January 15, 2015, Introduced by Rep. Nesbitt and referred to the Committee on Commerce and Trade.
A bill to amend 1974 PA 338, entitled
"Economic development corporations act,"
by amending sections 6a and 8 (MCL 125.1606a and 125.1608), as
amended by 2002 PA 357.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6a. (1) In order to implement section 3(f)(ii), a
corporation incorporated by a city with a population of greater
than 750,000 persons may create subsidiary neighborhood development
corporations within the city in which the parent corporation may
operate. A subsidiary neighborhood development corporation created
pursuant to this subsection shall have power to conduct business
solely for the purpose of a project under section 3(f)(ii), but in
respect to those projects the subsidiary shall have the same powers
of a corporation formed under this act, except as may be limited by
the parent corporation in the articles of incorporation or bylaws
of the subsidiary.
(2)
To the extent the project involves training for
disadvantaged
youths, a subsidiary created pursuant to this section
shall
be exempt from the requirement of the payment of prevailing
wage
and fringe benefit rates described in section 8(4)(h).
(2) (3)
Any surplus from the sale of
property in the involved
project area under section 3(f)(ii), after payment of principal and
interest or other evidences of indebtedness, shall be deposited in
a revolving fund of the corporation creating the subsidiary
corporation, which fund shall be restricted to provide revenue for
other projects authorized by section 3(f)(ii), within the city.
(3) (4)
When bonds or notes are sold to
implement projects
under section 3(f)(ii), provision shall be made for the immediate
repayment of the bonds or notes at the time all property in the
involved project area is sold.
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 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
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 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 (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
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.
(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-
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 is
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 must
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. ____ or House Bill No. 4001 (request no.
00003'15) of the 98th Legislature is enacted into law.