SENATE BILL No. 567

 

 

July 13, 2011, Introduced by Senator KOWALL and referred to the Committee on Economic Development.

 

 

 

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

 

incurred no earlier than 90 days before an agreement is entered

 

into under this chapter 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, restoration, alteration,

 

renovation, or improvement of buildings.

 

     (ii) Site improvements.

 

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

 

eligible property.

 

     (iv) The addition of leased machinery, equipment, or fixtures

 

to eligible property by a lessee of the machinery, equipment, or

 

fixtures if the lease of the machinery, equipment, or fixtures has

 

a minimum term of 10 years or is for the expected useful life of

 

the machinery, equipment, or fixtures, and if the owner of the

 

machinery, equipment, or fixtures is not the person requesting a

 

community revitalization incentive under this chapter with regard

 

to that machinery, equipment, or fixtures.

 

     (v) 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.

 

     (b) "Community revitalization incentive" means a community

 

revitalization voucher, a community revitalization loan, or other

 

economic assistance.

 

     (c) "Community revitalization loan" means a loan that is

 

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

 

in section 90d.

 

     (d) "Community revitalization voucher" means a voucher that is

 

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

 

section 90c.

 

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

 

assistance allowed under this act that is not a community

 

revitalization loan or community revitalization voucher.

 

     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, operational memorandum, or any other mechanism used by

 

the fund to implement the Michigan community revitalization program

 

shall be adopted by a resolution of the board.

 

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

 

revitalization incentives associated with a project under this

 

section.

 

     (3) 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 taxpayer's financial need for a community

 

revitalization incentive.

 

     (e) The extent of reuse of vacant 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 area.

 


     (m) Whether the project addresses areawide redevelopment.

 

     (n) Whether the project addresses underserved markets of

 

commerce.

 

     (o) Any other criteria that the board considers appropriate

 

consistent with the findings and intent of this chapter.

 

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

 

65 days after receipt of the application. If the application is

 

neither approved nor denied within 65 days, it shall be considered

 

approved as written. 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. The amount

 

of community revitalization incentives that the board may approve

 

for a project shall not exceed the lesser of $10,000,000.00 or 25%

 

of a project's eligible investment. A community revitalization

 

voucher may account for up to $1,000,000.00 of this amount.

 

     (5) 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 may provide for repayment and

 

penalties if the applicant fails to comply with the provisions of

 

the written agreement. 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.

 

     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.