June 8, 2010, Introduced by Rep. Clemente and referred to the Committee on New Economy and Quality of Life.
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, 2, 3, 4, 7, and 17 (MCL 125.1651, 125.1652,
125.1653, 125.1654, 125.1657, and 125.1667), section 1 as amended
by 2008 PA 225, section 2 as amended by 1985 PA 159, section 3 as
amended by 2005 PA 115, section 4 as amended by 2006 PA 279,
section 7 as amended by 2008 PA 226, and section 17 as amended by
1993 PA 122.
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 211.155.
(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. A business
district may include an area that includes a qualified higher
education institution.
(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 (z),
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 enters into an agreement with a
qualified township under section 3(7) or 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
(z). 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.
Public facility also includes the acquisition, construction,
improvement, and operation of a building owned or leased by the
authority to be used as a retail business incubator.
(x) "Qualified educational economic opportunity district"
means that part of a downtown district that includes a qualified
higher education institution and surrounding area that is
specifically designated by ordinance or resolution of the governing
body of the municipality.
(y) "Qualified higher education institution" means an
institution of higher education or a community or junior college
described in section 4, 5, 6, or 7 of article VIII of the state
constitution of 1963.
(z) (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 1 or more of the
following apply:
(i) 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 obligation is
issued to refund a qualified refunding obligation issued on May 15,
1997 and any subsequent refundings of that obligation issued before
January 1, 2010 in an authority in which 1 parcel or group of
parcels under common ownership represents 50% or more of the
taxable value captured within the tax increment finance district
and that will ultimately provide for at least a 40% reduction in
the taxable value of the property as part of a negotiated
settlement as a result of an appeal filed with the state tax
tribunal. Qualified refunding obligations issued under this
subparagraph are not subject to the requirements of section 611 of
the revised municipal finance act, 2001 PA 34, MCL 141.2611, if
issued before January 1, 2010. The duration of the development
program described in the tax increment financing plan relating to
the qualified refunding obligations issued under this subparagraph
is hereby extended to 1 year after the final date of maturity of
the qualified refunding obligations.
(ii) The refunding obligation meets both of the following:
(A) 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.
(B) The net present value of the sum of the tax increment
revenues
described in subdivision (bb)(ii) (dd)(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 (bb)(ii) (dd)(ii) and
the distributions under section 13b to repay the obligation being
refunded, as calculated using a method approved by the department
of treasury.
(aa) (y)
"Qualified township"
means a township that meets all
of the following requirements:
(i) Was not eligible to create an authority prior to January 3,
2005.
(ii) Adjoins a municipality that previously created an
authority.
(iii) Along with the adjoining municipality that previously
created an authority, is a member of the same joint planning
commission under the joint municipal planning act, 2003 PA 226, MCL
125.131 to 125.143.
(bb) (z)
"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.
(cc) (aa)
"State fiscal year" means
the annual period
commencing October 1 of each year.
(dd) (bb)
"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) or (v), 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) or (v).
(v) Tax increment revenues include ad valorem property taxes
and specific local taxes, in an annual amount and for each year
approved by the state treasurer, attributable to the levy by this
state under the state education tax act, 1993 PA 331, MCL 211.901
to 211.906, and by local or intermediate school districts, upon the
captured assessed value of real and personal property in the
development area of an authority established in a city with a
population of 750,000 or more to pay for, or reimburse an advance
for, not more than $8,000,000.00 for the demolition of buildings or
structures on public or privately owned property within a
development area that commences in 2005, or to pay the annual
principal of or interest on an obligation, the terms of which are
approved by the state treasurer, issued by an authority, or by a
city on behalf of an authority, to pay not more than $8,000,000.00
of the costs to demolish buildings or structures on public or
privately owned property within a development area that commences
in 2005.
Sec. 2. (1) Except as otherwise provided in this subsection, a
municipality may establish 1 authority. If, before November 1,
1985, a municipality establishes more than 1 authority, those
authorities may continue to exist as separate authorities. Under
the conditions described in section 3a, a municipality may have
more than 1 authority within that municipality's boundaries. A
municipality may establish 1 additional authority in that
municipality if that authority operates a qualified educational
economic opportunity district. A parcel of property shall not be
included in more than 1 authority created by this act.
(2) An authority shall be a public body corporate which may
sue and be sued in any court of this state. An authority possesses
all the powers necessary to carry out the purpose of its
incorporation. The enumeration of a power in this act shall not be
construed as a limitation upon the general powers 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,
the governing body may, by resolution, declare its intention to
create and provide for the operation of an authority under this
act.
(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.
Beginning June 1, 2005, the notice of hearing within the time frame
described in this subsection shall be mailed by certified mail 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 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 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) A municipality that has created an authority may enter
into an agreement with a qualified township to operate its
authority in a downtown district in the qualified township under an
interlocal agreement under the urban cooperation act of 1967, 1967
(Ex Sess) PA 7, MCL 124.501 to 124.512. The interlocal agreement
between the municipality and the qualified township shall provide
for, but is not limited to, all of the following:
(a) Size and makeup of the board.
(b) Determination and modification of downtown district,
business district, and development area.
(c) Modification of development area and development plan.
(d) Issuance and repayment of obligations.
(e) Capture of taxes.
(f) Notice, hearing, and exemption of taxes from capture
provisions described in this section.
Sec. 4. (1) Except as provided in subsections (7), (8), and
(9), an authority shall be under the supervision and control of a
board consisting of the chief executive officer of the municipality
and not less than 8 or more than 12 members as determined by the
governing body of the municipality. Members shall be appointed by
the chief executive officer of the municipality, subject to
approval by the governing body of the municipality. Not less than a
majority of the members shall be persons having an interest in
property located in the downtown district or officers, members,
trustees, principals, or employees of a legal entity having an
interest in property located in the downtown district. Not less
than 1 of the members shall be a resident of the downtown district,
if the downtown district has 100 or more persons residing within
it. Of the members first appointed, an equal number of the members,
as near as is practicable, shall be appointed for 1 year, 2 years,
3 years, and 4 years. A member shall hold office until the member's
successor is appointed. Thereafter, each member shall serve for a
term of 4 years. An appointment to fill a vacancy shall be made by
the chief executive officer of the municipality for the unexpired
term only. Members of the board shall serve without compensation,
but shall be reimbursed for actual and necessary expenses. The
chairperson of the board shall be elected by the board.
(2) Before assuming the duties of office, a member shall
qualify by taking and subscribing to the constitutional oath of
office.
(3) The business which the board may perform shall be
conducted at a public meeting of the board held in compliance with
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public
notice of the time, date, and place of the meeting shall be given
in the manner required by the open meetings act, 1976 PA 267, MCL
15.261 to 15.275. The board shall adopt rules consistent with the
open meetings act, 1976 PA 267, MCL 15.261 to 15.275, governing its
procedure and the holding of regular meetings, subject to the
approval of the governing body. Special meetings may be held if
called in the manner provided in the rules of the board.
(4) Pursuant to notice and after having been given an
opportunity to be heard, a member of the board may be removed for
cause by the governing body. Removal of a member is subject to
review by the circuit court.
(5) All expense items of the authority shall be publicized
monthly and the financial records shall always be open to the
public.
(6) In addition to the items and records prescribed in
subsection (5), a writing prepared, owned, used, in the possession
of, or retained by the board in the performance of an official
function shall be made available to the public in compliance with
the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(7) By resolution of its governing body, a municipality having
more than 1 authority may establish a single board to govern all
authorities in the municipality. The governing body may designate
the board of an existing authority as the board for all authorities
or may establish by resolution a new board in the same manner as
provided in subsection (1). A member of a board governing more than
1 authority may be a resident of or have an interest in property in
any of the downtown districts controlled by the board in order to
meet the requirements of this section.
(8) By ordinance, the governing body of a municipality that
has a population of less than 5,000 may have the municipality's
planning commission created pursuant to 1931 PA 285, MCL 125.31 to
125.45, serve as the board provided for in subsection (1).
(9) If a municipality enters into an agreement with a
qualified township under section 3(7), the membership of the board
may be modified by the interlocal agreement described in section
3(7).
(10) Subject to the requirements of subsection (1), the board
of an authority for a qualified educational economic opportunity
district shall include a representative of a qualified higher
education institution located in the downtown district and not less
than 3 individuals who represent 1 or more of the following
interests:
(a) A major business or organization that operates within the
downtown district.
(b) Arts and cultural organizations that operate within the
downtown district.
(c) Young professional organizations that operate within the
downtown district.
(d) A local chamber of commerce that operates within the
downtown district.
(e) A local community foundation that operates within the
downtown district.
(f) Regional economic development organizations that operate
within the downtown district.
(g) Public transportation that operates within the downtown
district.
Sec. 7. (1) The board may:
(a) Prepare an analysis of economic changes taking place in
the downtown district.
(b) Study and analyze the impact of metropolitan growth upon
the downtown district.
(c) Plan and propose the construction, renovation, repair,
remodeling, rehabilitation, restoration, preservation, or
reconstruction of a public facility, an existing building, or a
multiple-family dwelling unit which may be necessary or appropriate
to the execution of a plan which, in the opinion of the board, aids
in the economic growth of the downtown district.
(d) Plan, propose, and implement an improvement to a public
facility within the development area 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.
(e) Develop long-range plans, in cooperation with the agency
which is chiefly responsible for planning in the municipality,
designed to halt the deterioration of property values in the
downtown district and to promote the economic growth of the
downtown district, and take such steps as may be necessary to
persuade property owners to implement the plans to the fullest
extent possible.
(f) Implement any plan of development in the downtown district
necessary to achieve the purposes of this act, in accordance with
the powers of the authority as granted by this act.
(g) Make and enter into contracts necessary or incidental to
the exercise of its powers and the performance of its duties.
(h) Acquire by purchase or otherwise, on terms and conditions
and in a manner the authority considers proper or own, convey, or
otherwise dispose of, or lease as lessor or lessee, land and other
property, real or personal, or rights or interests in property,
which the authority determines is reasonably necessary to achieve
the purposes of this act, and to grant or acquire licenses,
easements, and options with respect to that property.
(i) Improve land and construct, reconstruct, rehabilitate,
restore and preserve, equip, improve, maintain, repair, and operate
any building, including multiple-family dwellings, and any
necessary or desirable appurtenances to that property, within the
downtown district for the use, in whole or in part, of any public
or private person or corporation, or a combination of them.
(j) Fix, charge, and collect fees, rents, and charges for the
use of any building or property under its control or any part
thereof, or facility therein, and pledge the fees, rents, and
charges for the payment of revenue bonds issued by the authority.
(k) Lease any building or property under its control, or any
part of a building or property.
(l) Accept grants and donations of property, labor, or other
things of value from a public or private source.
(m) Acquire and construct public facilities.
(n) Create, operate, and fund marketing initiatives that
benefit only retail and general marketing of the downtown district.
(o) Contract for broadband service and wireless technology
service in the downtown district.
(p) Operate and perform all duties and exercise all
responsibilities described in this section in a qualified township
if the qualified township has entered into an agreement with the
municipality under section 3(7).
(q) Create, operate, and fund a loan program to fund
improvements for existing buildings located in a downtown district
to make them marketable for sale or lease. The board may make loans
with interest at a market rate or may make loans with interest at a
below market rate, as determined by the board.
(r) Create, operate, and fund retail business incubators in
the downtown district.
(2) If it is the express determination of the board to create,
operate, or fund a retail business incubator in the downtown
district, the board shall give preference to tenants who will
provide goods or services that are not available or that are
underserved in the downtown area. If the board creates, operates,
or funds retail business incubators in the downtown district, the
board and each tenant who leases space in a retail business
incubator shall enter into a written contract that includes, but is
not limited to, all of the following:
(a) The lease or rental rate that may be below the fair market
rate as determined by the board.
(b) The requirement that a tenant may lease space in the
retail business incubator for a period not to exceed 18 months.
(c) The terms of a joint operating plan with 1 or more other
businesses located in the downtown district.
(d) A copy of the business plan of the tenant that contains
measurable goals and objectives.
(e) The requirement that the tenant participate in basic
management classes, business seminars, or other business education
programs offered by the authority, the local chamber of commerce,
local community colleges, or institutions of higher education, as
determined by the board.
(3) In addition to the powers authorized under this section,
the board of an authority for a qualified educational economic
district may do 1 or more of the following in that qualified
educational economic opportunity district:
(a) Authorize the use of tax increment revenues and other
funds available to the authority for 1 or more of the following:
(i) To match funds for other sources for any allowable purpose
under this act.
(ii) Business loan programs.
(iii) Entrepreneurial incubators.
(iv) Home purchase down payment assistance programs.
(v) Energy efficiency programs.
(b) Facilitate transit development.
(c) Acquire land and buildings.
(d) Facilitate green building development.
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. USC sections 4601, et seq.
(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) 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.
(3) In addition to the requirement for a development plan
described in subsection (2), the board of an authority for a
qualified educational economic opportunity district may include 1
or more of the following in the development plan for the qualified
educational economic opportunity district:
(a) The plan to assist in the creation of a walkable downtown
district.
(b) The plan to assist in the creation and demonstration of
regional connectivity.
(c) The plan to assist in the development of a mixed-use and
sustainable community.
(d) The plan to integrate higher education activities and
expertise into the downtown district.
(e) The plan to assist in entrepreneurial enterprise
development especially with faculty and students of the qualified
higher education institution.