HB-5246, As Passed Senate, June 14, 2012
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 5246
A bill to amend 1986 PA 281, entitled
"The local development financing act,"
by amending sections 2, 3, 4, 11b, 12, 12a, 12c, and 12c (MCL
125.2152, 125.2153, 125.2154, 125.2161b, 125.2162, 125.2162a,
125.2162c, and 125.2162c[1]), section 2 as amended by 2010 PA 376,
sections 3, 4, and 12 as amended and section 12c as added by 2010
PA 276, section 11b as amended by 2010 PA 127, and section 12a as
amended and section 12c as added by 2009 PA 162.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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) "Alternative energy technology" means equipment, component
parts, materials, electronic devices, testing equipment, and
related systems that are specifically designed, specifically
fabricated, and used primarily for 1 or more of the following:
(i) The storage, generation, reformation, or distribution of
clean fuels integrated within an alternative energy system or
alternative energy vehicle, not including an anaerobic digester
energy system or a hydroelectric energy system, for use within the
alternative energy system or alternative energy vehicle.
(ii) The process of generating and putting into a usable form
the energy generated by an alternative energy system. Alternative
energy technology does not include those component parts of an
alternative energy system that are required regardless of the
energy source.
(iii) Research and development of an alternative energy vehicle.
(iv) Research, development, and manufacturing of an alternative
energy system.
(v) Research, development, and manufacturing of an anaerobic
digester energy system.
(vi) Research, development, and manufacturing of a
hydroelectric energy system.
(c) "Alternative energy technology business" means a business
engaged in the research, development, or manufacturing of
alternative energy technology or a business located in an authority
district that includes a military installation that was operated by
the United States department of defense and closed after 1980.
(d) "Assessed value" means 1 of the following:
(i) For valuations made before January 1, 1995, the state
equalized valuation as determined under the general property tax
act, 1893 PA 206, MCL 211.1 to 211.155.
(ii) For valuations made after December 31, 1994, the taxable
value as determined under section 27a of the general property tax
act, 1893 PA 206, MCL 211.27a.
(e) "Authority" means a local development finance authority
created pursuant to this act.
(f) "Authority district" means an area or areas within which
an authority exercises its powers.
(g) "Board" means the governing body of an authority.
(h) "Business development area" means an area designated as a
certified industrial park under this act prior to June 29, 2000, or
an area designated in the tax increment financing plan that meets
all of the following requirements:
(i) The area is zoned to allow its use for eligible property.
(ii) The area has a site plan or plat approved by the city,
village, or township in which the area is located.
(i) "Business incubator" means real and personal property that
meets all of the following requirements:
(i) Is located in a certified technology park or a certified
alternative energy park.
(ii) Is subject to an agreement under section 12a or 12c.
(iii) Is developed for the primary purpose of attracting 1 or
more owners or tenants who will engage in activities that would
each separately qualify the property as eligible property under
subdivision (s)(iii).
(j) "Captured assessed value" means the amount in any 1 year
by which the current assessed value of the eligible property
identified in the tax increment financing plan or, for a certified
technology park, a certified alternative energy park, or a next
Michigan development area, the real and personal property included
in the tax increment financing plan, including the current assessed
value of property for which specific local taxes are paid in lieu
of property taxes as determined pursuant to subdivision (hh),
exceeds the initial assessed value. The state tax commission shall
prescribe the method for calculating captured assessed value.
Except as otherwise provided in this act, tax abated property in a
renaissance zone as defined under section 3 of the Michigan
renaissance zone act, 1996 PA 376, MCL 125.2683, shall be excluded
from the calculation of captured assessed value to the extent that
the property is exempt from ad valorem property taxes or specific
local taxes.
(k) "Certified alternative energy park" means that portion of
an authority district designated by a written agreement entered
into pursuant to section 12c between the authority, the
municipality or municipalities, and the Michigan economic
development corporation.
(l) "Certified business park" means a business development area
that has been designated by the Michigan economic development
corporation as meeting criteria established by the Michigan
economic development corporation. The criteria shall establish
standards for business development areas including, but not limited
to, use, types of building materials, landscaping, setbacks,
parking, storage areas, and management.
(m) "Certified technology park" means that portion of the
authority district designated by a written agreement entered into
pursuant to section 12a between the authority, the municipality,
and the Michigan economic development corporation.
(n) "Chief executive officer" means the mayor or city manager
of a city, the president of a village, or, for other local units of
government or school districts, the person charged by law with the
supervision of the functions of the local unit of government or
school district.
(o) "Development plan" means that information and those
requirements for a development set forth in section 15.
(p) "Development program" means the implementation of a
development plan.
(q) "Eligible advance" means an advance made before August 19,
1993.
(r) "Eligible obligation" means an obligation issued or
incurred by an authority or by a municipality on behalf of an
authority before August 19, 1993 and its subsequent refunding by a
qualified refunding obligation. Eligible obligation includes an
authority's written agreement entered into before August 19, 1993
to pay an obligation issued after August 18, 1993 and before
December 31, 1996 by another entity on behalf of the authority.
(s) "Eligible property" means land improvements, buildings,
structures, and other real property, and machinery, equipment,
furniture, and fixtures, or any part or accessory thereof whether
completed or in the process of construction comprising an
integrated whole, located within an authority district, of which
the primary purpose and use is or will be 1 of the following:
(i) The manufacture of goods or materials or the processing of
goods or materials by physical or chemical change.
(ii) Agricultural processing.
(iii) A high technology activity.
(iv) The production of energy by the processing of goods or
materials by physical or chemical change by a small power
production facility as defined by the federal energy regulatory
commission pursuant to the public utility regulatory policies act
of 1978, Public Law 95-617, which facility is fueled primarily by
biomass or wood waste. This act does not affect a person's rights
or liabilities under law with respect to groundwater contamination
described in this subparagraph. This subparagraph applies only if
all of the following requirements are met:
(A) Tax increment revenues captured from the eligible property
will be used to finance, or will be pledged for debt service on tax
increment bonds used to finance, a public facility in or near the
authority district designed to reduce, eliminate, or prevent the
spread of identified soil and groundwater contamination, pursuant
to law.
(B) The board of the authority exercising powers within the
authority district where the eligible property is located adopted
an initial tax increment financing plan between January 1, 1991 and
May 1, 1991.
(C) The municipality that created the authority establishes a
special assessment district whereby not less than 50% of the
operating expenses of the public facility described in this
subparagraph will be paid for by special assessments. Not less than
50% of the amount specially assessed against all parcels in the
special assessment district shall be assessed against parcels owned
by parties potentially responsible for the identified groundwater
contamination pursuant to law.
(v) A business incubator.
(vi) An alternative energy technology business.
(vii) A transit-oriented facility.
(viii) A transit-oriented development.
(ix) An eligible next Michigan business, as that term is
defined in section 3 of the Michigan economic growth authority act,
1995 PA 24, MCL 207.803, and other businesses within a next
Michigan development area, but only to the extent designated as
eligible property within a development plan approved by a next
Michigan development corporation.
(t) "Fiscal year" means the fiscal year of the authority.
(u) "Governing body" means, except as otherwise provided in
this subdivision, the elected body having legislative powers of a
municipality creating an authority under this act. For a next
Michigan development corporation, governing body means the
executive committee of the next Michigan development corporation,
unless otherwise provided in the interlocal agreement or articles
of incorporation creating the next Michigan development corporation
or the governing body of an eligible urban entity or its designee
as provided in the next Michigan development act, 2010 PA 275, MCL
125.2951 to 125.2959.
(v) "High-technology activity" means that term as defined in
section 3 of the Michigan economic growth authority act, 1995 PA
24, MCL 207.803.
(w) "Initial assessed value" means the assessed value of the
eligible property identified in the tax increment financing plan
or, for a certified technology park, a certified alternative energy
park, or a next Michigan development area, the assessed value of
any real and personal property included in the tax increment
financing plan, at the time the resolution establishing the tax
increment financing plan is approved as shown by the most recent
assessment roll for which equalization has been completed at the
time the resolution is adopted or, for property that becomes
eligible property in other than a certified technology park or a
certified alternative energy park after the date the plan is
approved, at the time the property becomes eligible property.
Property exempt from taxation at the time of the determination of
the initial assessed value shall be included as zero. Property for
which a specific local tax is paid in lieu of property tax shall
not be considered exempt from taxation. The initial assessed value
of property for which a specific local tax was paid in lieu of
property tax shall be determined as provided in subdivision (hh).
(x) "Michigan economic development corporation" means the
public body corporate created under section 28 of article VII of
the state constitution of 1963 and the urban cooperation act of
1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual
interlocal agreement effective April 5, 1999 between local
participating economic development corporations formed under the
economic development corporations act, 1974 PA 338, MCL 125.1601 to
125.1636, and the Michigan strategic fund. If the Michigan economic
development corporation is unable for any reason to perform its
duties under this act, those duties may be exercised by the
Michigan strategic fund.
(y) "Michigan strategic fund" means the Michigan strategic
fund as described in the Michigan strategic fund act, 1984 PA 270,
MCL 125.2001 to 125.2094.
(z) "Municipality" means a city, village, or urban township.
However, for purposes of creating and operating a certified
alternative energy park or a certified technology park,
municipality includes townships that are not urban townships.
(aa) "Next Michigan development area" means a portion of an
authority district designated by a next Michigan development
corporation
under section 12c 12e to which a development plan is
applicable.
(bb) "Next Michigan development corporation" means that term
as defined in section 3 of the next Michigan development act, 2010
PA 275, MCL 125.2953.
(cc) "Obligation" means a written promise to pay, whether
evidenced by a contract, agreement, lease, sublease, bond, or note,
or a requirement to pay imposed by law. An obligation does not
include a payment required solely because of default upon an
obligation, employee salaries, or consideration paid for the use of
municipal offices. An obligation does not include those bonds that
have been economically defeased by refunding bonds issued under
this act. Obligation includes, but is not limited to, the
following:
(i) A requirement to pay proceeds derived from ad valorem
property taxes or taxes levied in lieu of ad valorem property
taxes.
(ii) A management contract or a contract for professional
services.
(iii) A payment required on a contract, agreement, bond, or note
if the requirement to make or assume the payment arose before
August 19, 1993.
(iv) A requirement to pay or reimburse a person for the cost of
insurance for, or to maintain, property subject to a lease, land
contract, purchase agreement, or other agreement.
(v) A letter of credit, paying agent, transfer agent, bond
registrar, or trustee fee associated with a contract, agreement,
bond, or note.
(dd) "On behalf of an authority", in relation to an eligible
advance made by a municipality or an eligible obligation or other
protected obligation issued or incurred by a municipality, means in
anticipation that an authority would transfer tax increment
revenues or reimburse the municipality from tax increment revenues
in an amount sufficient to fully make payment required by the
eligible advance made by a municipality, or eligible obligation or
other protected obligation issued or incurred by the municipality,
if the anticipation of the transfer or receipt of tax increment
revenues from the authority is pursuant to or evidenced by 1 or
more of the following:
(i) A reimbursement agreement between the municipality and an
authority it established.
(ii) A requirement imposed by law that the authority transfer
tax increment revenues to the municipality.
(iii) A resolution of the authority agreeing to make payments to
the incorporating unit.
(iv) Provisions in a tax increment financing plan describing
the project for which the obligation was incurred.
(ee) "Other protected obligation" means:
(i) A qualified refunding obligation issued to refund an
obligation described in subparagraph (ii) or (iii), an obligation that
is not a qualified refunding obligation that is issued to refund an
eligible obligation, or a qualified refunding obligation issued to
refund an obligation described in this subparagraph.
(ii) An obligation issued or incurred by an authority or by a
municipality on behalf of an authority after August 19, 1993, but
before December 31, 1994, to finance a project described in a tax
increment finance plan approved by the municipality in accordance
with this act before August 19, 1993, for which a contract for
final design is entered into by the municipality or authority
before March 1, 1994.
(iii) An obligation incurred by an authority or municipality
after August 19, 1993, to reimburse a party to a development
agreement entered into by a municipality or authority before August
19, 1993, for a project described in a tax increment financing plan
approved in accordance with this act before August 19, 1993, and
undertaken and installed by that party in accordance with the
development agreement.
(iv) An ongoing management or professional services contract
with the governing body of a county that was entered into before
March 1, 1994 and that was preceded by a series of limited term
management or professional services contracts with the governing
body of the county, the last of which was entered into before
August 19, 1993.
(ff) "Public facility" means 1 or more of the following:
(i) A street, road, bridge, storm water or sanitary sewer,
sewage treatment facility, facility designed to reduce, eliminate,
or prevent the spread of identified soil or groundwater
contamination, drainage system, retention basin, pretreatment
facility, waterway, waterline, water storage facility, rail line,
electric, gas, telephone or other communications, or any other type
of utility line or pipeline, transit-oriented facility, transit-
oriented development, or other similar or related structure or
improvement, together with necessary easements for the structure or
improvement. Except for rail lines, utility lines, or pipelines,
the structures or improvements described in this subparagraph shall
be either owned or used by a public agency, functionally connected
to similar or supporting facilities owned or used by a public
agency, or designed and dedicated to use by, for the benefit of, or
for the protection of the health, welfare, or safety of the public
generally, whether or not used by a single business entity. Any
road, street, or bridge shall be continuously open to public
access. A public facility shall be located on public property or in
a public, utility, or transportation easement or right-of-way.
(ii) The acquisition and disposal of land that is proposed or
intended to be used in the development of eligible property or an
interest in that land, demolition of structures, site preparation,
and relocation costs.
(iii) All administrative and real and personal property
acquisition and disposal costs related to a public facility
described in subparagraphs (i) and (iv), including, but not limited
to, architect's, engineer's, legal, and accounting fees as
permitted by the district's development plan.
(iv) An improvement to a facility used by the public or a
public facility as those terms are defined in section 1 of 1966 PA
1, MCL 125.1351, which improvement is made to comply with the
barrier free design requirements of the state construction code
promulgated under the Stille-DeRossett-Hale single state
construction code act, 1972 PA 230, MCL 125.1501 to 125.1531.
(v) All of the following costs approved by the Michigan
economic development corporation:
(A) Operational costs and the costs related to the
acquisition, improvement, preparation, demolition, disposal,
construction, reconstruction, remediation, rehabilitation,
restoration, preservation, maintenance, repair, furnishing, and
equipping of land and other assets that are or may become eligible
for depreciation under the internal revenue code of 1986 for a
business incubator located in a certified technology park or
certified alternative energy park.
(B) Costs related to the acquisition, improvement,
preparation, demolition, disposal, construction, reconstruction,
remediation, rehabilitation, restoration, preservation,
maintenance, repair, furnishing, and equipping of land and other
assets that, if privately owned, would be eligible for depreciation
under the internal revenue code of 1986 for laboratory facilities,
research and development facilities, conference facilities,
teleconference facilities, testing, training facilities, and
quality control facilities that are or that support eligible
property under subdivision (s)(iii), that are owned by a public
entity, and that are located within a certified technology park.
(C) Costs related to the acquisition, improvement,
preparation, demolition, disposal, construction, reconstruction,
remediation, rehabilitation, restoration, preservation,
maintenance, repair, furnishing, and equipping of land and other
assets that, if privately owned, would be eligible for depreciation
under the internal revenue code of 1986 for facilities that are or
that will support eligible property under subdivision (s)(vi), that
have been or will be owned by a public entity at the time such
costs are incurred, that are located within a certified alternative
energy park, and that have been or will be conveyed, by gift or
sale, by such public entity to an alternative energy technology
business.
(vi) Operating and planning costs included in a plan pursuant
to section 12(1)(f), including costs of marketing property within
the district and attracting development of eligible property within
the district.
(gg) "Qualified refunding obligation" means an obligation
issued or incurred by an authority or by a municipality on behalf
of an authority to refund an obligation if the refunding obligation
meets both of the following:
(i) The net present value of the principal and interest to be
paid on the refunding obligation, including the cost of issuance,
will be less than the net present value of the principal and
interest to be paid on the obligation being refunded, as calculated
using a method approved by the department of treasury.
(ii) The net present value of the sum of the tax increment
revenues described in subdivision (jj)(ii) and the distributions
under section 11a to repay the refunding obligation will not be
greater than the net present value of the sum of the tax increment
revenues described in subdivision (jj)(ii) and the distributions
under section 11a to repay the obligation being refunded, as
calculated using a method approved by the department of treasury.
(hh) "Specific local taxes" means a tax levied under 1974 PA
198, MCL 207.551 to 207.572, the obsolete property rehabilitation
act, 2000 PA 146, MCL 125.2781 to 125.2797, the commercial
redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the
enterprise zone act, 1985 PA 224, MCL 125.2101 to 125.2123, 1953 PA
189, MCL 211.181 to 211.182, and the technology park development
act, 1984 PA 385, MCL 207.701 to 207.718. The initial assessed
value or current assessed value of property subject to a specific
local tax is the quotient of the specific local tax paid divided by
the ad valorem millage rate. However, after 1993, the state tax
commission shall prescribe the method for calculating the initial
assessed value and current assessed value of property for which a
specific local tax was paid in lieu of a property tax.
(ii) "State fiscal year" means the annual period commencing
October 1 of each year.
(jj) "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 eligible property within the district
or, for purposes of a certified technology park, a next Michigan
development area, or a certified alternative energy park, real or
personal property that is located within the certified technology
park, a next Michigan development area, or a certified alternative
energy park and included within the tax increment financing plan,
subject to the following requirements:
(i) Tax increment revenues include ad valorem property taxes
and specific local taxes attributable to the application of the
levy of all taxing jurisdictions, other than the state pursuant to
the state education tax act, 1993 PA 331, MCL 211.901 to 211.906,
and local or intermediate school districts, upon the captured
assessed value of real and personal property in the development
area for any purpose authorized by this act.
(ii) Tax increment revenues include ad valorem property taxes
and specific local taxes attributable to the application of the
levy of the state pursuant to the state education tax act, 1993 PA
331, MCL 211.901 to 211.906, and local or intermediate school
districts upon the captured assessed value of real and personal
property in the development area in an amount equal to the amount
necessary, without regard to subparagraph (i), for the following
purposes:
(A) To repay eligible advances, eligible obligations, and
other protected obligations.
(B) To fund or to repay an advance or obligation issued by or
on behalf of an authority to fund the cost of public facilities
related to or for the benefit of eligible property located within a
certified technology park or a certified alternative energy park to
the extent the public facilities have been included in an agreement
under section 12a(3), 12b, or 12c(3), not to exceed 50%, as
determined by the state treasurer, of the amounts levied by the
state pursuant to the state education tax act, 1993 PA 331, MCL
211.901 to 211.906, and local and intermediate school districts for
a period, except as otherwise provided in this sub-subparagraph,
not to exceed 15 years, as determined by the state treasurer, if
the state treasurer determines that the capture under this
subparagraph
sub-subparagraph is necessary to reduce unemployment,
promote economic growth, and increase capital investment in the
municipality. However, upon approval of the state treasurer and the
president of the Michigan economic development corporation, a
certified technology park may capture under this sub-subparagraph
for an additional period of 5 years if the authority agrees to
additional reporting requirements and modifies its tax increment
financing plan to include regional collaboration as determined by
the state treasurer and the president of the Michigan economic
development corporation. In addition, upon approval of the state
treasurer and the president of the Michigan economic development
corporation, if a municipality that has created a certified
technology park that has entered into an agreement with another
authority that does not contain a certified technology park to
designate a distinct geographic area under section 12b, that
authority that has created the certified technology park and the
associated distinct geographic area may both capture under this
sub-subparagraph for an additional period of 15 years as determined
by the state treasurer and the president of the Michigan economic
development corporation.
(C) To fund the cost of public facilities related to or for
the benefit of eligible property located within a next Michigan
development area to the extent that the public facilities have been
included in a development plan, not to exceed 50%, as determined by
the state treasurer, of the amounts levied by the state pursuant to
the state education tax act, 1993 PA 331, MCL 211.901 to 211.906,
and local and intermediate school districts for a period not to
exceed 15 years, as determined by the state treasurer, if the state
treasurer determines that the capture under this sub-subparagraph
is necessary to reduce unemployment, promote economic growth, and
increase capital investment in the authority district.
(iii) Tax increment revenues do not include any of the
following:
(A) Ad valorem property taxes or specific local taxes that are
excluded from and not made part of the tax increment financing
plan. Ad valorem personal property taxes or specific local taxes
associated with personal property may be excluded from and may not
be part of the tax increment financing plan.
(B) Ad valorem property taxes and specific local taxes
attributable to 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.
(C) Ad valorem property taxes exempted from capture under
section 4(3) or specific local taxes attributable to such ad
valorem property taxes.
(D) 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 local taxes attributable to
such ad valorem property taxes.
(E) The amount of ad valorem property taxes or specific taxes
captured by a downtown development authority under 1975 PA 197, MCL
125.1651 to 125.1681, tax increment financing authority under the
tax increment finance authority act, 1980 PA 450, MCL 125.1801 to
125.1830, or brownfield redevelopment authority under the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651
to 125.2672, if those taxes were captured by these other
authorities on the date that the initial assessed value of a parcel
of property was established under this act.
(iv) The amount of tax increment revenues authorized to be
included under subparagraph (ii), and required to be transmitted to
the authority under section 13(1), from ad valorem property taxes
and specific local taxes attributable to the application of the
levy of the state education tax act, 1993 PA 331, MCL 211.901 to
211.906, or a local school district or an intermediate school
district upon the captured assessed value of real and personal
property in a development area shall be determined separately for
the levy by the state, each school district, and each intermediate
school district as the product of sub-subparagraphs (A) and (B):
(A) The percentage that the total ad valorem taxes and
specific local taxes available for distribution by law to the
state, local school district, or intermediate school district,
respectively, bears to the aggregate amount of ad valorem millage
taxes and specific taxes available for distribution by law to the
state, each local school district, and each intermediate school
district.
(B) The maximum amount of ad valorem property taxes and
specific local taxes considered tax increment revenues under
subparagraph (ii).
(kk) "Transit-oriented development" means infrastructure
improvements that are located within 1/2 mile of a transit station
or transit-oriented facility that promotes transit ridership or
passenger rail use as determined by the board and approved by the
municipality in which it is located.
(ll) "Transit-oriented facility" means a facility that houses a
transit station in a manner that promotes transit ridership or
passenger rail use.
(mm) "Urban township" means a township that meets 1 or more of
the following:
(i) Meets all of the following requirements:
(A) Has a population of 20,000 or more, or has a population of
10,000 or more but is located in a county with a population of
400,000 or more.
(B) Adopted a master zoning plan before February 1, 1987.
(C) Provides sewer, water, and other public services to all or
a part of the township.
(ii) Meets all of the following requirements:
(A) Has a population of less than 20,000.
(B) Is located in a county with a population of 250,000 or
more but less than 400,000, and that county is located in a
metropolitan statistical area.
(C) Has within its boundaries a parcel of property under
common ownership that is 800 acres or larger and is capable of
being served by a railroad, and located within 3 miles of a limited
access highway.
(D) Establishes an authority before December 31, 1998.
(iii) Meets all of the following requirements:
(A) Has a population of less than 20,000.
(B) Has a state equalized valuation for all real and personal
property located in the township of more than $200,000,000.00.
(C) Adopted a master zoning plan before February 1, 1987.
(D) Is a charter township under the charter township act, 1947
PA 359, MCL 42.1 to 42.34.
(E) Has within its boundaries a combination of parcels under
common ownership that is 800 acres or larger, is immediately
adjacent to a limited access highway, is capable of being served by
a railroad, and is immediately adjacent to an existing sewer line.
(F) Establishes an authority before March 1, 1999.
(iv) Meets all of the following requirements:
(A) Has a population of 13,000 or more.
(B) Is located in a county with a population of 150,000 or
more.
(C) Adopted a master zoning plan before February 1, 1987.
(v) Meets all of the following requirements:
(A) Is located in a county with a population of 1,000,000 or
more.
(B) Has a written agreement with an adjoining township to
develop 1 or more public facilities on contiguous property located
in both townships.
(C) Has a master plan in effect.
(vi) Meets all of the following requirements:
(A) Has a population of less than 10,000.
(B) Has a state equalized valuation for all real and personal
property located in the township of more than $280,000,000.00.
(C) Adopted a master zoning plan before February 1, 1987.
(D) Has within its boundaries a combination of parcels under
common ownership that is 199 acres or larger, is located within 1
mile of a limited access highway, and is located within 1 mile of
an existing sewer line.
(E) Has rail service.
(F) Establishes an authority before May 7, 2009.
(vii) Has joined an authority under section 3(2) which is
seeking or has entered into an agreement for a certified
alternative
energy technology park.
(viii) Has established an authority which is seeking or has
entered into an agreement for a certified alternative energy park.
Sec. 3. (1) Except as otherwise provided by subsection (2), a
municipality may establish not more than 1 authority under the
provisions of this act. An authority established under this
subsection shall exercise its powers in all authority districts.
(2) In addition to an authority established under subsection
(1),
a municipality may join with 1 or more other municipality
municipalities located within the same county to establish an
authority under this act. An authority created under this
subsection may only exercise its powers in a certified technology
park designated in an agreement made under section 12a or 12b or in
a certified alternative energy park designated in an agreement
under section 12c. A municipality shall not establish more than 1
authority under this subsection.
(3) A next Michigan development corporation may establish not
more than 1 authority under the provisions of this act. An
authority established under this subsection shall exercise its
powers within its authority district and in all next Michigan
development areas. The authority district in which the authority
may exercise its powers shall include all or part of the territory
of a next Michigan development corporation, as determined by the
governing body of the next Michigan development corporation.
(4) The authority shall be a public body corporate which may
sue and be sued in any court of this state. The authority possesses
all the powers necessary to carry out the purpose of its
incorporation. The enumeration of a power in this act shall not be
construed as a limitation upon the general powers of the authority.
The powers granted in this act to an authority may be exercised
notwithstanding that bonds are not issued by the authority.
Sec. 4. (1) The governing body of a municipality may declare
by resolution adopted by a majority of its members elected and
serving its intention to create and provide for the operation of an
authority.
(2) In the resolution of intent, the governing body proposing
to create the authority shall set a date for holding a public
hearing on the adoption of a proposed resolution creating the
authority and designating the boundaries of the authority district
or districts. Notice of the public hearing shall be published twice
in a newspaper of general circulation in the municipality, not less
than 20 nor more than 40 days before the date of the hearing.
Except as otherwise provided in subsection (8), 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 a proposed authority district and, for a
public hearing to be held after February 15, 1994, to the governing
body of each taxing jurisdiction levying taxes that would be
subject to capture if the authority is established and a tax
increment financing plan is approved. Beginning June 1, 2005, the
notice of hearing within the time frame described in this
subsection shall be mailed by certified mail to the governing body
of each taxing jurisdiction levying taxes that would be subject to
capture if the authority is established and a tax increment
financing plan is approved. Failure of a property taxpayer to
receive the notice shall not invalidate these proceedings. The
notice shall state the date, time, and place of the hearing, and
shall describe the boundaries of the proposed authority district or
districts. At that hearing, a resident, taxpayer, or property owner
from a taxing jurisdiction in which the proposed district is
located 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 that
proposed authority district. The governing body of the municipality
in which a proposed district is to be located shall not incorporate
land into an authority district not included in the description
contained in the notice of public hearing, but it may eliminate
lands described in the notice of public hearing from an authority
district in the final determination of the boundaries.
(3) Except as otherwise provided in subsection (8), not more
than 60 days after a public hearing held after February 15, 1994,
the governing body of a taxing jurisdiction with millage 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.
However, a resolution by a governing body of a taxing jurisdiction
to exempt its taxes from capture is not effective for the capture
of taxes that are used for a certified technology park or a
certified alternative energy park. The resolution takes effect when
filed with that clerk and remains effective until a copy of a
resolution rescinding that resolution is filed with that clerk.
(4) Except as otherwise provided in subsection (8), not less
than 60 days after the public hearing or a shorter period as
determined by the governing body for a certified technology park or
a certified alternative energy park, if the governing body creating
the authority intends to proceed with the establishment of the
authority, it shall adopt, by majority vote of its members elected
and serving, a resolution establishing the authority and
designating the boundaries of the authority district or districts
within which the authority shall exercise its powers. The adoption
of the resolution is subject to any applicable statutory or charter
provisions with respect to the approval or disapproval of
resolutions by the chief executive officer of the municipality and
the adoption of a resolution over his or her veto. This resolution
shall be filed with the secretary of state promptly after its
adoption and shall be published at least once in a newspaper of
general circulation in the municipality.
(5) The governing body may alter or amend the boundaries of an
authority district to include or exclude lands from that authority
district or create new authority districts pursuant to the same
requirements prescribed for adopting the resolution creating the
authority.
(6) The validity of the proceedings establishing an authority
shall be conclusive unless contested in a court of competent
jurisdiction within 60 days after the last of the following takes
place:
(a) Publication of the resolution creating the authority as
adopted.
(b) Filing of the resolution creating the authority with the
secretary of state.
(7) Except as otherwise provided by this subsection, if 2 or
more municipalities desire to establish an authority under section
3(2), each municipality in which the authority district will be
located shall comply with the procedures prescribed by this act.
The notice required by subsection (2) may be published jointly by
the municipalities establishing the authority. The resolutions
establishing the authority shall include, or shall approve an
agreement including, provisions governing the number of members on
the board, the method of appointment, the members to be represented
by governmental units or agencies, the terms of initial and
subsequent appointments to the board, the manner in which a member
of the board may be removed for cause before the expiration of his
or her term, the manner in which the authority may be dissolved,
and the disposition of assets upon dissolution. An authority
described in this subsection shall not be considered established
unless all of the following conditions are satisfied:
(a) A resolution is approved and filed with the secretary of
state by each municipality in which the authority district will be
located.
(b) The same boundaries have been approved for the authority
district by the governing body of each municipality in which the
authority district will be located.
(c) The governing body of the county in which a majority of
the authority district will be located has approved by resolution
the creation of the authority.
(8) For an authority created under section 3(3), except as
otherwise provided by this subsection, the next Michigan
development corporation shall comply with the procedures prescribed
for a municipality by subsections (1) and (2) and this subsection.
The provisions of subsections (3) and (4) shall not apply to an
authority exercising its powers under section 3(3). The notice
required by subsection (2) may be published by the next Michigan
development corporation in a newspaper or newspapers of general
circulation within the municipalities which are constituent members
of the next Michigan development corporation, and notice shall not
be required to be mailed to the property taxpayers of record in the
proposed authority district. The governing body of the next
Michigan development corporation shall be the governing body of the
authority. A taxing jurisdiction levying ad valorem taxes within
the authority district that would otherwise be subject to capture
which is not a party to the intergovernmental agreement may exempt
its taxes from capture by adopting a resolution to that effect and
filing a copy not more than 60 days after the public hearing with
the recording officer of the next Michigan development corporation.
The next Michigan development corporation shall mail notice of the
public hearing to the governing body of each taxing jurisdiction
which is not a party to the intergovernmental agreement not less
than 20 days before the hearing. Following the public hearing, the
governing body of the next Michigan development corporation shall
adopt a resolution designating the boundaries of the authority
district within which the authority shall exercise its powers,
which may include any certified technology park within the proposed
authority district in accordance with this subsection and may
include property adjacent to or within 1,500 feet of a road
classified as an arterial or collector according to the federal
highway administration manual "Highway Functional Classification -
Concepts, Criteria and Procedures" or of another road in the
discretion of the next Michigan development corporation, and
property adjacent to that property within the territory of the next
Michigan development corporation, as provided in the resolution.
The resolution shall be effective when adopted, shall be filed with
the secretary of state and the president of the Michigan strategic
fund promptly after its adoption, and shall be published at least
once in a newspaper of general circulation in the territory of the
next Michigan development corporation. If an authority district
designated under this subsection or subsequently amended includes a
certified technology park which is within the authority district of
another authority and which is subject to an existing development
plan or tax increment financing plan, then that certified
technology park may be considered to be under the jurisdiction of
the authority established under section 3(3) if so provided in a
resolution of the authority established under section 3(3) and if
approved by resolution of the governing body of the municipality
which created the other authority, and by the president of the
Michigan strategic fund. If so provided and approved, then the
development plan and tax increment financing plan applicable to the
certified technology park, including all assets and obligations
under the plans, shall be considered assigned and transferred from
the other authority to the authority created under section 3(3),
and the initial assessed value of the certified technology park
prior to the transfer shall remain the initial assessed value of
the certified technology park following the transfer. The transfer
shall be effective as of the later of the effective date of the
resolution of the authority established under section 3(3), the
resolution approved by the governing body of the municipality which
created the other authority, and the approval of the president of
the Michigan strategic fund.
Sec. 11b. (1) If the amount of tax increment revenues lost as
a result of the personal property tax exemptions provided by
section 1211(4) of the revised school code, 1976 PA 451, MCL
380.1211, section 3 of the state education tax act, 1993 PA 331,
MCL 211.903, section 14(4) of 1974 PA 198, MCL 207.564, and section
9k of the general property tax act, 1893 PA 206, MCL 211.9k, will
reduce the allowable school tax capture received in a fiscal year,
then, notwithstanding any other provision of this act, the
authority, with approval of the department of treasury under
subsection (3), may request the local tax collecting treasurer to
retain and pay to the authority taxes levied under the state
education tax act, 1993 PA 331, MCL 211.901 to 211.906, to be used
for the following:
(a) To repay an eligible advance.
(b) To repay an eligible obligation.
(c) To repay an other protected obligation.
(d) To pay an advance or an obligation identified in a
development plan, or an amendment to that plan for property located
in a certified technology park approved by board of the authority
not
later than 90 days after the effective date of the amendatory
act
that added this section July
19, 2010 if the plan contains all
of the following and the plan for the capture of school taxes has
been
approved within 1 year after the effective date of the
amendatory
act that added this section:July
19, 2010:
(i) A detailed description of the project.
(ii) A statement of the estimated cost of the project.
(iii) The specific location of the project.
(iv) The name of any developer of the project.
(e) To pay an advance or an obligation identified in a
development plan, or an amendment to that plan for property located
in a certified alternative energy park approved by the board of the
authority if the plan contains all of the following and the plan
for the capture of school taxes has been approved not later than
December 31, 2012:
(i) A detailed description of the project.
(ii) A statement of the estimated cost of the project.
(iii) The specific location of the project.
(iv) The name of any developer of the project.
(2) Not later than June 15, 2008, not later than September 30,
2009, and not later than June 1 of each subsequent year, an
authority eligible under subsection (1) to have taxes levied under
the state education tax act, 1993 PA 331, MCL 211.901 to 211.906,
retained and paid to the authority under this section, shall apply
for approval with the department of treasury. The application for
approval shall include the following information:
(a) The property tax millage rates expected to be levied by
local school districts within the jurisdictional area of the
authority for school operating purposes for that fiscal year.
(b) The tax increment revenues estimated to be received by the
authority for that fiscal year based upon actual property tax
levies of all taxing jurisdictions within the jurisdictional area
of the authority.
(c) The tax increment revenues the authority estimates it
would have received for that fiscal year if the personal property
tax exemptions described in subsection (1) were not in effect.
(d) A list of eligible obligations, eligible advances, other
protected obligations, and advances and obligations described in
subsection (1)(d) for expenditures authorized in a certified
technology park or described in subsection (1)(e) for expenditures
authorized in a certified alternative energy park; the payments due
on each of those in that fiscal year; and the total amount of
payments due on all of those in that fiscal year.
(e) The amount of money, other than tax increment revenues,
estimated to be received in that fiscal year by the authority that
is primarily pledged to, and to be used for, the payment of an
eligible obligation, the repayment of an eligible advance, the
payment
of another protected obligation, or the payment of
obligations or advances described in subsection (1)(d) for
expenditures authorized in a certified technology park, or the
payment of obligations or advances described in subsection (1)(e)
for expenditures authorized in a certified alternative energy park.
That amount shall not include excess tax increment revenues of the
authority that are permitted by law to be retained by the authority
for purposes that further the development program. However, that
amount shall include money to be obtained from sources authorized
by law, which law is enacted on or after December 1, 1993, for use
by the municipality or authority to finance a development plan.
(f) The amount of a distribution received pursuant to this act
for a fiscal year in excess of or less than the distribution that
would have been required if calculated upon actual tax increment
revenues received for that fiscal year.
(3) Not later than August 15, 2008; for 2009 only, not later
than 30 days after the effective date of the amendatory act that
amended this sentence; and not later than August 15 of each
subsequent year, based on the calculations under subsection (5),
the department of treasury shall approve, modify, or deny the
application for approval to have taxes levied under the state
education tax act, 1993 PA 331, MCL 211.901 to 211.906, retained
and paid to the authority under this section. If the application
for approval contains the information required under subsection
(2)(a) through (f) and appears to be in substantial compliance with
the provisions of this section, then the department of treasury
shall approve the application. If the application is denied by the
department of treasury, then the department of treasury shall
provide the opportunity for a representative of the authority to
discuss the denial within 21 days after the denial occurs and shall
sustain or modify its decision within 30 days after receiving
information from the authority. If the application for approval is
approved or modified by the department of treasury, the local tax
collecting treasurer shall retain and pay to the authority the
amount described in subsection (5) as approved by the department.
If the department of treasury denies the authority's application
for approval, the local tax collecting treasurer shall not retain
or pay to the authority the taxes levied under the state education
tax act, 1993 PA 331, MCL 211.901 to 211.906. An approval by the
department does not prohibit a subsequent audit of taxes retained
in accordance with the procedures currently authorized by law.
(4) Each year, the legislature shall appropriate and
distribute an amount sufficient to pay each authority the
following:
(a) If the amount to be retained and paid under subsection (3)
is less than the amount calculated under subsection (5), the
difference between those amounts.
(b) If the application for approval is denied by the
department of treasury, an amount verified by the department equal
to the amount calculated under subsection (5).
(5) Subject to subsection (6), the aggregate amount under this
section shall be the sum of the amounts determined under
subdivisions (a) and (b) minus the amount determined under
subdivision (c), as follows:
(a) The amount by which the tax increment revenues the
authority would have received and retained for the fiscal year,
excluding taxes exempt under section 7ff of the general property
tax act, 1893 PA 206, MCL 211.7ff, if the personal property tax
exemptions described in subsection (1) were not in effect, exceed
the tax increment revenues the authority actually received for the
fiscal year.
(b) A shortfall required to be reported under subsection
(2)(f) that had not previously increased a distribution.
(c) An excess amount required to be reported under subsection
(2)(f) that had not previously decreased a distribution.
(6) A distribution or taxes retained under this section
replacing tax increment revenues pledged by an authority or a
municipality are subject to any lien of the pledge described in
subsection (1), whether or not there has been physical delivery of
the distribution.
(7) Obligations for which distributions are made under this
section are not a debt or liability of this state; do not create or
constitute an indebtedness, liability, or obligation of this state;
and are not and do not constitute a pledge of the faith and credit
of this state.
(8) Not later than September 15 of each year, the authority
shall provide a copy of the application for approval approved by
the department of treasury to the local tax collecting treasurer
and provide the amount of the taxes retained and paid to the
authority under subsection (5).
(9) Calculations of amounts retained and paid and
appropriations to be distributed under this section shall be made
on the basis of each development area of the authority.
(10) The state tax commission may provide that the
reimbursement calculations under this section and the calculation
of allowable capture of school taxes shall be made for each
calendar year's tax increment revenues using a 12-month debt
payment period used by the authority and approved by the state tax
commission.
(11) It is the intent of the legislature that, to the extent
that the total amount of taxes levied under the state education tax
act, 1993 PA 331, MCL 211.901 to 211.906, that are allowed to be
retained under this section and section 15a of the brownfield
redevelopment financing act, 1996 PA 381, MCL 125.2665a, section
12b of the tax increment financing act, 1980 PA 450, MCL 125.1812b,
and section 13c of 1975 PA 197, MCL 125.1663c, exceeds the
difference of the total school aid fund revenue for the tax year
minus the estimated amount of revenue the school aid fund would
have received for the tax year had the tax exemptions described in
subsection (1) and the earmark created by section 515 of the
Michigan business tax act, 2007 PA 36, MCL 208.1515, not taken
effect, the general fund shall reimburse the school aid fund the
difference.
Sec. 12. (1) If the board determines that it is necessary for
the achievement of the purposes of this act, the board shall
prepare and submit a tax increment financing plan to the governing
body. The plan shall be in compliance with section 13 and shall
include a development plan as provided in section 15. The plan
shall also contain the following:
(a) A statement of the reasons that the plan will result in
the development of captured assessed value that could not otherwise
be expected. The reasons may include, but are not limited to,
activities of the municipality, authority, or others undertaken
before formulation or adoption of the plan in reasonable
anticipation that the objectives of the plan would be achieved by
some means.
(b) An estimate of the captured assessed value for each year
of the plan. The plan may provide for the use of part or all of the
captured assessed value or, subject to subsection (3), of the tax
increment revenues attributable to the levy of any taxing
jurisdiction, but the portion intended to be used shall be clearly
stated in the plan. The board or the municipality creating the
authority may exclude from captured assessed value a percentage of
captured assessed value as specified in the plan or growth in
property value resulting solely from inflation. If excluded, the
plan shall set forth the method for excluding growth in property
value resulting solely from inflation.
(c) The estimated tax increment revenues for each year of the
plan.
(d) A detailed explanation of the tax increment procedure.
(e) The maximum amount of note or bonded indebtedness to be
incurred, if any.
(f) The amount of operating and planning expenditures of the
authority and municipality, the amount of advances extended by or
indebtedness incurred by the municipality, and the amount of
advances by others to be repaid from tax increment revenues.
(g) The costs of the plan anticipated to be paid from tax
increment revenues as received.
(h) The duration of the development plan and the tax increment
plan.
(i) An estimate of the impact of tax increment financing on
the revenues of all taxing jurisdictions in which the eligible
property is or is anticipated to be located.
(j) A legal description of the eligible property to which the
tax increment financing plan applies or shall apply upon
qualification as eligible property.
(k) An estimate of the number of jobs to be created as a
result of implementation of the tax increment financing plan.
(l) The proposed boundaries of a certified technology park to
be created under an agreement proposed to be entered into pursuant
to section 12a, or of a certified alternative energy park to be
created under an agreement proposed to be entered into pursuant to
section 12c, or of a next Michigan development area designated
under
section 12c, 12e, an identification of the real property
within the certified technology park, the certified alternative
energy park, or the next Michigan development area to be included
in the tax increment financing plan for purposes of determining tax
increment revenues, and whether personal property located in the
certified technology park, the certified alternative energy park,
or the next Michigan development area is exempt from determining
tax increment revenues.
(2) Except as provided in subsection (7), a tax increment
financing plan shall provide for the use of tax increment revenues
for public facilities for eligible property whose captured assessed
value produces the tax increment revenues or, to the extent the
eligible property is located within a business development area or
a next Michigan development area, for other eligible property
located in the business development area or the next Michigan
development area. Public facilities for eligible property include
the development or improvement of access to and around, or within
the eligible property, of road facilities reasonably required by
traffic flow to be generated by the eligible property, and the
development or improvement of public facilities that are necessary
to service the eligible property, whether or not located on that
eligible property. If the eligible property identified in the tax
increment financing plan is property to which section 2(p)(iv)
applies, the tax increment financing plan shall not provide for the
use of tax increment revenues for public facilities other than
those described in the development plan as of April 1, 1991.
Whether or not provided in the tax increment financing plan, if the
eligible property identified in the tax increment financing plan is
property
to which section 2(p)(iv) 2(s)(iv) applies,
then to the
extent that captured tax increment revenues are utilized for the
costs of cleanup of identified soil and groundwater contamination,
the captured tax increment revenues shall be first credited against
the shares of responsibility for the total costs of cleanup of
uncollectible parties who are responsible for the identified soil
and groundwater contamination pursuant to law, and then shall be
credited on a pro rata basis against the shares of responsibility
for the total costs of cleanup of other parties who are responsible
for the identified soil and groundwater contamination pursuant to
law.
(3) The percentage of taxes levied for school operating
purposes that is captured and used by the tax increment financing
plan and the tax increment financing plans under 1975 PA 197, MCL
125.1651 to 125.1681, the tax increment finance authority act, 1980
PA 450, MCL 125.1801 to 125.1830, and the brownfield redevelopment
financing act, 1996 PA 381, MCL 125.2651 to 125.2672, shall not be
greater than the percentage capture and use of taxes levied by a
municipality or county for operating purposes under the tax
increment financing plan and tax increment financing plans under
1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance
authority act, 1980 PA 450, MCL 125.1801 to 125.1830, and the
brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651
to 125.2672. For purposes of the previous sentence, taxes levied by
a county for operating purposes include only millage allocated for
county or charter county purposes under the property tax limitation
act, 1933 PA 62, MCL 211.201 to 211.217a.
(4) Except as otherwise provided by this subsection, approval
of the tax increment financing plan shall be in accordance with the
notice, hearing, disclosure, and approval provisions of sections 16
and 17. 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. For a plan submitted by an authority
established by 2 or more municipalities under sections 3(2) and
4(7) or by an authority established by a next Michigan development
corporation under sections 3(3) and 4(8), the notice required by
section 16 may be published jointly by the municipalities in which
the authority district is located or by the next Michigan
development corporation. For a plan submitted by an authority
exercising its powers under sections 3(2) and 4(7), the plan shall
not be considered approved unless each governing body in which the
authority district is located makes the determinations required by
section 17 and approves the same plan, including the same
modifications, if any, made to the plan by any other governing
body. A plan submitted by an authority exercising its powers under
sections 3(3) and 4(8) shall be approved if the governing body of
the next Michigan development corporation makes the determinations
required by section 17.
(5) 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
express their views and recommendations regarding the tax increment
financing plan. The authority shall fully inform the taxing
jurisdictions about the fiscal and economic implications of the
proposed tax increment financing plan. 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 authority district is located to share a
portion of the captured assessed value of the district or to
distribute tax increment revenues among taxing jurisdictions. Upon
adoption of the plan, the collection and transmission of the amount
of tax increment revenues, as specified in this act, shall be
binding on all taxing units levying ad valorem property taxes or
specific local taxes against property located in the authority
district.
(6) Property qualified as a public facility under section
2(cc)(ii) 2(ff)(ii) that is acquired by an
authority may be sold,
conveyed, or otherwise disposed to any person, public or private,
for fair market value or reasonable monetary consideration
established by the authority with the concurrence of the Michigan
economic development corporation and the municipality in which the
eligible property is located based on a fair market value appraisal
from a fee appraiser only if the property is sold for fair market
value. Unless the property acquired by an authority was located
within a certified business park, a certified technology park, a
certified alternative energy park, or a next Michigan development
area at the time of disposition, an authority shall remit all
monetary proceeds received from the sale or disposition of property
that
qualified as a public facility under section 2(cc)(ii) 2(ff)(ii)
and was purchased with tax increment revenues to the taxing
jurisdictions. Proceeds distributed to taxing jurisdictions shall
be remitted in proportion to the amount of tax increment revenues
attributable to each taxing jurisdiction in the year the property
was acquired. If the property was acquired in part with funds other
than tax increment revenues, only that portion of the monetary
proceeds received upon disposition that represent the proportion of
the cost of acquisition paid with tax increment revenues is
required to be remitted to taxing jurisdictions. If the property is
located within a certified business park, a certified technology
park, or a certified alternative energy park, or a next Michigan
development area at the time of disposition, the monetary proceeds
received from the sale or disposition of that property may be
retained by the authority for any purpose necessary to further the
development program for the certified business park, certified
technology park, certified alternative energy park, or next
Michigan development area in accordance with the tax increment
financing plan.
(7) The tax increment financing plan may provide for the use
of tax increment revenues from a certified technology park for
public facilities for any eligible property located in the
certified technology park. The tax increment financing plan may
provide for the use of tax increment revenues from a certified
alternative energy park for public facilities for any eligible
property located in the certified alternative energy park. The tax
increment financing plan may provide for the use of tax increment
revenues within or without the development area from which the tax
increment revenues are derived, provided that the tax increment
revenues shall be used for public facilities within a next Michigan
development area within the municipality whose levy has contributed
to the tax increment revenues except as otherwise provided in the
interlocal agreement creating the next Michigan development
corporation that established the authority.
(8) If title to property qualified as a public facility under
section
2(cc)(ii) 2(ff)(ii) and
acquired by an authority with tax
increment revenues is sold, conveyed, or otherwise disposed of
pursuant to subsection (6) for less than fair market value, the
authority shall enter into an agreement relating to the use of the
property with the person to whom the property is sold, conveyed, or
disposed of, which agreement shall include a penalty provision
addressing repayment to the authority if any interest in the
property is sold, conveyed, or otherwise disposed of by the person
within 12 years after the person received title to the property
from the authority. This subsection shall not require enforcement
of a penalty provision for a conveyance incident to a merger,
acquisition, reorganization, sale-lease back transaction, employee
stock ownership plan, or other change in corporate or business form
or structure.
(9) The penalty provision described in subsection (8) shall
not be less than an amount equal to the difference between the fair
market value of the property when originally sold, conveyed, or
otherwise disposed of and the actual consideration paid by the
person to whom the property was originally sold, conveyed, or
otherwise disposed of.
Sec. 12a. (1) A municipality that has created an authority may
apply to the Michigan economic development corporation for
designation of all or a portion of the authority district as a
certified technology park and to enter into an agreement governing
the terms and conditions of the designation. The form of the
application shall be in a form specified by the Michigan economic
development corporation and shall include information the Michigan
economic development corporation determines necessary to make the
determinations required under this section.
(2) After receipt of an application, the Michigan economic
development corporation may designate, pursuant to an agreement
entered into under subsection (3), a certified technology park that
is determined by the Michigan economic development corporation to
satisfy 1 or more of the following criteria based on the
application:
(a) A demonstration of significant support from an institution
of
higher education, or a private research-based institute, or a
large, private corporate research and development center located
within the proximity of the proposed certified technology park, as
evidenced by, but not limited to, the following types of support:
(i) Grants of preferences for access to and commercialization
of intellectual property.
(ii) Access to laboratory and other facilities owned by or
under control of the institution of higher education or private
research-based institute.
(iii) Donations of services.
(iv) Access to telecommunication facilities and other
infrastructure.
(v) Financial commitments.
(vi) Access to faculty, staff, and students.
(vii) Opportunities for adjunct faculty and other types of
staff arrangements or affiliations.
(b) A demonstration of a significant commitment on behalf of
the
institution of higher education, or private research-based
institute, or a large, private corporate research and development
center to the commercialization of research produced at the
certified technology park, as evidenced by the intellectual
property and, if applicable, tenure policies that reward faculty
and staff for commercialization and collaboration with private
businesses.
(c) A demonstration that the proposed certified technology
park will be developed to take advantage of the unique
characteristics and specialties offered by the public and private
resources available in the area in which the proposed certified
technology park will be located.
(d) The existence of or proposed development of a business
incubator within the proposed certified technology park that
exhibits the following types of resources and organization:
(i) Significant financial and other types of support from the
public or private resources in the area in which the proposed
certified technology park will be located.
(ii) A business plan exhibiting the economic utilization and
availability of resources and a likelihood of successful
development of technologies and research into viable business
enterprises.
(iii) A commitment to the employment of a qualified full-time
manager to supervise the development and operation of the business
incubator.
(e) The existence of a business plan for the proposed
certified technology park that identifies its objectives in a
clearly focused and measurable fashion and that addresses the
following matters:
(i) A commitment to new business formation.
(ii) The clustering of businesses, technology, and research.
(iii) The opportunity for and costs of development of properties
under common ownership or control.
(iv) The availability of and method proposed for development of
infrastructure and other improvements, including telecommunications
technology, necessary for the development of the proposed certified
technology park.
(v) Assumptions of costs and revenues related to the
development of the proposed certified technology park.
(f) A demonstrable and satisfactory assurance that the
proposed certified technology park can be developed to principally
contain eligible property as defined by section 2(s)(iii) and (v).
(3) An authority and a municipality that incorporated the
authority may enter into an agreement with the Michigan economic
development corporation establishing the terms and conditions
governing the certified technology park. Upon designation of the
certified technology park pursuant to the terms of the agreement,
the subsequent failure of any party to comply with the terms of the
agreement shall not result in the termination or rescission of the
designation of the area as a certified technology park. The
agreement shall include, but is not limited to, the following
provisions:
(a) A description of the area to be included within the
certified technology park.
(b) Covenants and restrictions, if any, upon all or a portion
of the properties contained within the certified technology park
and terms of enforcement of any covenants or restrictions.
(c) The financial commitments of any party to the agreement
and of any owner or developer of property within the certified
technology park.
(d) The terms of any commitment required from an institution
of higher education or private research-based institute for support
of the operations and activities at eligible properties within the
certified technology park.
(e) The terms of enforcement of the agreement, which may
include the definition of events of default, cure periods, legal
and equitable remedies and rights, and penalties and damages,
actual or liquidated, upon the occurrence of an event of default.
(f) The public facilities to be developed for the certified
technology park.
(g) The costs approved for public facilities under section
2(dd).
(4) If the Michigan economic development corporation has
determined that a sale price or rental value at below market rate
will assist in increasing employment or private investment in the
certified technology park, the authority and municipality have
authority to determine the sale price or rental value for public
facilities owned or developed by the authority and municipality in
the certified technology park at below market rate.
(5) If public facilities developed pursuant to an agreement
entered into under this section are conveyed or leased at less than
fair market value or at below market rates, the terms of the
conveyance or lease shall include legal and equitable remedies and
rights to assure the public facilities are used as eligible
property. Legal and equitable remedies and rights may include
penalties and actual or liquidated damages.
(6) Except as otherwise provided in this section, an agreement
designating a certified technology park may not be made after
December 31, 2002, but any agreement made on or before December 31,
2002 may be amended after that date. However, the Michigan economic
development corporation may enter into an agreement with a
municipality after December 31, 2002 and on or before December 31,
2005 if that municipality has adopted a resolution of interest to
create a certified technology park before December 31, 2002.
(7) The Michigan economic development corporation shall market
the certified technology parks and the certified business parks.
The Michigan economic development corporation and an authority may
contract with each other or any third party for these marketing
services.
(8)
Except as otherwise provided in subsections (9), and (10),
and (11), the Michigan economic development corporation shall not
designate more than 10 certified technology parks. For purposes of
this subsection only, 2 certified technology parks located in a
county that contains a city with a population of more than 750,000,
shall be counted as 1 certified technology park. Not more than 7 of
the certified technology parks designated under this section may
not include a firm commitment from at least 1 business engaged in a
high technology activity creating a significant number of jobs.
(9) The Michigan economic development corporation may
designate an additional 5 certified technology parks after November
1, 2002 and before December 31, 2007. The Michigan economic
development corporation shall not accept applications for the
additional certified technology parks under this subsection until
after November 1, 2002.
(10) The Michigan economic development corporation may
designate an additional 3 certified technology parks after February
1, 2008 and before December 31, 2008. The Michigan economic
development corporation shall not accept applications for the
additional certified technology parks under this subsection until
after February 1, 2008.
(11) The Michigan economic development corporation may
designate an additional 3 certified technology parks before March
31, 2013.
(12) (11)
The Michigan economic development
corporation shall
give priority to applications that include new business activity.
(13) (12)
For an authority established by 2
or more
municipalities under sections 3(2) and 4(7), each municipality in
which the authority district is located by a majority vote of the
members of its governing body may make a limited tax pledge to
support the authority's tax increment bonds issued under section 14
or, if authorized by the voters of the municipality, may pledge its
full faith and credit for the payment of the principal of and
interest on the bonds. The municipalities that have made a pledge
to support the authority's tax increment bonds may approve by
resolution an agreement among themselves establishing obligations
each may have to the other party or parties to the agreement for
reimbursement of all or any portion of a payment made by a
municipality related to its pledge to support the authority's tax
increment bonds.
(14) (13)
Not including certified technology
parks designated
under subsection (8), but for certified technology parks designated
under
subsections (9), and (10), and (11) only, this state
shall do
all of the following:
(a) Reimburse intermediate school districts each year for all
tax revenue lost that was captured by an authority for a certified
technology park designated by the Michigan economic development
corporation after October 3, 2002.
(b) Reimburse local school districts each year for all tax
revenue lost that was captured by an authority for a certified
technology park designated by the Michigan economic development
corporation after October 3, 2002.
(c) Reimburse the school aid fund from funds other than those
appropriated in section 11 of the state school aid act of 1979,
1979 PA 94, MCL 388.1611, for an amount equal to the reimbursement
calculations under subdivisions (a) and (b) and for all revenue
lost that was captured by an authority for a certified technology
park designated by the Michigan economic development corporation
after October 3, 2002. Foundation allowances calculated under
section 20 of the state school aid act of 1979, 1979 PA 94, MCL
388.1620, shall not be reduced as a result of tax revenue lost that
was captured by an authority for a certified technology park
designated by the Michigan economic development corporation under
subsection
(9), or (10), or (11) after October 3,
2002.
Sec. 12c. (1) A municipality that has created an authority may
apply to the Michigan economic development corporation for
designation of all or a portion of the authority district as a
certified alternative energy park and to enter into an agreement
governing the terms and conditions of the designation. The form of
the application shall be in a form specified by the Michigan
economic development corporation and shall include information the
Michigan economic development corporation determines necessary to
make the determinations required under this section.
(2) After receipt of an application, the Michigan economic
development corporation may designate, pursuant to an agreement
entered into under subsection (3), a certified alternative energy
park that is determined by the Michigan economic development
corporation to satisfy 1 or more of the following criteria based on
the application:
(a) A demonstration that the proposed alternative energy park
will be developed to take advantage of the unique characteristics
and specialties offered by public and private resources available
in the area in which the proposed certified alternative energy park
will be located.
(b) The existence of or strong likelihood of attracting
alternative energy technology businesses to the proposed
alternative energy park by exhibiting the following types of
resources and organization:
(i) Significant financial and other types of support from the
public or private resources in the area.
(ii) Proposed or actual ownership of land in sufficient
quantity as to attract 1 or more major alternative energy
technology businesses.
(c) The existence of a business plan for the proposed
certified alternative energy park that identifies its objectives in
a clearly focused and measurable fashion and that addresses the
following matters:
(i) A commitment to new business formation or major business
attraction.
(ii) The clustering of businesses, technology, and research
within the region.
(iii) The opportunity for and costs of development of properties
under common ownership or control.
(iv) The availability of and method proposed for development
and sale or conveyance of shovel-ready sites to include
infrastructure and other improvements, including telecommunications
technology, necessary for the successful development of the
proposed certified alternative energy park.
(v) Assumptions of costs and revenues related to the
development of the proposed certified alternative energy park.
(d) (f)
A demonstrable and satisfactory
assurance that the
proposed certified alternative energy park can be developed to
principally contain eligible property as defined by section 2(s)(v)
and (vi).
(e) The proposed certified alternative energy park includes a
military installation that was operated by the United States
department of defense and closed after 1980.
(3) An authority and a municipality that incorporated the
authority may enter into an agreement with the Michigan economic
development corporation establishing the terms and conditions
governing the certified alternative energy park. Upon designation
of the certified alternative energy park pursuant to the terms of
the agreement, the subsequent failure of any party to comply with
the terms of the agreement shall not result in the termination or
rescission of the designation of the area as a certified
alternative energy park. The agreement shall include, but is not
limited to, the following provisions:
(a) A description of the area to be included within the
certified alternative energy park.
(b) Covenants and restrictions, if any, upon all or a portion
of the properties contained within the certified alternative energy
park and terms of enforcement of any covenants or restrictions.
(c) The financial commitments of any party to the agreement
and of any owner or developer of property, including sale or
transfer of ownership or options thereto upon designation of a
certified alternative energy park for property within the certified
alternative energy park.
(d) The terms of enforcement of the agreement, which may
include the definition of events of default, cure periods, legal
and equitable remedies and rights, and penalties and damages,
actual or liquidated, upon the occurrence of an event of default.
(e) Proposed method of ownership of the land within the
certified alternative energy park.
(f) The costs approved for public facilities under section
2(dd).
(g) Proposed method of operating the certified alternative
energy park.
(4) If the Michigan economic development corporation has
determined that a sale price or rental value at below market rate
will assist in increasing employment or private investment in the
certified alternative energy park, the authority and municipality
have authority to determine the sale price or rental value for
public facilities owned or developed by the authority and
municipality in the certified alternative energy park at below
market rate.
(5) If public facilities developed pursuant to an agreement
entered into under this section are conveyed or leased at less than
fair market value or at below market rates, the terms of the
conveyance or lease shall include legal and equitable remedies and
rights to assure that the public facilities are used as eligible
property. Legal and equitable remedies and rights may include
penalties and actual or liquidated damages.
(6) Except as otherwise provided in this section, an agreement
designating a certified alternative energy park may not be made
after
December 31, 2011, 2012, but any agreement made on or before
December
31, 2011 2012 may be amended after that date.
(7) The Michigan economic development corporation shall not
designate more than 10 certified alternative energy parks. For
purposes of this subsection only, certified alternative energy
parks located in the same county shall be counted as 1 certified
alternative energy park.
(8) For an authority established by 2 or more municipalities
under sections 3(2) and 4(7), each municipality in which the
authority district is located by a majority vote of the members of
its governing body may make a limited tax pledge to support the
authority's tax increment bonds issued under section 14 or, if
authorized by the voters of the municipality, may pledge its full
faith and credit for the payment of the principal of and interest
on the bonds. The municipalities that have made a pledge to support
the authority's tax increment bonds may approve by resolution an
agreement among themselves establishing obligations each may have
to the other party or parties to the agreement for reimbursement of
all or any portion of a payment made by a municipality related to
its pledge to support the authority's tax increment bonds.
(9) Upon approval of the Michigan economic development
corporation, the certified alternative energy park may be owned and
operated by an economic development corporation created under the
economic development corporations act, 1974 PA 338, MCL 125.1601 to
125.1636, or other public body agreeable to all members.
Sec.
12c. 12e. (1) A next Michigan development corporation
establishing an authority under section 3(3) shall notify the
Michigan economic development corporation of the designation of a
next Michigan development area.
(2) The Michigan economic development corporation shall market
the authority district including next Michigan development areas.
(3) For an authority exercising its powers under section 3(3),
each municipality and county which is a party to the interlocal
agreement establishing the next Michigan development corporation,
or any 1 of them, by a majority vote of the members of its
governing body, may make a limited tax pledge to support the
authority's tax increment bonds issued under section 14 or, if
authorized by the voters of the municipality or county, may pledge
its full faith and credit for the payment of the principal of and
interest on the bonds. The municipalities or counties that have
made a pledge to support the authority's tax increment bonds may
approve by resolution an agreement among themselves establishing
obligations each may have to the other party or parties to the
agreement for reimbursement of all or any portion of a payment made
by a municipality or county related to its pledge to support the
authority's tax increment bonds.