HOUSE BILL No. 5766 May 10, 2000, Introduced by Reps. Kukuk, Gosselin, Pappageorge, Green, Ruth Johnson, Garcia, Bisbee, Mortimer, LaSata, Cameron Brown, Jellema, Geiger, Caul, Shulman, Sanborn, Woronchak, Byl, Voorhees, DeVuyst, Jansen, Birkholz, Cassis and Kuipers and referred to the Committee on Economic Development. A bill to amend 1986 PA 281, entitled "The local development financing act," by amending sections 2, 4, 10, and 12 (MCL 125.2152, 125.2154, 125.2160, and 125.2162), section 2 as amended by 1998 PA 92 and sections 4, 10, and 12 as amended by 1993 PA 333, and by adding section 12a. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 2. As used in this act: 2 (a) "Advance" means a transfer of funds made by a municipal- 3 ity to an authority or to another person on behalf of the author- 4 ity in anticipation of repayment by the authority. Evidence of 5 the intent to repay an advance may include, but is not limited 6 to, an executed agreement to repay, provisions contained in a tax 7 increment financing plan approved prior to the advance, or a 8 resolution of the authority or the municipality. 05144'99 * JLB 2 1 (b) "Assessed value" means 1 of the following: 2 (i) For valuations made before January 1, 1995, the state 3 equalized valuation as determined under the general property tax 4 act, 1893 PA 206, MCL 211.1 to 211.157. 5 (ii) For valuations made after December 31, 1994, the tax- 6 able value as determined under section 27a of the general prop- 7 erty tax act, 1893 PA 206, MCL 211.27a. 8 (c) "Authority" means a local development finance authority 9 created pursuant to this act. 10 (d) "Authority district" means an area or areas within which 11 an authority exercises its powers. 12 (e) "Board" means the governing body of an authority. 13 (F) "BUSINESS DEVELOPMENT AREA" MEANS AN AREA DESIGNATED AS 14 A CERTIFIED INDUSTRIAL PARK UNDER THIS ACT PRIOR TO THE EFFECTIVE 15 DATE OF THE AMENDATORY ACT THAT ADDED THIS SUBDIVISION, OR AN 16 AREA DESIGNATED IN THE TAX INCREMENT FINANCING PLAN THAT MEETS 17 ALL OF THE FOLLOWING REQUIREMENTS: 18 (i) THE AREA IS ZONED TO ALLOW ITS USE FOR ELIGIBLE 19 PROPERTY. 20 (ii) THE AREA HAS A SITE PLAN OR PLAT APPROVED BY THE CITY, 21 VILLAGE, OR TOWNSHIP IN WHICH THE AREA IS LOCATED. 22 (iii) THE PARCELS OF LAND WITHIN THE AREA ARE CONTIGUOUS OR 23 ADJACENT TO EACH OTHER, OR OTHERWISE ADJOINED BY RAILROAD LINES 24 OR OTHER INFRASTRUCTURE THAT MAY BE COMMONLY USED BY ELIGIBLE 25 PROPERTY, INCLUDING AREAS SEPARATED BY STREETS, HIGHWAYS, WATER- 26 WAYS, OR OTHER NATURAL OR ARTIFICIAL BOUNDARIES. 05144'99 * 3 1 (G) "BUSINESS INCUBATOR" MEANS LAND IMPROVEMENTS, BUILDINGS, 2 STRUCTURES, AND OTHER REAL PROPERTY, AND MACHINERY, EQUIPMENT, 3 FURNITURE, AND FIXTURES THAT MEET ALL OF THE FOLLOWING 4 REQUIREMENTS: 5 (i) ARE LOCATED IN A CERTIFIED TECHNOLOGY PARK. 6 (ii) ARE SUBJECT TO AN AGREEMENT UNDER SECTION 12A. 7 (iii) ARE DEVELOPED FOR THE PURPOSE OF ATTRACTING 1 OR MORE 8 OWNERS OR TENANTS WHO WILL ENGAGE IN 1 OR MORE OF THE FOLLOWING: 9 (A) ACTIVITIES THAT WOULD EACH SEPARATELY QUALIFY THE PROP- 10 ERTY AS ELIGIBLE PROPERTY UNDER SUBDIVISION (P)(iii). 11 (B) ACTIVITIES THAT SUPPORT THE DEVELOPMENT OF BUSINESSES, 12 SERVICES, AND PRODUCTS RELATED TO A HIGH TECHNOLOGY ACTIVITY. 13 (H)(f)"Captured assessed value" means the amount in any 14 1 year by which the current assessed value, as equalized,of 15 the eligible property identified in the tax increment financing 16 plan OR, FOR A CERTIFIED TECHNOLOGY PARK, THE REAL AND PERSONAL 17 PROPERTY INCLUDED IN THE TAX INCREMENT FINANCING PLAN, including 18 the current assessed value of property for which specific local 19 taxes are paid in lieu of property taxes as determined pursuant 20 to subdivision(w)(BB), exceeds the initial assessed value. 21 The state tax commission shall prescribe the method for calculat- 22 ing captured assessed value. 23 (I)(g)"CertifiedindustrialBUSINESS park" meansan24area of land designated by the Michigan jobs commission as meet-25ing all of the following requirements:A BUSINESS DEVELOPMENT 26 AREA THAT HAS BEEN DESIGNATED BY THE MICHIGAN ECONOMIC 27 DEVELOPMENT CORPORATION AS MEETING CRITERIA ESTABLISHED BY THE 05144'99 * 4 1 MICHIGAN ECONOMIC DEVELOPMENT CORPORATION. THE CRITERIA SHALL 2 ESTABLISH STANDARDS FOR BUSINESS DEVELOPMENT AREAS INCLUDING, BUT 3 NOT LIMITED TO, USE, TYPES OF BUILDING MATERIALS, LANDSCAPING, 4 SETBACKS, PARKING, STORAGE AREAS, AND MANAGEMENT. 5(i) It contains not less than 40 acres of land.6(ii) It is zoned exclusively for use for eligible property.7(iii) It has a site plan or plat approved by the city, vil-8lage, or township in which the land is located.9(iv) The developer of the land agrees to comply with other10requirements, not inconsistent with subparagraphs (i) to (iii),11imposed upon property classified as a certified industrial park12by the Michigan jobs commission under the certified industrial13park program. Compliance with these other requirements is not a14prerequisite to meeting the requirement of this subparagraph.15 (J) "CERTIFIED TECHNOLOGY PARK" MEANS THAT PORTION OF THE 16 AUTHORITY DISTRICT DESIGNATED BY A WRITTEN AGREEMENT ENTERED INTO 17 PURSUANT TO SECTION 12A BETWEEN THE AUTHORITY, THE MUNICIPALITY, 18 AND THE MICHIGAN ECONOMIC DEVELOPMENT CORPORATION. 19 (K)(h)"Chief executive officer" means the mayor or city 20 manager of a city, the president of a village, or, for other 21 local units of government or school districts, the person charged 22 by law with the supervision of the functions of the local unit of 23 government or school district. 24 (l)(i)"Development plan" means that information and 25 those requirements for a development set forth in section 15. 26 (M)(j)"Development program" means the implementation of 27 a development plan. 05144'99 * 5 1 (N)(k)"Eligible advance" means an advance made before 2 August 19, 1993. 3 (O)(l)"Eligible obligation" means an obligation issued 4 or incurred by an authority or by a municipality on behalf of an 5 authority before August 19, 1993 and its subsequent refunding by 6 a qualified refunding obligation. Eligible obligation includes 7 an authority's written agreement entered into before August 19, 8 1993 to pay an obligation issued after August 18, 1993 and before 9 December 31, 1996 by another entity on behalf of the authority. 10 (P)(m)"Eligible property" means land improvements, 11 buildings, structures, and other real property, and machinery, 12 equipment, furniture, and fixtures, or any part or accessory 13 thereof whether completed or in the process of construction com- 14 prising an integrated whole, located within an authority dis- 15 trict, of which the primary purpose and use is OR WILL BE 1 of 16 the following: 17 (i) The manufacture of goods or materials or the processing 18 of goods or materials by physical or chemical change. 19 (ii) Agricultural processing. 20 (iii) A high technology activity.that has as its primary21purpose research, product development, engineering, laboratory22testing, or development of industrial technology. This subpara-23graph applies only to eligible property for which a tax increment24financing plan or development plan is adopted and bonds are25issued under this act before January 1, 1993.26 (iv) The production of energy by the processing of goods or 27 materials by physical or chemical change by a small power 05144'99 * 6 1 production facility as defined by the federal energy regulatory 2 commission pursuant to the public utility regulatory policies act 3 of 1978, Public Law 95-617, 92 Stat. 3117, which facility is 4 fueled primarily by biomass or wood waste. This act does not 5 affect a person's rights or liabilities under law with respect to 6 groundwater contamination described in this subparagraph. This 7 subparagraph applies only if all of the following requirements 8 are met: 9 (A) Tax increment revenues captured from the eligible prop- 10 erty will be used to finance, or will be pledged for debt service 11 on tax increment bonds used to finance, a public facility in or 12 near the authority district designed to reduce, eliminate, or 13 prevent the spread of identified soil and groundwater contamina- 14 tion, pursuant to law. 15 (B) The board of the authority exercising powers within the 16 authority district where the eligible property is located adopted 17 an initial tax increment financing plan between January 1, 1991 18 and May 1, 1991. 19 (C) The municipality that created the authority establishes 20 a special assessment district whereby not less than 50% of the 21 operating expenses of the public facility described in this sub- 22 paragraph will be paid for by special assessments. Not less than 23 50% of the amount specially assessed against all parcels in the 24 special assessment district shall be assessed against parcels 25 owned by parties potentially responsible for the identified 26 groundwater contamination pursuant to law. 05144'99 * 7 1 (v) A BUSINESS INCUBATOR. 2 (Q)(n)"Fiscal year" means the fiscal year of the 3 authority. 4 (R)(o)"Governing body" means the elected body having 5 legislative powers of a municipality creating an authority under 6 this act. 7 (S) "HIGH TECHNOLOGY ACTIVITY" MEANS THAT TERM AS DEFINED IN 8 SECTION 3 OF THE MICHIGAN ECONOMIC GROWTH AUTHORITY ACT, 1995 PA 9 24, MCL 207.803. 10 (T)(p)"Initial assessed value" means the assessed value 11, as equalized,of the eligible property identified in the tax 12 increment financing plan OR, FOR A CERTIFIED TECHNOLOGY PARK, THE 13 ASSESSED VALUE OF ANY REAL AND PERSONAL PROPERTY INCLUDED IN THE 14 TAX INCREMENT FINANCING PLAN, at the time the resolution estab- 15 lishing the tax increment financing plan is approved as shown by 16 the most recent assessment roll for which equalization has been 17 completed at the time the resolution is adopted OR, FOR PROPERTY 18 THAT BECOMES ELIGIBLE PROPERTY IN OTHER THAN A CERTIFIED TECHNOL- 19 OGY PARK AFTER THE DATE THE PLAN IS APPROVED, AT THE TIME THE 20 PROPERTY BECOMES ELIGIBLE PROPERTY. Property exempt from taxa- 21 tion at the time of the determination of the initial assessed 22 value shall be included as zero. Property for which a specific 23 local tax is paid in lieu of property tax shall not be considered 24 exempt from taxation. The initial assessed value of property for 25 which a specific local tax was paid in lieu of property tax shall 26 be determined as provided in subdivision(w)(BB). 05144'99 * 8 1 (U) "MICHIGAN ECONOMIC DEVELOPMENT CORPORATION" MEANS THE 2 PUBLIC BODY CORPORATE CREATED UNDER SECTION 28 OF ARTICLE VII OF 3 THE STATE CONSTITUTION OF 1963 AND THE URBAN COOPERATION ACT OF 4 1967, 1967 (EX SESS) PA 7, MCL 124.501 TO 124.512. IF THE 5 MICHIGAN ECONOMIC DEVELOPMENT CORPORATION IS UNABLE FOR ANY 6 REASON TO PERFORM ITS DUTIES UNDER THIS ACT, THOSE DUTIES MAY BE 7 EXERCISED BY THE MICHIGAN STRATEGIC FUND. 8 (V) "MICHIGAN STRATEGIC FUND" MEANS THE MICHIGAN STRATEGIC 9 FUND AS DESCRIBED IN THE MICHIGAN STRATEGIC FUND ACT, 1984 PA 10 270, MCL 125.2001 TO 125.2093. 11 (W)(q)"Municipality" means a city, village, or urban 12 township. 13 (X)(r)"Obligation" means a written promise to pay, 14 whether evidenced by a contract, agreement, lease, sublease, 15 bond, or note, or a requirement to pay imposed by law. An obli- 16 gation does not include a payment required solely because of 17 default upon an obligation, employee salaries, or consideration 18 paid for the use of municipal offices. An obligation does not 19 include those bonds that have been economically defeased by 20 refunding bonds issued under this act. Obligation includes, but 21 is not limited to, the following: 22 (i) A requirement to pay proceeds derived from ad valorem 23 property taxes or taxes levied in lieu of ad valorem property 24 taxes. 25 (ii) A management contract or a contract for professional 26 services. 05144'99 * 9 1 (iii) A payment required on a contract, agreement, bond, or 2 note if the requirement to make or assume the payment arose 3 before August 19, 1993. 4 (iv) A requirement to pay or reimburse a person for the cost 5 of insurance for, or to maintain, property subject to a lease, 6 land contract, purchase agreement, or other agreement. 7 (v) A letter of credit, paying agent, transfer agent, bond 8 registrar, or trustee fee associated with a contract, agreement, 9 bond, or note. 10 (Y)(s)"On behalf of an authority", in relation to an 11 eligible advance made by a municipality or an eligible obligation 12 or other protected obligation issued or incurred by a municipali- 13 ty, means in anticipation that an authority would transfer tax 14 increment revenues or reimburse the municipality from tax incre- 15 ment revenues in an amount sufficient to fully make payment 16 required by the eligible advance made by a municipality, or eli- 17 gible obligation or other protected obligation issued or incurred 18 by the municipality, if the anticipation of the transfer or 19 receipt of tax increment revenues from the authority is pursuant 20 to or evidenced by 1 or more of the following: 21 (i) A reimbursement agreement between the municipality and 22 an authority it established. 23 (ii) A requirement imposed by law that the authority trans- 24 fer tax increment revenues to the municipality. 25 (iii) A resolution of the authority agreeing to make pay- 26 ments to the incorporating unit. 05144'99 * 10 1 (iv) Provisions in a tax increment financing plan describing 2 the project for which the obligation was incurred. 3 (Z)(t)"Other protected obligation" means: 4 (i) A qualified refunding obligation issued to refund an 5 obligation described in subparagraph (ii) or (iii), an obligation 6 that is not a qualified refunding obligation that is issued to 7 refund an eligible obligation, or a qualified refunding obliga- 8 tion issued to refund an obligation described in this 9 subparagraph. 10 (ii) An obligation issued or incurred by an authority or by 11 a municipality on behalf of an authority after August 19, 1993, 12 but before December 31, 1994, to finance a project described in a 13 tax increment finance plan approved by the municipality in 14 accordance with this act before August 19, 1993, for which a con- 15 tract for final design is entered into by the municipality or 16 authority before March 1, 1994. 17 (iii) An obligation incurred by an authority or municipality 18 after August 19, 1993, to reimburse a party to a development 19 agreement entered into by a municipality or authority before 20 August 19, 1993, for a project described in a tax increment 21 financing plan approved in accordance with this act before 22 August 19, 1993, and undertaken and installed by that party in 23 accordance with the development agreement. 24 (iv) An ongoing management or professional services contract 25 with the governing body of a countywhichTHAT was entered into 26 before March 1, 1994 andwhichTHAT was preceded by a series of 27 limited term management or professional services contracts with 05144'99 * 11 1 the governing body of the county, the last of which was entered 2 into before August 19, 1993. 3 (AA)(u)"Public facility" means 1 or more of the 4 following: 5 (i) A street, road, bridge, STORM WATER OR SANITARY sewer, 6 sewage treatment facility, facility designed to reduce, elimi- 7 nate, or prevent the spread of identified soil or groundwater 8 contamination, drainage system, RETENTION BASIN, PRETREATMENT 9 FACILITY, waterway, waterline, water storage facility, rail line, 10 ELECTRIC, GAS, TELEPHONE OR OTHER COMMUNICATIONS, OR ANY OTHER 11 TYPE OF utility line or pipeline, or other similar or related 12 structure or improvement, together with necessary easements for 13 the structure or improvement.,EXCEPT FOR RAIL LINES, UTILITY 14 LINES, OR PIPELINES, THE STRUCTURES OR IMPROVEMENTS DESCRIBED IN 15 THIS SUBPARAGRAPH SHALL BE EITHER owned or used by a public 16 agency,orfunctionally connected to similar or supporting 17 facilities owned or used by a public agency, or designed and ded- 18 icated to use by, for the benefit of, or for the protection of 19 the health, welfare, or safety of the public generally, whether 20 or not used by a single business entity., provided that any21 ANY road, street, or bridge shall be continuously open to public 22 access.and that other facilities shall be located in public23easements or rights-of-way and sized to accommodate reasonably24foreseeable development of eligible property in adjoining areas.25 (ii) The acquisition and disposal ofreal and personal26propertyLAND or an interest in thatpropertyLAND, demolition 05144'99 * 12 1 of structures, site preparation, AND relocation costs.,2building rehabilitation and all3 (iii) ALL administrative AND REAL AND PERSONAL PROPERTY 4 ACQUISITION AND DISPOSAL costs related to a public facility, 5 including, but not limited to, architect's, engineer's, legal, 6 and accounting fees ascontained in the resolution establishing7 PERMITTED BY the district's development plan. REAL AND PERSONAL 8 PROPERTY ACQUISITION AND DISPOSAL COSTS DESCRIBED IN THIS SUB- 9 PARAGRAPH ARE LIMITED TO COSTS ASSOCIATED WITH THOSE STRUCTURES 10 AND IMPROVEMENTS DESCRIBED IN SUBPARAGRAPHS (i) AND (iv). 11 (iv)(iii)An improvement to a facility used by the public 12 or a public facility as those terms are defined in section 1 of 13 1966 PA 1, MCL 125.1351, which improvement is made to comply with 14 the barrier free design requirements of the state construction 15 code promulgated under the state construction code act of 1972, 16 1972 PA 230, MCL 125.1501 to 125.1531. 17 (v) ALL OF THE FOLLOWING COSTS APPROVED BY THE MICHIGAN ECO- 18 NOMIC DEVELOPMENT CORPORATION: 19 (A) OPERATIONAL COSTS OF, AND COSTS FOR ACTIVITIES AUTHO- 20 RIZED UNDER SECTION 7 FOR, A BUSINESS INCUBATOR LOCATED IN A CER- 21 TIFIED TECHNOLOGY PARK. 22 (B) THE COSTS FOR ACTIVITIES AUTHORIZED UNDER SECTION 7, 23 WHICH COSTS ARE LIMITED TO LABORATORIES, RESEARCH AND DEVELOP- 24 MENT, CONFERENCE FACILITIES, TELECONFERENCE FACILITIES, TESTING, 25 TRAINING, AND QUALITY CONTROL, THAT ARE OR THAT SUPPORT ELIGIBLE 26 PROPERTY UNDER SUBDIVISION (P)(iii), THAT ARE OWNED BY A PUBLIC 27 ENTITY, AND THAT ARE LOCATED WITHIN A CERTIFIED TECHNOLOGY PARK. 05144'99 * 13 1 (vi) OPERATING AND PLANNING COSTS INCLUDED IN A PLAN 2 PURSUANT TO SECTION 12(1)(F), INCLUDING COSTS OF MARKETING PROP- 3 ERTY WITHIN THE DISTRICT AND ATTRACTING DEVELOPMENT OF ELIGIBLE 4 PROPERTY WITHIN THE DISTRICT. 5 (BB)(v)"Qualified refunding obligation" means an obliga- 6 tion issued or incurred by an authority or by a municipality on 7 behalf of an authority to refund an obligation if the refunding 8 obligation meets both of the following: 9 (i) The net present value of the principal and interest to 10 be paid on the refunding obligation, including the cost of issu- 11 ance, will be less than the net present value of the principal 12 and interest to be paid on the obligation being refunded, as cal- 13 culated using a method approved by the department of treasury. 14 (ii) The net present value of the sum of the tax increment 15 revenues described in subdivision(y)(ii)(EE)(ii) and the dis- 16 tributions under section 11a to repay the refunding obligation 17 will not be greater than the net present value of the sum of the 18 tax increment revenues described in subdivision(y)(ii)19 (EE)(ii) and the distributions under section 11a to repay the 20 obligation being refunded, as calculated using a method approved 21 by the department of treasury. 22 (CC)(w)"Specific local taxes" means a tax levied under 23 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment 24 act, 1978 PA 255, MCL 207.651 to 207.668, the enterprise zone 25 act, 1985 PA 224, MCL 125.2101 to 125.2123, 1953 PA 189, MCL 26 211.181 to 211.182, and the technology park development act, 1984 27 PA 385, MCL 207.701 to 207.718. The initial assessed value or 05144'99 * 14 1 current assessed value of property subject to a specific local 2 tax is the quotient of the specific local tax paid divided by the 3 ad valorem millage rate. However, after 1993, the state tax com- 4 mission shall prescribe the method for calculating the initial 5 assessed value and current assessed value of property for which a 6 specific local tax was paid in lieu of a property tax. 7 (DD)(x)"State fiscal year" means the annual period com- 8 mencing October 1 of each year. 9 (EE)(y)"Tax increment revenues" means the amount of ad 10 valorem property taxes and specific local taxes attributable to 11 the application of the levy of all taxing jurisdictions upon the 12 captured assessed value ofreal and personal property in the13development areaELIGIBLE PROPERTY WITHIN THE DISTRICT OR, FOR 14 PURPOSES OF A CERTIFIED TECHNOLOGY PARK, REAL OR PERSONAL PROP- 15 ERTY THAT IS LOCATED WITHIN THE CERTIFIED TECHNOLOGY PARK AND 16 INCLUDED WITHIN THE TAX INCREMENT FINANCING PLAN, subject to the 17 following requirements: 18 (i) Tax increment revenues include ad valorem property taxes 19 and specific local taxes attributable to the application of the 20 levy of all taxing jurisdictions, other than the state pursuant 21 to the state education tax act, 1993 PA 331, MCL 211.901 to 22 211.906, and local or intermediate school districts, upon the 23 captured assessed value of real and personal property in the 24 development area for any purpose authorized by this act. 25 (ii) Tax increment revenues include ad valorem property 26 taxes and specific local taxes attributable to the application of 27 the levy of the state pursuant to the state education tax act, 05144'99 * 15 1 1993 PA 331, MCL 211.901 to 211.906, and local or intermediate 2 school districts upon the captured assessed value of real and 3 personal property in the development area in an amount equal to 4 the amount necessary, without regard to subparagraph (i),to5 FOR THE FOLLOWING PURPOSES: 6 (A) TO repay eligible advances, eligible obligations, and 7 other protected obligations. 8 (B) TO FUND OR TO REPAY AN ADVANCE OR OBLIGATION ISSUED BY 9 OR ON BEHALF OF AN AUTHORITY TO FUND, THE COST OF PUBLIC FACILI- 10 TIES RELATED TO OR FOR THE BENEFIT OF ELIGIBLE PROPERTY LOCATED 11 WITHIN A CERTIFIED TECHNOLOGY PARK TO THE EXTENT THE PUBLIC 12 FACILITIES HAVE BEEN INCLUDED IN AN AGREEMENT UNDER SECTION 13 12A(3). 14 (iii) Tax increment revenues do not include any of the 15 following: 16 (A) Ad valorem property taxes or specific local taxes 17attributable either to a portion of the captured assessed value18shared with taxing jurisdictions within the jurisdictional area19of the authority or to a portion of value of property that may be20excluded from captured assessed valueTHAT ARE EXCLUDED FROM AND 21 NOT MADE PART OF THE TAX INCREMENT FINANCING PLAN. 22 (B) Ad valorem property taxes and specific local taxes 23 attributable to ad valorem property taxes excluded by the tax 24 increment financing plan of the authority from the determination 25 of the amount of tax increment revenues to be transmitted to the 26 authority. 05144'99 * 16 1 (C) Ad valorem property taxes exempted from capture under 2 section 4(3) or specific local taxes attributable to such ad 3 valorem property taxes. 4 (D) Ad valorem property taxes specifically levied for the 5 payment of principal and interest of obligations approved by the 6 electors or obligations pledging the unlimited taxing power of 7 the local governmental unit or specific local taxes attributable 8 to such ad valorem property taxes. 9 (E) THE AMOUNT OF AD VALOREM PROPERTY TAXES OR SPECIFIC 10 TAXES CAPTURED BY A DOWNTOWN DEVELOPMENT AUTHORITY UNDER 1975 11 PA 197, MCL 125.1651 TO 125.1681, TAX INCREMENT FINANCING AUTHOR- 12 ITY UNDER THE TAX INCREMENT FINANCE AUTHORITY ACT, 1980 PA 450, 13 MCL 125.1801 TO 125.1830, OR BROWNFIELD REDEVELOPMENT AUTHORITY 14 UNDER THE BROWNFIELD REDEVELOPMENT FINANCING ACT, 1996 PA 381, 15 MCL 125.2651 TO 125.2672, IF THOSE TAXES WERE CAPTURED BY THESE 16 OTHER AUTHORITIES ON THE DATE THAT THE INITIAL ASSESSED VALUE OF 17 A PARCEL OF PROPERTY WAS ESTABLISHED UNDER THIS ACT. 18 (iv) The amount of tax increment revenues authorized to be 19 included under subparagraph (ii), and required to be transmitted 20 to the authority under section 13(1), from ad valorem property 21 taxes and specific local taxes attributable to the application of 22 the levy of the state education tax act, 1993 PA 331, MCL 211.901 23 to 211.906, OR a local school district or an intermediate school 24 district upon the captured assessed value of real and personal 25 property in a development area shall be determined separately for 26 the levy by the state, each school district, and each 05144'99 * 17 1 intermediate school district as the product of sub-subparagraphs 2 (A) and (B): 3 (A) The percentagewhichTHAT the total ad valorem taxes 4 and specific local taxes available for distribution by law to the 5 state, local school district, or intermediate school district, 6 respectively, bears to the aggregate amount of ad valorem millage 7 taxes and specific taxes available for distribution by law to the 8 state, each local school district, and each intermediate school 9 district. 10 (B) The maximum amount of ad valorem property taxes and spe- 11 cific local taxes considered tax increment revenues under sub- 12 paragraph (ii). 13 (FF)(z)"Urban township" means a township that meets 1 or 14 more of the following: 15 (i) Meets all of the following requirements: 16 (A) Has a population of 20,000 or more, or has a population 17 of 10,000 or more but is located in a county with a population of 18 400,000 or more. 19 (B) Adopted a master zoning plan before February 1, 1987. 20 (C) Provides sewer, water, and other public services to all 21 or a part of the township. 22 (ii) Meets all of the following requirements: 23 (A) Has a population of less than 20,000. 24 (B) Is located in a county with a population of 250,000 or 25 more but less than 400,000, and that county is located in a met- 26 ropolitan statistical area. 05144'99 * 18 1 (C) Has within its boundaries a parcel of property under 2 common ownership that is 800 acres or larger and is capable of 3 being served by a railroad, and located within 3 miles of a 4 limited access highway. 5 (D)(d)Establishes an authority before December 31, 6 1998. 7 (iii) Meets all of the following requirements: 8 (A) Has a population of less than 20,000. 9 (B) Has a state equalized value for all real and personal 10 property located in the township of more than $200,000,000.00. 11 (C) Adopted a master zoning plan before February 1, 1987. 12 (D) Is a charter township under the charter township act, 13 1947 PA 359, MCL 42.1 to 42.34. 14 (E) Has within its boundaries a combination of parcels under 15 common ownership that is 800 acres or larger, is immediately 16 adjacent to a limited access highway, is capable of being served 17 by a railroad, and is immediately adjacent to an existing sewer 18 line. 19 (F) Establishes an authority before March 1, 1999. 20 Sec. 4. (1) The governing body of a municipality may 21 declare by resolution adopted by a majority of its members 22 elected and serving its intention to create and provide for the 23 operation of an authority. 24 (2) In the resolution of intent, the governing body propos- 25 ing to create the authority shall set a date for holding a public 26 hearing on the adoption of a proposed resolution creating the 27 authority and designating the boundaries of the authority 05144'99 * 19 1 district or districts. Notice of the public hearing shall be 2 published twice in a newspaper of general circulation in the 3 municipality, not less than 20 nor more than 40 days before the 4 date of the hearing. Not less than 20 days before the hearing, 5 the governing body proposing to create the authority shall also 6 mail notice of the hearing to the property taxpayers of record in 7 a proposed authority district and, for a public hearing to be 8 held after February 15, 1994, to the governing body of each 9 taxing jurisdiction levying taxes that would be subject to cap- 10 ture if the authority is established and a tax increment financ- 11 ing plan is approved. Failure of a property taxpayer to receive 12 the notice shall not invalidate these proceedings. The notice 13 shall state the date, time, and place of the hearing, and shall 14 describe the boundaries of the proposed authority district or 15 districts. At that hearing, a resident, taxpayer, or property 16 owner from a taxing jurisdiction in which the proposed district 17 is located or an official from a taxing jurisdiction with millage 18 that would be subject to capture has the right to be heard in 19 regard to the establishment of the authority and the boundaries 20 of that proposed authority district. The governing body of the 21 municipality in which a proposed district is to be located shall 22 not incorporate land into an authority district not included in 23 the description contained in the notice of public hearing, but it 24 may eliminate lands described in the notice of public hearing 25 from an authority district in the final determination of the 26 boundaries. 05144'99 * 20 1 (3) Not more than 60 days after a public hearing held after 2 February 15, 1994, the governing body of a taxing jurisdiction, 3 OTHER THAN THIS STATE AND A LOCAL SCHOOL DISTRICT EXCEPT FOR 4 MILLS LEVIED UNDER SECTION 1212 OF THE REVISED SCHOOL CODE, 1976 5 PA 451, MCL 380.1212, with millage that would otherwise be 6 subject to capture may exempt its taxes from capture by adopting 7 a resolution to that effect and filing a copy with the clerk of 8 the municipality proposing to create the authority. HOWEVER, A 9 RESOLUTION BY A GOVERNING BODY OF A TAXING JURISDICTION, OTHER 10 THAN A SCHOOL DISTRICT OR AN INTERMEDIATE SCHOOL DISTRICT, TO 11 EXEMPT ITS TAXES FROM CAPTURE IS NOT EFFECTIVE FOR THE CAPTURE OF 12 TAXES THAT ARE USED FOR A CERTIFIED TECHNOLOGY PARK. The resolu- 13 tion takes effect when filed with that clerk and remains effec- 14 tive until a copy of a resolution rescinding that resolution is 15 filed with that clerk. 16 (4) Not less than 60 days after the public hearing, if the 17 governing body creating the authority intends to proceed with the 18 establishment of the authority, it shall adopt, by majority vote 19 of its members elected and serving, a resolution establishing the 20 authority and designating the boundaries of the authority dis- 21 trict or districts within which the authority shall exercise its 22 powers. The adoption of the resolution is subject to any appli- 23 cable statutory or charter provisions with respect to the 24 approval or disapproval of resolutions by the chief executive 25 officer of the municipality and the adoption of a resolution over 26 his or her veto. This resolution shall be filed with the 27 secretary of state promptly after its adoption and shall be 05144'99 * 21 1 published at least once in a newspaper of general circulation in 2 the municipality. 3 (5) The governing body may alter or amend the boundaries of 4 an authority district to include or exclude lands from that 5 authority district or create new authority districts pursuant to 6 the same requirements prescribed for adopting the resolution cre- 7 ating the authority. 8 (6) The validity of the proceedings establishing an author- 9 ity shall be conclusive unless contested in a court of competent 10 jurisdiction within 60 days after the last of the following takes 11 place: 12 (a) Publication of the resolution creating the authority as 13 adopted. 14 (b) Filing of the resolution creating the authority with the 15 secretary of state. 16 Sec. 10. The activities of the authority shall be financed 17 from 1 or more of the following sources: 18 (a) Contributions to the authority for the performance of 19 its functions. 20 (b) Revenues from any property, building, or facility owned, 21 leased, licensed, or operated by the authority or under its con- 22 trol, subject to the limitations imposed upon the authority by 23 trusts or other agreements. 24 (c) Tax increment revenues received pursuant to a tax incre- 25 ment financing plan established under sections 12 to 14. 26 (d) Proceeds of tax increment bonds issued pursuant to 27 section 14. 05144'99 * 22 1 (e) Proceeds of revenue bonds issued pursuant to section 2 11. 3 (f) Money obtained from any other legal source approved by 4 the governing body of the municipality or otherwise authorized by 5 law for use by the authority or the municipality to finance a 6 development program. 7 (g) Money obtained pursuant to section 11a. 8 (H) LOANS FROM THE MICHIGAN STRATEGIC FUND OR THE MICHIGAN 9 ECONOMIC DEVELOPMENT CORPORATION. 10 Sec. 12. (1) If the board determines that it is necessary 11 for the achievement of the purposes of this act, the board shall 12 prepare and submit a tax increment financing plan to the govern- 13 ing body. The plan shall be in compliance with section 13 and 14 shall include a development plan as provided in section 15. The 15 plan shall also contain the following: 16 (a) A statement of the reasons that the plan will result in 17 the development of captured assessed value that could not other- 18 wise be expected. The reasons may include, but are not limited 19 to, activities of the municipality, authority, or others under- 20 taken before formulation or adoption of the plan in reasonable 21 anticipation that the objectives of the plan would be achieved by 22 some means. 23 (b) An estimate of the captured assessed value for each year 24 of the plan. The plan may provide for the use of part or all of 25 the captured assessed value OR, SUBJECT TO SUBSECTION (3), OF THE 26 TAX INCREMENT REVENUES ATTRIBUTABLE TO THE LEVY OF ANY TAXING 27 JURISDICTION, but the portion intended to be used shall be 05144'99 * 23 1 clearly stated in the plan. The board or the municipality 2 creating the authority may exclude from captured assessed value a 3 percentage of captured assessed value as specified in the plan or 4 growth in property value resulting solely from inflation. If 5 excluded, the plan shall set forth the method for excluding 6 growth in property value resulting solely from inflation. 7 (c) The estimated tax increment revenues for each year of 8 the plan. 9 (d) A detailed explanation of the tax increment procedure. 10 (e) The maximum amount of note or bonded indebtedness to be 11 incurred, if any. 12 (f) The amount of operating and planning expenditures of the 13 authority and municipality, the amount of advances extended by or 14 indebtedness incurred by the municipality, and the amount of 15 advances by others to be repaid from tax increment revenues. 16 (g) The costs of the plan anticipated to be paid from tax 17 increment revenues as received. 18 (h) The duration of the development plan and the tax incre- 19 ment plan. 20 (i) An estimate of the impact of tax increment financing on 21 the revenues of all taxing jurisdictions in which the eligible 22 property is OR IS ANTICIPATED TO BE located. 23 (j) A legal description of the eligible property to which 24 the tax increment financing plan applies OR SHALL APPLY UPON 25 QUALIFICATION AS ELIGIBLE PROPERTY. 26 (k) An estimate of the number of jobs to be created as a 27 result of implementation of the tax increment financing plan. 05144'99 * 24 1 (l) THE PROPOSED BOUNDARIES OF A CERTIFIED TECHNOLOGY PARK 2 TO BE CREATED UNDER AN AGREEMENT PROPOSED TO BE ENTERED INTO PUR- 3 SUANT TO SECTION 12A, AN IDENTIFICATION OF THE REAL PROPERTY 4 WITHIN THE CERTIFIED TECHNOLOGY PARK TO BE INCLUDED IN THE TAX 5 INCREMENT FINANCING PLAN FOR PURPOSES OF DETERMINING TAX INCRE- 6 MENT REVENUES, AND WHETHER PERSONAL PROPERTY LOCATED IN THE CER- 7 TIFIED TECHNOLOGY PARK IS EXEMPT FROM DETERMINING TAX INCREMENT 8 REVENUES. 9 (2)AEXCEPT AS PROVIDED IN SECTION 12A, A tax increment 10 financing plan shallonlyprovide for the use of tax increment 11 revenues for public facilities for eligible property whose cap- 12 tured assessed value produces the tax increment revenues or, to 13 the extent the eligible property is located within acertified14industrial parkBUSINESS DEVELOPMENT AREA, for other eligible 15 property located in thecertified industrial parkBUSINESS 16 DEVELOPMENT AREA. Public facilities for eligible property 17 include the development or improvement of access to and around, 18 or within the eligible property, of road facilities reasonably 19 required by traffic flow to be generated by the eligible proper- 20 ty, and the development or improvement of public facilities that 21 are necessary to service the eligible property, whether or not 22 located on that eligible property. If the eligible property 23 identified in the tax increment financing plan is property to 24 which section2(l)(iv)2(P)(iv) applies, the tax increment 25 financing plan shall not provide for the use of tax increment 26 revenues for public facilities other than those described in the 27 development plan as of April 1, 1991. Whether or notso05144'99 * 25 1 provided in the tax increment financing plan, if the eligible 2 property identified in the tax increment financing plan is prop- 3 erty to which section2(l)(iv)2(P)(iv) applies, then to the 4 extent that captured tax increment revenues are utilized for the 5 costs of cleanup of identified soil and groundwater contamina- 6 tion, the captured tax increment revenues shall be first credited 7 against the shares of responsibility for the total costs of 8 cleanup of uncollectible parties who are responsible for the 9 identified soil and groundwater contamination pursuant to law, 10 and then shall be credited on a pro rata basis against the shares 11 of responsibility for the total costs of cleanup of other parties 12 who are responsible for the identified soil and groundwater con- 13 tamination pursuant to law. 14 (3) The percentage of taxes levied for school operating pur- 15 poses that is captured and used by the tax increment financing 16 plan AND THE TAX INCREMENT FINANCING PLANS UNDER 1975 PA 197, MCL 17 125.1651 TO 125.1681, THE TAX INCREMENT FINANCE AUTHORITY ACT, 18 1980 PA 450, MCL 125.1801 TO 125.1380, AND THE BROWNFIELD REDE- 19 VELOPMENT FINANCING ACT, 1996 PA 381, MCL 125.2651 TO 125.2672, 20 shall not be greater than theplan'spercentage capture and use 21 of taxes levied by a municipality or county for operating pur- 22 poses UNDER THE TAX INCREMENT FINANCING PLAN AND TAX INCREMENT 23 FINANCING PLANS UNDER 1975 PA 197, MCL 125.1651 TO 125.1681, THE 24 TAX INCREMENT FINANCE AUTHORITY ACT, 1980 PA 450, MCL 125.1801 TO 25 125.1830, AND THE BROWNFIELD REDEVELOPMENT FINANCING ACT, 1996 26 PA 381, MCL 125.2651 TO 125.2672. For purposes of the previous 27 sentence, taxes levied by a county for operating purposes include 05144'99 * 26 1 only millage allocated for county or charter county purposes 2 under the property tax limitation act,Act No. 62 of the Public3Acts of 1933, being sections 211.201 to 211.217a of the Michigan4Compiled Laws1933 PA 62, MCL 211.201 TO 211.217A. 5(4) If the construction of eligible property has, or may6reasonably be expected to have, the effect of transferring7employment of 50 or more full-time jobs from 1 or more local gov-8ernmental units of this state to the municipality in which the9eligible property is located, that eligible property shall be10considered excluded from the authority district or districts11unless the legislative body of each local governmental unit from12which 50 or more full-time jobs are to be transferred consents,13by resolution, to the inclusion of that eligible property in the14authority district for purposes of the tax increment financing15plan.16 (4)(5)Approval of the tax increment financing plan shall 17 be in accordance with the notice, hearing, disclosure, and 18 approval provisions of sections 16 and 17. If the development 19 plan is part of the tax increment financing plan, only 1 hearing 20 and approval procedure is required for the 2 plans together. 21 (5)(6)Before the public hearing on the tax increment 22 financing plan, the governing body shall provide a reasonable 23 opportunity to the taxing jurisdictions levying taxes subject to 24 capture to express their views and recommendations regarding the 25 tax increment financing plan. The authority shall fully inform 26 the taxing jurisdictions about the fiscal and economic 27 implications of the proposed tax increment financing plan. The 05144'99 * 27 1 taxing jurisdictions may present their recommendations at the 2 public hearing on the tax increment financing plan. The author- 3 ity may enter into agreements with the taxing jurisdictions and 4 the governing body of the municipality in which the authority 5 district is located to share a portion of the captured assessed 6 value of the district OR TO DISTRIBUTE TAX INCREMENT REVENUES 7 AMONG TAXING JURISDICTIONS. Upon adoption of the plan, the col- 8 lection and transmission of the amount of tax increment revenues, 9 as specified in this act, shall be binding on all taxing units 10 levying ad valorem property taxes or specific local taxes against 11 property located in the authority district. 12 (6) SUBJECT TO SUBSECTION (2) AND SECTION 12A, PROPERTY 13 SHALL NOT BE ACQUIRED AS A PUBLIC FACILITY UNDER SECTION 14 2(AA)(ii) UNLESS IT IS PROPOSED OR INTENDED TO BE USED IN THE 15 DEVELOPMENT OF ELIGIBLE PROPERTY. PROPERTY QUALIFIED AS A PUBLIC 16 FACILITY UNDER SECTION 2(AA)(ii) THAT IS ACQUIRED BY AN AUTHORITY 17 MAY BE SOLD, CONVEYED, OR OTHERWISE DISPOSED TO ANY PERSON, 18 PUBLIC OR PRIVATE, FOR ANY CONSIDERATION ESTABLISHED BY THE 19 AUTHORITY, WHICH MAY BE PAYABLE IN CASH OR NONCASH CONSIDERATION, 20 OR FOR NO CONSIDERATION OTHER THAN TO ASSIST THE AUTHORITY IN 21 FULFILLING THE PURPOSES OF ITS TAX INCREMENT FINANCING PLAN. 22 UNLESS THE PROPERTY ACQUIRED BY AN AUTHORITY WAS LOCATED WITHIN A 23 CERTIFIED BUSINESS PARK OR A CERTIFIED TECHNOLOGY PARK AT THE 24 TIME OF DISPOSITION, AN AUTHORITY SHALL REMIT ALL MONETARY PRO- 25 CEEDS RECEIVED FROM THE SALE OR DISPOSITION OF PROPERTY THAT 26 QUALIFIED AS A PUBLIC FACILITY UNDER SECTION 2(AA)(ii) AND WAS 27 PURCHASED WITH TAX INCREMENT REVENUES TO THE TAXING 05144'99 * 28 1 JURISDICTIONS. PROCEEDS DISTRIBUTED TO TAXING JURISDICTIONS 2 SHALL BE REMITTED IN PROPORTION TO THE AMOUNT OF TAX INCREMENT 3 REVENUES ATTRIBUTABLE TO EACH TAXING JURISDICTION IN THE YEAR THE 4 PROPERTY WAS ACQUIRED. IF THE PROPERTY WAS ACQUIRED IN PART WITH 5 FUNDS OTHER THAN TAX INCREMENT REVENUES, ONLY THAT PORTION OF THE 6 MONETARY PROCEEDS RECEIVED UPON DISPOSITION THAT REPRESENT THE 7 PROPORTION OF THE COST OF ACQUISITION PAID WITH TAX INCREMENT 8 REVENUES IS REQUIRED TO BE REMITTED TO TAXING JURISDICTIONS. IF 9 THE PROPERTY IS LOCATED WITHIN A CERTIFIED BUSINESS PARK OR CER- 10 TIFIED TECHNOLOGY PARK AT THE TIME OF DISPOSITION, THE MONETARY 11 PROCEEDS RECEIVED FROM THE SALE OR DISPOSITION OF THAT PROPERTY 12 MAY BE RETAINED BY THE AUTHORITY FOR ANY PURPOSE NECESSARY TO 13 FURTHER THE DEVELOPMENT PROGRAM FOR THE CERTIFIED BUSINESS PARK 14 OR CERTIFIED TECHNOLOGY PARK IN ACCORDANCE WITH THE TAX INCREMENT 15 FINANCING PLAN. 16 SEC. 12A. (1) A MUNICIPALITY THAT HAS CREATED AN AUTHORITY 17 MAY APPLY TO THE MICHIGAN ECONOMIC DEVELOPMENT CORPORATION FOR 18 DESIGNATION OF ALL OR A PORTION OF THE AUTHORITY DISTRICT AS A 19 CERTIFIED TECHNOLOGY PARK AND TO ENTER INTO AN AGREEMENT GOVERN- 20 ING THE TERMS AND CONDITIONS OF THE DESIGNATION. THE FORM OF THE 21 APPLICATION SHALL BE IN A FORM SPECIFIED BY THE MICHIGAN ECONOMIC 22 DEVELOPMENT CORPORATION AND SHALL INCLUDE INFORMATION THE 23 MICHIGAN ECONOMIC DEVELOPMENT CORPORATION DETERMINES NECESSARY TO 24 MAKE THE DETERMINATIONS REQUIRED UNDER THIS SECTION. 25 (2) AFTER RECEIPT OF AN APPLICATION, THE MICHIGAN ECONOMIC 26 DEVELOPMENT CORPORATION MAY DESIGNATE, PURSUANT TO AN AGREEMENT 27 ENTERED INTO UNDER SUBSECTION (3), A CERTIFIED TECHNOLOGY PARK 05144'99 * 29 1 THAT IS DETERMINED BY THE MICHIGAN ECONOMIC DEVELOPMENT 2 CORPORATION TO SATISFY 1 OR MORE OF THE FOLLOWING CRITERIA BASED 3 ON THE APPLICATION: 4 (A) A DEMONSTRATION OF SIGNIFICANT SUPPORT FROM AN INSTITU- 5 TION OF HIGHER EDUCATION OR A PRIVATE RESEARCH-BASED INSTITUTE 6 LOCATED WITHIN THE PROXIMITY OF THE PROPOSED CERTIFIED TECHNOLOGY 7 PARK, AS EVIDENCED BY, BUT NOT LIMITED TO, THE FOLLOWING TYPES OF 8 SUPPORT: 9 (i) GRANTS OF PREFERENCES FOR ACCESS TO AND COMMERCIALIZ- 10 ATION OF INTELLECTUAL PROPERTY. 11 (ii) ACCESS TO LABORATORY AND OTHER FACILITIES OWNED BY OR 12 UNDER CONTROL OF THE INSTITUTION OF HIGHER EDUCATION OR PRIVATE 13 RESEARCH-BASED INSTITUTE. 14 (iii) DONATIONS OF SERVICES. 15 (iv) ACCESS TO TELECOMMUNICATION FACILITIES AND OTHER 16 INFRASTRUCTURE. 17 (v) FINANCIAL COMMITMENTS. 18 (vi) ACCESS TO FACULTY, STAFF, AND STUDENTS. 19 (vii) OPPORTUNITIES FOR ADJUNCT FACULTY AND OTHER TYPES OF 20 STAFF ARRANGEMENTS OR AFFILIATIONS. 21 (B) A DEMONSTRATION OF A SIGNIFICANT COMMITMENT ON BEHALF OF 22 THE INSTITUTION OF HIGHER EDUCATION OR PRIVATE RESEARCH-BASED 23 INSTITUTE TO THE COMMERCIALIZATION OF RESEARCH PRODUCED AT THE 24 CERTIFIED TECHNOLOGY PARK, AS EVIDENCED BY THE INTELLECTUAL PROP- 25 ERTY AND, IF APPLICABLE, TENURE POLICIES THAT REWARD FACULTY AND 26 STAFF FOR COMMERCIALIZATION AND COLLABORATION WITH PRIVATE 27 BUSINESSES. 05144'99 * 30 1 (C) A DEMONSTRATION THAT THE PROPOSED CERTIFIED TECHNOLOGY 2 PARK WILL BE DEVELOPED TO TAKE ADVANTAGE OF THE UNIQUE CHARACTER- 3 ISTICS AND SPECIALTIES OFFERED BY THE PUBLIC AND PRIVATE 4 RESOURCES AVAILABLE IN THE AREA IN WHICH THE PROPOSED CERTIFIED 5 TECHNOLOGY PARK WILL BE LOCATED. 6 (D) THE EXISTENCE OF OR PROPOSED DEVELOPMENT OF A BUSINESS 7 INCUBATOR WITHIN THE PROPOSED CERTIFIED TECHNOLOGY PARK THAT 8 EXHIBITS THE FOLLOWING TYPES OF RESOURCES AND ORGANIZATION: 9 (i) SIGNIFICANT FINANCIAL AND OTHER TYPES OF SUPPORT FROM 10 THE PUBLIC OR PRIVATE RESOURCES IN THE AREA IN WHICH THE PROPOSED 11 CERTIFIED TECHNOLOGY PARK WILL BE LOCATED. 12 (ii) A BUSINESS PLAN EXHIBITING THE ECONOMIC UTILIZATION AND 13 AVAILABILITY OF RESOURCES AND A LIKELIHOOD OF SUCCESSFUL DEVELOP- 14 MENT OF TECHNOLOGIES AND RESEARCH INTO VIABLE BUSINESS 15 ENTERPRISES. 16 (iii) A COMMITMENT TO THE EMPLOYMENT OF A QUALIFIED 17 FULL-TIME MANAGER TO SUPERVISE THE DEVELOPMENT AND OPERATION OF 18 THE BUSINESS INCUBATOR. 19 (E) THE EXISTENCE OF A BUSINESS PLAN FOR THE PROPOSED CERTI- 20 FIED TECHNOLOGY PARK THAT IDENTIFIES ITS OBJECTIVES IN A CLEARLY 21 FOCUSED AND MEASURABLE FASHION AND THAT ADDRESSES THE FOLLOWING 22 MATTERS: 23 (i) A COMMITMENT TO NEW BUSINESS FORMATION. 24 (ii) THE CLUSTERING OF BUSINESSES, TECHNOLOGY, AND 25 RESEARCH. 26 (iii) THE OPPORTUNITY FOR AND COSTS OF DEVELOPMENT OF 27 PROPERTIES UNDER COMMON OWNERSHIP OR CONTROL. 05144'99 * 31 1 (iv) THE AVAILABILITY OF AND METHOD PROPOSED FOR DEVELOPMENT 2 OF INFRASTRUCTURE AND OTHER IMPROVEMENTS, INCLUDING TELECOMMUNI- 3 CATIONS TECHNOLOGY, NECESSARY FOR THE DEVELOPMENT OF THE PROPOSED 4 CERTIFIED TECHNOLOGY PARK. 5 (v) ASSUMPTIONS OF COSTS AND REVENUES RELATED TO THE DEVEL- 6 OPMENT OF THE PROPOSED CERTIFIED TECHNOLOGY PARK. 7 (F) A DEMONSTRABLE AND SATISFACTORY ASSURANCE THAT THE PRO- 8 POSED CERTIFIED TECHNOLOGY PARK CAN BE DEVELOPED TO PRINCIPALLY 9 CONTAIN ELIGIBLE PROPERTY AS DEFINED BY SECTION 2(P)(iii) AND 10 (v). 11 (3) UPON APPROVAL BY THE MICHIGAN ECONOMIC DEVELOPMENT COR- 12 PORATION OF AN APPLICATION MADE PURSUANT TO SUBSECTION (1) FOR 13 DESIGNATION AS A CERTIFIED TECHNOLOGY PARK, AN AUTHORITY AND A 14 MUNICIPALITY THAT INCORPORATED THE AUTHORITY MAY ENTER INTO AN 15 AGREEMENT WITH THE MICHIGAN ECONOMIC DEVELOPMENT CORPORATION 16 ESTABLISHING THE TERMS AND CONDITIONS GOVERNING THE CERTIFIED 17 TECHNOLOGY PARK. UPON DESIGNATION OF THE CERTIFIED TECHNOLOGY 18 PARK PURSUANT TO THE TERMS OF THE AGREEMENT, THE SUBSEQUENT FAIL- 19 URE OF ANY PARTY TO COMPLY WITH THE TERMS OF THE AGREEMENT SHALL 20 NOT RESULT IN THE TERMINATION OR RESCISSION OF THE DESIGNATION OF 21 THE AREA AS A CERTIFIED TECHNOLOGY PARK. THE AGREEMENT SHALL 22 INCLUDE, BUT IS NOT LIMITED TO, THE FOLLOWING PROVISIONS: 23 (A) A DESCRIPTION OF THE AREA TO BE INCLUDED WITHIN THE CER- 24 TIFIED TECHNOLOGY PARK. 25 (B) COVENANTS AND RESTRICTIONS, IF ANY, UPON ALL OR A POR- 26 TION OF THE PROPERTIES CONTAINED WITHIN THE CERTIFIED TECHNOLOGY 27 PARK AND TERMS OF ENFORCEMENT OF ANY COVENANTS OR RESTRICTIONS. 05144'99 * 32 1 (C) THE FINANCIAL COMMITMENTS OF ANY PARTY TO THE AGREEMENT 2 AND OF ANY OWNER OR DEVELOPER OF PROPERTY WITHIN THE CERTIFIED 3 TECHNOLOGY PARK. 4 (D) THE TERMS OF ANY COMMITMENT REQUIRED FROM AN INSTITUTION 5 OF HIGHER EDUCATION OR PRIVATE RESEARCH BASED INSTITUTE FOR SUP- 6 PORT OF THE OPERATIONS AND ACTIVITIES AT ELIGIBLE PROPERTIES 7 WITHIN THE CERTIFIED TECHNOLOGY PARK. 8 (E) THE TERMS OF ENFORCEMENT OF THE AGREEMENT, WHICH MAY 9 INCLUDE THE DEFINITION OF EVENTS OF DEFAULT, CURE PERIODS, LEGAL 10 AND EQUITABLE REMEDIES AND RIGHTS, AND PENALTIES AND DAMAGES, 11 ACTUAL OR LIQUIDATED, UPON THE OCCURRENCE OF AN EVENT OF 12 DEFAULT. 13 (F) THE PUBLIC FACILITIES TO BE DEVELOPED FOR THE CERTIFIED 14 TECHNOLOGY PARK. 15 (G) THE COSTS APPROVED FOR PUBLIC FACILITIES UNDER SECTION 16 2(Z). 17 (4) IF THE MICHIGAN ECONOMIC DEVELOPMENT CORPORATION HAS 18 DETERMINED THAT A SALE PRICE OR RENTAL VALUE AT BELOW MARKET RATE 19 OR FOR NO CONSIDERATION WILL ASSIST IN INCREASING EMPLOYMENT OR 20 PRIVATE INVESTMENT IN THE CERTIFIED TECHNOLOGY PARK, THE AUTHOR- 21 ITY OR MUNICIPALITY HAS AUTHORITY TO DETERMINE THE SALE PRICE OR 22 RENTAL VALUE FOR PUBLIC FACILITIES OWNED OR DEVELOPED BY THE 23 AUTHORITY OR MUNICIPALITY IN THE CERTIFIED TECHNOLOGY PARK AT 24 BELOW MARKET RATE, OR FOR NO CONSIDERATION OTHER THAN THE ACCOM- 25 PLISHMENT OF THE PLAN. 05144'99 * 33 1 (5) THE TAX INCREMENT FINANCING PLAN MAY PROVIDE FOR THE USE 2 OF TAX INCREMENT REVENUES FROM THE CERTIFIED TECHNOLOGY PARK FOR 3 ANY ELIGIBLE PROPERTY LOCATED IN THE CERTIFIED TECHNOLOGY PARK. 4 (6) AN AGREEMENT DESIGNATING A CERTIFIED TECHNOLOGY PARK MAY 5 NOT BE MADE AFTER DECEMBER 31, 2003, BUT ANY AGREEMENT MADE ON OR 6 BEFORE DECEMBER 31, 2003 MAY BE AMENDED AFTER THAT DATE. 7 (7) THE MICHIGAN ECONOMIC DEVELOPMENT CORPORATION SHALL 8 MARKET THE CERTIFIED TECHNOLOGY PARKS AND THE CERTIFIED BUSINESS 9 PARKS. THE MICHIGAN ECONOMIC DEVELOPMENT CORPORATION AND AN 10 AUTHORITY MAY CONTRACT WITH EACH OTHER OR ANY THIRD PARTY FOR 11 THESE MARKETING SERVICES. 12 (8) THE MICHIGAN ECONOMIC DEVELOPMENT CORPORATION SHALL NOT 13 DESIGNATE MORE THAN 10 CERTIFIED TECHNOLOGY PARKS. NOT MORE THAN 14 7 OF THE CERTIFIED TECHNOLOGY PARKS DESIGNATED UNDER THIS SECTION 15 MAY NOT INCLUDE A FIRM COMMITMENT FROM AT LEAST 1 BUSINESS 16 ENGAGED IN A HIGH TECHNOLOGY ACTIVITY CREATING A SIGNIFICANT 17 NUMBER OF JOBS. 05144'99 * Final page. JLB