Bill Text: MI SB0492 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Economic development; brownfield redevelopment authority; definition of eligible activities; revise. Amends secs. 2 & 13 of 1996 PA 381 (MCL 125.2652 & 125.2663).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2010-03-10 - Referred To Committee On Commerce [SB0492 Detail]
Download: Michigan-2009-SB0492-Engrossed.html
SB-0492, As Passed Senate, March 10, 2010
SUBSTITUTE FOR
SENATE BILL NO. 492
A bill to amend 1996 PA 381, entitled
"Brownfield redevelopment financing act,"
by amending sections 2 and 13 (MCL 125.2652 and 125.2663), section
2 as amended by 2007 PA 204 and section 13 as amended by 2007 PA
202.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Additional response activities" means response activities
identified as part of a brownfield plan that are in addition to
baseline environmental assessment activities and due care
activities for an eligible property.
(b) "Authority" means a brownfield redevelopment authority
created under this act.
(c) "Baseline environmental assessment" means that term as
defined in section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(d) "Baseline environmental assessment activities" means those
response activities identified as part of a brownfield plan that
are necessary to complete a baseline environmental assessment for
an eligible property in the brownfield plan.
(e) "Blighted" means property that meets any of the following
criteria as determined by the governing body:
(i) Has been declared a public nuisance in accordance with a
local housing, building, plumbing, fire, or other related code or
ordinance.
(ii) Is an attractive nuisance to children because of physical
condition, use, or occupancy.
(iii) Is a fire hazard or is otherwise dangerous to the safety
of persons or property.
(iv) Has had the utilities, plumbing, heating, or sewerage
permanently disconnected, destroyed, removed, or rendered
ineffective so that the property is unfit for its intended use.
(v) Is tax reverted property owned by a qualified local
governmental unit, by a county, or by this state. The sale, lease,
or transfer of tax reverted property by a qualified local
governmental unit, county, or this state after the property's
inclusion in a brownfield plan shall not result in the loss to the
property of the status as blighted property for purposes of this
act.
(vi) Is property owned or under the control of a land bank fast
track authority under the land bank fast track act, whether or not
located within a qualified local governmental unit. Property
included within a brownfield plan prior to the date it meets the
requirements of this subdivision to be eligible property shall be
considered to become eligible property as of the date the property
is determined to have been or becomes qualified as, or is combined
with, other eligible property. The sale, lease, or transfer of the
property by a land bank fast track authority after the property's
inclusion in a brownfield plan shall not result in the loss to the
property of the status as blighted property for purposes of this
act.
(vii) Has substantial subsurface demolition debris buried on
site so that the property is unfit for its intended use.
(f) "Board" means the governing body of an authority.
(g) "Brownfield plan" means a plan that meets the requirements
of section 13 and is adopted under section 14.
(h) "Captured taxable value" means the amount in 1 year by
which the current taxable value of an eligible property subject to
a brownfield plan, including the taxable value or assessed value,
as appropriate, of the property for which specific taxes are paid
in lieu of property taxes, exceeds the initial taxable value of
that eligible property. The state tax commission shall prescribe
the method for calculating captured taxable value.
(i) "Chief executive officer" means the mayor of a city, the
village manager of a village, the township supervisor of a
township, or the county executive of a county or, if the county
does not have an elected county executive, the chairperson of the
county board of commissioners.
(j) "Department" means the department of environmental
quality.
(k) "Due care activities" means those response activities
identified as part of a brownfield plan that are necessary to allow
the owner or operator of an eligible property in the plan to comply
with the requirements of section 20107a of the natural resources
and environmental protection act, 1994 PA 451, MCL 324.20107a.
(l) "Economic opportunity zone" means 1 or more parcels of
property that meet all of the following:
(i) That together are 40 or more acres in size.
(ii) That contain a manufacturing facility that consists of
500,000 or more square feet.
(iii) That are located in a municipality that has a population
of 30,000 or less and that is contiguous to a qualified local
governmental unit.
(m) "Eligible activities" or "eligible activity" means 1 or
more of the following:
(i) Baseline environmental assessment activities.
(ii) Due care activities.
(iii) Additional response activities.
(iv) For eligible activities on eligible property that was used
or is currently used for commercial, industrial, or residential
purposes that is in a qualified local governmental unit, that is
owned or under the control of a land bank fast track authority, or
that is located in an economic opportunity zone, and is a facility,
functionally obsolete, or blighted, and except for purposes of
former section 38d of the single business tax act, 1975 PA 228, the
following additional activities:
(A) Infrastructure improvements that directly benefit eligible
property.
(B) Demolition of structures that is not response activity
under section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(C) Lead or asbestos abatement.
(D) Site preparation that is not response activity under
section 20101 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.20101.
(E) Assistance to a land bank fast track authority in clearing
or quieting title to, or selling or otherwise conveying, property
owned or under the control of a land bank fast track authority or
the acquisition of property by the land bank fast track authority
if the acquisition of the property is for economic development
purposes.
(f) Assistance to a qualified local governmental unit or
authority in clearing or quieting title to, or selling or otherwise
conveying, property owned or under the control of a qualified local
governmental unit or authority or the acquisition of property by a
qualified local governmental unit or authority if the acquisition
of the property is for economic development purposes.
(v) Relocation of public buildings or operations for economic
development purposes.
(vi) For eligible activities on eligible property that is a
qualified facility that is not located in a qualified local
governmental unit and that is a facility, functionally obsolete, or
blighted, the following additional activities:
(A) Infrastructure improvements that directly benefit eligible
property.
(B) Demolition of structures that is not response activity
under section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(C) Lead or asbestos abatement.
(D) Site preparation that is not response activity under
section 20101 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.20101.
(vii) For eligible activities on eligible property that is not
located in a qualified local governmental unit and that is a
facility, functionally obsolete, or blighted, the following
additional activities:
(A) Demolition of structures that is not response activity
under section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(B) Lead or asbestos abatement.
(viii) Reasonable costs of developing and preparing brownfield
plans and work plans.
(ix) For property that is not located in a qualified local
governmental unit and that is a facility, functionally obsolete, or
blighted, that is a former mill that has not been used for
industrial purposes for the immediately preceding 2 years, that is
located along a river that is a federal superfund site listed under
the comprehensive environmental response, compensation, and
liability act of 1980, 42 USC 9601 to 9675, and that is located in
a city with a population of less than 10,000 persons, the following
additional activities:
(A) Infrastructure improvements that directly benefit the
property.
(B) Demolition of structures that is not response activity
under section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(C) Lead or asbestos abatement.
(D) Site preparation that is not response activity under
section 20101 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.20101.
(x) For eligible activities on eligible property that is
located north of the 45th parallel, that is a facility,
functionally obsolete, or blighted, and the owner or operator of
which makes new capital investment of $250,000,000.00 or more in
this state, the following additional activities:
(A) Demolition of structures that is not response activity
under section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(B) Lead or asbestos abatement.
(xi) Reasonable costs of environmental insurance.
(n) Except as otherwise provided in this subdivision,
"eligible property" means property for which eligible activities
are identified under a brownfield plan that was used or is
currently used for commercial, industrial, public, or residential
purposes, including personal property located on the property, to
the extent included in the brownfield plan, and that is 1 or more
of the following:
(i) Is in a qualified local governmental unit and is a
facility, functionally obsolete, or blighted and includes parcels
that are adjacent or contiguous to that property if the development
of the adjacent and contiguous parcels is estimated to increase the
captured taxable value of that property.
(ii) Is not in a qualified local governmental unit and is a
facility, and includes parcels that are adjacent or contiguous to
that property if the development of the adjacent and contiguous
parcels is estimated to increase the captured taxable value of that
property.
(iii) Is tax reverted property owned or under the control of a
land bank fast track authority.
(iv) Is not in a qualified local governmental unit, is a
qualified facility, and is a facility, functionally obsolete, or
blighted, if the eligible activities on the property are limited to
the eligible activities identified in subdivision (m)(vi).
(v) Is not in a qualified local governmental unit and is a
facility, functionally obsolete, or blighted, if the eligible
activities on the property are limited to the eligible activities
identified in subdivision (m)(vii).
(vi) Is not in a qualified local governmental unit and is a
facility, functionally obsolete, or blighted, if the eligible
activities on the property are limited to the eligible activities
identified in subdivision (m)(ix).
(vii) Is located north of the 45th parallel, is a facility,
functionally obsolete, or blighted, and the owner or operator makes
new capital investment of $250,000,000.00 or more in this state.
Eligible property does not include qualified agricultural property
exempt under section 7ee of the general property tax act, 1893 PA
206, MCL 211.7ee, from the tax levied by a local school district
for school operating purposes to the extent provided under section
1211 of the revised school code, 1976 PA 451, MCL 380.1211.
(o) "Environmental insurance" means liability insurance for
environmental contamination and cleanup that is not otherwise
required by state or federal law.
(p) "Facility" means that term as defined in section 20101 of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.20101.
(q) "Fiscal year" means the fiscal year of the authority.
(r) "Functionally obsolete" means that the property is unable
to be used to adequately perform the function for which it was
intended due to a substantial loss in value resulting from factors
such as overcapacity, changes in technology, deficiencies or
superadequacies in design, or other similar factors that affect the
property itself or the property's relationship with other
surrounding property.
(s) "Governing body" means the elected body having legislative
powers of a municipality creating an authority under this act.
(t) "Infrastructure improvements" means a street, road,
sidewalk, parking facility, pedestrian mall, alley, bridge, sewer,
sewage treatment plant, property designed to reduce, eliminate, or
prevent the spread of identified soil or groundwater contamination,
drainage system, waterway, waterline, water storage facility, rail
line, utility line or pipeline, or other similar or related
structure or improvement, together with necessary easements for the
structure or improvement, owned or used by a public agency or
functionally connected to similar or supporting property owned or
used by a public agency, or designed and dedicated to use by, for
the benefit of, or for the protection of the health, welfare, or
safety of the public generally, whether or not used by a single
business entity, provided that any road, street, or bridge shall be
continuously open to public access and that other property shall be
located in public easements or rights-of-way and sized to
accommodate reasonably foreseeable development of eligible property
in adjoining areas.
(u) "Initial taxable value" means the taxable value of an
eligible property identified in and subject to a brownfield plan at
the time the resolution adding that eligible property in the
brownfield plan is adopted, as shown either by the most recent
assessment roll for which equalization has been completed at the
time the resolution is adopted or, if provided by the brownfield
plan, by the next assessment roll for which equalization will be
completed following the date the resolution adding that eligible
property in the brownfield plan is adopted. Property exempt from
taxation at the time the initial taxable value is determined shall
be included with the initial taxable value of zero. Property for
which a specific tax is paid in lieu of property tax shall not be
considered exempt from taxation. The state tax commission shall
prescribe the method for calculating the initial taxable value of
property for which a specific tax was paid in lieu of property tax.
(v) "Land bank fast track authority" means an authority
created under the land bank fast track act, 2003 PA 258, MCL
124.751 to 124.774.
(w) "Local taxes" means all taxes levied other than taxes
levied for school operating purposes.
(x) "Municipality" means all of the following:
(i) A city.
(ii) A village.
(iii) A township in those areas of the township that are outside
of a village.
(iv) A township in those areas of the township that are in a
village upon the concurrence by resolution of the village in which
the zone would be located.
(v) A county.
(y) "Owned or under the control of" means that a land bank
fast track authority has 1 or more of the following:
(i) An ownership interest in the property.
(ii) A tax lien on the property.
(iii) A tax deed to the property.
(iv) A contract with this state or a political subdivision of
this state to enforce a lien on the property.
(v) A right to collect delinquent taxes, penalties, or
interest on the property.
(vi) The ability to exercise its authority over the property.
(z) "Qualified facility" means a landfill facility area of 140
or more contiguous acres that is located in a city and that
contains a landfill, a material recycling facility, and an asphalt
plant that are no longer in operation.
(aa) "Qualified local governmental unit" means that term as
defined in the obsolete property rehabilitation act, 2000 PA 146,
MCL 125.2781 to 125.2797.
(bb) "Qualified taxpayer" means that term as defined in former
sections 38d and 38g of the single business tax act, 1975 PA 228,
or section 437 of the Michigan business tax act, 2007 PA 36, MCL
208.1437.
(cc) "Response activity" means that term as defined in section
20101 of the natural resources and environmental protection act,
1994 PA 451, MCL 324.20101.
(dd) "Specific taxes" means a tax levied under 1974 PA 198,
MCL 207.551 to 207.572; the commercial redevelopment act, 1978 PA
255, MCL 207.651 to 207.668; the enterprise zone act, 1985 PA 224,
MCL 125.2101 to 125.2123; 1953 PA 189, MCL 211.181 to 211.182; the
technology park development act, 1984 PA 385, MCL 207.701 to
207.718; the obsolete property rehabilitation act, 2000 PA 146, MCL
125.2781 to 125.2797; the neighborhood enterprise zone act, 1992 PA
147, MCL 207.771 to 207.786; the commercial rehabilitation act,
2005 PA 210, MCL 207.841 to 207.856; or that portion of the tax
levied under the tax reverted clean title act, 2003 PA 260, MCL
211.1021 to 211.1026, that is not required to be distributed to a
land bank fast track authority.
(ee) "Tax increment revenues" means the amount of ad valorem
property taxes and specific taxes attributable to the application
of the levy of all taxing jurisdictions upon the captured taxable
value of each parcel of eligible property subject to a brownfield
plan and personal property located on that property. Tax increment
revenues exclude ad valorem property taxes specifically levied for
the payment of principal of and interest on either obligations
approved by the electors or obligations pledging the unlimited
taxing power of the local governmental unit, and specific taxes
attributable to those ad valorem property taxes. Tax increment
revenues attributable to eligible property also exclude the amount
of ad valorem property taxes or specific taxes captured by a
downtown development authority, tax increment finance authority, or
local development finance authority if those taxes were captured by
these other authorities on the date that eligible property became
subject to a brownfield plan under this act.
(ff) "Taxable value" means the value determined under section
27a of the general property tax act, 1893 PA 206, MCL 211.27a.
(gg) "Taxes levied for school operating purposes" means all of
the following:
(i) The taxes levied by a local school district for operating
purposes.
(ii) The taxes levied under the state education tax act, 1993
PA 331, MCL 211.901 to 211.906.
(iii) That portion of specific taxes attributable to taxes
described under subparagraphs (i) and (ii).
(hh) "Work plan" means a plan that describes each individual
activity to be conducted to complete eligible activities and the
associated costs of each individual activity.
(ii) "Zone" means, for an authority established before June 6,
2000, a brownfield redevelopment zone designated under this act.
Sec. 13. (1) Subject to section 15, the board may implement a
brownfield plan. The brownfield plan may apply to 1 or more parcels
of eligible property whether or not those parcels of eligible
property are contiguous and may be amended to apply to additional
parcels of eligible property. Except as otherwise authorized by
this act, if more than 1 eligible property is included within the
plan, the tax increment revenues under the plan shall be determined
individually for each eligible property. Each plan or an amendment
to a plan shall be approved by the governing body of the
municipality and shall contain all of the following:
(a) A description of the costs of the plan intended to be paid
for with the tax increment revenues or, for a plan for eligible
properties qualified on the basis that the property is owned or
under the control of a land bank fast track authority, a listing of
all eligible activities that may be conducted for 1 or more of the
eligible properties subject to the plan.
(b) A brief summary of the eligible activities that are
proposed for each eligible property or, for a plan for eligible
properties qualified on the basis that the property is owned or
under the control of a land bank fast track authority, a brief
summary of eligible activities conducted for 1 or more of the
eligible properties subject to the plan.
(c) An estimate of the captured taxable value and tax
increment revenues for each year of the plan from the eligible
property. The plan may provide for the use of part or all of the
captured taxable value, including deposits in the local site
remediation revolving fund, but the portion intended to be used
shall be clearly stated in the plan. The plan shall not provide
either for an exclusion from captured taxable value of a portion of
the captured taxable value or for an exclusion of the tax levy of 1
or more taxing jurisdictions unless the tax levy is excluded from
tax increment revenues in section 2(dd), or unless the tax levy is
excluded from capture under section 15.
(d) The method by which the costs of the plan will be
financed, including a description of any advances made or
anticipated to be made for the costs of the plan from the
municipality.
(e) The maximum amount of note or bonded indebtedness to be
incurred, if any.
(f) The duration of the brownfield plan for eligible
activities on eligible property which shall not exceed 35 years
following the date of the resolution approving the plan amendment
related to a particular eligible property. Each plan amendment
shall also contain the duration of capture of tax increment
revenues including the beginning date of the capture of tax
increment revenues, which beginning date shall be identified in the
brownfield plan and which beginning date shall not be later than 5
years following the date of the resolution approving the plan
amendment related to a particular eligible property and which
duration shall not exceed the lesser of the period authorized under
subsections (4) and (5) or 30 years from the beginning date of the
capture of tax increment revenues. The date for the beginning of
capture of tax increment revenues may be amended by the authority
but not to a date later than 5 years after the date of the
resolution adopting the plan. The authority may not amend the date
for the beginning of capture of tax increment revenues if the
authority has begun to reimburse eligible activities from the
capture of tax increment revenues. The authority may not amend the
date for the beginning of capture if that amendment would lead to
the duration of capture of tax increment revenues being longer than
30 years or the period authorized under subsections (4) and (5). If
the date for the beginning of capture of tax increment revenues is
amended by the authority and that plan includes the capture of tax
increment revenues for school operating purposes, then the
authority that amended that plan shall notify the department and
the Michigan economic growth authority within 30 days of the
approval of the amendment.
(g) An estimate of the impact of tax increment financing on
the revenues of all taxing jurisdictions in which the eligible
property is located.
(h) A legal description of the eligible property to which the
plan applies, a map showing the location and dimensions of each
eligible property, a statement of the characteristics that qualify
the property as eligible property, and a statement of whether
personal property is included as part of the eligible property. If
the project is on property that is functionally obsolete, the
taxpayer shall include, with the application, an affidavit signed
by a level 3 or level 4 assessor, that states that it is the
assessor's expert opinion that the property is functionally
obsolete and the underlying basis for that opinion.
(i) Estimates of the number of persons residing on each
eligible property to which the plan applies and the number of
families and individuals to be displaced. If occupied residences
are designated for acquisition and clearance by the authority, the
plan shall include a demographic survey of the persons to be
displaced, a statistical description of the housing supply in the
community, including the number of private and public units in
existence or under construction, the condition of those in
existence, the number of owner-occupied and renter-occupied units,
the annual rate of turnover of the various types of housing and the
range of rents and sale prices, an estimate of the total demand for
housing in the community, and the estimated capacity of private and
public housing available to displaced families and individuals.
(j) A plan for establishing priority for the relocation of
persons displaced by implementation of the plan.
(k) Provision for the costs of relocating persons displaced by
implementation of the plan, and financial assistance and
reimbursement of expenses, including litigation expenses and
expenses incident to the transfer of title, in accordance with the
standards and provisions of the uniform relocation assistance and
real property acquisition policies act of 1970, Public Law 91-646.
(l) A strategy for compliance with 1972 PA 227, MCL 213.321 to
213.332.
(m) A description of proposed use of the local site
remediation revolving fund.
(n) Other material that the authority or governing body
considers pertinent.
(2) The percentage of all taxes levied on a parcel of eligible
property for school operating expenses that is captured and used
under a brownfield plan and all tax increment finance 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, or the local
development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,
shall not be greater than the combination of the plans' percentage
capture and use of all local taxes levied for purposes other than
for the payment of principal of and interest on either obligations
approved by the electors or obligations pledging the unlimited
taxing power of the local unit of government. This subsection shall
apply only when taxes levied for school operating purposes are
subject to capture under section 15.
(3) Except as provided in this subsection and subsections (5),
(15), and (16), tax increment revenues related to a brownfield plan
shall be used only for costs of eligible activities attributable to
the eligible property, the captured taxable value of which produces
the tax increment revenues, including the cost of principal of and
interest on any obligation issued by the authority to pay the costs
of eligible activities attributable to the eligible property, and
the reasonable costs of preparing a brownfield plan or a work plan
for the eligible property, including the actual cost of the review
of the work plan under section 15. For property owned or under the
control of a land bank fast track authority, tax increment revenues
related to a brownfield plan may be used for eligible activities
attributable to any eligible property owned or under the control of
the land bank fast track authority, the cost of principal of and
interest on any obligation issued by the authority to pay the costs
of eligible activities, the reasonable costs of preparing a work
plan, and the actual cost of the review of the work plan under
section 15. Except as provided in subsection (18), tax increment
revenues
captured from taxes levied by this state under the state
education
tax act, 1993 PA 331, MCL 211.901 to 211.906, or taxes
levied
by a local school district for
school operating purposes
shall not be used for eligible activities described in section
2(m)(iv)(E). Tax increment revenues captured from taxes levied for
school operating purposes shall not be used for eligible activities
described in section 2(m)(iv)(F).
(4) Except as provided in subsection (5), a brownfield plan
shall not authorize the capture of tax increment revenue from
eligible property after the year in which the total amount of tax
increment revenues captured is equal to the sum of the costs
permitted to be funded with tax increment revenues under this act.
(5) A brownfield plan may authorize the capture of additional
tax increment revenue from an eligible property in excess of the
amount authorized under subsection (4) during the time of capture
for the purpose of paying the costs permitted under subsection (3),
or for not more than 5 years after the time that capture is
required for the purpose of paying the costs permitted under
subsection (3), or both. Excess revenues captured under this
subsection shall be deposited in the local site remediation
revolving fund created under section 8 and used for the purposes
authorized in section 8. If tax increment revenues attributable to
taxes levied for school operating purposes from eligible property
are captured by the authority for purposes authorized under
subsection (3), the tax increment revenues captured for deposit in
the local site remediation revolving fund also may include tax
increment revenues attributable to taxes levied for school
operating purposes in an amount not greater than the tax increment
revenues levied for school operating purposes captured from the
eligible property by the authority for the purposes authorized
under subsection (3). Excess tax increment revenues from taxes
levied for school operating purposes for eligible activities
authorized under subsection (15) by the Michigan economic growth
authority shall not be captured for deposit in the local site
remediation revolving fund.
(6) An authority shall not expend tax increment revenues to
acquire or prepare eligible property, unless the acquisition or
preparation is an eligible activity.
(7) Costs of eligible activities attributable to eligible
property include all costs that are necessary or related to a
release from the eligible property, including eligible activities
on properties affected by a release from the eligible property. For
purposes of this subsection, "release" means that term as defined
in section 20101 of the natural resources and environmental
protection act, 1994 PA 451, MCL 324.20101.
(8) Costs of a response activity paid with tax increment
revenues that are captured pursuant to subsection (3) may be
recovered from a person who is liable for the costs of eligible
activities at an eligible property. This state or an authority may
undertake cost recovery for tax increment revenue captured. Before
an authority or this state may institute a cost recovery action, it
must provide the other with 120 days' notice. This state or an
authority that recovers costs under this subsection shall apply
those recovered costs to the following, in the following order of
priority:
(a) The reasonable attorney fees and costs incurred by this
state or an authority in obtaining the cost recovery.
(b) One of the following:
(i) If an authority undertakes the cost recovery action, the
authority shall deposit the remaining recovered funds into the
local site remediation fund created pursuant to section 8, if such
a fund has been established by the authority. If a local site
remediation fund has not been established, the authority shall
disburse the remaining recovered funds to the local taxing
jurisdictions in the proportion that the local taxing
jurisdictions' taxes were captured.
(ii) If this state undertakes a cost recovery action, this
state shall deposit the remaining recovered funds into the
revitalization revolving loan fund established under section 20108a
of the natural resources and environmental protection act, 1994 PA
451, MCL 324.20108a.
(iii) If this state and an authority each undertake a cost
recovery action, undertake a cost recovery action jointly, or 1 on
behalf of the other, the amount of any remaining recovered funds
shall be deposited pursuant to subparagraphs (i) and (ii) in the
proportion that the tax increment revenues being recovered
represent local taxes and taxes levied for school operating
purposes, respectively.
(9) Approval of the brownfield plan or an amendment to a
brownfield plan shall be in accordance with the notice and approval
provisions of this section and section 14.
(10) Before approving a brownfield plan for an eligible
property, the governing body shall hold a public hearing on the
brownfield plan. By resolution, the governing body may delegate the
public hearing process to the authority or to a subcommittee of the
governing body subject to final approval by the governing body.
Notice of the time and place of the hearing shall be given by
publication twice in a newspaper of general circulation designated
by the municipality, not less than 10 or more than 40 days before
the date set for the hearing.
(11) Notice of the time and place of the hearing on a
brownfield plan shall contain all of the following:
(a) A description of the property to which the plan applies in
relation to existing or proposed highways, streets, streams, or
otherwise.
(b) A statement that maps, plats, and a description of the
brownfield plan are available for public inspection at a place
designated in the notice and that all aspects of the brownfield
plan are open for discussion at the public hearing required by this
section.
(c) Any other information that the governing body considers
appropriate.
(12) At the time set for the hearing on the brownfield plan
required under subsection (10), the governing body shall ensure
that interested persons have an opportunity to be heard and that
written communications with reference to the brownfield plan are
received and considered. The governing body shall ensure that a
record of the public hearing is made and preserved, including all
data presented at the hearing.
(13) Not less than 10 days before the hearing on the
brownfield plan, the governing body shall provide notice of the
hearing to the taxing jurisdictions that levy taxes subject to
capture under this act. The authority shall fully inform the taxing
jurisdictions about the fiscal and economic implications of the
proposed brownfield plan. At that hearing, an official from a
taxing jurisdiction with millage that would be subject to capture
under this act has the right to be heard in regard to the adoption
of the brownfield plan. Not less than 10 days before the hearing on
the brownfield plan, the governing body shall provide notice of the
hearing to the department if the brownfield plan involves the use
of taxes levied for school operating purposes to pay for eligible
activities that require the approval of a work plan by the
department under section 15(1)(a) and the Michigan economic growth
authority, or its designee, if the brownfield plan involves the use
of taxes levied for school operating purposes to pay for eligible
activities subject to subsection (15) or (18).
(14) The authority shall not enter into agreements with the
taxing jurisdictions and the governing body of the municipality to
share a portion of the captured taxable value of an eligible
property. 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 taxes against property located in the
zone.
(15) Except as provided by subsection (18), if a brownfield
plan includes the capture of taxes levied for school operating
purposes approval of a work plan by the Michigan economic growth
authority before January 1, 2013 to use taxes levied for school
operating purposes and a development agreement or reimbursement
agreement between the municipality or authority and an owner or
developer of eligible property are required if the taxes levied for
school operating purposes will be used for infrastructure
improvements that directly benefit eligible property, demolition of
structures that is not response activity under part 201 of the
natural resources and environmental protection act, 1994 PA 451,
MCL 324.20101 to 324.20142, lead or asbestos abatement, site
preparation that is not response activity under section 20101 of
the natural resources and environmental protection act, 1994 PA
451, MCL 324.20101, relocation of public buildings or operations
for
economic development purposes, or acquisition of property by a
land bank fast track authority if acquisition of the property is
for economic development purposes, or acquisition of property by a
qualified local governmental unit or authority if acquisition of
the property is for economic development purposes. The eligible
activities to be conducted described in this subsection shall be
consistent with the work plan submitted by the authority to the
Michigan economic growth authority. The department's approval is
not required for the capture of taxes levied for school operating
purposes for eligible activities described in this subsection.
(16) The limitations of section 15(1) upon use of tax
increment revenues by an authority shall not apply to the following
costs and expenses:
(a) In each fiscal year of the authority, the amount described
in subsection (19) for the following purposes for tax increment
revenues attributable to local taxes:
(i) Reasonable and actual administrative and operating expenses
of the authority.
(ii) Baseline environmental assessments, due care activities,
and additional response activities conducted by or on behalf of the
authority related directly to work conducted on prospective
eligible properties prior to approval of the brownfield plan.
(b) Reasonable costs of preparing a work plan or the cost of
the review of a work plan for which tax increment revenues may be
used under section 13(3).
(c) For tax increment revenues attributable to local taxes,
reasonable costs of site investigations described in section
15(1)(a)(i), baseline environmental assessments, and due care
activities incurred by a person other than the authority related
directly to work conducted on eligible property or prospective
eligible properties prior to approval of the brownfield plan, if
those costs and the eligible property are included in a brownfield
plan approved by the authority.
(17) A brownfield authority may reimburse advances, with or
without interest, made by a municipality under section 7(3), a land
bank fast track authority, or any other person or entity for costs
of eligible activities with any source of revenue available for use
of the brownfield authority under this act. If an authority
reimburses a person or entity under this section for an advance for
the payment or reimbursement of the cost of eligible activities and
interest thereon, the authority may capture local taxes for the
payment of that interest. If an authority reimburses a person or
entity under this section for an advance for the payment or
reimbursement of the cost of baseline environmental assessments,
due care, and additional response activities and interest thereon
included in a work plan approved by the department, the authority
may capture taxes levied for school operating purposes and local
taxes for the payment of that interest. If an authority reimburses
a person or entity under this section for an advance for the
payment or reimbursement of the cost of eligible activities that
are not baseline environmental assessments, due care, and
additional response activities and interest thereon included in a
work plan approved by the Michigan economic growth authority, the
authority may capture taxes levied for school operating purposes
and local taxes for the payment of that interest provided that the
Michigan economic growth authority grants an approval for the
capture of taxes levied for school operating purposes to pay such
interest. An authority may enter into agreements related to these
reimbursements and payments. A reimbursement agreement for these
purposes and the obligations under that reimbursement agreement
shall not be subject to section 12 or the revised municipal finance
act, 2001 PA 34, MCL 141.2101 to 141.2821.
(18) If a brownfield plan includes the capture of taxes levied
for school operating purposes, approval of a work plan by the
Michigan economic growth authority in the manner required under
section 15(14) to (16) is required in order to use tax increment
revenues attributable to taxes levied for school operating purposes
for purposes of eligible activities described in section 2(m)(iv)(E)
for 1 or more parcels of eligible property. The work plan to be
submitted to the Michigan economic growth authority under this
subsection shall be in a form prescribed by the Michigan economic
growth authority. The eligible activities to be conducted and
described in this subsection shall be consistent with the work plan
submitted by the authority to the Michigan economic growth
authority. The department's approval is not required for the
capture of taxes levied for school operating purposes for eligible
activities described in this section.
(19) In each fiscal year of the authority, the amount of tax
increment revenues attributable to local taxes that an authority
can use for the purposes described in subsection (16)(a) shall be
determined as follows:
(a) For authorities that have 5 or fewer active projects,
$100,000.00.
(b) For authorities that have 6 or more but fewer than 11
active projects, $125,000.00.
(c) For authorities that have 11 or more but fewer than 16
active projects, $150,000.00.
(d) For authorities that have 16 or more but fewer than 21
active projects, $175,000.00.
(e) For authorities that have 21 or more but fewer than 26
active projects, $200,000.00.
(f) For authorities that have 26 or more active projects,
$300,000.00.
(20) As used in subsection (19), "active project" means a
project in which the authority is currently capturing taxes under
this act.
