpose of any plan or plan amendment adopted as an
extension of the expired plan shall be determined as if the plan
had not expired December 31, 1991. For a development area
designated before 1997 in which a renaissance zone has subsequently
been designated pursuant to the Michigan renaissance zone act, 1996
PA 376, MCL 125.2681 to 125.2696, the initial assessed value of the
development area otherwise determined under this subdivision shall
be reduced by the amount by which the current assessed value of the
development area was reduced in 1997 due to the exemption of
property under section 7ff of the general property tax act, 1893 PA
206, MCL 211.7ff, but in no case shall the initial assessed value
be less than zero.
(r) "Municipality" means a city, village, or township.
(s) "Obligation" means a written promise to pay, whether
evidenced by a contract, agreement, lease, sublease, bond, or note,
or a requirement to pay imposed by law. An obligation does not
include a payment required solely because of default upon an
obligation, employee salaries, or consideration paid for the use of
municipal offices. An obligation does not include those bonds that
have been economically defeased by refunding bonds issued under
this act. Obligation includes, but is not limited to, the
following:
(i) A requirement to pay proceeds derived from ad valorem
property taxes or taxes levied in lieu of ad valorem property
taxes.
(ii) A management contract or a contract for professional
services.
(iii) A payment required on a contract, agreement, bond, or note
if the requirement to make or assume the payment arose before
August 19, 1993.
(iv) A requirement to pay or reimburse a person for the cost of
insurance for, or to maintain, property subject to a lease, land
contract, purchase agreement, or other agreement.
(v) A letter of credit, paying agent, transfer agent, bond
registrar, or trustee fee associated with a contract, agreement,
bond, or note.
(t) "On behalf of an authority", in relation to an eligible
advance made by a municipality, or an eligible obligation or other
protected obligation issued or incurred by a municipality, means in
anticipation that an authority would transfer tax increment
revenues or reimburse the municipality from tax increment revenues
in an amount sufficient to fully make payment required by the
eligible advance made by the municipality, or eligible obligation
or other protected obligation issued or incurred by the
municipality, if the anticipation of the transfer or receipt of tax
increment revenues from the authority is pursuant to or evidenced
by 1 or more of the following:
(i) A reimbursement agreement between the municipality and an
authority it established.
(ii) A requirement imposed by law that the authority transfer
tax increment revenues to the municipality.
(iii) A resolution of the authority agreeing to make payments to
the incorporating unit.
(iv) Provisions in a tax increment financing plan describing
the project for which the obligation was incurred.
(u) "Operations" means office maintenance, including salaries
and expenses of employees, office supplies, consultation fees,
design costs, and other expenses incurred in the daily management
of the authority and planning of its activities.
(v) "Other protected obligation" means:
(i) A qualified refunding obligation issued to refund an
obligation described in subparagraph (ii), (iii), or (iv), an
obligation that is not a qualified refunding obligation that is
issued to refund an eligible obligation, or a qualified refunding
obligation issued to refund an obligation described in this
subparagraph.
(ii) An obligation issued or incurred by an authority or by a
municipality on behalf of an authority after August 19, 1993, but
before December 31, 1994, to finance a project described in a tax
increment finance plan approved by the municipality in accordance
with this act before December 31, 1993, for which a contract for
final design is entered into by or on behalf of the municipality or
authority before March 1, 1994 or for which a written agreement
with a developer, titled preferred development agreement, was
entered into by or on behalf of the municipality or authority in
July 1993.
(iii) An obligation incurred by an authority or municipality
after August 19, 1993, to reimburse a party to a development
agreement entered into by a municipality or authority before August
19, 1993, for a project described in a tax increment financing plan
approved in accordance with this act before August 19, 1993, and
undertaken and installed by that party in accordance with the
development agreement.
(iv) An obligation incurred by the authority evidenced by or to
finance a contract to purchase real property within a development
area or a contract to develop that property within the development
area, or both, if all of the following requirements are met:
(A) The authority purchased the real property in 1993.
(B) Before June 30, 1995, the authority enters a contract for
the development of the real property located within the development
area.
(C) In 1993, the authority or municipality on behalf of the
authority received approval for a grant from both of the following:
(I) The department of natural resources for site reclamation
of the real property.
(II) The department of consumer and industry services for
development of the real property.
(v) An ongoing management or professional services contract
with the governing body of a county which was entered into before
March 1, 1994 and which was preceded by a series of limited term
management or professional services contracts with the governing
body of the county, the last of which was entered into before
August 19, 1993.
(vi) A loan from a municipality to an authority if the loan was
approved by the legislative body of the municipality on April 18,
1994.
(vii) Funds expended to match a grant received by a
municipality on behalf of an authority for sidewalk improvements
from the Michigan department of transportation if the legislative
body of the municipality approved the grant application on April 5,
1993 and the grant was received by the municipality in June 1993.
(viii) For taxes captured in 1994, an obligation described in
this subparagraph issued or incurred to finance a project. An
obligation is considered issued or incurred to finance a project
described in this subparagraph only if all of the following are
met:
(A) The obligation requires raising capital for the project or
paying for the project, whether or not a borrowing is involved.
(B) The obligation was part of a development plan and the tax
increment financing plan was approved by a municipality on May 6,
1991.
(C) The obligation is in the form of a written memorandum of
understanding between a municipality and a public utility dated
October 27, 1994.
(D) The authority or municipality captured school taxes during
1994.
(w) "Public facility" means a street, plaza, pedestrian mall,
and any improvements to a street, plaza, or pedestrian mall
including street furniture and beautification, park, parking
facility, recreational facility, right-of-way, structure, waterway,
bridge, lake, pond, canal, utility line or pipe, building, and
access routes to any of the foregoing, designed and dedicated to
use by the public generally, or used by a public agency. Public
facility includes an improvement to a facility used by the public
or a public facility as those terms are defined in section 1 of
1966 PA 1, MCL 125.1351, which improvement is made to comply with
the barrier free design requirements of the state construction code
promulgated under the Stille-DeRossett-Hale single state
construction code act, 1972 PA 230, MCL 125.1501 to 125.1531.
(x) "Qualified refunding obligation" means an obligation
issued or incurred by an authority or by a municipality on behalf
of an authority to refund an obligation if the obligation is issued
to refund a qualified refunding obligation issued in November 1997
and any subsequent refundings of that obligation issued before
January 1, 2010 or the refunding obligation meets both of the
following:
(i) The net present value of the principal and interest to be
paid on the refunding obligation, including the cost of issuance,
will be less than the net present value of the principal and
interest to be paid on the obligation being refunded, as calculated
using a method approved by the department of treasury.
(ii) The net present value of the sum of the tax increment
revenues described in subdivision (aa)(ii) and the distributions
under section 13b to repay the refunding obligation will not be
greater than the net present value of the sum of the tax increment
revenues described in subdivision (aa)(ii) and the distributions
under section 13b to repay the obligation being refunded, as
calculated using a method approved by the department of treasury.
(y) "Specific local tax" means a tax levied under 1974 PA 198,
MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA
255, MCL 207.651 to 207.668, the technology park development act,
1984 PA 385, MCL 207.701 to 207.718, and 1953 PA 189, MCL 211.181
to 211.182. The initial assessed value or current assessed value of
property subject to a specific local tax shall be the quotient of
the specific local tax paid divided by the ad valorem millage rate.
However, after 1993, the state tax commission shall prescribe the
method for calculating the initial assessed value and current
assessed value of property for which a specific local tax was paid
in lieu of a property tax.
(z) "State fiscal year" means the annual period commencing
October 1 of each year.
(aa) "Tax increment revenues" means the amount of ad valorem
property taxes and specific local taxes attributable to the
application of the levy of all taxing jurisdictions upon the
captured assessed value of real and personal property in the
development area, subject to the following requirements:
(i) Tax increment revenues include ad valorem property taxes
and specific local taxes attributable to the application of the
levy of all taxing jurisdictions other than the state pursuant to
the state education tax act, 1993 PA 331, MCL 211.901 to 211.906,
and local or intermediate school districts upon the captured
assessed value of real and personal property in the development
area for any purpose authorized by this act.
(ii) Tax increment revenues include ad valorem property taxes
and specific local taxes attributable to the application of the
levy of the state pursuant to the state education tax act, 1993 PA
331, MCL 211.901 to 211.906, and local or intermediate school
districts upon the captured assessed value of real and personal
property in the development area in an amount equal to the amount
necessary, without regard to subparagraph (i), to repay eligible
advances, eligible obligations, and other protected obligations.
(iii) Tax increment revenues do not include any of the
following:
(A) Ad valorem property taxes attributable either to a portion
of the captured assessed value shared with taxing jurisdictions
within the jurisdictional area of the authority or to a portion of
value of property that may be excluded from captured assessed value
or specific local taxes attributable to such ad valorem property
taxes.
(B) Ad valorem property taxes excluded by the tax increment
financing plan of the authority from the determination of the
amount of tax increment revenues to be transmitted to the authority
or specific local taxes attributable to such ad valorem property
taxes.
(C) Ad valorem property taxes exempted from capture under
section 3(3) or specific local taxes attributable to such ad
valorem property taxes.
(iv) The amount of tax increment revenues authorized to be
included under subparagraph (ii), (v), or (vi), and required to be
transmitted to the authority under section 14(1), from ad valorem
property taxes and specific local taxes attributable to the
application of the levy of the state education tax act, 1993 PA
331, MCL 211.901 to 211.906, a local school district or an
intermediate school district upon the captured assessed value of
real and personal property in a development area shall be
determined separately for the levy by the state, each school
district, and each intermediate school district as the product of
sub-subparagraphs (A) and (B):
(A) The percentage that the total ad valorem taxes and
specific local taxes available for distribution by law to the
state, local school district, or intermediate school district,
respectively, bears to the aggregate amount of ad valorem millage
taxes and specific taxes available for distribution by law to the
state, each local school district, and each intermediate school
district.
(B) The maximum amount of ad valorem property taxes and
specific local taxes considered tax increment revenues under
subparagraph (ii), (v), or (vi).
(v) Tax increment revenues include ad valorem property taxes
and specific local taxes attributable to the application of the
levy of the state under the state education tax act, 1993 PA 331,
MCL 211.901 to 211.906, and local or intermediate school districts
upon the captured assessed value of real and personal property in
any part of a downtown district designated as a downtown expansion
zone pursuant to section 3e.
(vi) To the extent authorized under section 3e and not
otherwise considered tax increment revenues under subparagraph (ii),
tax increment revenues include ad valorem property taxes and
specific local taxes attributable to the application of the levy of
the state under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906, and local or intermediate school districts upon
the captured assessed value of real and personal property in any
development area of an authority.
Sec. 3. (1) When the governing body of a municipality
determines that it is necessary for the best interests of the
public to halt property value deterioration and increase property
tax valuation where possible in its business district, to eliminate
the causes of that deterioration, and to promote economic growth,
or to permit the development of a new commercial property with a
total cash value after development of not less than
$100,000,000.00, which includes more than 2 detached buildings
containing together not less than 500,000 square feet, the
governing body may, by resolution, declare its intention to create
and provide for the operation of an authority. The determinations
required under this subsection for the creation of an authority
shall not be required for the expansion of a downtown district of
an existing authority to include a downtown expansion zone
designated under section 3e.
(2) In the resolution of intent, the governing body shall set
a date for the holding of a public hearing on the adoption of a
proposed ordinance creating the authority and designating the
boundaries of the downtown district. Notice of the public hearing
shall be published twice in a newspaper of general circulation in
the municipality, not less than 20 or more than 40 days before the
date of the hearing. Not less than 20 days before the hearing, the
governing body proposing to create the authority shall also mail
notice of the hearing to the property taxpayers of record in the
proposed district and for a public hearing to be held after
February 15, 1994 to the governing body of each taxing jurisdiction
levying taxes that would be subject to capture if the authority is
established and a tax increment financing plan is approved. Failure
of a property taxpayer to receive the notice shall not invalidate
these proceedings. Notice of the hearing shall be posted in at
least 20 conspicuous and public places in the proposed downtown
district not less than 20 days before the hearing. The notice shall
state the date, time, and place of the hearing, and shall describe
the boundaries of the proposed downtown district. A citizen,
taxpayer, or property owner of the municipality or an official from
a taxing jurisdiction with millage that would be subject to capture
has the right to be heard in regard to the establishment of the
authority and the boundaries of the proposed downtown district. The
governing body of the municipality shall not incorporate land into
the downtown district not included in the description contained in
the notice of public hearing, but it may eliminate described lands
from the downtown district in the final determination of the
boundaries.
(3) Not more than 60 days after a public hearing held after
February 15, 1994, the governing body of a taxing jurisdiction
levying ad valorem property taxes that would otherwise be subject
to capture may exempt its taxes from capture by adopting a
resolution to that effect and filing a copy with the clerk of the
municipality proposing to create the authority. The resolution
takes effect when filed with that clerk and remains effective until
a copy of a resolution rescinding that resolution is filed with
that clerk.
(4)
Not Except
as provided by subsection (7), not less
than
60 days after the public hearing, if the governing body of the
municipality intends to proceed with the establishment of the
authority, it shall adopt, by majority vote of its members, an
ordinance establishing the authority and designating the boundaries
of the downtown district within which the authority shall exercise
its powers. The adoption of the ordinance is subject to any
applicable statutory or charter provisions in respect to the
approval or disapproval by the chief executive or other officer of
the municipality and the adoption of an ordinance over his or her
veto. This ordinance shall be filed with the secretary of state
promptly after its adoption and shall be published at least once in
a newspaper of general circulation in the municipality.
(5)
The Except
as provided in subsection (7), the governing
body of the municipality may alter or amend the boundaries of the
downtown district to include or exclude lands from the downtown
district pursuant to the same requirements for adopting the
ordinance creating the authority.
(6) A municipality that has created an authority may enter
into an agreement with an adjoining municipality that has created
an authority to jointly operate and administer those authorities
under an interlocal agreement under the urban cooperation act of
1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512.
(7) The governing body of a municipality may alter or amend
the boundaries of an existing downtown district to include lands
only within an area designated as a downtown expansion zone under
section 3e at any time after a public hearing meeting the
requirements of subsection (2) is called and held by the governing
body of a municipality.
Sec. 3e. (1) An authority may apply to the Michigan economic
development corporation for the following designations:
(a) The designation of a development area within its existing
district as a development area in which tax increment revenues, as
defined by section 1(aa)(vi), may be captured by the authority for
purposes permitted under subsection (6).
(b) The designation of an area contiguous to its existing
district as a downtown expansion zone.
(2) The form of the application shall be in a form specified
by the Michigan economic development corporation and shall contain
information the Michigan economic development corporation considers
necessary to make the determinations required under this section,
including all of the following:
(a) The boundaries of the proposed downtown expansion zone to
be added to the authority's existing district.
(b) The description of the existing development area proposed
to be designated under subsection (1)(a) as a development area in
which tax increment revenues, as defined by section 1(aa)(vi), may
be captured by the authority for the purposes permitted under
subsection (6).
(c) The proposed uses of tax increment revenues within or for
the benefit of the downtown expansion zone.
(3) The designations permitted under this section by the
Michigan economic development corporation shall be based upon a
finding by the Michigan economic development corporation that the
application demonstrates that the proposed downtown expansion zone
would satisfy the following criteria:
(a) The public facilities to be developed in the downtown
expansion zone will attract private businesses to or retain private
businesses in the downtown district of the authority and contribute
to the housing and economic growth and development of the downtown
district of the authority.
(b) The public facilities planned to be developed will enhance
the attractiveness of the downtown expansion zone to businesses,
residents, and visitors to the downtown district.
(c) The proposed downtown expansion zone will be developed to
take advantage of the unique characteristics and specialties
offered by the public and private resources available in the area
in which the proposed downtown expansion zone will be located.
(d) The authority will be able to comply with the requirements
of subsection (6), including the reimbursement of the state and
local or intermediate school districts from tax increment revenues
from any development area including the downtown expansion zone.
(e) The designation of the proposed downtown expansion zone
will assist in preventing or halting a deterioration of property
valuation in areas surrounding the authority's downtown district.
(f) The proposed downtown expansion zone is part of or
adjacent to an area that represents the historic downtown area of
the municipality.
(4) When the Michigan economic development corporation decides
to make a designation under subsection (1), it shall enter into an
agreement with the authority to implement the terms of the
designation, which shall include all of the following:
(a) A description of the boundaries of the downtown expansion
zone and the development area to be created for the downtown
expansion zone.
(b) A description of the existing development area of the
authority of which the development area created for the downtown
expansion zone shall be considered to be a part during the term of
the agreement.
(c) A description of the public facilities to be developed
within or for the downtown expansion zone.
(d) A statement of the maximum cost of public facilities to be
developed within or for the downtown expansion zone.
(e) The terms of enforcement of the agreement, which may
include the definition of events of default, cure periods, legal
and equitable remedies and rights, and penalties and damages,
actual or liquidated, upon the occurrence of an event of default.
(f) The financial commitments of any party to the agreement
and of any owner or developer of property within the downtown
expansion zone.
(g) Covenants and restrictions, if any, upon all or a portion
of the properties contained within the downtown expansion zone and
terms of enforcement of any covenants or restrictions.
(h) Any limitations imposed by the state treasurer at his or
her discretion upon the term or amount of tax increment revenues
available under section 1(aa)(v) or (vi).
(i) The term of the agreement.
(j) Conditions for the effectiveness of the agreement, which
shall include approval of the creation of the downtown expansion
zone and a development plan for the downtown expansion zone.
(5) The tax increment financing plan for the development area
created for a downtown expansion zone and for all existing
development areas shall provide both for the capture and use of tax
increment revenues from the existing development area designated
under subsection (1)(a) and for tax increment revenues from the
development area created for the downtown expansion zone. For the
purpose of permitting tax increment revenues from the existing
development area to be used for public facilities within or for the
benefit of the downtown expansion zone, the downtown expansion zone
shall be considered part of the existing development area
designated under subsection (1)(a). However, tax increment revenues
from a development area created for a downtown expansion zone shall
be calculated separately from the calculation of tax increment
revenues made for the existing development area of the authority of
which the downtown expansion zone is considered a part. After the
agreement entered into under this section has expired or been
terminated, the authority shall not be entitled to receive tax
increment revenues, as defined by section 1(aa)(v) and (vi), from
the development area created for a downtown expansion zone, and the
development area created for the downtown expansion zone shall not
be considered a part of any other development area within the
downtown district.
(6) Tax increment revenues, as defined by section 1(aa)(vi),
available to an authority under a designation permitted under
subsection (1)(a) shall be used only for purposes of development or
acquisition of a public facility within or for the benefit of the
downtown expansion zone or to pay the principal of and interest on
obligations issued by or on behalf of the authority for those
purposes. Tax increment revenues available to an authority from a
development area created for a downtown expansion zone designated
under subsection (1)(b) shall only be used during the term of the
agreement made under this section for reimbursing the state and
local or intermediate school districts for any tax increment
revenues, as defined by section 1(aa)(vi), that were received by the
authority and used for purposes permitted under this section.
(7) An authority may not share with taxing jurisdictions or
exclude by the tax increment financing plan any portion of the tax
increment revenues or captured assessed value attributable to
property within the development area created for the downtown
expansion zone.
(8) An agreement made under this section may not be made after
December 31, 2006, but any agreement made on or before December 31,
2006 may be amended after that date. The aggregate maximum cost of
public facilities that may be approved under agreements that may be
entered into under this section and section 3a of 1980 PA 450, MCL
125.1803a, shall not exceed $100,000,000.00.
(9) As used in this section:
(a) "Michigan economic development corporation" means the
public body corporate created under section 28 of article VII of
the state constitution of 1963 and the urban cooperation act of
1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual
interlocal agreement effective April 5, 1999 between local
participating economic development corporations formed under the
economic development corporations act, 1974 PA 338, MCL 125.1601 to
125.1636, and the Michigan strategic fund. If the Michigan economic
development corporation is unable for any reason to perform its
duties under this act, those duties may be exercised by the
Michigan strategic fund or its successor.
(b) "Public facility" means that term as defined by section
1(w), but shall not include a school, library, public institution
or administration building, or any other public or private facility
that is not designed and dedicated for use primarily by the general
public.