SENATE BILL No. 158

 

 

February 6, 2013, Introduced by Senators MEEKHOF, JANSEN, SCHUITMAKER, HILDENBRAND, MOOLENAAR, PAVLOV, BOOHER, EMMONS, COLBECK, BRANDENBURG, PROOS, MARLEAU, JONES, WALKER, ROBERTSON and HUNE and referred to the Committee on Government Operations.

 

 

     A bill to amend 1974 PA 338, entitled

 

"Economic development corporations act,"

 

by amending section 8 (MCL 125.1608), as amended by 2002 PA 357.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 8. (1) The corporation shall designate the project area

 

to the governing body of the municipality for which the corporation

 

is incorporated. The governing body of the municipality for which

 

the corporation is incorporated shall certify its approval of the

 

designation of a project area by resolution.

 

     (2) Before acquiring property, or an interest in land, or

 

incurring obligations for a specific project, other than the

 

acquisition of an option or as provided in subsection (9), the

 

corporation shall prepare a project plan and secure the

 

recommendation of the local public agency of the municipality for

 

which the corporation is incorporated, except as provided in


 

section 9(3), the approval of the governing body of each city,

 

village, or township in which all or a part of the project is

 

located, and the approval of the county, if the corporation is an

 

economic development corporation for the county.

 

     (3) The corporation shall certify to the governing body of the

 

municipality for which the corporation is incorporated that at the

 

time the project plan is approved by the corporation, the project

 

shall not have the effect of transferring employment of more than

 

20 full-time persons from a municipality of this state to the

 

municipality in which the project is to be located. This

 

restriction shall does not prevent the approval of a project if the

 

governing body of each municipality from which employment is to be

 

transferred consents by resolution to the transfer.

 

     (4) The project plan shall contain the following, except that

 

agricultural and forestry enterprise projects need only comply with

 

subsection (9) with respect to project plans:

 

     (a) The location and extent of existing streets and other

 

public facilities within the project district area, and shall

 

designate the location, character, and extent of the categories of

 

public and private land uses then existing and proposed for the

 

project area, including residential, recreational, commercial,

 

industrial, educational, and other uses and shall include a legal

 

description of the project area.

 

     (b) A description of existing improvements in the project area

 

to be demolished, repaired, or altered, a description of repairs

 

and alterations, and an estimate of the time required for

 

completion.


 

     (c) The location, extent, character, and estimated cost of the

 

improvements including rehabilitation contemplated for the project

 

area and an estimate of the time required for completion.

 

     (d) A statement of the construction or stages of construction

 

planned, and the estimated time of completion of each stage.

 

     (e) A description of the parts of the project area to be left

 

as open space and the use contemplated for the space.

 

     (f) A description of portions of the project area that the

 

corporation desires to sell, donate, exchange, or lease to or from

 

the municipality, and the proposed terms.

 

     (g) A description of desired zoning changes and changes in

 

streets, street levels, intersections, and utilities.

 

     (h) A statement of the proposed method of financing the

 

project, including, except as provided in section 6a, a statement

 

by a person described in subparagraph subdivision (j) indicating

 

the payment to all persons performing work on the construction

 

project of the prevailing wage and fringe benefit rates for the

 

same or similar work in the locality in which the work is to be

 

performed, and a statement of the ability of the corporation to

 

arrange the financing. The prevailing wage and fringe benefit rates

 

shall be determined under 1965 PA 166, MCL 408.551 to 408.558. A

 

corporation may conclusively rely upon the statement required under

 

this subsection as to compliance with the payment of prevailing

 

wage and fringe benefit rates and any contracts, bonds or notes of

 

any corporation entered into or issued upon reliance on any

 

statement shall not be subsequently voided by reason of the failure

 

to comply with the requirements of this subsection.


 

     (i) A list of persons who will manage or be associated with

 

the management of the project for a period of not less than 1 year

 

from the date of approval of the project plan.

 

     (j) Designation of the person or persons, natural or

 

corporate, to whom the project is to be leased, sold, or conveyed

 

and for whose benefit the project is being undertaken if that

 

information is available to the corporation.

 

     (k) If there is not an express or implied agreement between

 

the corporation and persons, natural or corporate, that the project

 

will be leased, sold, or conveyed to those persons, the procedures

 

for bidding for the leasing, purchasing, or conveying of the

 

project upon its completion.

 

     (l) Estimates of the number of persons residing in the project

 

area, and the number of families and individuals to be displaced.

 

If occupied residences are designated for acquisition and clearance

 

by the corporation, a project plan shall include a survey of the

 

families and individuals to be displaced, including their income

 

and racial composition, 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.

 

     (m) A plan for establishing priority for the relocation of

 

persons displaced by the project in new housing in the project


 

area.

 

     (n) Provision for the costs of relocating persons displaced by

 

the project 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, 84 Stat. 1894 42 USC 4601-

 

4655.

 

     (o) A plan for compliance with 1972 PA 227, MCL 213.321 to

 

213.332.

 

     (p) Other material as the corporation, local public agency, or

 

governing body considers pertinent.

 

     (5) The corporation shall be considered an instrumentality of

 

a political subdivision for purposes of 1972 PA 227, MCL 213.321 to

 

213.332.

 

     (6) A person shall be given not less than 90 days' written

 

notice to vacate unless modified by court order for good cause.

 

     (7) The corporation shall not operate a project or an

 

enterprise in a project, other than as lessor.

 

     (8) The governing body may utilize the corporation to issue

 

obligations pursuant to under section 7 to accomplish the public

 

purposes of the municipality set forth in section 2, and for that

 

purpose may by resolution direct the corporation to take

 

appropriate action as set forth in subsections (1) and (2) with

 

respect to a proposed project.

 

     (9) In the case of project plans for agricultural and forestry

 

enterprises, the following information shall be provided in lieu of


 

the requirements of subsections (2) and (4):

 

     (a) A statement of intention regarding the objectives of the

 

project.

 

     (b) A general description of the kinds of buildings,

 

improvements, storage facilities, restorations, acquisition of

 

machinery, equipment furnishings, leasehold improvements and

 

incidental related costs to be financed.

 

     (c) A statement regarding the length of the project and the

 

maximum amount to be financed over the life of the project.

 

     (d) A statement by the corporation that no zoning change or

 

eminent domain proceedings will be necessary to implement the

 

project.

 

     (e) A description of the process to be followed in

 

implementing the individual transactions that may comprise the

 

project.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No. 157                                   

 

          of the 97th Legislature is enacted into law.