May 1, 2007, Introduced by Senator ALLEN and referred to the Committee on Commerce and Tourism.
A bill to amend 2004 PA 530, entitled
"Historical neighborhood tax increment finance authority act,"
by amending sections 2, 3, 15, 19, 20, 21, and 22 (MCL 125.2842,
125.2843, 125.2855, 125.2859, 125.2860, 125.2861, and 125.2862);
and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. 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 the taxable value as determined
under section 27a of the general property tax act, 1893 PA 206, MCL
211.27a.
(c) "Authority" means a historical neighborhood tax increment
finance authority created under this act.
(d) "Board" means the governing body of an authority.
(e) "Captured assessed value" means the amount in any 1 year
by which the current assessed value of the development area,
including the assessed value of property for which specific local
taxes are paid in lieu of property taxes as determined in section
3(d), exceeds the initial assessed value. The state tax commission
shall prescribe the method for calculating captured assessed value.
(f) "Chief executive officer" means the mayor or city manager
of a city or the supervisor of a township.
(g) "Development area" means that area described in section 5
to which a development plan is applicable that is located inside a
historic district.
(h) "Development plan" means that information and those
requirements for a development area set forth in section 22.
(i) "Development program" means the implementation of the
development plan.
(j) "Fiscal year" means the fiscal year of the authority.
(k) "Governing body" or "governing body of a municipality"
means the elected body of a municipality having legislative powers.
(l) "Historic district" means that term as defined in section
1a of the local historic districts act, 1970 PA 169, MCL 399.201a.
(m)
"Housing" means privately owned housing or publicly owned
housing, individual or multifamily.
(n) "Initial assessed value" means the assessed value 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 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
section 3(d).
(o)
"Land use plan" means a plan prepared under section 1 of
the
city and village zoning act, 1921 PA 207, MCL 125.581 former
1921 PA 207 or a site plan under the Michigan zoning enabling act,
2006 PA 110, MCL 125.3101 to 125.3702.
(p) "Municipality" means a city or township in which a
historic district is located.
(q) "Residential district" means an area of a municipality
zoned and used principally for residential housing.
Sec. 3. As used in this act:
(a) "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.
(b) "Parcel" means an identifiable unit of land that is
treated as separate for valuation or zoning purposes.
(c) "Public facility" means housing, 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, or building, including access routes 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, if the improvement complies 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.
(d) "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, or 1953 PA 189, MCL 211.181 to
211.182, or the commercial rehabilitation act, 2005 PA 210, MCL
207.841 to 207.856. 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. 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.
(e) "State fiscal year" means the annual period commencing
October 1 of each year.
(f) "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. Tax increment revenues do not include any of the
following:
(i) Taxes under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906.
(ii) Taxes levied by local or intermediate school districts.
(iii) 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 the ad valorem property
taxes.
(iv) 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 the ad valorem property
taxes.
(v) Ad valorem property taxes exempted from capture under
section 17(5) or specific local taxes attributable to the ad
valorem property taxes.
(vi) Ad valorem property taxes specifically levied for the
payment of principal and interest of obligations approved by the
electors or obligations pledging the unlimited taxing power of the
local governmental unit or specific taxes attributable to those ad
valorem property taxes.
Sec. 15. The authority may borrow money and issue its
negotiable revenue bonds under the revenue bond act of 1933, 1933
PA
94, MCL 141.101 to 141.140. Revenue bonds issued by the
authority
are not a debt of the municipality unless the
municipality
by majority vote of the members of its governing body
pledges
its full faith and credit to support the authority's
revenue
bonds. Revenue bonds issued by the authority are never a
debt
of the state.
Sec.
19. (1) The municipality may by resolution of its
governing
body and subject to voter approval authorize, issue, and
sell
general obligation bonds subject to the limitations set forth
in
this subsection to finance the development program of the tax
increment
financing plan and shall pledge its full faith and credit
for
the payment of the bonds. The municipality may pledge as
additional
security for the bonds any money received by the
authority
or the municipality under section 13. The bonds are
subject
to the revised municipal finance act, 2001 PA 34, MCL
141.2101
to 141.2821. Before the municipality may authorize the
borrowing,
the authority shall submit an estimate of the
anticipated
tax increment revenues and other revenue available
under
section 13 to be available for payment of principal and
interest
on the bonds, to the governing body of the municipality.
This
estimate shall be approved by the governing body of the
municipality
by resolution adopted by majority vote of the members
of
the governing body in the resolution authorizing the bonds. If
the
governing body of the municipality adopts the resolution
authorizing
the bonds, the estimate of the anticipated tax
increment
revenues and other revenue available under section 13 to
be
available for payment of principal and interest on the bonds
shall
be conclusive for purposes of this section. The bonds issued
under
this subsection shall be considered a single series for the
purposes
of the revised municipal finance act, 2001 PA 34, MCL
141.2101
to 141.2821.
(1) (2)
By resolution of its governing
body, the authority may
authorize, issue, and sell tax increment bonds subject to the
limitations set forth in this subsection to finance the development
program of the tax increment financing plan. The tax increment
bonds issued by the authority under this subsection shall pledge
solely the tax increment revenues of a development area in which
the project is located or a development area from which tax
increment revenues may be used for this project, or both. In
addition or in the alternative, the bonds issued by the authority
under this subsection may be secured by any other revenues
identified in section 13 as sources of financing for activities of
the authority that the authority shall specifically pledge in the
resolution. However, except as otherwise provided in this section,
the full faith and credit of the municipality shall not be pledged
to secure bonds issued under this subsection. The bond issue may
include a sum sufficient to pay interest on the tax increment bonds
until full development of tax increment revenues from the project
and also a sum to provide a reasonable reserve for payment of
principal and interest on the bonds. The resolution authorizing the
bonds shall create a lien on the tax increment revenues and other
revenues pledged by the resolution that shall be a statutory lien
and shall be a first lien subject only to liens previously created.
The resolution may provide the terms upon which additional bonds
may be issued of equal standing and parity of lien as to the tax
increment revenues and other revenues pledged under the resolution.
Bonds issued under this subsection that pledge revenue received
under section 14 for repayment of the bonds are subject to the
revised municipal finance act, 2001 PA 34, MCL 141.2101 to
141.2821.
(2) The municipality, by majority vote of the members of its
governing body, may make a limited tax pledge to support the
authority's tax increment bonds or notes or, if authorized by the
voters of the municipality, may pledge its unlimited tax full faith
and credit for the payment of the principal of and interest on the
authority's tax increment bonds or notes.
Sec. 20. (1) If a board decides to finance a project in a
development area by the use of revenue bonds as authorized in
section 15 or tax increment financing as authorized in sections 17,
18, and 19, it shall prepare a development plan.
(2) The development plan shall contain all of the following:
(a) The designation of boundaries of the development area in
relation to highways, streets, streams, or otherwise.
(b) The location and extent of existing streets and other
public facilities within the development area, designating the
location, character, and extent of the categories of public and
private land uses then existing and proposed for the development
area, including residential, recreational, commercial, industrial,
educational, and other uses, and including a legal description of
the development area.
(c) A description of existing improvements in the development
area to be demolished, repaired, or altered, a description of any
repairs and alterations, and an estimate of the time required for
completion.
(d) The location, extent, character, and estimated cost of the
improvements including rehabilitation contemplated for the
development area and an estimate of the time required for
completion.
(e) A statement of the construction or stages of construction
planned, and the estimated time of completion of each stage.
(f) A description of any parts of the development area to be
left as open space and the use contemplated for the space.
(g) A description of any portions of the development area that
the authority desires to sell, donate, exchange, or lease to or
from the municipality and the proposed terms.
(h) A description of desired zoning changes and changes in
streets, street levels, intersections, or utilities.
(i) An estimate of the cost of the development, a statement of
the proposed method of financing the development, and the ability
of the authority to arrange the financing.
(j) Designation of the person or persons, natural or
corporate, to whom all or a portion of the development is to be
leased, sold, or conveyed in any manner and for whose benefit the
project is being undertaken if that information is available to the
authority.
(k) The procedures for bidding for the leasing, purchasing, or
conveying in any manner of all or a portion of the development upon
its completion, if there is no express or implied agreement between
the authority and persons, natural or corporate, that all or a
portion of the development will be leased, sold, or conveyed in any
manner to those persons.
(l) Estimates of the number of persons residing in the
development
area and the number of families and individuals to be
displaced.
If occupied residences are designated for acquisition
and
clearance by the authority, a development plan shall include a
survey
of the families and individuals to be displaced, including
their
income and racial composition, a statistical description of
the
housing supply in the community, including the number of
private
and public units in existence or under construction, the
condition
of those units in existence, the number of owner-occupied
and
renter-occupied units, the annual rate of turnover of the
various
types of housing and the range of rents and sale prices, an
estimate
of the total demand for housing in the community, and the
estimated
capacity of private and public housing available to
displaced
families and individuals.
(m)
A plan for establishing priority for the relocation of
persons
displaced by the development in any residential housing in
the
development area.
(n)
Provision for the costs of relocating persons displaced by
the
development and financial assistance and reimbursement of
expenses,
including litigation expenses and expenses incident to
the
transfer of title, in accordance with the standards and
provisions
of the uniform relocation assistance and real property
acquisition
policies act of 1970, Public Law 91-646, 84 Stat. 1894.
(o)
A plan for compliance with 1972 PA 227, MCL 213.321 to
213.332.
(l) (p)
The requirement that amendments to
an approved
development plan or tax increment plan must be submitted by the
authority to the governing body for approval or rejection.
(m) (q)
Other material that the authority,
local public
agency, or governing body considers pertinent.
Sec. 21. (1) The governing body, before adoption of an
ordinance approving a development plan or tax increment financing
plan, shall hold a public hearing on the development plan. Notice
of the time and place of the hearing shall be given by publication
twice in a newspaper of general circulation designated by the
municipality, the first of which shall be not less than 20 days
before the date set for the hearing. Notice of the hearing shall be
posted in at least 20 conspicuous and public places in the
development area not less than 20 days before the hearing. Notice
shall also be mailed to all property taxpayers of record in the
development area and to the governing body of each taxing
jurisdiction levying taxes that would be subject to capture if the
tax increment financing plan is approved not less than 20 days
before the hearing.
(2) Notice of the time and place of hearing on a development
plan shall contain all of the following:
(a) A description of the proposed development area in relation
to highways, streets, streams, or otherwise.
(b) A statement that maps, plats, and a description of the
development plan, including the method of relocating families and
individuals, if any, who may be displaced from the area, are
available for public inspection at a place designated in the
notice.
(c) A statement that all aspects of the development plan will
be open for discussion at the public hearing.
(d) Other information that the governing body considers
appropriate.
(3) At the time set for the hearing, the governing body shall
provide an opportunity for interested persons to speak and shall
receive and consider communications in writing. The hearing shall
provide the fullest opportunity for expression of opinion, for
argument on the merits, and for consideration of documentary
evidence pertinent to the development plan. The governing body
shall make and preserve a record of the public hearing, including
all data presented at the hearing.
Sec. 22. The governing body after a public hearing on the
development plan or the tax increment financing plan, or both, with
notice given under section 21, shall determine whether the
development plan or tax increment financing plan constitutes a
public purpose. If it determines that the development plan or tax
increment financing plan constitutes a public purpose, it shall by
ordinance approve or reject the plan, or approve it with
modification, based on the following considerations:
(a)
The findings and recommendations of a development area
citizens
council, if a development area citizens council was
formed.
(a) (b)
The plan meets the requirements
under section 20(2).
(b) (c)
The proposed method of financing
the development is
feasible and the authority has the ability to arrange the
financing.
(c) (d)
The development is reasonable and
necessary to carry
out the purposes of this act.
(d) (e)
The land included within the
development area to be
acquired is reasonably necessary to carry out the purposes of the
plan and of this act in an efficient and economically satisfactory
manner.
(e) (f)
The development plan is in
reasonable accord with the
land use plan of the municipality.
(f) (g)
Public services, such as fire and
police protection
and utilities, are or will be adequate to service the project area.
(g) (h)
Changes in zoning, streets, street
levels,
intersections, and utilities are reasonably necessary for the
project and for the municipality.
Enacting section 1. Sections 11, 12, 14, and 23 of the
historical neighborhood tax increment finance authority act, 2004
PA 530, MCL 125.2811, 125.2812, 125.2814, and 125.2863, are
repealed.