SB-0567, As Passed Senate, September 20, 2011

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 567

 

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1984 PA 270, entitled

 

"Michigan strategic fund act,"

 

(MCL 125.2001 to 125.2094) by adding chapter 8C.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

CHAPTER 8C

 

     Sec. 90. The legislature finds and declares that any activity

 

under this chapter to promote community revitalization will

 

accelerate private investment in areas of historical disinvestment,

 

contribute to Michigan's reinvention as a vital, job-generating

 

state, foster redevelopment of functionally obsolete properties,

 

reduce blight, support the rehabilitation of historic resources,

 

and protect the natural resources of this state and is a public

 

purpose and of paramount concern in the interest of the health,

 


safety, and general welfare of the citizens of this state. It is

 

the intent of the legislature that the economic benefits resulting

 

from this chapter occur substantially within this state.

 

     Sec. 90a. As used in this chapter:

 

     (a) "Community revitalization grant" or "grant" means a grant

 

that is approved under section 90b and that is subject to

 

requirements in section 90c.

 

     (b) "Community revitalization incentive" means a community

 

revitalization grant, a community revitalization loan, or other

 

economic assistance.

 

     (c) "Community revitalization loan" or "loan" means a loan

 

that is approved under section 90b and that is subject to the

 

requirements in section 90d.

 

     (d) "Eligible investment" means 1 or more of the following,

 

subject to a written agreement under this section, including

 

investment which occurred prior to the approval of the application,

 

to the extent that it has not been reimbursed to or been paid for

 

on behalf of the person requesting a community revitalization

 

incentive under this chapter:

 

     (i) Any demolition, construction, alteration, rehabilitation,

 

or improvement of buildings.

 

     (ii) Site improvements.

 

     (iii) The addition of machinery, equipment, or fixtures to the

 

approved project.

 

     (iv) Architectural, engineering, surveying, and similar

 

professional fees but not certain soft costs of the eligible

 

investment as determined by the board, including, but not limited

 


to, developer fees, appraisals, performance bonds, closing costs,

 

bank fees, loan fees, risk contingencies, financing costs,

 

permanent or construction period interest, legal expenses, leasing

 

or sales commissions, marketing costs, professional fees, shared

 

savings, taxes, title insurance, bank inspection fees, insurance,

 

and project management fees.

 

     (e) "Other economic assistance" means any other form of

 

assistance allowed under this act that is not a community

 

revitalization loan or community revitalization grant.

 

     Sec. 90b. (1) The fund shall create and operate the Michigan

 

community revitalization program to provide community

 

revitalization incentives for eligible investments in this state.

 

The fund shall develop and use a detailed application, approval,

 

and compliance process adopted by a resolution of the board and

 

published and available on the fund's website. Program standards,

 

guidelines, templates, or any other forms used by the fund to

 

implement the Michigan community revitalization program shall be

 

approved by the board.

 

     (2) A person may apply to the fund for approval of community

 

revitalization incentives associated with a project under this

 

section.

 

     (3) Funds appropriated for programs under this chapter shall

 

be placed in the 21st century jobs trust fund created in the

 

Michigan trust fund act, 2000 PA 489, MCL 12.251 to 12.260.

 

     (4) Subject to section 88c, the fund shall review all

 

applications for community revitalization incentives. As part of

 

the application, the applicant shall include a project description

 


that includes a project pro-forma. The fund shall consider the

 

following criteria to the extent reasonably applicable to the type

 

of project proposed when approving a community revitalization

 

inventive:

 

     (a) The importance of the project to the community in which it

 

is located.

 

     (b) If the project will act as a catalyst for additional

 

revitalization of the community in which it is located.

 

     (c) The amount of local community and financial support for

 

the project.

 

     (d) The applicant's financial need for a community

 

revitalization incentive.

 

     (e) The extent of reuse of vacant buildings, reuse of

 

historical buildings, and redevelopment of blighted property.

 

     (f) Creation of jobs.

 

     (g) The level of private sector and other contributions,

 

including, but not limited to, federal funds and federal tax

 

credits.

 

     (h) Whether the project is financially and economically sound.

 

     (i) Whether the project increases the density of the area.

 

     (j) Whether the project promotes mixed-use development and

 

walkable communities.

 

     (k) Whether the project promotes sustainable development.

 

     (l) Whether the project involves the rehabilitation of a

 

historic resource.

 

     (m) Whether the project addresses areawide redevelopment.

 

     (n) Whether the project addresses underserved markets of

 


commerce.

 

     (o) The level and extent of environmental contamination.

 

     (p) Any other additional criteria approved by the board that

 

are specific to each individual project and are consistent with the

 

findings and intent of this chapter.

 

     (5) An application shall be approved or denied not more than

 

90 days after receipt of the application that is considered

 

administratively complete by the board or its designee. If the

 

application is neither approved nor denied within 90 days after

 

being considered administratively complete, it shall be considered

 

by the fund board, or its president if delegated, for action at, or

 

by, the next regularly scheduled board meeting. If an application

 

is approved, the fund shall determine the amount of community

 

revitalization incentives for the project based on the fund's

 

review of the application and the criteria specified in subsection

 

(4).

 

     (6) The amount of community revitalization incentives that the

 

board may approve for a single project shall not exceed 25% of a

 

project's eligible investment up to $10,000,000.00. A community

 

revitalization loan shall not exceed $10,000,000.00 and a community

 

revitalization grant shall not exceed $1,000,000.00. However, a

 

combination of loans, grants, and other economic assistance under

 

this chapter shall not exceed $10,000,000.00 per project.

 

     (7) When the board approves an application and determines the

 

amount of community revitalization incentives, the board shall

 

enter into a written agreement with the applicant. The written

 

agreement shall provide in a clear and concise manner all of the

 


conditions imposed, including specific time frames, on the

 

applicant to receive the community revitalization incentive under

 

this chapter. The written agreement shall provide for repayment and

 

penalties if the applicant fails to comply with the provisions of

 

the written agreement as determined by the board. The applicant

 

shall agree to provide the data described in the written agreement

 

that is necessary for the fund to report to the legislature under

 

this chapter.

 

     (8) Not more than 4% of the annual appropriation as provided

 

by law from the 21st century jobs trust fund established in the

 

Michigan trust fund act, 2000 PA 489, MCL 12.251 to 12.260, may be

 

used for the purposes of administering the programs and activities

 

authorized under this chapter. However, the fund and the fund board

 

shall not use more than 3% of the annual appropriation for

 

administering the programs and activities authorized under this

 

chapter unless the fund board by a 2/3 vote authorizes the

 

additional 1% for administration. The MEDC may charge actual and

 

reasonable fees for costs associated with the community

 

revitalization loan. These fees are in addition to an amount of the

 

appropriation used for administering the programs and activities

 

authorized under this chapter.

 

     Enacting section 1. This amendatory act does not take effect

 

unless all of the following bills of the 96th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. 566.

 

     (b) Senate Bill No. 568.