HB-5325, As Passed House, May 16, 2018

SUBSTITUTE FOR

HOUSE BILL NO. 5325

A bill to amend 1961 PA 120, entitled

"An act to authorize the development or redevelopment of principal

shopping districts and business improvement districts; to permit

the creation of certain boards; to provide for the operation of

principal shopping districts and business improvement districts; to

provide for the creation, operation, and dissolution of business

improvement zones; and to authorize the collection of revenue and

the bonding of certain local governmental units for the development

or redevelopment projects,"

by amending section 1 (MCL 125.981), as amended by 2003 PA 209.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. (1) As used in this chapter:

(a) "Assessable property" means real property in a district

area other than all of the following:

(i~~) Property classified as residential real property under~~

~~section 34c of the general property tax act, 1893 PA 206, MCL~~

~~211.34c.~~

(i) (ii) Property owned by the federal, a state, or a local

unit of government where property is exempt from the collection of

taxes under the general property tax act, 1893 PA 206, MCL 211.1 to

~~211.157.~~211.155.

(ii) (~~iii~~) One or more classes of property owners whose

property meets all of the following conditions:

(A) Is exempt from the collection of taxes under the general

property tax act, 1893 PA 206, MCL 211.1 to ~~211.157,~~ 211.155, other

than property identified in subparagraph (ii).(i).

(B) As a class has been determined by the legislative body of

the local governmental unit not to be benefited by a project for

which special assessments are to be levied.

(b) "Business improvement district" means 1 or more portions

of a local governmental unit or combination of contiguous portions

of 2 or more local governmental units that are predominantly

commercial or industrial in use.

principal shopping district.

(d) "Highways" means public streets, highways, and alleys.

(e) "Local governmental unit" means a city, village, or urban

township.

(f) "Principal shopping district" means a portion of a local

governmental unit designated by the governing body of the local

governmental unit that is predominantly commercial and that

contains at least 10 retail businesses.

(g) "Urban township" means a township that is an urban

township as defined in section 2 of the local development financing

act, 1986 PA 281, MCL 125.2152, and is a township located in a

county with a population of more than 750,000.

(2) A local governmental unit with a master plan for the

physical development of the local governmental unit that includes

an urban design plan designating a principal shopping district or

includes the development or redevelopment of a principal shopping

district, or 1 or more local governmental units that establish a

business improvement district by resolution, may do 1 or more of

the following:

(a) Subject, where necessary, to approval of the governmental

entity that has jurisdiction over the highway, open, widen, extend,

realign, pave, maintain, or otherwise improve highways and

construct, reconstruct, maintain, or relocate pedestrian walkways.

(b) Subject, where necessary, to approval of the governmental

entity that has jurisdiction over the highway, prohibit or regulate

vehicular traffic where necessary to carry out the purposes of the

development or redevelopment project.

entity that has jurisdiction over the highway, regulate or prohibit

vehicular parking on highways.

(d) Acquire, own, maintain, demolish, develop, improve, or

operate properties, off-street parking lots, or structures.

(e) Contract for the operation or maintenance by others of

off-street parking lots or structures owned by the local

governmental unit, or appoint agents for the operation or

maintenance.

(f) Construct, maintain, and operate malls with bus stops,

information centers, and other buildings that will serve the public

interest.

(g) Acquire by purchase, gift, or condemnation and own,

maintain, or operate real or personal property necessary to

implement this section.

(h) Promote economic activity in the district by undertakings

including, but not limited to, conducting market research and

public relations campaigns, developing, coordinating, and

conducting retail and institutional promotions, and sponsoring

special events and related activities. A business may prohibit the

use of its name or logo in a public relations campaign, promotion,

or special event or related activity for the district.

(i) Provide for or contract with other public or private

entities for the administration, maintenance, security, operation,

and provision of services that the board determines are a benefit

to a district within the local governmental unit.

(3) A local governmental unit that provides for ongoing

activities under subsection (2)(h) or (i) shall also provide for

the creation of a board for the management of those activities.

(4) One member of the board of the principal shopping district

shall be from the adjacent residential area, 1 member shall be a

representative of the local governmental unit, and a majority of

the members shall be nominees of individual businesses located

within the principal shopping district. The board shall be

appointed by the chief executive officer of the local governmental

unit with the concurrence of the legislative body of the local

governmental unit. However, if all of the following requirements

are met, a business may appoint a member of the board of a

principal shopping district, which member shall be counted toward

the majority of members required to be nominees of businesses

located within the principal shopping district:

(a) The business is located within the principal shopping

district.

(b) The principal shopping district was designated by the

governing body of a local governmental unit after July 14, 1992.

district established under section 5.

(d) The special assessment district is divided into special

assessment rate zones reflecting varying levels of special

benefits.

(e) The business is located in the special assessment rate

zone with the highest special assessment rates.

(f) The square footage of the business is greater than 5.0% of

the total square footage of all businesses in that special

assessment rate zone.

(5) If the boundaries of the principal shopping district are

the same as those of a downtown district designated under 1975 PA

197, MCL 125.1651 to 125.1681, the governing body may provide that

the members of the board of the downtown development authority,

which manages the downtown district, shall compose the board of the

principal shopping district, in which case subsection (4) does not

apply.

(6) The members of the board of a business improvement

district shall be determined by the local governmental unit as

provided in this subsection. The board of a business improvement

district shall consist of all of the following:

(a) One representative of the local governmental unit

appointed by the chief executive officer of the local governmental

unit with the concurrence of the legislative body of the local

governmental unit in which the business improvement district is

located. If the business improvement district is located in more

than 1 local governmental unit, then 1 representative from each

local governmental unit in which the business improvement district

is located shall serve on the board as provided in this

subdivision.

(b) Other members of the board shall be nominees of the

businesses and property owners located within the business

improvement district. If a class of business or property owners, as

identified in the resolution described in subsection (8), is

projected to pay more than 50% of the special assessment levied

that benefits property in a business improvement district for the

benefit of the business improvement district, the majority of the

members of the board of the business improvement district shall be

nominees of the business or property owners in that class.

(7) A local governmental unit may create 1 or more business

improvement districts.

(8) If 1 or more local governmental units establish a business

improvement district by resolution under subsection (2), the

resolution shall identify all of the following:

(a) The geographic boundaries of the business improvement

district.

(b) The number of board members in that business improvement

district.

improvement district.

(d) The class of business or property owners, if any, who are

projected to pay more than 50% of the special assessment levied

that benefits property in that business improvement district.