Bill Text: MI HB5854 | 2015-2016 | 98th Legislature | Engrossed

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Bill Title: Economic development; corridor improvement; reporting and oversight of corridor improvement authorities and certain tax increment financing changes; provide for. Amends secs. 3, 11, 19 & 28 of 2005 PA 280 (MCL 125.2873 et seq.).

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2016-12-06 - Referred To Committee On Economic Development And International Investment [HB5854 Detail]

Download: Michigan-2015-HB5854-Engrossed.html

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HB-5854, As Passed House, December 1, 2016

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5854

 

 

 

 

 

 

 

 

 

     A bill to amend 2005 PA 280, entitled

 

"Corridor improvement authority act,"

 

by amending sections 3, 11, 19, and 28 (MCL 125.2873, 125.2881,

 

125.2889, and 125.2898), section 3 as amended by 2013 PA 68 and

 

section 11 as amended by 2007 PA 44.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. As used in this act:

 

     (a) "Operations" means office maintenance, including salaries

 

and expenses of employees, office supplies, consultation fees,

 

design costs, and other expenses incurred in the daily management

 

of the authority and planning of its activities.

 

     (b) "Parcel" means an identifiable unit of land that is

 

treated as separate for valuation or zoning purposes.

 

     (c) "Public facility" means a street, plaza, pedestrian mall,

 

and any improvements to a street, plaza, or pedestrian mall

 

including street furniture and beautification, sidewalk, trail,

lighting, traffic flow modification, park, parking facility,

 

recreational facility, right-of-way, structure, waterway, bridge,

 

lake, pond, canal, utility line or pipe, transit-oriented

 

development, transit-oriented facility, or building, including

 

access routes, that are either designed and dedicated to use by the

 

public generally or used by a public agency, or that are located in

 

a qualified development area and are for the benefit of or for the

 

protection of the health, welfare, or safety of the public

 

generally, whether or not used by 1 or more business entities,

 

provided that any road, street, or bridge shall be continuously

 

open to public access and that other property shall be located in

 

public easements or rights-of-way and designed to accommodate

 

foreseeable development of public facilities in adjoining areas.

 

Public facility includes an improvement to a facility used by the

 

public or a public facility as those terms are defined in section 1

 

of 1966 PA 1, MCL 125.1351, if the improvement complies with the

 

barrier-free design requirements of the state construction code

 

promulgated under the Stille-DeRossett-Hale single state

 

construction code act, 1972 PA 230, MCL 125.1501 to 125.1531.

 

     (d) "Qualified development area" means a development area that

 

meets 1 of the following:

 

     (i) All of the following:

 

     (A) Is located within a city with a population of 700,000 or

 

more.

 

     (B) Contains at least 30 contiguous acres.

 

     (C) Was owned by this state on December 31, 2003 and was

 

conveyed to a private owner before June 30, 2004.

     (D) Is zoned to allow for mixed use that includes commercial

 

use and that may include residential use.

 

     (E) Otherwise complies with the requirements of section 5(a),

 

(d), (e), and (g).

 

     (F) Construction within the qualified development area begins

 

on or before the date 2 years after the effective date of the

 

amendatory act that added this subdivision.

 

     (G) Is located in a distressed area.

 

     (ii) Contains transit-oriented development or a transit-

 

oriented facility.

 

     (e) "Specific local tax" means a tax levied under 1974 PA 198,

 

MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA

 

255, MCL 207.651 to 207.668, the technology park development act,

 

1984 PA 385, MCL 207.701 to 207.718, or 1953 PA 189, MCL 211.181 to

 

211.182. The initial assessed value or current assessed value of

 

property subject to a specific local tax shall be the quotient of

 

the specific local tax paid divided by the ad valorem millage rate.

 

The state tax commission shall prescribe the method for calculating

 

the initial assessed value and current assessed value of property

 

for which a specific local tax was paid in lieu of a property tax.

 

     (f) "State fiscal year" means the annual period commencing

 

October 1 of each year.

 

     (g) "Tax increment revenues" means the amount of ad valorem

 

property taxes and specific local taxes attributable to the

 

application of the levy of all taxing jurisdictions upon the

 

captured assessed value of real and personal property in the

 

development area. Except as otherwise provided in section 29, tax

increment revenues do not include any of the following:

 

     (i) Taxes under the state education tax act, 1993 PA 331, MCL

 

211.901 to 211.906.

 

     (ii) Taxes levied by local or intermediate school districts.

 

     (iii) Ad valorem property taxes attributable either to a

 

portion of the captured assessed value shared with taxing

 

jurisdictions within the jurisdictional area of the authority or to

 

a portion of value of property that may be excluded from captured

 

assessed value or specific local taxes attributable to the ad

 

valorem property taxes.

 

     (iv) Ad valorem property taxes excluded by the tax increment

 

financing plan of the authority from the determination of the

 

amount of tax increment revenues to be transmitted to the authority

 

or specific local taxes attributable to the ad valorem property

 

taxes.

 

     (v) Ad valorem property taxes exempted from capture under

 

section 18(5) or specific local taxes attributable to the ad

 

valorem property taxes.

 

     (vi) Ad valorem property taxes specifically levied for the

 

payment of principal and interest of obligations approved by the

 

electors or obligations pledging the unlimited taxing power of the

 

local governmental unit or specific taxes attributable to those ad

 

valorem property taxes.

 

     (vii) Ad valorem property taxes levied under 1 or more of the

 

following or specific local taxes attributable to those ad valorem

 

property taxes:

 

     (A) The zoological authorities act, 2008 PA 49, MCL 123.1161

to 123.1183.

 

     (B) The art institute authorities act, 2010 PA 296, MCL

 

123.1201 to 123.1229.

 

     (c) The regional transit authority act, 2012 PA 387, MCL

 

124.541 to 124.558.

 

     (viii) Ad valorem property taxes or specific local taxes

 

levied for a millage approved by the electors after December 31,

 

2016, except for 1 or more of the following:

 

     (A) A millage approved by the electors under section 34d(11)

 

of the general property tax act, 1893 PA 206, MCL 211.34d.

 

     (B) A renewal of a millage that was authorized on or before

 

December 31, 2016.

 

     (h) "Transit-oriented development" means infrastructional

 

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.

 

     (i) "Transit-oriented facility" means a facility that houses a

 

transit station in a manner that promotes transit ridership or

 

passenger rail use.

 

     (j) "Distressed area" means a local governmental unit that

 

meets all of the following:

 

     (i) Has a population of 700,000 or more.

 

     (ii) Shows a negative population change from 1970 to the date

 

of the most recent federal decennial census.

 

     (iii) Shows an overall increase in the state equalized value

 

of real and personal property of less than the statewide average

increase since 1972.

 

     (iv) Has a poverty rate, as defined by the most recent federal

 

decennial census, greater than the statewide average.

 

     (v) Has had an unemployment rate higher than the statewide

 

average.

 

     Sec. 11. (1) The board may do any of the following:

 

     (a) Prepare an analysis of economic changes taking place in

 

the development area.

 

     (b) Study and analyze the impact of metropolitan growth upon

 

the development area.

 

     (c) Plan and propose the construction, renovation, repair,

 

remodeling, rehabilitation, restoration, preservation, or

 

reconstruction of a public facility, an existing building, or a

 

multiple-family dwelling unit which may be necessary or appropriate

 

to the execution of a plan which, in the opinion of the board, aids

 

in the economic growth of the development area.

 

     (d) Plan, propose, and implement an improvement to a public

 

facility within the development area to comply with the barrier

 

free design requirements of the state construction code promulgated

 

under the Stille-DeRossett-Hale single state construction code act,

 

1972 PA 230, MCL 125.1501 to 125.1531.

 

     (e) Develop long-range plans, in cooperation with the agency

 

that is chiefly responsible for planning in the municipality,

 

designed to halt the deterioration of property values in the

 

development area and to promote the economic growth of the

 

development area, and take steps as may be necessary to persuade

 

property owners to implement the plans to the fullest extent

possible.

 

     (f) Implement any plan of development in the development area

 

necessary to achieve the purposes of this act in accordance with

 

the powers of the authority granted by this act.

 

     (g) Make and enter into contracts necessary or incidental to

 

the exercise of its powers and the performance of its duties.

 

     (h) On terms and conditions and in a manner and for

 

consideration the authority considers proper or for no

 

consideration, acquire by purchase or otherwise, or own, convey, or

 

otherwise dispose of, or lease as lessor or lessee, land and other

 

property, real or personal, or rights or interests in the property,

 

that the authority determines is reasonably necessary to achieve

 

the purposes of this act, and to grant or acquire licenses,

 

easements, and options.

 

     (i) Improve land and construct, reconstruct, rehabilitate,

 

restore and preserve, equip, improve, maintain, repair, and operate

 

any building, including multiple-family dwellings, and any

 

necessary or desirable appurtenances to those buildings, within the

 

development area for the use, in whole or in part, of any public or

 

private person or corporation, or a combination thereof.

 

     (j) Fix, charge, and collect fees, rents, and charges for the

 

use of any facility, building, or property under its control or any

 

part of the facility, building, or property, and pledge the fees,

 

rents, and charges for the payment of revenue bonds issued by the

 

authority.

 

     (k) Lease, in whole or in part, any facility, building, or

 

property under its control.

     (l) Accept grants and donations of property, labor, or other

 

things of value from a public or private source.

 

     (m) Acquire and construct public facilities.

 

     (n) Conduct market research and public relations campaigns,

 

develop, coordinate, and conduct retail and institutional

 

promotions, and sponsor special events and related activities.

 

     (o) Contract for broadband service and wireless technology

 

service in a development area.

 

     (2) Notwithstanding any other provision of this act, in a

 

qualified development area the board may, in addition to the powers

 

enumerated in subsection (1), do 1 or more of the following:

 

     (a) Perform any necessary or desirable site improvements to

 

the land, including, but not limited to, installation of temporary

 

or permanent utilities, temporary or permanent roads and driveways,

 

silt fences, perimeter construction fences, curbs and gutters,

 

sidewalks, pavement markings, water systems, gas distribution

 

lines, concrete, including, but not limited to, building pads,

 

storm drainage systems, sanitary sewer systems, parking lot paving

 

and light fixtures, electrical service, communications systems,

 

including broadband and high-speed internet, site signage, and

 

excavation, backfill, grading of site, landscaping and irrigation,

 

within the development area for the use, in whole or in part, of

 

any public or private person or business entity, or a combination

 

of these.

 

     (b) Incur expenses and expend funds to pay or reimburse a

 

public or private person for costs associated with any of the

 

improvements described in subdivision (a).

     (c) Make and enter into financing arrangements with a public

 

or private person for the purposes of implementing the board's

 

powers described in this section, including, but not limited to,

 

lease purchase agreements, land contracts, installment sales

 

agreements, sale leaseback agreements, and loan agreements.

 

     (3) The municipality creating the authority shall ensure that

 

a website is operated and regularly maintained with all authority

 

records and documents, for the immediately preceding 5 fiscal

 

years, including all of the following:

 

     (a) Minutes of all board meetings.

 

     (b) Annual budget.

 

     (c) Annual audits.

 

     (d) Currently adopted development plan.

 

     (e) Currently adopted tax increment finance plan.

 

     (f) List of all authority sponsored and managed events.

 

     (g) Current authority staff contact information.

 

     (h) All promotional and marketing materials.

 

     (i) Amount of tax increment revenues captured for each taxing

 

jurisdiction that levies ad valorem property taxes or specific

 

local taxes within the boundaries of the authority.

 

     (j) Current contracts and other documents related to

 

management of the authority.

 

     (4) Subject to subsection (5), the requirements in subsection

 

(1) are required for records and documents related to fiscal years

 

starting the fiscal year of the date of enactment of the amendatory

 

act that added this subsection.

 

     (5) The records and documents described in subsection (3)(f),

(g), (h), and (j) shall be required for 2 fiscal years immediately

 

preceding the date of enactment of the amendatory act that added

 

this subsection.

 

     (6) The requirements of this section shall not take effect

 

until 180 days after the end of an authority's current fiscal year

 

as of the date of enactment of the amendatory act that added this

 

subsection.

 

     (7) Each year, the board shall hold not fewer than 1

 

informational meeting. The purpose of the informational meeting

 

will be to highlight the information described in subsection (3)(a)

 

to (j). Notice of an informational meeting shall be posted on the

 

municipality's or authority's website not less than 20 days before

 

the date of the informational meeting. Not less than 20 days before

 

the informational meeting, the board shall mail or electronically

 

mail notice of the informational meeting to the governing body of

 

each taxing jurisdiction levying taxes that are subject to capture

 

by the authority.

 

     Sec. 19. (1) The municipal and county treasurers shall

 

transmit tax increment revenues to the authority.

 

     (2) The authority shall expend the tax increment revenues

 

received for the development program only under the terms of the

 

tax increment financing plan. Unused funds shall revert

 

proportionately to the respective taxing bodies. Tax increment

 

revenues shall not be used to circumvent existing property tax

 

limitations. The governing body of the municipality may abolish the

 

tax increment financing plan if it finds that the purposes for

 

which it was established are accomplished. However, the tax

increment financing plan shall not be abolished, be allowed to

 

expire, or otherwise terminate until the principal of, and interest

 

on, bonds issued under section 20 have been paid or funds

 

sufficient to make the payment have been segregated.

 

     (3) Annually the authority shall submit to the governing body

 

of the municipality, the governing body of a taxing unit levying

 

taxes subject to capture by an authority, and the state tax

 

commission a report on the status of the tax increment financing

 

account. The report shall be published in a newspaper of general

 

circulation in the municipality or on a website of the authority or

 

the municipality. The report shall include the following:

 

     (a) The amount and source of revenue in the account.

 

     (b) The amount in any bond reserve account.

 

     (c) The amount and purpose of expenditures from the account.

 

     (d) The amount of principal and interest on any outstanding

 

bonded indebtedness.

 

     (e) The initial assessed value of the project development

 

area.

 

     (f) The captured assessed value retained by the authority.

 

     (g) The tax increment revenues received.

 

     (h) The increase in the state equalized valuation as a result

 

of the implementation of the tax increment financing plan.

 

     (i) The type and cost of capital improvements made in the

 

development area.

 

     (j) The total new public investment by the authority in each

 

of the development areas.

 

     (k) The totals received by the authority or contributions made

by sponsorships, cash, and in-kind services for events, programs,

 

and projects within each development area.

 

     (l) The amounts of any funds other than tax increments

 

revenues used by the authority for any projects or activities in

 

the development areas.

 

     (m) The current assessed value of the development area.

 

     (n) The captured assessed value retained by the authority for

 

each taxing jurisdiction.

 

     (o) The amount of tax increment revenues used for the

 

operation of the authority.

 

     (p) (j) Any additional information the governing body

 

considers necessary.

 

     (4) Tax increment revenues shall be expended within 5 years of

 

their receipt. However, tax increment revenues may be accumulated

 

for a period longer than 5 years, provided the tax increment

 

financing plan specifically provides for all of the following:

 

     (a) The reasons for accumulating those funds.

 

     (b) A time frame when the fund will be expended.

 

     (c) The uses for which the fund will be expended.

 

     Sec. 28. (1) The state tax commission department of treasury

 

may institute proceedings to compel enforcement of this act and

 

shall send written notification of the specific violation to an

 

authority failing to comply with this act and the governing body of

 

the municipality that established the authority of a violation of

 

any provision of this act.

 

     (2) The state tax commission department of treasury may

 

promulgate rules necessary for the administration of this act under

the administrative procedures act of 1969, 1969 PA 306, MCL 24.201

 

to 24.328.

 

     (3) If the department of treasury notifies an authority in

 

writing that the authority failed to comply with any provision of

 

this act and after 60 days following receipt of that notice the

 

authority does not comply, that authority shall not capture any tax

 

increment revenues that are in excess of amounts necessary to pay

 

bonded indebtedness or other obligations for the period of

 

noncompliance as determined by the department of treasury. Any

 

excess funds captured shall be returned to the taxing jurisdiction

 

from which they were captured as provided in section 19(2).