Bill Text: MI SB0323 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Economic development; brownfield redevelopment authority; definition of eligible activities; revise. Amends sec. 2 of 1996 PA 381 (MCL 125.2652).
Spectrum: Partisan Bill (Republican 3-0)
Status: (Engrossed - Dead) 2010-01-21 - Re-referred To Committee On Commerce [SB0323 Detail]
Download: Michigan-2009-SB0323-Engrossed.html
SB-0323, As Passed Senate, March 19, 2009
SENATE BILL No. 323
March 4, 2009, Introduced by Senators PAPPAGEORGE, ALLEN and KAHN and referred to the Committee on Economic Development and Regulatory Reform.
A bill to amend 1996 PA 381, entitled
"Brownfield redevelopment financing act,"
by amending section 2 (MCL 125.2652), as amended by 2007 PA 204.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Additional response activities" means response activities
identified as part of a brownfield plan that are in addition to
baseline environmental assessment activities and due care
activities for an eligible property.
(b) "Authority" means a brownfield redevelopment authority
created under this act.
(c) "Baseline environmental assessment" means that term as
defined in section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(d) "Baseline environmental assessment activities" means those
response activities identified as part of a brownfield plan that
are necessary to complete a baseline environmental assessment for
an eligible property in the brownfield plan.
(e) "Blighted" means property that meets any of the following
criteria as determined by the governing body:
(i) Has been declared a public nuisance in accordance with a
local housing, building, plumbing, fire, or other related code or
ordinance.
(ii) Is an attractive nuisance to children because of physical
condition, use, or occupancy.
(iii) Is a fire hazard or is otherwise dangerous to the safety
of persons or property.
(iv) Has had the utilities, plumbing, heating, or sewerage
permanently disconnected, destroyed, removed, or rendered
ineffective so that the property is unfit for its intended use.
(v) Is tax reverted property owned by a qualified local
governmental unit, by a county, or by this state. The sale, lease,
or transfer of tax reverted property by a qualified local
governmental unit, county, or this state after the property's
inclusion in a brownfield plan shall not result in the loss to the
property of the status as blighted property for purposes of this
act.
(vi) Is property owned or under the control of a land bank fast
track authority under the land bank fast track act, whether or not
located within a qualified local governmental unit. Property
included within a brownfield plan prior to the date it meets the
requirements of this subdivision to be eligible property shall be
considered to become eligible property as of the date the property
is determined to have been or becomes qualified as, or is combined
with, other eligible property. The sale, lease, or transfer of the
property by a land bank fast track authority after the property's
inclusion in a brownfield plan shall not result in the loss to the
property of the status as blighted property for purposes of this
act.
(vii) Has substantial subsurface demolition debris buried on
site so that the property is unfit for its intended use.
(f) "Board" means the governing body of an authority.
(g) "Brownfield plan" means a plan that meets the requirements
of section 13 and is adopted under section 14.
(h) "Captured taxable value" means the amount in 1 year by
which the current taxable value of an eligible property subject to
a brownfield plan, including the taxable value or assessed value,
as appropriate, of the property for which specific taxes are paid
in lieu of property taxes, exceeds the initial taxable value of
that eligible property. The state tax commission shall prescribe
the method for calculating captured taxable value.
(i) "Chief executive officer" means the mayor of a city, the
village manager of a village, the township supervisor of a
township, or the county executive of a county or, if the county
does not have an elected county executive, the chairperson of the
county board of commissioners.
(j) "Department" means the department of environmental
quality.
(k) "Due care activities" means those response activities
identified as part of a brownfield plan that are necessary to allow
the owner or operator of an eligible property in the plan to comply
with the requirements of section 20107a of the natural resources
and environmental protection act, 1994 PA 451, MCL 324.20107a.
(l) "Economic opportunity zone" means 1 or more parcels of
property that meet all of the following:
(i) That together are 40 or more acres in size.
(ii) That contain a manufacturing facility that consists of
500,000 or more square feet.
(iii) That are located in a municipality that has a population
of 30,000 or less and that is contiguous to a qualified local
governmental unit.
(m) "Eligible activities" or "eligible activity" means 1 or
more of the following:
(i) Baseline environmental assessment activities.
(ii) Due care activities.
(iii) Additional response activities.
(iv) For eligible activities on eligible property that was used
or is currently used for commercial, industrial, or residential
purposes that is in a qualified local governmental unit, that is
owned or under the control of a land bank fast track authority,
that is designated as a major redevelopment project under
subdivision (n)(viii), or that is located in an economic opportunity
zone, and is a facility, functionally obsolete, or blighted, and
except
for purposes of former section 38d of the single business
tax
act, former 1975 PA 228, the following additional activities:
(A) Infrastructure improvements that directly benefit eligible
property.
(B) Demolition of structures that is not response activity
under section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(C) Lead or asbestos abatement.
(D) Site preparation that is not response activity under
section 20101 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.20101.
(E) Assistance to a land bank fast track authority in clearing
or quieting title to, or selling or otherwise conveying, property
owned or under the control of a land bank fast track authority or
the acquisition of property by the land bank fast track authority
if the acquisition of the property is for economic development
purposes.
(v) Relocation of public buildings or operations for economic
development purposes.
(vi) For eligible activities on eligible property that is a
qualified facility that is not located in a qualified local
governmental unit and that is a facility, functionally obsolete, or
blighted, the following additional activities:
(A) Infrastructure improvements that directly benefit eligible
property.
(B) Demolition of structures that is not response activity
under section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(C) Lead or asbestos abatement.
(D) Site preparation that is not response activity under
section 20101 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.20101.
(vii) For eligible activities on eligible property that is not
located in a qualified local governmental unit and that is a
facility, functionally obsolete, or blighted, the following
additional activities:
(A) Demolition of structures that is not response activity
under section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(B) Lead or asbestos abatement.
(viii) Reasonable costs of developing and preparing brownfield
plans and work plans.
(ix) For property that is not located in a qualified local
governmental unit and that is a facility, functionally obsolete, or
blighted, that is a former mill that has not been used for
industrial purposes for the immediately preceding 2 years, that is
located along a river that is a federal superfund site listed under
the comprehensive environmental response, compensation, and
liability act of 1980, 42 USC 9601 to 9675, and that is located in
a city with a population of less than 10,000 persons, the following
additional activities:
(A) Infrastructure improvements that directly benefit the
property.
(B) Demolition of structures that is not response activity
under section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(C) Lead or asbestos abatement.
(D) Site preparation that is not response activity under
section 20101 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.20101.
(x) For eligible activities on eligible property that is
located north of the 45th parallel, that is a facility,
functionally obsolete, or blighted, and the owner or operator of
which makes new capital investment of $250,000,000.00 or more in
this state, the following additional activities:
(A) Demolition of structures that is not response activity
under section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(B) Lead or asbestos abatement.
(xi) Reasonable costs of environmental insurance.
(n) Except as otherwise provided in this subdivision,
"eligible property" means property for which eligible activities
are identified under a brownfield plan that was used or is
currently used for commercial, industrial, public, or residential
purposes, including personal property located on the property, to
the extent included in the brownfield plan, and that is 1 or more
of the following:
(i) Is in a qualified local governmental unit and is a
facility, functionally obsolete, or blighted and includes parcels
that are adjacent or contiguous to that property if the development
of the adjacent and contiguous parcels is estimated to increase the
captured taxable value of that property.
(ii) Is not in a qualified local governmental unit and is a
facility, and includes parcels that are adjacent or contiguous to
that property if the development of the adjacent and contiguous
parcels is estimated to increase the captured taxable value of that
property.
(iii) Is tax reverted property owned or under the control of a
land bank fast track authority.
(iv) Is not in a qualified local governmental unit, is a
qualified facility, and is a facility, functionally obsolete, or
blighted, if the eligible activities on the property are limited to
the eligible activities identified in subdivision (m)(vi).
(v) Is not in a qualified local governmental unit and is a
facility, functionally obsolete, or blighted, if the eligible
activities on the property are limited to the eligible activities
identified in subdivision (m)(vii).
(vi) Is not in a qualified local governmental unit and is a
facility, functionally obsolete, or blighted, if the eligible
activities on the property are limited to the eligible activities
identified in subdivision (m)(ix).
(vii) Is located north of the 45th parallel, is a facility,
functionally obsolete, or blighted, and the owner or operator makes
new capital investment of $250,000,000.00 or more in this state.
Eligible property does not include qualified agricultural property
exempt under section 7ee of the general property tax act, 1893 PA
206, MCL 211.7ee, from the tax levied by a local school district
for school operating purposes to the extent provided under section
1211 of the revised school code, 1976 PA 451, MCL 380.1211.
(viii) Is not in a qualified local governmental unit and is a
facility, functionally obsolete, or blighted and is designated as
property with a major redevelopment project by the Michigan
economic growth authority under this subparagraph. In each calendar
year, the Michigan economic growth authority may designate no more
than 2 projects as major redevelopment projects under this
subparagraph. For purposes of this subparagraph, a major
redevelopment project means a project which includes all of the
following:
(A) The amount of new construction investment in the project
is $50,000,000.00 or more.
(B) The project includes at least 1 multilevel parking
facility.
(C) The project leads to the creation of at least 300
permanent jobs.
(D) The state and the region will benefit from the project.
(o) "Environmental insurance" means liability insurance for
environmental contamination and cleanup that is not otherwise
required by state or federal law.
(p) "Facility" means that term as defined in section 20101 of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.20101.
(q) "Fiscal year" means the fiscal year of the authority.
(r) "Functionally obsolete" means that the property is unable
to be used to adequately perform the function for which it was
intended due to a substantial loss in value resulting from factors
such as overcapacity, changes in technology, deficiencies or
superadequacies in design, or other similar factors that affect the
property itself or the property's relationship with other
surrounding property.
(s) "Governing body" means the elected body having legislative
powers of a municipality creating an authority under this act.
(t) "Infrastructure improvements" means a street, road,
sidewalk, parking facility, pedestrian mall, alley, bridge, sewer,
sewage treatment plant, property designed to reduce, eliminate, or
prevent the spread of identified soil or groundwater contamination,
drainage system, waterway, waterline, water storage facility, rail
line, utility line or pipeline, or other similar or related
structure or improvement, together with necessary easements for the
structure or improvement, owned or used by a public agency or
functionally connected to similar or supporting property 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, 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 sized to
accommodate reasonably foreseeable development of eligible property
in adjoining areas.
(u) "Initial taxable value" means the taxable value of an
eligible property identified in and subject to a brownfield plan at
the time the resolution adding that eligible property in the
brownfield plan is adopted, as shown either by the most recent
assessment roll for which equalization has been completed at the
time the resolution is adopted or, if provided by the brownfield
plan, by the next assessment roll for which equalization will be
completed following the date the resolution adding that eligible
property in the brownfield plan is adopted. Property exempt from
taxation at the time the initial taxable value is determined shall
be included with the initial taxable value of zero. Property for
which a specific tax is paid in lieu of property tax shall not be
considered exempt from taxation. The state tax commission shall
prescribe the method for calculating the initial taxable value of
property for which a specific tax was paid in lieu of property tax.
(v) "Land bank fast track authority" means an authority
created under the land bank fast track act, 2003 PA 258, MCL
124.751 to 124.774.
(w) "Local taxes" means all taxes levied other than taxes
levied for school operating purposes.
(x) "Municipality" means all of the following:
(i) A city.
(ii) A village.
(iii) A township in those areas of the township that are outside
of a village.
(iv) A township in those areas of the township that are in a
village upon the concurrence by resolution of the village in which
the zone would be located.
(v) A county.
(y) "Owned or under the control of" means that a land bank
fast track authority has 1 or more of the following:
(i) An ownership interest in the property.
(ii) A tax lien on the property.
(iii) A tax deed to the property.
(iv) A contract with this state or a political subdivision of
this state to enforce a lien on the property.
(v) A right to collect delinquent taxes, penalties, or
interest on the property.
(vi) The ability to exercise its authority over the property.
(z) "Qualified facility" means a landfill facility area of 140
or more contiguous acres that is located in a city and that
contains a landfill, a material recycling facility, and an asphalt
plant that are no longer in operation.
(aa) "Qualified local governmental unit" means that term as
defined in the obsolete property rehabilitation act, 2000 PA 146,
MCL 125.2781 to 125.2797.
(bb)
"Qualified taxpayer" means that term as defined in former
sections
38d and 38g of the single business tax act, former 1975
PA
228 , or section 437 of the Michigan business tax act,
2007 PA 36,
MCL 208.1437.
(cc) "Response activity" means that term as defined in section
20101 of the natural resources and environmental protection act,
1994 PA 451, MCL 324.20101.
(dd) "Specific taxes" 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 enterprise zone act, 1985 PA 224,
MCL 125.2101 to 125.2123; 1953 PA 189, MCL 211.181 to 211.182; the
technology park development act, 1984 PA 385, MCL 207.701 to
207.718; the obsolete property rehabilitation act, 2000 PA 146, MCL
125.2781 to 125.2797; the neighborhood enterprise zone act, 1992 PA
147, MCL 207.771 to 207.786; the commercial rehabilitation act,
2005 PA 210, MCL 207.841 to 207.856; or that portion of the tax
levied under the tax reverted clean title act, 2003 PA 260, MCL
211.1021 to 211.1026, that is not required to be distributed to a
land bank fast track authority.
(ee) "Tax increment revenues" means the amount of ad valorem
property taxes and specific taxes attributable to the application
of the levy of all taxing jurisdictions upon the captured taxable
value of each parcel of eligible property subject to a brownfield
plan and personal property located on that property. Tax increment
revenues exclude ad valorem property taxes specifically levied for
the payment of principal of and interest on either obligations
approved by the electors or obligations pledging the unlimited
taxing power of the local governmental unit, and specific taxes
attributable to those ad valorem property taxes. Tax increment
revenues attributable to eligible property also exclude the amount
of ad valorem property taxes or specific taxes captured by a
downtown development authority, tax increment finance authority, or
local development finance authority if those taxes were captured by
these other authorities on the date that eligible property became
subject to a brownfield plan under this act.
(ff) "Taxable value" means the value determined under section
27a of the general property tax act, 1893 PA 206, MCL 211.27a.
(gg) "Taxes levied for school operating purposes" means all of
the following:
(i) The taxes levied by a local school district for operating
purposes.
(ii) The taxes levied under the state education tax act, 1993
PA 331, MCL 211.901 to 211.906.
(iii) That portion of specific taxes attributable to taxes
described under subparagraphs (i) and (ii).
(hh) "Work plan" means a plan that describes each individual
activity to be conducted to complete eligible activities and the
associated costs of each individual activity.
(ii) "Zone" means, for an authority established before June 6,
2000, a brownfield redevelopment zone designated under this act.