Bill Text: MI HB5393 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Economic development; other; qualifying period for assessment; modify. Amends secs. 10, 10a, 10c, 10f, 10g & 10k of 1961 PA 120 (MCL 125.990 et seq.).

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2016-02-24 - Bill Electronically Reproduced 02/23/2016 [HB5393 Detail]

Download: Michigan-2015-HB5393-Introduced.html

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HOUSE BILL No. 5393

February 23, 2016, Introduced by Reps. Chang, Pagan, Garrett, Durhal and Irwin and referred to the Committee on Local Government.

 

     A bill to amend 1961 PA 120, entitled

 

"An act to authorize the development or redevelopment of principal

shopping districts and business improvement districts; to permit

the creation of certain boards; to provide for the operation of

principal shopping districts and business improvement districts; to

provide for the creation, operation, and dissolution of business

improvement zones; and to authorize the collection of revenue and

the bonding of certain local governmental units for the development

or redevelopment projects,"

 

by amending sections 10, 10a, 10c, 10f, 10g, and 10k (MCL 125.990,

 

125.990a, 125.990c, 125.990f, 125.990g, and 125.990k), as amended

 

by 2013 PA 126.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 10. As used in this chapter:

 

     (a) "Assessable property" means real property in a zone area

 

other than property classified as residential real property under

 

section 34c of the general property tax act, 1893 PA 206, MCL

 

211.34c, or real property exempt from the collection of taxes under

the general property tax act, 1893 PA 206, MCL 211.1 to 211.155.

 

     (b) "Assessment" means an assessment imposed under this

 

chapter against assessable property for the benefit of the property

 

owners.

 

     (c) "Assessment revenues" means the money collected by a

 

business improvement zone from any assessments, including any

 

interest on the assessments.

 

     (d) "Board" means the board of directors of a business

 

improvement zone.

 

     (e) "Business improvement zone" means a business improvement

 

zone created under this chapter.

 

     (f) "Nonprofit corporation" means a nonprofit corporation

 

organized under the nonprofit corporation act, 1982 PA 162, MCL

 

450.2101 to 450.3192, and which complies with all of the following:

 

     (i) The articles of incorporation of the nonprofit corporation

 

provide that the nonprofit corporation may promote a business

 

improvement zone and may also provide management services related

 

to the implementation of a zone plan.

 

     (ii) The nonprofit corporation is exempt from federal income

 

tax under section 501(c)(4) or 501(c)(6) of the internal revenue

 

code, 28 USC 501.

 

     (g) "Person" means an individual, partnership, corporation,

 

limited liability company, association, or other legal entity.

 

     (h) "Project" means any activity for the benefit of property

 

owners authorized by section 10a to enhance the business

 

environment within a zone area.

 

     (i) "Property owner" means a person who owns, or an agent

authorized in writing by a person who owns, assessable property

 

according to the records of the treasurer of the city or village in

 

which the business improvement zone is located.

 

     (j) "10-year "Qualifying period" means the period in which a

 

business improvement zone is authorized to operate and impose and

 

collect assessments, beginning on the date that the business

 

improvement zone is created or renewed assessment imposed by the

 

treasurer of the city or village who is collecting the assessment

 

under section 10h and ending 7 to 10 calendar years after that date

 

as determined in the petition described in section 10c. The 10-year

 

period or qualifying period of a business improvement zone that was

 

created before the date of the amendatory act that added this

 

sentence begins on the date that the first business improvement

 

zone assessment became imposed by the treasurer of the city or

 

village who is collecting the assessment under section 10h.

 

     (k) "Zone area" means the area designated in the zone plan as

 

the area to be served by the business improvement zone.

 

     (l) "Zone plan" means a set of goals, strategies, objectives,

 

and guidelines for the operation of a business improvement zone, as

 

approved at a meeting of property owners conducted under section

 

10d.

 

     Sec. 10a. (1) A business improvement zone is a public body

 

corporate and may do 1 or more of the following for the benefit of

 

property owners located in the business improvement zone:

 

     (a) Acquire, through purchase, lease, or gift, construct,

 

develop, improve, maintain, operate, or reconstruct park areas,

 

planting areas, and related facilities within the zone area.

     (b) Acquire, construct, clean, improve, maintain, reconstruct,

 

or relocate sidewalks, street curbing, street medians, fountains,

 

and lighting within the zone area.

 

     (c) Develop and propose lighting standards within the zone

 

area.

 

     (d) Acquire, plant, and maintain trees, shrubs, flowers, or

 

other vegetation within the zone area.

 

     (e) Provide or contract for security services with other

 

public or private entities and purchase equipment or technology

 

related to security services within the zone area.

 

     (f) Promote and sponsor cultural or recreational activities.

 

     (g) Engage in economic development activities, including, but

 

not limited to, promotion of business, retail, or industrial

 

development, developer recruitment, business recruitment, business

 

marketing, business retention, public relations efforts, and market

 

research.

 

     (h) Engage in other activities with the purpose to enhance the

 

economic prosperity, enjoyment, appearance, image, and safety of

 

the zone area.

 

     (i) Acquire by purchase or gift, maintain, or operate real or

 

personal property necessary to implement this chapter.

 

     (j) Solicit and accept gifts or grants to further the zone

 

plan.

 

     (k) Sue or be sued.

 

     (l) Do all other acts and things necessary or convenient to

 

exercise the powers, duties, and jurisdictions of the business

 

improvement zone under this act or other laws that relate to the

purposes, powers, duties, and jurisdictions of the business

 

improvement zone.

 

     (2) A business improvement zone may contract with a nonprofit

 

corporation or any other public or private entity and may pay a

 

reasonable fee to the nonprofit corporation or other public or

 

private entity for services provided. Two or more business

 

improvement zones may contract with the same nonprofit corporation

 

or public or private entity under this subsection.

 

     (3) A business improvement zone has the authority to borrow

 

money in anticipation of the receipt of assessments if all of the

 

following conditions are satisfied:

 

     (a) The loan will not be requested or authorized, or will not

 

mature, within 90 days before the expiration of the 10-year

 

qualifying period.

 

     (b) The amount of the loan does not exceed 50% of the annual

 

average assessment revenue of the business improvement zone during

 

the previous year or, in the case of a business improvement zone

 

that has been in existence for less than 1 year, the loan does not

 

exceed 25% of the projected annual assessment revenue.

 

     (c) The loan repayment period does not extend beyond the 10-

 

year qualifying period.

 

     (d) The loan is subject to the revised municipal finance act,

 

2001 PA 34, MCL 141.2101 to 141.2821.

 

     (4) The services provided by and projects of a business

 

improvement zone are services and projects of the business

 

improvement zone and are not services, functions, or projects of

 

the municipality in which the business improvement zone is located.

The services provided by and projects of a business improvement

 

zone are supplemental to the services, projects, and functions of

 

the city or village in which the business improvement zone is

 

located.

 

     (5) The business improvement zone has no other authority than

 

the authority described in this act or authorized by other laws of

 

this state.

 

     Sec. 10c. A person may initiate the establishment of a

 

business improvement zone by the delivery of a petition to the

 

clerk of the city or village in which a proposed zone area is

 

located. The petition shall include all of the following:

 

     (a) An attached map and description of the geographic

 

boundaries of the zone area sufficient to identify each assessable

 

property included.

 

     (b) The signatures of property owners of parcels representing

 

not less than 30% of the property owners within the zone area,

 

weighted as provided in section 10f(2).

 

     (c) An attached listing, by tax parcel identification number,

 

of all parcels within the zone area, separately identifying

 

assessable property.

 

     (d) An attached zone plan, which shall include all of the

 

following:

 

     (i) The proposed initial board of directors for the zone,

 

except for a member of the board of directors who may be appointed

 

by the city or village under section 10g(2).

 

     (ii) The method for removal, appointment, and replacement of

 

the board.

     (iii) A description of projects planned during the 10-year

 

qualifying period, including the scope, nature, and duration of the

 

projects.

 

     (iv) An estimate of the total amount of expenditures for

 

projects planned during the 10-year qualifying period.

 

     (v) The proposed source or sources of financing for the

 

projects.

 

     (vi) If the proposed financing includes assessments, the

 

projected amount or rate of the assessments for each year and the

 

basis upon which the assessments are to be imposed on assessable

 

property.

 

     (vii) A plan of dissolution for the business improvement zone.

 

     (viii) Beginning on the effective date of the amendatory act

 

that added this subparagraph, the number of calendar years in the

 

qualifying period, not more than 10 calendar years and not less

 

than 7 calendar years.

 

     (e) A basis for allocating assessments in the zone area,

 

including, but not limited to, assessments based upon taxable value

 

or assessments based upon assessed value.

 

     Sec. 10f. (1) All property owners as of the date of the

 

delivery of the petition as provided in section 10c are eligible to

 

participate in the election. The election shall be conducted by

 

mail. The question to be voted on by the property owners is the

 

adoption of the zone plan and the establishment of the business

 

improvement zone, including the identity of the initial board.

 

     (2) If the zone plan for the zone area provides a basis for

 

allocating assessments based upon taxable value, the votes of

property owners shall be weighted in proportion to the amount that

 

the taxable value of their respective real property for the

 

preceding calendar year bears to the taxable value of all

 

assessable property in the zone area. If the zone plan for the zone

 

area provides for allocation of assessments based upon assessed

 

value, the votes of property owners shall be weighted in proportion

 

to the amount that the assessed value of their respective real

 

property for the preceding calendar year bears to the assessed

 

value of all assessable property in the zone area. If the zone plan

 

for the zone area provides a basis for allocating assessments other

 

than taxable value or assessed value, the votes of property owners

 

shall be weighted in proportion to the amount that the weighted

 

value for their respective real property bears to the total

 

weighted value of all assessable property in the zone area. In no

 

case shall the total number of votes assigned to any 1 property

 

owner be equal to more than 25% of the total number of votes

 

eligible to be cast in the election.

 

     (3) A zone plan and the proposal for the establishment of a

 

business improvement zone, including the identity of the initial

 

board, shall be considered adopted upon the approval of more than

 

60% of the property owners voting in the election, with votes

 

weighted as provided in subsection (2).

 

     (4) Upon acceptance or rejection of a business improvement

 

zone and zone plan by the property owners, the resulting business

 

improvement zone or the person filing the petition under section

 

10c shall, at the request of the city or village, reimburse the

 

city or village for all or a portion of the reasonable expenses

incurred to comply with this chapter. The governing body of the

 

city or village may forgive and choose not to collect all or a

 

portion of the reasonable expenses incurred to comply with this

 

chapter.

 

     (5) Adoption of a business improvement zone and zone plan

 

under this section authorizes the creation of the business

 

improvement zone and the implementation of the zone plan for the

 

10-year qualifying period.

 

     (6) Adoption of a business improvement zone and zone plan

 

under this section and the creation of the business improvement

 

zone does not relieve the business improvement zone from following,

 

or does not waive any rights of the city or village to enforce, any

 

applicable laws, statutes, or ordinances. A business improvement

 

zone created under this chapter shall comply with all applicable

 

state and federal laws.

 

     (7) To the extent not protected by the immunity conferred by

 

1964 PA 170, MCL 691.1401 to 691.1419, a city or village that

 

approves a business improvement zone within its boundaries is

 

immune from civil or administrative liability arising from any

 

actions of that business improvement zone.

 

     Sec. 10g. (1) The day-to-day activities of the business

 

improvement zone and implementation of the zone plan shall be

 

managed by a board of directors.

 

     (2) The board shall consist of an odd number of directors and

 

shall not be smaller than 5 and not larger than 15 in number. The

 

board may include 1 director nominated by the chief executive of

 

the city or village and confirmed by the governing body of the city

or village. A nomination not disapproved by a governing body within

 

60 days shall stand confirmed.

 

     (3) The duties and responsibilities of the board shall be

 

prescribed in the zone plan and to the extent applicable shall

 

include all of the following duties and responsibilities:

 

     (a) Developing administrative procedures relating to the

 

implementation of the zone plan.

 

     (b) Recommending amendments to the zone plan.

 

     (c) Scheduling and conducting an annual meeting of the

 

property owners.

 

     (d) Developing a zone plan for the next 10-year qualifying

 

period.

 

     (4) Members of the board shall serve without compensation.

 

However, members of the board may be reimbursed for their actual

 

and necessary expenses incurred in the performance of their

 

official duties as members of the board.

 

     Sec. 10k. (1) Prior to the expiration of any 10-year

 

qualifying period, the board shall notify the property owners

 

within the business improvement zone of a special meeting by first-

 

class mail at least 14 days prior to the scheduled date of the

 

meeting to approve a new zone plan for the next 10-year qualifying

 

period. Notice under this section shall include the specific

 

location, scheduled date, and time of the meeting.

 

     (2) Approval of the new zone plan at the special meeting by

 

more than 60% of the property owners of assessable property voting

 

at that meeting, with the vote of the property owners being

 

weighted in accordance with section 10f(2), constitutes

reauthorization of the business improvement zone for an additional

 

10-year qualifying period, commencing as of the expiration of the

 

10-year qualifying period then in effect. If the new zone plan

 

reflects any new assessment, or reflects an extension of any

 

assessment beyond the period previously approved by the city or

 

village in which the business improvement zone is located, the new

 

or extended assessment shall be effective only with the approval of

 

the governing body of the city or village.