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.