December 2, 2014, Introduced by Rep. Price and referred to the Committee on Local Government.
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 3, 15, 18, and 24 (MCL 125.1653, 125.1665,
125.1668, and 125.1674), section 3 as amended by 2005 PA 115,
section 15 as amended by 1993 PA 323, and section 18 as amended by
2005 PA 13.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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.
(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 Through December 31,
2014, 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. Beginning
January 1, 2015, the governing body shall provide tier A public
notice as provided in the local government public notice act of the
public hearing 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 Through December
31, 2014, 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,
through December 31, 2014, shall be published at least once in a
newspaper of general circulation in the municipality. Beginning
January 1, 2015, the governing body of the municipality shall
provide tier A public notice as provided in the local government
public notice act of the adopted ordinance.
(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. 15. (1) The municipal and county treasurers shall
transmit to the authority tax increment revenues.
(2) The authority shall expend the tax increment revenues
received for the development program only pursuant to the tax
increment financing plan. Surplus funds shall revert
proportionately to the respective taxing bodies. These revenues
shall not be used to circumvent existing property tax limitations.
The governing body of the municipality may abolish the tax
increment financing plan when it finds that the purposes for which
it was established are accomplished. However, the tax increment
financing plan shall not be abolished until the principal of, and
interest on, bonds issued pursuant to section 16 have been paid or
funds sufficient to make the payment have been segregated.
(3) Annually the authority shall submit to the governing body
of the municipality and the state tax commission a report on the
status
of the tax increment financing account. The Through December
31, 2014, the report shall be published in a newspaper of general
circulation
in the municipality. and Beginning
January 1, 2015, the
governing body of the municipality shall provide tier A public
notice as provided in the local government public notice act of the
report. The report shall include the following:
(a) The amount and source of revenue in the account.
(b) The amount in any bond reserve account.
(c) The amount and purpose of expenditures from the account.
(d) The amount of principal and interest on any outstanding
bonded indebtedness.
(e) The initial assessed value of the project area.
(f) The captured assessed value retained by the authority.
(g) The tax increment revenues received.
(h) The number of jobs created as a result of the
implementation of the tax increment financing plan.
(i) Any additional information the governing body or the state
tax commission considers necessary.
Sec. 18. (1) The governing body, before adoption of an
ordinance approving or amending a development plan or approving or
amending a tax increment financing plan, shall hold a public
hearing
on the development plan. Notice Through
December 31, 2014,
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 Beginning January
1, 2015, the governing body shall provide tier A public notice as
provided in the local government public notice act of the time and
place of the hearing, not less than 20 days before the date set for
the hearing. Through December 31, 2014, notice of the hearing shall
be posted in at least 20 conspicuous and public places in the
downtown district not less than 20 days before the hearing. Notice
shall also be mailed to all property taxpayers of record in the
downtown district not less than 20 days before the hearing.
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 development plan or the tax
increment financing plan is approved or amended.
(2) Notice of the time and place of hearing on a development
plan shall contain: a description of the proposed development area
in relation to highways, streets, streams, or otherwise; a
statement that maps, plats, and a description of the development
plan, including the method of relocating families and individuals
who may be displaced from the area, are available for public
inspection at a place designated in the notice, and that all
aspects of the development plan will be open for discussion at the
public hearing; and other information that the governing body
considers appropriate. At the time set for hearing, the governing
body shall provide an opportunity for interested persons to be
heard and shall receive and consider communications in writing with
reference to the development plan. The hearing shall provide the
fullest opportunity for expression of opinion, for argument on the
merits, and for introduction 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 thereat.
Sec. 24. (1) Meetings of the development area citizens council
shall
be open to the public. Notice Through
December 31, 2014,
notice of the time and place of the meetings shall be given by
publication in a newspaper of general circulation not less than 5
days before the dates set for meetings of the development area
citizens council. Beginning January 1, 2015, the department area
citizens council shall provide tier B public notice as provided in
the local government public notice act of the public meeting not
less than 5 days before the date of the meeting. A person present
at those meetings shall have reasonable opportunity to be heard.
(2) A record of the meetings of a development area citizens
council, including information and data presented, shall be
maintained by the council.
(3) A development area citizens council may request of and
receive from the authority information and technical assistance
relevant to the preparation of the development plan for the
development area.
(4) Failure of a development area citizens council to organize
or to consult with and be advised by the authority, or failure to
advise the governing body, as provided in this act, shall not
preclude the adoption of a development plan by a municipality if
the municipality complies with the other provisions of this act.
Enacting section 1. This amendatory act does not take effect
unless House Bill No. 5560 of the 97th Legislature is enacted into
law.