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.