February 5, 2013, Introduced by Reps. MacGregor, MacMaster, Haveman, Price, Pscholka, Bumstead, McMillin, Shirkey, Victory and Lund and referred to the Committee on Commerce.


     A bill to amend 1974 PA 338, entitled


"Economic development corporations act,"


by amending section 8 (MCL 125.1608), as amended by 2002 PA 357.




     Sec. 8. (1) The corporation shall designate the project area


to the governing body of the municipality for which the corporation


is incorporated. The governing body of the municipality for which


the corporation is incorporated shall certify its approval of the


designation of a project area by resolution.


     (2) Before acquiring property, or an interest in land, or


incurring obligations for a specific project, other than the


acquisition of an option or as provided in subsection (9), the


corporation shall prepare a project plan and secure the


recommendation of the local public agency of the municipality for


which the corporation is incorporated, except as provided in


section 9(3), the approval of the governing body of each city,


village, or township in which all or a part of the project is


located, and the approval of the county, if the corporation is an


economic development corporation for the county.


     (3) The corporation shall certify to the governing body of the


municipality for which the corporation is incorporated that at the


time the project plan is approved by the corporation, the project


shall not have the effect of transferring employment of more than


20 full-time persons from a municipality of this state to the


municipality in which the project is to be located. This


restriction shall does not prevent the approval of a project if the


governing body of each municipality from which employment is to be


transferred consents by resolution to the transfer.


     (4) The project plan shall contain the following, except that


agricultural and forestry enterprise projects need only comply with


subsection (9) with respect to project plans:


     (a) The location and extent of existing streets and other


public facilities within the project district area, and shall


designate the location, character, and extent of the categories of


public and private land uses then existing and proposed for the


project area, including residential, recreational, commercial,


industrial, educational, and other uses and shall include a legal


description of the project area.


     (b) A description of existing improvements in the project area


to be demolished, repaired, or altered, a description of repairs


and alterations, and an estimate of the time required for




     (c) The location, extent, character, and estimated cost of the


improvements including rehabilitation contemplated for the project


area and an estimate of the time required for completion.


     (d) A statement of the construction or stages of construction


planned, and the estimated time of completion of each stage.


     (e) A description of the parts of the project area to be left


as open space and the use contemplated for the space.


     (f) A description of portions of the project area that the


corporation desires to sell, donate, exchange, or lease to or from


the municipality, and the proposed terms.


     (g) A description of desired zoning changes and changes in


streets, street levels, intersections, and utilities.


     (h) A statement of the proposed method of financing the


project, including, except as provided in section 6a, a statement


by a person described in subparagraph subdivision (j) indicating


the payment to all persons performing work on the construction


project of the prevailing wage and fringe benefit rates for the


same or similar work in the locality in which the work is to be


performed, and a statement of the ability of the corporation to


arrange the financing. The prevailing wage and fringe benefit rates


shall be determined under 1965 PA 166, MCL 408.551 to 408.558. A


corporation may conclusively rely upon the statement required under


this subsection as to compliance with the payment of prevailing


wage and fringe benefit rates and any contracts, bonds or notes of


any corporation entered into or issued upon reliance on any


statement shall not be subsequently voided by reason of the failure


to comply with the requirements of this subsection.


     (i) A list of persons who will manage or be associated with


the management of the project for a period of not less than 1 year


from the date of approval of the project plan.


     (j) Designation of the person or persons, natural or


corporate, to whom the project is to be leased, sold, or conveyed


and for whose benefit the project is being undertaken if that


information is available to the corporation.


     (k) If there is not an express or implied agreement between


the corporation and persons, natural or corporate, that the project


will be leased, sold, or conveyed to those persons, the procedures


for bidding for the leasing, purchasing, or conveying of the


project upon its completion.


     (l) Estimates of the number of persons residing in the project


area, and the number of families and individuals to be displaced.


If occupied residences are designated for acquisition and clearance


by the corporation, a project 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 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 project in new housing in the project




     (n) Provision for the costs of relocating persons displaced by


the project 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 42 USC 4601-




     (o) A plan for compliance with 1972 PA 227, MCL 213.321 to




     (p) Other material as the corporation, local public agency, or


governing body considers pertinent.


     (5) The corporation shall be considered an instrumentality of


a political subdivision for purposes of 1972 PA 227, MCL 213.321 to




     (6) A person shall be given not less than 90 days' written


notice to vacate unless modified by court order for good cause.


     (7) The corporation shall not operate a project or an


enterprise in a project, other than as lessor.


     (8) The governing body may utilize the corporation to issue


obligations pursuant to under section 7 to accomplish the public


purposes of the municipality set forth in section 2, and for that


purpose may by resolution direct the corporation to take


appropriate action as set forth in subsections (1) and (2) with


respect to a proposed project.


     (9) In the case of project plans for agricultural and forestry


enterprises, the following information shall be provided in lieu of


the requirements of subsections (2) and (4):


     (a) A statement of intention regarding the objectives of the




     (b) A general description of the kinds of buildings,


improvements, storage facilities, restorations, acquisition of


machinery, equipment furnishings, leasehold improvements and


incidental related costs to be financed.


     (c) A statement regarding the length of the project and the


maximum amount to be financed over the life of the project.


     (d) A statement by the corporation that no zoning change or


eminent domain proceedings will be necessary to implement the




     (e) A description of the process to be followed in


implementing the individual transactions that may comprise the




     Enacting section 1. This amendatory act does not take effect


unless Senate Bill No.____ or House Bill No. 4172(request no.


00063'13) of the 97th Legislature is enacted into law.