February 3, 2005, Introduced by Rep. Hunter and referred to the Committee on Commerce.
A bill to provide for the establishment of a neighborhood
improvement authority; to prescribe the powers and duties of the
authority; to correct and prevent deterioration in neighborhoods
and certain other areas; to authorize the acquisition and disposal
of interests in real and personal property; to authorize the
creation and implementation of development plans and development
areas; to promote residential and economic growth; to create a
board; to prescribe the powers and duties of the board; to
authorize the issuance of bonds and other evidences of
indebtedness; to authorize the use of tax increment financing; to
prescribe powers and duties of certain state officials; to provide
for rule promulgation; and to provide for enforcement of the act.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"neighborhood improvement authority act".
Sec. 2. 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 the taxable value as determined
under section 27a of the general property tax act, 1893 PA 206, MCL
211.27a.
(c) "Authority" means a neighborhood improvement authority
created under this act.
(d) "Board" means the governing body of an authority.
(e) "Captured assessed value" means the amount in any 1 year
by which the current assessed value of the development area,
including the assessed value of property for which specific local
taxes are paid in lieu of property taxes as determined in section
3(d), exceeds the initial assessed value. The state tax commission
shall prescribe the method for calculating captured assessed value.
(f) "Chief executive officer" means the mayor or city manager
of a city.
(g) "Development area" means that area described in section 5
to which a development plan is applicable.
(h) "Development plan" means that information and those
requirements for a development area set forth in section 22.
(i) "Development program" means the implementation of the
development plan.
(j) "Fiscal year" means the fiscal year of the authority.
(k) "Governing body" or "governing body of a municipality"
means the elected body of a municipality having legislative powers.
(l) "Housing" means privately owned housing or publicly owned
housing, individual or multifamily.
(m) "Initial assessed value" means the assessed value 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 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
section 3(d).
(n) "Land use plan" means a plan prepared under section 1 of
the city and village zoning act, 1921 PA 207, MCL 125.581.
(o) "Municipality" means a city.
(p) "Residential district" means an area of a municipality
zoned and used principally for residential housing.
Sec. 3. As used in this act:
(a) "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.
(b) "Parcel" means an identifiable unit of land that is
treated as separate for valuation or zoning purposes.
(c) "Public facility" means housing, 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, or building, including access routes 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, if the improvement complies 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.
(d) "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, or 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.
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.
(e) "State fiscal year" means the annual period commencing
October 1 of each year.
(f) "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. Tax increment revenues do not include any of the
following:
(i) Taxes under the state education tax act, 1993 PA 331, MCL
211.901 to 211.906.
(ii) Taxes levied by local or intermediate school districts.
(iii) 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 the ad valorem property
taxes.
(iv) 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 the ad valorem property
taxes.
(v) Specific local taxes attributable to the ad valorem
property taxes.
(vi) Ad valorem property taxes specifically levied for the
payment of principal and interest of obligations approved by the
electors or obligations pledging the unlimited taxing power of the
local governmental unit or specific taxes attributable to those ad
valorem property taxes.
Sec. 4. (1) Except as otherwise provided in this subsection, a
municipality may establish multiple authorities. A parcel of
property shall not be included in more than 1 authority created
under this act.
(2) An authority is a public body corporate that may sue and
be sued in any court of this state. An authority possesses all the
powers necessary to carry out its purpose. The enumeration of a
power in this act shall not be construed as a limitation upon the
general powers of an authority.
Sec. 5. (1) If 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 a residential district, to eliminate the causes
of that deterioration, to promote residential growth 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 a public hearing on the adoption of a proposed ordinance
creating the authority and designating the boundaries of the
development area. 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
development area and 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 does
not invalidate these proceedings. Notice of the hearing shall be
posted in at least 20 conspicuous and public places in the proposed
development area 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 development area. 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
development area. The governing body of the municipality shall not
incorporate land into the development area not included in the
description contained in the notice of public hearing, but it may
eliminate described lands from the development area in the final
determination of the boundaries.
(3) 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 development area 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.
(4) The governing body of the municipality may alter or amend
the boundaries of the development area to include or exclude lands
from the development area in the same manner as adopting the
ordinance creating the authority.
(5) A residential district or development area under this act
shall not include an area of a municipality that is part of a
residential district or a development area under the historical
neighborhood tax increment finance authority act.
Sec. 6. If a development area is part of an area annexed to or
consolidated with another municipality, the authority managing that
development area shall become an authority of the annexing or
consolidated municipality. Obligations of that authority incurred
under a development or tax increment plan, agreements related to a
development or tax increment plan, and bonds issued under this act
shall remain in effect following the annexation or consolidation.
Sec. 7. (1) An authority shall be under the supervision and
control of a board consisting of the chief executive officer of the
municipality or his or her designee and not less than 5 or more
than 9 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 ownership or business interest in
property located in the development area. At least 1 of the members
shall be a resident of the development area or of an area within
1/2 mile of any part of the development area. 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. After the initial appointment, 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 proceedings and rules of the board are subject to the
open meetings act, 1976 PA 267, MCL 15.261 to 15.275. The board
shall adopt rules 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) After having been given notice and an opportunity to be
heard, a member of the board may be removed for cause by the
governing body.
(5) All expense items of the authority shall be publicized
monthly and the financial records shall always be open to the
public.
(6) A writing prepared, owned, used, in the possession of, or
retained by the board in the performance of an official function is
subject to the freedom of information act, 1976 PA 442, MCL 15.231
to 15.246.
Sec. 8. (1) The board may employ and fix the compensation of a
director, subject to the approval of the governing body of the
municipality. The director shall serve at the pleasure of the
board. A member of the board is not eligible to hold the position
of director. Before beginning his or her duties, the director shall
take and subscribe to the constitutional oath, and furnish bond, by
posting a bond in the sum determined in the ordinance establishing
the authority payable to the authority for use and benefit of the
authority, approved by the board, and filed with the municipal
clerk. The premium on the bond shall be considered an operating
expense of the authority, payable from funds available to the
authority for expenses of operation. The director shall be the
chief executive officer of the authority. Subject to the approval
of the board, the director shall supervise and be responsible for
the preparation of plans and the performance of the functions of
the authority in the manner authorized by this act. The director
shall attend the meetings of the board and shall provide to the
board and to the governing body of the municipality a regular
report covering the activities and financial condition of the
authority. If the director is absent or disabled, the board may
designate a qualified person as acting director to perform the
duties of the office. Before beginning his or her duties, the
acting director shall take and subscribe to the oath, and furnish
bond, as required of the director. The director shall furnish the
board with information or reports governing the operation of the
authority as the board requires.
(2) The board may employ and fix the compensation of a
treasurer, who shall keep the financial records of the authority
and who, together with the director, shall approve all vouchers for
the expenditure of funds of the authority. The treasurer shall
perform all duties delegated to him or her by the board and shall
furnish bond in an amount prescribed by the board.
(3) The board may employ and fix the compensation of a
secretary, who shall maintain custody of the official seal and of
records, books, documents, or other papers not required to be
maintained by the treasurer. The secretary shall attend meetings of
the board and keep a record of its proceedings and shall perform
other duties delegated by the board.
(4) The board may retain legal counsel to advise the board in
the proper performance of its duties. The legal counsel shall
represent the authority in actions brought by or against the
authority.
(5) The board may employ other personnel considered necessary
by the board.
Sec. 9. The employees of an authority shall be eligible to
participate in municipal retirement and insurance programs of the
municipality as if they were civil service employees except that
the employees of an authority are not civil service employees.
Sec. 10. The board may do any of the following:
(a) Prepare an analysis of economic changes taking place in
the development area.
(b) Study and analyze the impact of metropolitan growth upon
the development area.
(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 residential growth and economic growth of the development
area.
(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
that is chiefly responsible for planning in the municipality,
designed to halt the deterioration of property values in the
development area and to promote the residential growth and economic
growth of the development area, and take steps as may be necessary
to persuade property owners to implement the plans to the fullest
extent possible.
(f) Implement any plan of development, including housing for
low-income individuals, in the development area necessary to
achieve the purposes of this act in accordance with the powers of
the authority 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 the property,
that the authority determines is reasonably necessary to achieve
the purposes of this act, and to grant or acquire licenses,
easements, and options.
(i) Improve land and construct, reconstruct, rehabilitate,
restore and preserve, equip, clear, improve, maintain, repair, and
operate any public facility, building, including multiple-family
dwellings, and any necessary or desirable appurtenances to those
buildings, within the development area for the use, in whole or in
part, of any public or private person or corporation, or a
combination thereof.
(j) Fix, charge, and collect fees, rents, and charges for the
use of any facility, building, or property under its control or any
part of the facility, building, or property, and pledge the fees,
rents, and charges for the payment of revenue bonds issued by the
authority.
(k) Lease, in whole or in part, any facility, building, or
property under its control.
(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.
Sec. 11. The authority is an instrumentality of a political
subdivision for purposes of 1972 PA 227, MCL 213.321 to 213.332.
Sec. 12. A municipality may acquire private property under
1911 PA 149, MCL 213.21 to 213.25, or the uniform condemnation
procedures act, 1980 PA 87, MCL 213.51 to 213.75, for the purposes
of transfer to the authority, and may transfer the property to the
authority for use in an approved development, on terms and
conditions it considers appropriate, and the taking, transfer, and
use shall be considered necessary for public purposes and for the
benefit of the public.
Sec. 13. (1) The activities of the authority shall be financed
from 1 or more of the following sources:
(a) Donations to the authority for the performance of its
functions.
(b) Money borrowed and to be repaid as authorized by sections
15 and 16.
(c) Revenues from any property, building, or facility owned,
leased, licensed, or operated by the authority or under its
control, subject to the limitations imposed upon the authority by
trusts or other agreements.
(d) Proceeds of a tax increment financing plan established
under sections 17 to 19.
(e) Proceeds from a special assessment district created as
provided by law.
(f) Money obtained from other sources approved by the
governing body of the municipality or otherwise authorized by law
for use by the authority or the municipality to finance a
development program.
(2) Money received by the authority and not covered under
subsection (1) shall immediately be deposited to the credit of the
authority, subject to disbursement under this act. Except as
provided in this act, the municipality shall not obligate itself,
and shall not be obligated, to pay any sums from public funds,
other than money received by the municipality under this section,
for or on account of the activities of the authority.
Sec. 14. The municipality may at the request of the authority
borrow money and issue its notes under the revised municipal
finance act, 2001 PA 34, MCL 141.2101 to 141.2821, in anticipation
of collection of the ad valorem tax authorized in this section.
Sec. 15. The authority may borrow money and issue its
negotiable revenue bonds under the revenue bond act of 1933, 1933
PA 94, MCL 141.101 to 141.140. Revenue bonds issued by the
authority are not a debt of the municipality unless the
municipality by majority vote of the members of its governing body
pledges its full faith and credit to support the authority's
revenue bonds. Revenue bonds issued by the authority are never a
debt of the state.
Sec. 16. (1) The authority may with approval of the local
governing body borrow money and issue its revenue bonds or notes to
finance all or part of the costs of acquiring or constructing
property in connection with either of the following:
(a) The implementation of a development plan in the
development area.
(b) The refund, or refund in advance, of bonds or notes issued
under this section.
(2) Any of the following may be financed by the issuance of
revenue bonds or notes:
(a) The cost of purchasing, acquiring, constructing,
improving, enlarging, extending, or repairing property in
connection with the implementation of a development plan in the
development area.
(b) Any engineering, architectural, legal, accounting, or
financial expenses.
(c) The costs necessary or incidental to the borrowing of
money.
(d) Interest on the bonds or notes during the period of
construction.
(e) A reserve for payment of principal and interest on the
bonds or notes.
(f) A reserve for operation and maintenance until sufficient
revenues have developed.
(3) The authority may secure the bonds and notes by mortgage,
assignment, or pledge of the property and any money, revenues, or
income received in connection with the property.
(4) A pledge made by the authority is valid and binding from
the time the pledge is made. The money or property pledged by the
authority immediately is subject to the lien of the pledge without
a physical delivery, filing, or further act. The lien of a pledge
is valid and binding against parties having claims of any kind in
tort, contract, or otherwise, against the authority, whether or not
the parties have notice of the lien. Neither the resolution, the
trust agreement, nor any other instrument by which a pledge is
created must be filed or recorded to be enforceable.
(5) Bonds or notes issued under this section are exempt from
all taxation in this state except inheritance and transfer taxes,
and the interest on the bonds or notes is exempt from all taxation
in this state, notwithstanding that the interest may be subject to
federal income tax.
(6) The municipality is not liable on bonds or notes of the
authority issued under this section, and the bonds or notes are not
a debt of the municipality. The bonds or notes shall contain on
their face a statement to that effect.
(7) The bonds and notes of the authority may be invested in by
all public officers, state agencies and political subdivisions,
insurance companies, banks, savings and loan associations,
investment companies, and fiduciaries and trustees, and may be
deposited with and received by all public officers and the agencies
and political subdivisions of this state for any purpose for which
the deposit of bonds is authorized.
Sec. 17. (1) If the authority determines that it is necessary
for the achievement of the purposes of this act, the authority
shall prepare and submit a tax increment financing plan to the
governing body of the municipality. The plan shall include a
development plan as provided in section 19, a detailed explanation
of the tax increment procedure, the maximum amount of bonded
indebtedness to be incurred, and the duration of the program, and
shall be in compliance with section 18. The plan shall contain a
statement of the estimated impact of tax increment financing on the
assessed values of all taxing jurisdictions in which the
development area is located. The plan may provide for the use of
part or all of the captured assessed value, but the portion
intended to be used by the authority shall be clearly stated in the
tax increment financing plan. The authority or municipality may
exclude from captured assessed value growth in property value
resulting solely from inflation. The plan shall set forth the
method for excluding growth in property value resulting solely from
inflation.
(2) Approval of the tax increment financing plan shall comply
with the notice, hearing, and disclosure provisions of section 21.
If the development plan is part of the tax increment financing
plan, only 1 hearing and approval procedure is required for the 2
plans together.
(3) Before the public hearing on the tax increment financing
plan, the governing body shall provide a reasonable opportunity to
the taxing jurisdictions levying taxes subject to capture to meet
with the governing body. The authority shall fully inform the
taxing jurisdictions of the fiscal and economic implications of the
proposed development area. The taxing jurisdictions may present
their recommendations at the public hearing on the tax increment
financing plan. The authority may enter into agreements with the
taxing jurisdictions and the governing body of the municipality in
which the development area is located to share a portion of the
captured assessed value of the development area.
(4) A tax increment financing plan may be modified if the
modification is approved by the governing body upon notice and
after public hearings and agreements as are required for approval
of the original plan.
(5) Not more than 60 days after the public hearing, the
governing body in 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 shall take effect when filed
with the clerk and remains effective until a copy of a resolution
rescinding that resolution is filed with that clerk.
Sec. 18. (1) The municipal and county treasurers shall
transmit tax increment revenues to the authority.
(2) The authority shall expend the tax increment revenues
received for the development program only under the terms of the
tax increment financing plan. Unused funds shall revert
proportionately to the respective taxing bodies. Tax increment
revenues shall not be used to circumvent existing property tax
limitations. The governing body of the municipality may abolish the
tax increment financing plan if 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 under section 19 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 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 public facilities developed.
(i) The amount of public housing created or improved.
(j) The number of jobs created as a result of the
implementation of the tax increment financing plan.
(k) Any additional information the governing body considers
necessary.
Sec. 19. (1) The municipality may by resolution of its
governing body and subject to voter approval authorize, issue, and
sell general obligation bonds subject to the limitations set forth
in this subsection to finance the development program of the tax
increment financing plan and shall pledge its full faith and credit
for the payment of the bonds. The municipality may pledge as
additional security for the bonds any money received by the
authority or the municipality under section 13. The bonds are
subject to the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821. Before the municipality may authorize the
borrowing, the authority shall submit an estimate of the
anticipated tax increment revenues and other revenue available
under section 13 to be available for payment of principal and
interest on the bonds, to the governing body of the municipality.
This estimate shall be approved by the governing body of the
municipality by resolution adopted by majority vote of the members
of the governing body in the resolution authorizing the bonds. If
the governing body of the municipality adopts the resolution
authorizing the bonds, the estimate of the anticipated tax
increment revenues and other revenue available under section 13 to
be available for payment of principal and interest on the bonds
shall be conclusive for purposes of this section. The bonds issued
under this subsection shall be considered a single series for the
purposes of the revised municipal finance act, 2001 PA 34, MCL
141.2101 to 141.2821.
(2) By resolution of its governing body, the authority may
authorize, issue, and sell tax increment bonds subject to the
limitations set forth in this subsection to finance the development
program of the tax increment financing plan. The tax increment
bonds issued by the authority under this subsection shall pledge
solely the tax increment revenues of a development area in which
the project is located or a development area from which tax
increment revenues may be used for this project, or both. In
addition or in the alternative, the bonds issued by the authority
under this subsection may be secured by any other revenues
identified in section 13 as sources of financing for activities of
the authority that the authority shall specifically pledge in the
resolution. However, the full faith and credit of the municipality
shall not be pledged to secure bonds issued under this subsection.
The bond issue may include a sum sufficient to pay interest on the
tax increment bonds until full development of tax increment
revenues from the project and also a sum to provide a reasonable
reserve for payment of principal and interest on the bonds. The
resolution authorizing the bonds shall create a lien on the tax
increment revenues and other revenues pledged by the resolution
that shall be a statutory lien and shall be a first lien subject
only to liens previously created. The resolution may provide the
terms upon which additional bonds may be issued of equal standing
and parity of lien as to the tax increment revenues and other
revenues pledged under the resolution. Bonds issued under this
subsection that pledge revenue received under section 14 for
repayment of the bonds are subject to the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821.
Sec. 20. (1) If a board decides to finance a project in a
development area by the use of revenue bonds as authorized in
section 15 or tax increment financing as authorized in sections 17,
18, and 19, 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, designating 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 including 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 residential 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 uniform relocation assistance and real property
acquisition policies act of 1970, Public Law 91-646, 84 Stat. 1894.
(o) A plan for compliance with 1972 PA 227, MCL 213.321 to
213.332.
(p) The requirement that amendments to an approved development
plan or tax increment plan must be submitted by the authority to
the governing body for approval or rejection.
(q) Other material that the authority, local public agency, or
governing body considers pertinent.
Sec. 21. (1) The governing body, before adoption of an
ordinance approving a development plan or tax increment financing
plan, shall hold a public hearing on the development plan. 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 of the hearing shall be
posted in at least 20 conspicuous and public places in the
development area not less than 20 days before the hearing. Notice
shall also be mailed to all property taxpayers of record in the
development area and to the governing body of each taxing
jurisdiction levying taxes that would be subject to capture if the
tax increment financing plan is approved not less than 20 days
before the hearing.
(2) Notice of the time and place of hearing on a development
plan shall contain all of the following:
(a) A description of the proposed development area in relation
to highways, streets, streams, or otherwise.
(b) 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.
(c) A statement that all aspects of the development plan will
be open for discussion at the public hearing.
(d) Other information that the governing body considers
appropriate.
(3) At the time set for the hearing, the governing body shall
provide an opportunity for interested persons to speak and shall
receive and consider communications in writing. The hearing shall
provide the fullest opportunity for expression of opinion, for
argument on the merits, and for consideration 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 at the hearing.
Sec. 22. The governing body after a public hearing on the
development plan or the tax increment financing plan, or both, with
notice given under section 21, shall determine whether the
development plan or tax increment financing plan constitutes a
public purpose. If it determines that the development plan or tax
increment financing plan constitutes a public purpose, it shall by
ordinance approve or reject the plan, or approve it with
modification, based on the following considerations:
(a) The findings and recommendations of a development area
citizens council, if a development area citizens council was
formed.
(b) The plan meets the requirements under section 20(2).
(c) The proposed method of financing the development is
feasible and the authority has the ability to arrange the
financing.
(d) The development is reasonable and necessary to carry out
the purposes of this act.
(e) The land included within the development area to be
acquired is reasonably necessary to carry out the purposes of the
plan and of this act in an efficient and economically satisfactory
manner.
(f) The development plan is in reasonable accord with the land
use plan of the municipality.
(g) Public services, such as fire and police protection and
utilities, are or will be adequate to service the project area.
(h) Changes in zoning, streets, street levels, intersections,
and utilities are reasonably necessary for the project and for the
municipality.
Sec. 23. A person to be relocated under this act shall be
given not less than 90 days' written notice to vacate unless
modified by court order issued for good cause and after a hearing.
Sec. 24. (1) The director of the authority shall submit a
budget to the board for the operation of the authority for each
fiscal year before the beginning of the fiscal year. The budget
shall be prepared in the manner and contain the information
required of municipal departments. After review by the board, the
budget shall be submitted to the governing body. The governing body
must approve the budget before the board may adopt the budget.
Unless authorized by the governing body or this act, funds of the
municipality shall not be included in the budget of the authority.
(2) The governing body of the municipality may assess a
reasonable pro rata share of the funds for the cost of handling and
auditing the funds against the funds of the authority, other than
those committed, which shall be paid annually by the board pursuant
to an appropriate item in its budget.
Sec. 25. An authority that has completed the purposes for
which it was organized shall be dissolved by ordinance of the
governing body. The property and assets of the authority remaining
after the satisfaction of the obligations of the authority belong
to the municipality.
Sec. 26. (1) The state tax commission may institute
proceedings to compel enforcement of this act.
(2) The state tax commission may promulgate rules necessary
for the administration of this act under the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.