Bill Text: MI HB5142 | 2011-2012 | 96th Legislature | Engrossed
Bill Title: Economic development; corridor improvement; certain joint authorities; provide for. Amends secs. 2, 4, 6 & 8 of 2005 PA 280 (MCL 125.2872 et seq.).
Spectrum: Bipartisan Bill
Status: (Passed) 2012-07-18 - Assigned Pa 229'12 With Immediate Effect [HB5142 Detail]
Download: Michigan-2011-HB5142-Engrossed.html
HB-5142, As Passed Senate, June 13, 2012
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 5142
A bill to amend 2005 PA 280, entitled
"Corridor improvement authority act,"
by amending sections 2, 4, 6, and 8 (MCL 125.2872, 125.2874,
125.2876, and 125.2878), sections 2 and 6 as amended by 2008 PA 44.
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) "Assessed value" means the taxable value as determined
under section 27a of the general property tax act, 1893 PA 206, MCL
211.27a.
(c) "Authority" means a corridor improvement authority created
under
this act section 4(1) or a
joint authority created under
section 4(2).
(d) "Board" means the governing body of an authority.
(e) "Business district" means an area of a municipality zoned
and used principally for business.
(f) "Captured assessed value" means the amount in any 1 year
by which the current assessed value of the development area,
including the assessed value of property for which specific local
taxes are paid in lieu of property taxes as determined in section
3(d), exceeds the initial assessed value. The state tax commission
shall prescribe the method for calculating captured assessed value.
(g) "Chief executive officer" means the mayor of a city, the
president of a village, or the supervisor of a township.
(h) "Development area" means that area described in section 5
to which a development plan is applicable.
(i) "Development plan" means that information and those
requirements for a development area set forth in section 21.
(j) "Development program" means the implementation of the
development plan.
(k) "Fiscal year" means the fiscal year of the authority.
(l) "Governing body" or "governing body of a municipality"
means the elected body of a municipality having legislative powers
or, for a joint authority created under section 4(2), the elected
body of each municipality having legislative powers that is a
member of the joint authority.
(m) "Initial assessed value" means the assessed value, as
equalized, of all the taxable property within the boundaries of the
development area at the time the resolution establishing the tax
increment financing plan is approved, as shown by the most recent
assessment roll of the municipality for which equalization has been
completed at the time the resolution is adopted. Property exempt
from taxation at the time of the determination of the initial
assessed value shall be included as zero. For the purpose of
determining initial assessed value, property for which a specific
local tax is paid in lieu of a property tax shall not be considered
to be property that is exempt from taxation. The initial assessed
value of property for which a specific local tax was paid in lieu
of a property tax shall be determined as provided in section 3(d).
(n) "Land use plan" means a plan prepared under former 1921 PA
207, former 1943 PA 184, or a site plan under the Michigan zoning
enabling act, 2006 PA 110, MCL 125.3101 to 125.3702.
(o) "Municipality" means 1 of the following:
(i) A city.
(ii) A village.
(iii) A township.
(iv) A combination of 2 or more cities, villages, or townships
acting jointly under a joint authority created under section 4(2).
Sec. 4. (1) Except as otherwise provided in this subsection, a
municipality may establish multiple authorities. A parcel of
property shall not be included in more than 1 authority created
under this act.
(2) A city, village, or township located in a county with a
population of more than 335,000 and less than 415,000 and that has
not less than 2 state public universities within its boundaries may
by resolution join with 1 or more cities, villages, or townships
located in a county with a population of more than 335,000 and less
than 415,000 and that has not less than 2 state public universities
within its boundaries to create a joint authority under this act.
(3) (2)
An authority is a public body
corporate which may sue
and be sued in any court of this state. An authority possesses all
the powers necessary to carry out its purpose. The enumeration of a
power in this act shall not be construed as a limitation upon the
general powers of an authority.
Sec. 6. (1) If the governing body of a municipality determines
that it is necessary for the best interests of the public to
redevelop its commercial corridors and to promote economic growth,
the
governing body may, by resolution, declare do 1 of the
following:
(a) Declare its intention to create and provide for the
operation of an authority.
(b) Declare its intention to jointly create and provide for
the operation of a joint authority created under section 4(2).
(2) In the resolution of intent, the governing body shall
state that the proposed development area meets the criteria in
section 5, set a date for a public hearing on the adoption of a
proposed resolution creating the authority, and designate the
boundaries of the development area. Notice of the public hearing
shall be published twice in a newspaper of general circulation in
the municipality, not less than 20 or more than 40 days before the
date of the hearing. Not less than 20 days before the hearing, the
governing body proposing to create the authority shall also mail
notice of the hearing to the property taxpayers of record in the
proposed development area, 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, and to the state tax commission. Failure of a property
taxpayer to receive the notice does not invalidate these
proceedings. Notice of the hearing shall be posted in at least 20
conspicuous and public places in the proposed development area not
less than 20 days before the hearing. The notice shall state the
date, time, and place of the hearing and shall describe the
boundaries of the proposed development area. A citizen, taxpayer,
or property owner of the municipality or an official from a taxing
jurisdiction with millage that would be subject to capture has the
right to be heard in regard to the establishment of the authority
and the boundaries of the proposed development area. The governing
body of the municipality shall not incorporate land into the
development area not included in the description contained in the
notice of public hearing, but it may eliminate described lands from
the development area in the final determination of the boundaries.
(3) Not less than 60 days after the public hearing, if the
governing body of the municipality intends to proceed with the
establishment of the authority it shall adopt, by majority vote of
its members, a resolution establishing the authority and
designating the boundaries of the development area within which the
authority shall exercise its powers. The adoption of the resolution
is subject to any applicable statutory or charter provisions in
respect to the approval or disapproval by the chief executive or
other officer of the municipality and the adoption of 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.
(4) The governing body of the municipality may alter or amend
the boundaries of the development area to include or exclude lands
from the development area in the same manner as adopting the
resolution creating the authority.
(5) A municipality that has created an authority may enter
into an agreement with an adjoining municipality that has created
an authority to jointly operate and administer those authorities
under an interlocal agreement under the urban cooperation act of
1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512. The interlocal
agreement shall include, but is not limited to, a plan to
coordinate and expedite local inspections and permit approvals, a
plan to address contradictory zoning requirements, and a date
certain to implement all provisions of these plans. If a
municipality enters into an interlocal agreement under this
subsection, the municipality shall provide a copy of that
interlocal agreement to the state tax commission within 60 days of
entering into the interlocal agreement.
Sec. 8. (1) Except as provided in subsection (7) or as
otherwise provided in subsection (8), an authority shall be under
the supervision and control of a board consisting of the chief
executive officer of the municipality or his or her assignee and
not less than 5 or more than 9 members as determined by the
governing body of the municipality. Members shall be appointed by
the chief executive officer of the municipality, subject to
approval by the governing body of the municipality. Not less than a
majority of the members shall be persons having an ownership or
business interest in property located in the development area. At
least 1 of the members shall be a resident of the development area
or of an area within 1/2 mile of any part of the development area.
Of the members first appointed, an equal number of the members, as
near as is practicable, shall be appointed for 1 year, 2 years, 3
years, and 4 years. A member shall hold office until the member's
successor is appointed. After the initial appointment, each member
shall serve for a term of 4 years. An appointment to fill a vacancy
shall be made by the chief executive officer of the municipality
for the unexpired term only. Members of the board shall serve
without compensation, but shall be reimbursed for actual and
necessary expenses. The chairperson of the board shall be elected
by the board.
(2) Before assuming the duties of office, a member shall
qualify by taking and subscribing to the constitutional oath of
office.
(3) The proceedings and rules of the board are subject to the
open meetings act, 1976 PA 267, MCL 15.261 to 15.275. The board
shall adopt rules governing its procedure and the holding of
regular meetings, subject to the approval of the governing body.
Special meetings may be held if called in the manner provided in
the rules of the board.
(4) After having been given notice and an opportunity to be
heard, a member of the board may be removed for cause by the
governing body.
(5) All expense items of the authority shall be publicized
monthly and the financial records shall always be open to the
public.
(6) A writing prepared, owned, used, in the possession of, or
retained by the board in the performance of an official function is
subject to the freedom of information act, 1976 PA 442, MCL 15.231
to 15.246.
(7) If the boundaries of the development area are the same as
those of a business improvement district established under 1961 PA
120, MCL 125.981 to 125.990m, the governing body of the
municipality may provide that the members of the board of the
authority shall be the members of the board of the business
improvement district and 1 person shall be a resident of the
development area or of an area within 1/2 mile of any part of the
development area.
(8) If 2 or more cities, villages, or townships create a joint
authority under section 4(2), the board shall consist of up to 3
individuals appointed by the chief executive officer of each city,
village, or township that is a member of the joint authority. Each
of those individuals shall be appointed for initial staggered terms
of 2 years, 3 years, or 4 years. A member shall hold office until
the member's successor is appointed. After the initial appointment,
each member shall serve for a term of 4 years. An appointment to
fill a vacancy shall be made by the chief executive officer of the
city, village, or township for the unexpired term only. Members of
the board shall serve without compensation, but shall be reimbursed
for actual and necessary expenses. The chairperson of the board
shall be elected by the board.
