Bill Text: MI SB0309 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Economic development; local development financing authority; capture of certain mills for library purposes; modify. Amends secs. 2, 4, 12, 12a, 12b & 12c of 1986 PA 281 (MCL 125.2152 et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-04-20 - Referred To Committee On Finance [SB0309 Detail]

Download: Michigan-2017-SB0309-Introduced.html

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SENATE BILL No. 309

 

 

April 20, 2017, Introduced by Senators JONES, BRANDENBURG, ROBERTSON and MACGREGOR and referred to the Committee on Finance.

 

 

     A bill to amend 1986 PA 281, entitled

 

"The local development financing act,"

 

by amending sections 2, 4, 12, 12a, 12b, and 12c (MCL 125.2152,

 

125.2154, 125.2162, 125.2162a, 125.2162b, and 125.2162c), sections

 

2 and 4 as amended by 2016 PA 509, sections 12, 12a, and 12c as

 

amended by 2012 PA 290, and section 12b as amended by 2015 PA 125.

 

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 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

 

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), (ii),

 

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 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 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 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

 

Michigan development area, but only to the extent designated as

 

eligible property within a development plan approved by a 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

 

Michigan development corporation, governing body means the

 

executive committee of the Next Michigan development corporation,

 

unless otherwise provided in the interlocal agreement or articles

 

of incorporation creating the Next Michigan development corporation

 

or the governing body of an eligible urban entity or its designee

 

as provided in the Next 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 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).(ii).

 

     (x) "Library capture obligation" means a bond, note, or

 

similar instrument evidencing debt for borrowed money issued by the

 

authority before January 1, 2017, which pledges payment of the debt

 

by the authority from an identified source of revenue.

     (y) (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.

 

     (z) (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.

 

     (aa) (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.

 

     (bb) (aa) "Next Michigan development area" means a portion of

 

an authority district designated by a Next Michigan development

 

corporation under section 12e to which a development plan is

 

applicable.

 

     (cc) (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.

 

     (dd) (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.

 

     (ee) (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.

 

     (ff) (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.

 

     (gg) (ff) "Public facility" means 1 or more of the following:

 

     (i) A street, road, bridge, storm water stormwater 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.

 

     (hh) (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) (kk)(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) (kk)(ii)

 

and the distributions under section 11a to repay the obligation

 

being refunded, as calculated using a method approved by the

 

department of treasury.

 

     (ii) (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.

 

     (jj)(ii) "State fiscal year" means the annual period

 

commencing October 1 of each year.

 

     (kk) (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 Michigan

 

development area, or a certified alternative energy park, real or

 

personal property that is located within the certified technology

 

park, a 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 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).

 

     (ll) (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.

 

     (mm) (ll) "Transit-oriented facility" means a facility that

 

houses a transit station in a manner that promotes transit

 

ridership or passenger rail use.

 

     (nn) (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 in effect

 

or approved by electors before January 1, 2017, and all library

 

capture 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 in effect or approved by electors before

 

January 1, 2017, and the authority alters or amends the boundaries

 

of the authority district, adopts a new development plan or finance

 

plan, or extends the duration of, or otherwise modifies or amends,

 

the existing development plan or finance plan, then the library

 

board or commission may, not later than 60 days after a public

hearing required for that action is held under this subsection,

 

act, 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 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 Michigan

 

development corporation in a newspaper or newspapers of general

 

circulation within the municipalities which are constituent members

of the 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

 

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 Michigan development corporation.

 

The 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 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 manual "Highway Functional Classification -

 

Concepts, Criteria and Procedures" or of another road in the

 

discretion of the Next Michigan development corporation, and

 

property adjacent to that property within the territory of the 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 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.

 

     Sec. 12. (1) If the board determines that it is necessary for

the achievement of the purposes of this act, the board shall

 

prepare and submit a tax increment financing plan to the governing

 

body. The plan shall be in compliance with section 13 and shall

 

include a development plan as provided in section 15. The plan

 

shall also contain the following:

 

     (a) A statement of the reasons that the plan will result in

 

the development of captured assessed value that could not otherwise

 

be expected. The reasons may include, but are not limited to,

 

activities of the municipality, authority, or others undertaken

 

before formulation or adoption of the plan in reasonable

 

anticipation that the objectives of the plan would be achieved by

 

some means.

 

     (b) An estimate of the captured assessed value for each year

 

of the plan. The plan may provide for the use of part or all of the

 

captured assessed value or, subject to subsection (3), of the tax

 

increment revenues attributable to the levy of any taxing

 

jurisdiction, but the portion intended to be used shall be clearly

 

stated in the plan. The board or the municipality creating the

 

authority may exclude from captured assessed value a percentage of

 

captured assessed value as specified in the plan or growth in

 

property value resulting solely from inflation. If excluded, the

 

plan shall set forth the method for excluding growth in property

 

value resulting solely from inflation.

 

     (c) The estimated tax increment revenues for each year of the

 

plan.

 

     (d) A detailed explanation of the tax increment procedure.

 

     (e) The maximum amount of note or bonded indebtedness to be

incurred, if any.

 

     (f) The amount of operating and planning expenditures of the

 

authority and municipality, the amount of advances extended by or

 

indebtedness incurred by the municipality, and the amount of

 

advances by others to be repaid from tax increment revenues.

 

     (g) The costs of the plan anticipated to be paid from tax

 

increment revenues as received.

 

     (h) The duration of the development plan and the tax increment

 

plan.

 

     (i) An estimate of the impact of tax increment financing on

 

the revenues of all taxing jurisdictions in which the eligible

 

property is or is anticipated to be located.

 

     (j) A legal description of the eligible property to which the

 

tax increment financing plan applies or shall apply upon

 

qualification as eligible property.

 

     (k) An estimate of the number of jobs to be created as a

 

result of implementation of the tax increment financing plan.

 

     (l) The proposed boundaries of a certified technology park to

 

be created under an agreement proposed to be entered into pursuant

 

to section 12a, or of a certified alternative energy park to be

 

created under an agreement proposed to be entered into pursuant to

 

section 12c, or of a next Next Michigan development area designated

 

under section 12e, an identification of the real property within

 

the certified technology park, the certified alternative energy

 

park, or the next Next Michigan development area to be included in

 

the tax increment financing plan for purposes of determining tax

 

increment revenues, and whether personal property located in the

certified technology park, the certified alternative energy park,

 

or the next Next Michigan development area is exempt from

 

determining tax increment revenues.

 

     (2) Except as provided in subsection (7), a tax increment

 

financing plan shall provide for the use of tax increment revenues

 

for public facilities for eligible property whose captured assessed

 

value produces the tax increment revenues or, to the extent the

 

eligible property is located within a business development area or

 

a next Next Michigan development area, for other eligible property

 

located in the business development area or the next Next Michigan

 

development area. Public facilities for eligible property include

 

the development or improvement of access to and around, or within

 

the eligible property, of road facilities reasonably required by

 

traffic flow to be generated by the eligible property, and the

 

development or improvement of public facilities that are necessary

 

to service the eligible property, whether or not located on that

 

eligible property. If the eligible property identified in the tax

 

increment financing plan is property to which section 2(p)(iv)

 

2(s)(iv) applies, the tax increment financing plan shall not

 

provide for the use of tax increment revenues for public facilities

 

other than those described in the development plan as of April 1,

 

1991. Whether or not provided in the tax increment financing plan,

 

if the eligible property identified in the tax increment financing

 

plan is property to which section 2(s)(iv) applies, then to the

 

extent that captured tax increment revenues are utilized for the

 

costs of cleanup of identified soil and groundwater contamination,

 

the captured tax increment revenues shall be first credited against

the shares of responsibility for the total costs of cleanup of

 

uncollectible parties who are responsible for the identified soil

 

and groundwater contamination pursuant to law, and then shall be

 

credited on a pro rata basis against the shares of responsibility

 

for the total costs of cleanup of other parties who are responsible

 

for the identified soil and groundwater contamination pursuant to

 

law.

 

     (3) The percentage of taxes levied for school operating

 

purposes that is captured and used by the tax increment financing

 

plan and the tax increment financing plans under 1975 PA 197, MCL

 

125.1651 to 125.1681, the tax increment finance authority act, 1980

 

PA 450, MCL 125.1801 to 125.1830, and the brownfield redevelopment

 

financing act, 1996 PA 381, MCL 125.2651 to 125.2672, shall not be

 

greater than the percentage capture and use of taxes levied by a

 

municipality or county for operating purposes under the tax

 

increment financing plan and tax increment financing plans under

 

1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance

 

authority act, 1980 PA 450, MCL 125.1801 to 125.1830, and the

 

brownfield redevelopment financing act, 1996 PA 381, MCL 125.2651

 

to 125.2672. For purposes of the previous sentence, taxes levied by

 

a county for operating purposes include only millage allocated for

 

county or charter county purposes under the property tax limitation

 

act, 1933 PA 62, MCL 211.201 to 211.217a.

 

     (4) Except as otherwise provided by this subsection, approval

 

of the tax increment financing plan shall be in accordance with the

 

notice, hearing, disclosure, and approval provisions of sections 16

 

and 17. If the development plan is part of the tax increment

financing plan, only 1 hearing and approval procedure is required

 

for the 2 plans together. For a plan submitted by an authority

 

established by 2 or more municipalities under sections 3(2) and

 

4(7) or by an authority established by a next Next Michigan

 

development corporation under sections 3(3) and 4(8), the notice

 

required by section 16 may be published jointly by the

 

municipalities in which the authority district is located or by the

 

next Next Michigan development corporation. For a plan submitted by

 

an authority exercising its powers under sections 3(2) and 4(7),

 

the plan shall not be considered approved unless each governing

 

body in which the authority district is located makes the

 

determinations required by section 17 and approves the same plan,

 

including the same modifications, if any, made to the plan by any

 

other governing body. A plan submitted by an authority exercising

 

its powers under sections 3(3) and 4(8) shall be approved if the

 

governing body of the next Next Michigan development corporation

 

makes the determinations required by section 17.

 

     (5) Before the public hearing on the tax increment financing

 

plan, the governing body shall provide a reasonable opportunity to

 

the taxing jurisdictions levying taxes subject to capture to

 

express their views and recommendations regarding the tax increment

 

financing plan. The authority shall fully inform the taxing

 

jurisdictions about the fiscal and economic implications of the

 

proposed tax increment financing plan. The taxing jurisdictions may

 

present their recommendations at the public hearing on the tax

 

increment financing plan. The authority may enter into agreements

 

with the taxing jurisdictions and the governing body of the

municipality in which the authority district is located to share a

 

portion of the captured assessed value of the district or to

 

distribute tax increment revenues among taxing jurisdictions. Upon

 

adoption of the plan, the collection and transmission of the amount

 

of tax increment revenues, as specified in this act, shall be

 

binding on all taxing units levying ad valorem property taxes or

 

specific local taxes against property located in the authority

 

district.

 

     (6) Property qualified as a public facility under section

 

2(ff)(ii) 2(gg)(ii), that is acquired by an authority may be sold,

 

conveyed, or otherwise disposed to any person, public or private,

 

for fair market value or reasonable monetary consideration

 

established by the authority with the concurrence of the Michigan

 

economic development corporation and the municipality in which the

 

eligible property is located based on a fair market value appraisal

 

from a fee appraiser only if the property is sold for fair market

 

value. Unless the property acquired by an authority was located

 

within a certified business park, a certified technology park, a

 

certified alternative energy park, or a next Next Michigan

 

development area at the time of disposition, an authority shall

 

remit all monetary proceeds received from the sale or disposition

 

of property that qualified as a public facility under section

 

2(ff)(ii) 2(gg)(ii) and was purchased with tax increment revenues

 

to the taxing jurisdictions. Proceeds distributed to taxing

 

jurisdictions shall be remitted in proportion to the amount of tax

 

increment revenues attributable to each taxing jurisdiction in the

 

year the property was acquired. If the property was acquired in

part with funds other than tax increment revenues, only that

 

portion of the monetary proceeds received upon disposition that

 

represent the proportion of the cost of acquisition paid with tax

 

increment revenues is required to be remitted to taxing

 

jurisdictions. If the property is located within a certified

 

business park, a certified technology park, or a certified

 

alternative energy park, or a next Next Michigan development area

 

at the time of disposition, the monetary proceeds received from the

 

sale or disposition of that property may be retained by the

 

authority for any purpose necessary to further the development

 

program for the certified business park, certified technology park,

 

certified alternative energy park, or next Next Michigan

 

development area in accordance with the tax increment financing

 

plan.

 

     (7) The tax increment financing plan may provide for the use

 

of tax increment revenues from a certified technology park for

 

public facilities for any eligible property located in the

 

certified technology park. The tax increment financing plan may

 

provide for the use of tax increment revenues from a certified

 

alternative energy park for public facilities for any eligible

 

property located in the certified alternative energy park. The tax

 

increment financing plan may provide for the use of tax increment

 

revenues within or without the development area from which the tax

 

increment revenues are derived, provided that the tax increment

 

revenues shall be used for public facilities within a next Next

 

Michigan development area within the municipality whose levy has

 

contributed to the tax increment revenues except as otherwise

provided in the interlocal agreement creating the next Next

 

Michigan development corporation that established the authority.

 

     (8) If title to property qualified as a public facility under

 

section 2(ff)(ii) 2(gg)(ii) and acquired by an authority with tax

 

increment revenues is sold, conveyed, or otherwise disposed of

 

pursuant to subsection (6) for less than fair market value, the

 

authority shall enter into an agreement relating to the use of the

 

property with the person to whom the property is sold, conveyed, or

 

disposed of, which agreement shall include a penalty provision

 

addressing repayment to the authority if any interest in the

 

property is sold, conveyed, or otherwise disposed of by the person

 

within 12 years after the person received title to the property

 

from the authority. This subsection shall not require enforcement

 

of a penalty provision for a conveyance incident to a merger,

 

acquisition, reorganization, sale-lease back transaction, employee

 

stock ownership plan, or other change in corporate or business form

 

or structure.

 

     (9) The penalty provision described in subsection (8) shall

 

not be less than an amount equal to the difference between the fair

 

market value of the property when originally sold, conveyed, or

 

otherwise disposed of and the actual consideration paid by the

 

person to whom the property was originally sold, conveyed, or

 

otherwise disposed of.

 

     Sec. 12a. (1) A municipality that has created an authority may

 

apply to the Michigan economic development corporation for

 

designation of all or a portion of the authority district as a

 

certified technology park and to enter into an agreement governing

the terms and conditions of the designation. The form of the

 

application shall be in a form specified by the Michigan economic

 

development corporation and shall include information the Michigan

 

economic development corporation determines necessary to make the

 

determinations required under this section.

 

     (2) After receipt of an application, the Michigan economic

 

development corporation may designate, pursuant to an agreement

 

entered into under subsection (3), a certified technology park that

 

is determined by the Michigan economic development corporation to

 

satisfy 1 or more of the following criteria based on the

 

application:

 

     (a) A demonstration of significant support from an institution

 

of higher education, a private research-based institute, or a

 

large, private corporate research and development center located

 

within the proximity of the proposed certified technology park, as

 

evidenced by, but not limited to, the following types of support:

 

     (i) Grants of preferences for access to and commercialization

 

of intellectual property.

 

     (ii) Access to laboratory and other facilities owned by or

 

under control of the institution of higher education or private

 

research-based institute.

 

     (iii) Donations of services.

 

     (iv) Access to telecommunication facilities and other

 

infrastructure.

 

     (v) Financial commitments.

 

     (vi) Access to faculty, staff, and students.

 

     (vii) Opportunities for adjunct faculty and other types of

staff arrangements or affiliations.

 

     (b) A demonstration of a significant commitment on behalf of

 

the institution of higher education, private research-based

 

institute, or a large, private corporate research and development

 

center to the commercialization of research produced at the

 

certified technology park, as evidenced by the intellectual

 

property and, if applicable, tenure policies that reward faculty

 

and staff for commercialization and collaboration with private

 

businesses.

 

     (c) A demonstration that the proposed certified technology

 

park will be developed to take advantage of the unique

 

characteristics and specialties offered by the public and private

 

resources available in the area in which the proposed certified

 

technology park will be located.

 

     (d) The existence of or proposed development of a business

 

incubator within the proposed certified technology park that

 

exhibits the following types of resources and organization:

 

     (i) Significant financial and other types of support from the

 

public or private resources in the area in which the proposed

 

certified technology park will be located.

 

     (ii) A business plan exhibiting the economic utilization and

 

availability of resources and a likelihood of successful

 

development of technologies and research into viable business

 

enterprises.

 

     (iii) A commitment to the employment of a qualified full-time

 

manager to supervise the development and operation of the business

 

incubator.

     (e) The existence of a business plan for the proposed

 

certified technology park that identifies its objectives in a

 

clearly focused and measurable fashion and that addresses the

 

following matters:

 

     (i) A commitment to new business formation.

 

     (ii) The clustering of businesses, technology, and research.

 

     (iii) The opportunity for and costs of development of

 

properties under common ownership or control.

 

     (iv) The availability of and method proposed for development

 

of infrastructure and other improvements, including

 

telecommunications technology, necessary for the development of the

 

proposed certified technology park.

 

     (v) Assumptions of costs and revenues related to the

 

development of the proposed certified technology park.

 

     (f) A demonstrable and satisfactory assurance that the

 

proposed certified technology park can be developed to principally

 

contain eligible property as defined by section 2(s)(iii) and (v).

 

     (3) An authority and a municipality that incorporated the

 

authority may enter into an agreement with the Michigan economic

 

development corporation establishing the terms and conditions

 

governing the certified technology park. Upon designation of the

 

certified technology park pursuant to the terms of the agreement,

 

the subsequent failure of any party to comply with the terms of the

 

agreement shall not result in the termination or rescission of the

 

designation of the area as a certified technology park. The

 

agreement shall include, but is not limited to, the following

 

provisions:

     (a) A description of the area to be included within the

 

certified technology park.

 

     (b) Covenants and restrictions, if any, upon all or a portion

 

of the properties contained within the certified technology park

 

and terms of enforcement of any covenants or restrictions.

 

     (c) The financial commitments of any party to the agreement

 

and of any owner or developer of property within the certified

 

technology park.

 

     (d) The terms of any commitment required from an institution

 

of higher education or private research-based institute for support

 

of the operations and activities at eligible properties within the

 

certified technology park.

 

     (e) The terms of enforcement of the agreement, which may

 

include the definition of events of default, cure periods, legal

 

and equitable remedies and rights, and penalties and damages,

 

actual or liquidated, upon the occurrence of an event of default.

 

     (f) The public facilities to be developed for the certified

 

technology park.

 

     (g) The costs approved for public facilities under section

 

2(dd).2(gg).

 

     (4) If the Michigan economic development corporation has

 

determined that a sale price or rental value at below market rate

 

will assist in increasing employment or private investment in the

 

certified technology park, the authority and municipality have

 

authority to determine the sale price or rental value for public

 

facilities owned or developed by the authority and municipality in

 

the certified technology park at below market rate.

     (5) If public facilities developed pursuant to an agreement

 

entered into under this section are conveyed or leased at less than

 

fair market value or at below market rates, the terms of the

 

conveyance or lease shall include legal and equitable remedies and

 

rights to assure the public facilities are used as eligible

 

property. Legal and equitable remedies and rights may include

 

penalties and actual or liquidated damages.

 

     (6) Except as otherwise provided in this section, an agreement

 

designating a certified technology park may not be made after

 

December 31, 2002, but any agreement made on or before December 31,

 

2002 may be amended after that date. However, the Michigan economic

 

development corporation may enter into an agreement with a

 

municipality after December 31, 2002 and on or before December 31,

 

2005 if that municipality has adopted a resolution of interest to

 

create a certified technology park before December 31, 2002.

 

     (7) The Michigan economic development corporation shall market

 

the certified technology parks and the certified business parks.

 

The Michigan economic development corporation and an authority may

 

contract with each other or any third party for these marketing

 

services.

 

     (8) Except as otherwise provided in subsections (9), (10), and

 

(11), the Michigan economic development corporation shall not

 

designate more than 10 certified technology parks. For purposes of

 

this subsection only, 2 certified technology parks located in a

 

county that contains a city with a population of more than 750,000,

 

shall be counted as 1 certified technology park. Not more than 7 of

 

the certified technology parks designated under this section may

not include a firm commitment from at least 1 business engaged in a

 

high technology high-technology activity creating a significant

 

number of jobs.

 

     (9) The Michigan economic development corporation may

 

designate an additional 5 certified technology parks after November

 

1, 2002 and before December 31, 2007. The Michigan economic

 

development corporation shall not accept applications for the

 

additional certified technology parks under this subsection until

 

after November 1, 2002.

 

     (10) The Michigan economic development corporation may

 

designate an additional 3 certified technology parks after February

 

1, 2008 and before December 31, 2008. The Michigan economic

 

development corporation shall not accept applications for the

 

additional certified technology parks under this subsection until

 

after February 1, 2008.

 

     (11) The Michigan economic development corporation may

 

designate an additional 3 certified technology parks before March

 

31, 2013. It is the intent of the legislature that after the

 

additional 3 certified technology parks are designated under this

 

subsection, no additional certified technology parks shall be

 

designated under this section.

 

     (12) The Michigan economic development corporation shall give

 

priority to applications that include new business activity.

 

     (13) For an authority established by 2 or more municipalities

 

under sections 3(2) and 4(7), each municipality in which the

 

authority district is located by a majority vote of the members of

 

its governing body may make a limited tax pledge to support the

authority's tax increment bonds issued under section 14 or, if

 

authorized by the voters of the municipality, may pledge its full

 

faith and credit for the payment of the principal of and interest

 

on the bonds. The municipalities that have made a pledge to support

 

the authority's tax increment bonds may approve by resolution an

 

agreement among themselves establishing obligations each may have

 

to the other party or parties to the agreement for reimbursement of

 

all or any portion of a payment made by a municipality related to

 

its pledge to support the authority's tax increment bonds.

 

     (14) Not including certified technology parks designated under

 

subsection (8), but for certified technology parks designated under

 

subsections (9), (10), and (11) only, this state shall do all of

 

the following:

 

     (a) Reimburse intermediate school districts each year for all

 

tax revenue lost that was captured by an authority for a certified

 

technology park designated by the Michigan economic development

 

corporation after October 3, 2002.

 

     (b) Reimburse local school districts each year for all tax

 

revenue lost that was captured by an authority for a certified

 

technology park designated by the Michigan economic development

 

corporation after October 3, 2002.

 

     (c) Reimburse the school aid fund from funds other than those

 

appropriated in section 11 of the state school aid act of 1979,

 

1979 PA 94, MCL 388.1611, for an amount equal to the reimbursement

 

calculations under subdivisions (a) and (b) and for all revenue

 

lost that was captured by an authority for a certified technology

 

park designated by the Michigan economic development corporation

after October 3, 2002. Foundation allowances calculated under

 

section 20 of the state school aid act of 1979, 1979 PA 94, MCL

 

388.1620, shall not be reduced as a result of tax revenue lost that

 

was captured by an authority for a certified technology park

 

designated by the Michigan economic development corporation under

 

subsection (9), (10), or (11) after October 3, 2002.

 

     Sec. 12b. (1) A municipality that has created an authority in

 

which a certified technology park has been designated under this

 

act may enter into an agreement with another authority that does

 

not contain a certified technology park to designate a distinct

 

geographic area within the authority district as a certified

 

technology park. The authority shall consider the advantages of the

 

unique characteristics and specialties offered by the public and

 

private resources available in the distinct geographic area, shall

 

consider the benefits to regional cooperation and collaboration,

 

and shall consider whether designating the additional distinct

 

geographic area adds value to the mission of the designated

 

certified technology park. The distinct geographic area is subject

 

to the provisions of section 12a(3), (4), and (5). The state

 

treasurer shall not approve the capture of amounts levied by the

 

state under the state education tax act, 1993 PA 331, MCL 211.901

 

to 211.906, and by local and intermediate school districts as

 

permitted in section 2(jj)(ii)(B) 2(kk)(ii)(B) for more than 9

 

distinct geographic areas designated under this section. In

 

addition, beginning on the effective date of the amendatory act

 

that added subsection (2), July 15, 2015, the state treasurer shall

 

not approve the capture of amounts described in this subsection

unless the application for approval of a distinct geographic area

 

under this subsection is also approved by the Michigan economic

 

development corporation as provided in subsection (2). A copy of

 

the designation shall be filed with the Michigan economic

 

development corporation.

 

     (2) Beginning on the effective date of the amendatory act that

 

added this subsection, July 15, 2015, the Michigan economic

 

development corporation shall designate the distinct geographic

 

areas under subsection (1) pursuant to a competitive application

 

process that has an initial application period and a final

 

application period and that meets all the following:

 

     (a) The initial application period shall begin on the

 

effective date of the amendatory act that added this subsection

 

July 15, 2015 and end on October 1, 2015. All applications

 

submitted during the initial application period shall be approved

 

or denied not later than November 1, 2015. The Michigan economic

 

development corporation may approve up to 3 applications as a

 

result of the initial application period. Applications submitted

 

outside the initial application period shall not be considered

 

under this subdivision.

 

     (b) The final application period shall begin on January 1,

 

2016 and end on July 1, 2016. All applications submitted during the

 

final application period shall be approved or denied by September

 

1, 2016. The Michigan economic development corporation may approve

 

the remaining designations available under subsection (1) as a

 

result of the final application period. However, there is no

 

requirement that all 9 designations be made under this section.

Applications submitted outside the final application period shall

 

not be considered under this subdivision.

 

     (c) The Michigan economic development corporation shall

 

publish the application process and competitive criteria upon which

 

applications will be evaluated on its website. If an application

 

does not meet the requirements of this section, the application

 

shall not be approved by the Michigan economic development

 

corporation.

 

     Sec. 12c. (1) A municipality that has created an authority may

 

apply to the Michigan economic development corporation for

 

designation of all or a portion of the authority district as a

 

certified alternative energy park and to enter into an agreement

 

governing the terms and conditions of the designation. The form of

 

the application shall be in a form specified by the Michigan

 

economic development corporation and shall include information the

 

Michigan economic development corporation determines necessary to

 

make the determinations required under this section.

 

     (2) After receipt of an application, the Michigan economic

 

development corporation may designate, pursuant to an agreement

 

entered into under subsection (3), a certified alternative energy

 

park that is determined by the Michigan economic development

 

corporation to satisfy 1 or more of the following criteria based on

 

the application:

 

     (a) A demonstration that the proposed alternative energy park

 

will be developed to take advantage of the unique characteristics

 

and specialties offered by public and private resources available

 

in the area in which the proposed certified alternative energy park

will be located.

 

     (b) The existence of or strong likelihood of attracting

 

alternative energy technology businesses to the proposed

 

alternative energy park by exhibiting the following types of

 

resources and organization:

 

     (i) Significant financial and other types of support from the

 

public or private resources in the area.

 

     (ii) Proposed or actual ownership of land in sufficient

 

quantity as to attract 1 or more major alternative energy

 

technology businesses.

 

     (c) The existence of a business plan for the proposed

 

certified alternative energy park that identifies its objectives in

 

a clearly focused and measurable fashion and that addresses the

 

following matters:

 

     (i) A commitment to new business formation or major business

 

attraction.

 

     (ii) The clustering of businesses, technology, and research

 

within the region.

 

     (iii) The opportunity for and costs of development of

 

properties under common ownership or control.

 

     (iv) The availability of and method proposed for development

 

and sale or conveyance of shovel-ready sites to include

 

infrastructure and other improvements, including telecommunications

 

technology, necessary for the successful development of the

 

proposed certified alternative energy park.

 

     (v) Assumptions of costs and revenues related to the

 

development of the proposed certified alternative energy park.

     (d) A demonstrable and satisfactory assurance that the

 

proposed certified alternative energy park can be developed to

 

principally contain eligible property as defined by section 2(s)(v)

 

and (vi).

 

     (e) The proposed certified alternative energy park includes a

 

military installation that was operated by the United States

 

department of defense and closed after 1980.

 

     (3) An authority and a municipality that incorporated the

 

authority may enter into an agreement with the Michigan economic

 

development corporation establishing the terms and conditions

 

governing the certified alternative energy park. Upon designation

 

of the certified alternative energy park pursuant to the terms of

 

the agreement, the subsequent failure of any party to comply with

 

the terms of the agreement shall not result in the termination or

 

rescission of the designation of the area as a certified

 

alternative energy park. The agreement shall include, but is not

 

limited to, the following provisions:

 

     (a) A description of the area to be included within the

 

certified alternative energy park.

 

     (b) Covenants and restrictions, if any, upon all or a portion

 

of the properties contained within the certified alternative energy

 

park and terms of enforcement of any covenants or restrictions.

 

     (c) The financial commitments of any party to the agreement

 

and of any owner or developer of property, including sale or

 

transfer of ownership or options thereto upon designation of a

 

certified alternative energy park for property within the certified

 

alternative energy park.

     (d) The terms of enforcement of the agreement, which may

 

include the definition of events of default, cure periods, legal

 

and equitable remedies and rights, and penalties and damages,

 

actual or liquidated, upon the occurrence of an event of default.

 

     (e) Proposed method of ownership of the land within the

 

certified alternative energy park.

 

     (f) The costs approved for public facilities under section

 

2(dd).2(gg).

 

     (g) Proposed method of operating the certified alternative

 

energy park.

 

     (4) If the Michigan economic development corporation has

 

determined that a sale price or rental value at below market rate

 

will assist in increasing employment or private investment in the

 

certified alternative energy park, the authority and municipality

 

have authority to determine the sale price or rental value for

 

public facilities owned or developed by the authority and

 

municipality in the certified alternative energy park at below

 

market rate.

 

     (5) If public facilities developed pursuant to an agreement

 

entered into under this section are conveyed or leased at less than

 

fair market value or at below market rates, the terms of the

 

conveyance or lease shall include legal and equitable remedies and

 

rights to assure that the public facilities are used as eligible

 

property. Legal and equitable remedies and rights may include

 

penalties and actual or liquidated damages.

 

     (6) Except as otherwise provided in this section, an agreement

 

designating a certified alternative energy park may not be made

after December 31, 2012, but any agreement made on or before

 

December 31, 2012 may be amended after that date.

 

     (7) The Michigan economic development corporation shall not

 

designate more than 10 certified alternative energy parks. For

 

purposes of this subsection only, certified alternative energy

 

parks located in the same county shall be counted as 1 certified

 

alternative energy park.

 

     (8) For an authority established by 2 or more municipalities

 

under sections 3(2) and 4(7), each municipality in which the

 

authority district is located by a majority vote of the members of

 

its governing body may make a limited tax pledge to support the

 

authority's tax increment bonds issued under section 14 or, if

 

authorized by the voters of the municipality, may pledge its full

 

faith and credit for the payment of the principal of and interest

 

on the bonds. The municipalities that have made a pledge to support

 

the authority's tax increment bonds may approve by resolution an

 

agreement among themselves establishing obligations each may have

 

to the other party or parties to the agreement for reimbursement of

 

all or any portion of a payment made by a municipality related to

 

its pledge to support the authority's tax increment bonds.

 

     (9) Upon approval of the Michigan economic development

 

corporation, the certified alternative energy park may be owned and

 

operated by an economic development corporation created under the

 

economic development corporations act, 1974 PA 338, MCL 125.1601 to

 

125.1636, or other public body agreeable to all members.