SB-0913, As Passed Senate, October 18, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 913

 

 

April 21, 2016, Introduced by Senator CASPERSON and referred to the Committee on Commerce.

 

 

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending section 20108b (MCL 324.20108b), as amended by 2010 PA

 

233.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 20108b. (1) The department shall create a revitalization

 

revolving loan program for the purpose of making loans to certain

 

local units of government to provide for eligible activities at

 

certain properties in order to promote economic redevelopment.

 

     (2) To be eligible for a loan, applications must meet the

 

following requirements:

 

     (a) The applicant is a county, city, township, or village, or

 

an authority established pursuant to the brownfield redevelopment

 


financing act, if the municipality that created the authority

 

pursuant to the brownfield redevelopment financing act commits to

 

secure the loan with a pledge of the municipality's full faith and

 

credit.

 

     (b) The application is for eligible activities at a property

 

within the applicant's jurisdiction that is a facility or is

 

suspected to be a facility based on current or historic use.

 

     (c) The application is complete and submitted on a form

 

provided by the department.

 

     (d) The application is received by the deadline established by

 

the department.

 

     (e) The application is for eligible activities only as

 

provided for in subsection (3).

 

     (3) Eligible activities are limited to evaluation and

 

demolition at the property or properties in an area-wide zone, and

 

interim response activities required to facilitate evaluation and

 

demolition conducted prior to redevelopment of a property or

 

properties in an area-wide zone. Eligible activities include only

 

those necessary to facilitate redevelopment. Eligible activities do

 

not include activities necessary only to design or complete a

 

remedial action that fully complies with the requirements of

 

section 20120a. All eligible activities must be consistent with a

 

work plan or response activity plan approved in advance by the

 

department under this part or pursuant to section 15 of the

 

brownfield redevelopment financing act, MCL 125.2665. Unless

 

otherwise approved by the director, only activities carried out and

 

costs incurred after execution of a loan agreement are eligible.


     (4) The department shall provide for at least 1 application

 

cycle per fiscal year. Prior to each application cycle, the

 

department shall develop written instructions for prospective

 

applicants including the criteria that will be used in application

 

review and approval.

 

     (5) Final application decisions shall be made by the

 

department within 4 months of the application deadline.

 

     (6) A complete application shall include the following:

 

     (a) A description of the proposed eligible activities.

 

     (b) An itemized budget for the proposed eligible activities.

 

     (c) A schedule for the completion of the proposed eligible

 

activities.

 

     (d) Location of the property.

 

     (e) Current ownership and ownership history of the property.

 

     (f) Current use of the property.

 

     (g) A detailed history of the use of the property.

 

     (h) Existing and proposed future zoning of the property.

 

     (i) If the property is not owned by the applicant, a draft of

 

an enforceable agreement between the property owner and the

 

applicant that commits the property owner to cooperate with the

 

applicant, including a commitment to allow access to the property

 

to complete at a minimum the proposed activities.

 

     (j) A description of the property's economic redevelopment

 

potential.

 

     (k) A resolution from the local governing body of the

 

applicant committing to repayment of the loan according to the

 

terms of this section.


     (l) Other information as specified by the department in its

 

written instructions.

 

     (7) To receive loan funds, approved applicants shall enter

 

into a loan agreement with the department. At a minimum, the loan

 

agreement shall contain all of the following:

 

     (a) The approved eligible activities to be undertaken with

 

loan funds.

 

     (b) The loan interest rate, terms, and repayment schedule as

 

determined by the department pursuant to subsection (10).

 

     (c) A commitment that the loan is secured by a full faith and

 

credit pledge of the applicant, or if the applicant is an authority

 

established pursuant to the brownfield redevelopment financing act,

 

the commitment shall be from the municipality that created the

 

authority pursuant to that act.

 

     (d) An implementation schedule.

 

     (e) Reporting requirements, including at a minimum the

 

following:

 

     (i) The recipient shall submit a progress status report to the

 

department every 6 months during the implementation schedule.

 

     (ii) The recipient shall provide a final report within 3

 

months of completion of the loan funded activities that includes

 

documentation of project costs and expenditures, including invoices

 

and proof of payment.

 

     (f) If the property is not owned by the recipient, an executed

 

agreement that has been approved by the department that meets the

 

requirements of subsection (6)(i).

 

     (g) Other provisions as considered appropriate by the


department.

 

     (8) If an approved applicant fails to sign a loan agreement

 

within 90 days of a written loan offer by the department, the

 

department may cancel the loan offer. The applicant may not appeal

 

or contest a cancellation pursuant to this subsection.

 

     (9) The department may terminate a loan agreement and require

 

immediate repayment of the loan if the recipient uses loan funds

 

for any purpose other than for the approved eligible activities

 

specified in the loan agreement. The department shall provide

 

written notice 30 days prior to the termination.

 

     (10) Subject to subsection (11), loans shall have the

 

following terms:

 

     (a) A loan interest rate of not more than 50% of the prime

 

rate as determined by the department as of the date of approval of

 

the loan.

 

     (b) Loan recipients shall repay loans in equal annual

 

installments of principal and interest beginning not later than 5

 

years after the first draw of the loan and concluding not later

 

than 15 years after the first draw of the loan.

 

     (11) Upon request of a loan recipient and a showing of

 

financial hardship related to the project that was financed in

 

whole or in part by the loan, the department may renegotiate the

 

terms of any outstanding loan, including the length of the loan,

 

the interest rate, and the repayment terms.

 

     (2) Loan funds from the revitalization revolving loan program

 

created in subsection (1) shall be issued for the purposes provided

 

in and utilizing the criteria provided in sections 19608a through


19613.

 

     (3) (12) Loan payments and interest shall be deposited back

 

into the revitalization revolving loan fund created in section

 

20108a.

 

     (13) Upon default of a loan, as determined by the department,

 

or upon the request of the loan recipient as a method to repay the

 

loan, the department of treasury shall withhold state payments from

 

the loan recipient in amounts consistent with the repayment

 

schedule in the loan agreement until the loan is repaid. The

 

department of treasury shall deposit these withheld funds into the

 

revitalization revolving loan fund created in section 20108a until

 

the loan is repaid.

 

     (14) As used in this section, "brownfield redevelopment

 

financing act" means 1996 PA 381, MCL 125.2651 to 125.2672.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.

 

     Enacting section 2. This amendatory act does not take effect

 

unless all of the following bills of the 98th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 911.                                   

 

         

 

     (b) Senate Bill No. 908.                                   

 

         

 

     (c) Senate Bill No. 910.                                   

 

         

 

     (d) Senate Bill No. 909.                                   

 

           


     (e) Senate Bill No. 912.