Bill Text: MI SB0623 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Economic development; local development financing authority; tax capture districts; provide opt-in and opt-out provisions for certain entities. Amends secs. 2 & 4 of 1986 PA 281 (MCL 125.2152 & 125.2154).
Spectrum: Partisan Bill (Republican 5-0)
Status: (Passed) 2016-12-30 - Assigned Pa 0509'16 With Immediate Effect [SB0623 Detail]
Download: Michigan-2015-SB0623-Engrossed.html
SB-0623, As Passed House, December 14, 2016
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 623
A bill to amend 1986 PA 281, entitled
"The local development financing act,"
by amending sections 2 and 4 (MCL 125.2152 and 125.2154), section 2
as amended by 2013 PA 62 and section 4 as amended by 2012 PA 290.
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 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
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
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 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 Next
Michigan development area, but only to the extent designated as
eligible
property within a development plan approved by a next 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 Next
Michigan development corporation, governing body means the
executive
committee of the next Next
Michigan development
corporation, unless otherwise provided in the interlocal agreement
or
articles of incorporation creating the next 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 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 Next
Michigan development
corporation under section 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 Next
Michigan development area, or a certified alternative energy park,
real or personal property that is located within the certified
technology
park, a next 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 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 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.
(F) Ad valorem property taxes levied under 1 or more of the
following or specific local taxes attributable to those ad valorem
property taxes:
(I) The zoological authorities act, 2008 PA 49, MCL 123.1161
to 123.1183.
(II) The art institute authorities act, 2010 PA 296, MCL
123.1201 to 123.1229.
(III) Except as otherwise provided in section 4(3), ad valorem
property taxes or specific local taxes attributable to those ad
valorem property taxes levied for a separate millage for public
library purposes approved by the electors after December 31, 2016.
(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 technology
park.
(viii) Has established an authority which is seeking or has
entered into an agreement for a certified alternative energy park.
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. If
a separate millage for public library purposes was levied before
January 1, 2017, and all obligations and other protected
obligations of the authority are paid, then the levy is exempt from
capture under this act, unless the library board or commission
allows all or a portion of its taxes levied to be included as tax
increment revenues and subject to capture under this act under the
terms of a written agreement between the library board or
commission and the authority. The written agreement shall be filed
with the clerk of the municipality. However, if a separate millage
for public library purposes was levied before January 1, 2017, and
the authority alters or amends the boundaries of the authority
district or extends the duration of the existing finance plan, then
the library board or commission may, not later than 60 days after a
public hearing is held under this subsection, exempt all or a
portion of its taxes from capture by adopting a resolution to that
effect and filing a copy with the clerk of the municipality that
created the authority. For ad valorem property taxes or specific
local taxes attributable to those ad valorem property taxes levied
for a separate millage for public library purposes approved by the
electors after December 31, 2016, a library board or commission may
allow all or a portion of its taxes levied to be included as tax
increment revenues and subject to capture under this act under the
terms of a written agreement between the library board or
commission and the authority. The written agreement shall be filed
with the clerk of the municipality. However, if the library was
created under section 1 or 10a of 1877 PA 164, MCL 397.201 and
397.210a, or established under 1869 LA 233, then any action of the
library board or commission under this subsection shall have the
concurrence of the chief executive officer of the city that created
the library to be effective.
(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 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 Next
Michigan development corporation in a newspaper or newspapers of
general circulation within the municipalities which are constituent
members
of the next 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 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
Next
Michigan development corporation. The next
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
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 Federal
Highway Administration manual "Highway Functional Classification -
Concepts, Criteria and Procedures" or of another road in the
discretion
of the next Next Michigan development corporation, and
property
adjacent to that property within the territory of the next
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 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.
