January 20, 2015, Introduced by Senators MACGREGOR, STAMAS, KNOLLENBERG, SCHUITMAKER, BRANDENBURG, COLBECK, HILDENBRAND, MEEKHOF, ROBERTSON, SHIRKEY, BOOHER, PAVLOV, PROOS, JONES and MARLEAU and referred to the Committee on Michigan Competitiveness.
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
must 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 must
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 must
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 must 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 subdivision 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.subdivision.
(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
to 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. 3
of the 98th Legislature is enacted into law.