July 14, 2009, Introduced by Reps. Donigan, Lipton, Polidori, Byrnes, Robert Jones and Tlaib and referred to the Committee on Intergovernmental and Regional Affairs.
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 14 and 17 (MCL 125.1664 and 125.1667), section
14 as amended by 1993 PA 323 and section 17 as amended by 1993 PA
122.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 14. (1) When the authority determines that it is
necessary for the achievement of the purposes of this act, the
authority shall prepare and submit a tax increment financing plan
to the governing body of the municipality. The plan shall include a
development plan as provided in section 17, a detailed explanation
of the tax increment procedure, the maximum amount of bonded
indebtedness to be incurred, and the duration of the program, and
shall be in compliance with section 15. The plan shall contain a
statement of the estimated impact of tax increment financing on the
assessed values of all taxing jurisdictions in which the
development area is located. The plan may provide for the use of
part or all of the captured assessed value, but the portion
intended to be used by the authority shall be clearly stated in the
tax increment financing plan. The authority or municipality may
exclude from captured assessed value growth in property value
resulting solely from inflation. The plan shall set forth the
method for excluding growth in property value resulting solely from
inflation.
(2) The percentage of taxes levied for school operating
purposes that is captured and used by the tax increment financing
plan shall not be greater than the plan's percentage capture and
use of taxes levied by a municipality or county for operating
purposes. For purposes of the previous sentence, taxes levied by a
county for operating purposes include only millage allocated for
county or charter county purposes under the property tax limitation
act,
Act No. 62 of the Public Acts of 1933, being sections 211.201
to
211.217a of the Michigan Compiled Laws 1933 PA 62, MCL 211.201
to 211.217a. For purposes of this subsection, tax increment
revenues used to pay bonds issued by a municipality under section
16(1) shall be considered to be used by the tax increment financing
plan rather than shared with the municipality. The limitation of
this subsection does not apply to the portion of the captured
assessed value shared pursuant to an agreement entered into before
1989 with a county or with a city in which an enterprise zone is
approved
under section 13 of the enterprise zone act, Act No. 224
of
the Public Acts of 1985, being section 125.2113 of the Michigan
Compiled
Laws 1985 PA 224, MCL
125.2113.
(3) Approval of the tax increment financing plan shall be
pursuant to the notice, hearing, and disclosure provisions of
section 18. If the development plan is part of the tax increment
financing plan, only 1 hearing and approval procedure is required
for the 2 plans together.
(4) Before the public hearing on the tax increment financing
plan, the governing body shall provide a reasonable opportunity to
the taxing jurisdictions levying taxes subject to capture to meet
with the governing body. The authority shall fully inform the
taxing jurisdictions of the fiscal and economic implications of the
proposed development area. The taxing jurisdictions may present
their recommendations at the public hearing on the tax increment
financing plan. The authority may enter into agreements with the
taxing jurisdictions and the governing body of the municipality in
which the development area is located and a public transportation
agency as that term is defined in the transit revitalization
investment zone act that operates in the development area to share
a portion of the captured assessed value of the district. If an
authority enters into an agreement with a public transportation
agency to share a portion of the captured assessed value under this
subsection, that agreement shall be in writing and shall contain
all of the following:
(a) A provision that the captured assessed value may be used
for operating expenses.
(b) A provision on how the authority will facilitate
applicants who are seeking credits under section 438 of the
Michigan business tax act, 2007 PA 36, MCL 208.1438.
(5) A tax increment financing plan may be modified if the
modification is approved by the governing body upon notice and
after public hearings and agreements as are required for approval
of the original plan.
Sec. 17. (1) When a board decides to finance a project in the
downtown district by the use of revenue bonds as authorized in
section 13 or tax increment financing as authorized in sections 14,
15, and 16, 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, shall designate 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 shall include 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 new 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 federal uniform relocation assistance and real
property acquisition policies act of 1970, being Public Law 91-646,
42
U.S.C. sections USC 4601 , et seq to 4655.
(o)
A plan for compliance with Act No. 227 of the Public Acts
of
1972, being sections 213.321 to 213.332 of the Michigan Compiled
Laws
1972 PA 227, MCL 213.321 to
213.332.
(p) An evaluation and report on public transit provided in the
development area that details each of the following:
(i) The current public transit services provided in the
development area.
(ii) How development in the development area will incorporate
existing public transit services and how development will encourage
the expansion of public transit options in the development area.
(q) (p)
Other material that the authority,
local public
agency, or governing body considers pertinent.
(3)
A development plan may provide for improvements related to
a
qualified facility, as defined in the federal facility
development
act, Act No. 275 of the Public Acts of 1992, being
sections
3.931 to 3.940 of the Michigan Compiled Laws, that is
located
outside of the boundaries of the development area but
within
the district, including the cost of construction,
renovation,
rehabilitation, or acquisition of that qualified
facility
or of public facilities and improvements related to that
qualified
facility.