Bill Text: MI SB0913 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Environmental protection; funding; revitalization revolving loan program; modify criteria for loans. Amends sec. 20108b of 1994 PA 451 (MCL 324.20108b).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2016-12-30 - Assigned Pa 0476'16 12/30/16 Addenda [SB0913 Detail]
Download: Michigan-2015-SB0913-Engrossed.html
SB-0913, As Passed House, December 14, 2016
SB-0913, As Passed Senate, October 18, 2016
SENATE BILL No. 913
April 21, 2016, Introduced by Senator CASPERSON and referred to the Committee on Commerce.
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending section 20108b (MCL 324.20108b), as amended by 2010 PA
233.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 20108b. (1) The department shall create a revitalization
revolving loan program for the purpose of making loans to certain
local units of government to provide for eligible activities at
certain properties in order to promote economic redevelopment.
(2)
To be eligible for a loan, applications must meet the
following
requirements:
(a)
The applicant is a county, city, township, or village, or
an
authority established pursuant to the brownfield redevelopment
financing
act, if the municipality that created the authority
pursuant
to the brownfield redevelopment financing act commits to
secure
the loan with a pledge of the municipality's full faith and
credit.
(b)
The application is for eligible activities at a property
within
the applicant's jurisdiction that is a facility or is
suspected
to be a facility based on current or historic use.
(c)
The application is complete and submitted on a form
provided
by the department.
(d)
The application is received by the deadline established by
the
department.
(e)
The application is for eligible activities only as
provided
for in subsection (3).
(3)
Eligible activities are limited to evaluation and
demolition
at the property or properties in an area-wide zone, and
interim
response activities required to facilitate evaluation and
demolition
conducted prior to redevelopment of a property or
properties
in an area-wide zone. Eligible activities include only
those
necessary to facilitate redevelopment. Eligible activities do
not
include activities necessary only to design or complete a
remedial
action that fully complies with the requirements of
section
20120a. All eligible activities must be consistent with a
work
plan or response activity plan approved in advance by the
department
under this part or pursuant to section 15 of the
brownfield
redevelopment financing act, MCL 125.2665. Unless
otherwise
approved by the director, only activities carried out and
costs
incurred after execution of a loan agreement are eligible.
(4)
The department shall provide for at least 1 application
cycle
per fiscal year. Prior to each application cycle, the
department
shall develop written instructions for prospective
applicants
including the criteria that will be used in application
review
and approval.
(5)
Final application decisions shall be made by the
department
within 4 months of the application deadline.
(6)
A complete application shall include the following:
(a)
A description of the proposed eligible activities.
(b)
An itemized budget for the proposed eligible activities.
(c)
A schedule for the completion of the proposed eligible
activities.
(d)
Location of the property.
(e)
Current ownership and ownership history of the property.
(f)
Current use of the property.
(g)
A detailed history of the use of the property.
(h)
Existing and proposed future zoning of the property.
(i)
If the property is not owned by the applicant, a draft of
an
enforceable agreement between the property owner and the
applicant
that commits the property owner to cooperate with the
applicant,
including a commitment to allow access to the property
to
complete at a minimum the proposed activities.
(j)
A description of the property's economic redevelopment
potential.
(k)
A resolution from the local governing body of the
applicant
committing to repayment of the loan according to the
terms
of this section.
(l) Other information as specified by the department
in its
written
instructions.
(7)
To receive loan funds, approved applicants shall enter
into
a loan agreement with the department. At a minimum, the loan
agreement
shall contain all of the following:
(a)
The approved eligible activities to be undertaken with
loan
funds.
(b)
The loan interest rate, terms, and repayment schedule as
determined
by the department pursuant to subsection (10).
(c)
A commitment that the loan is secured by a full faith and
credit
pledge of the applicant, or if the applicant is an authority
established
pursuant to the brownfield redevelopment financing act,
the
commitment shall be from the municipality that created the
authority
pursuant to that act.
(d)
An implementation schedule.
(e)
Reporting requirements, including at a minimum the
following:
(i) The recipient shall submit a progress status
report to the
department
every 6 months during the implementation schedule.
(ii) The recipient shall provide a final report within
3
months
of completion of the loan funded activities that includes
documentation
of project costs and expenditures, including invoices
and
proof of payment.
(f)
If the property is not owned by the recipient, an executed
agreement
that has been approved by the department that meets the
requirements
of subsection (6)(i).
(g)
Other provisions as considered appropriate by the
department.
(8)
If an approved applicant fails to sign a loan agreement
within
90 days of a written loan offer by the department, the
department
may cancel the loan offer. The applicant may not appeal
or
contest a cancellation pursuant to this subsection.
(9)
The department may terminate a loan agreement and require
immediate
repayment of the loan if the recipient uses loan funds
for
any purpose other than for the approved eligible activities
specified
in the loan agreement. The department shall provide
written
notice 30 days prior to the termination.
(10)
Subject to subsection (11), loans shall have the
following
terms:
(a)
A loan interest rate of not more than 50% of the prime
rate
as determined by the department as of the date of approval of
the
loan.
(b)
Loan recipients shall repay loans in equal annual
installments
of principal and interest beginning not later than 5
years
after the first draw of the loan and concluding not later
than
15 years after the first draw of the loan.
(11)
Upon request of a loan recipient and a showing of
financial
hardship related to the project that was financed in
whole
or in part by the loan, the department may renegotiate the
terms
of any outstanding loan, including the length of the loan,
the
interest rate, and the repayment terms.
(2) Loan funds from the revitalization revolving loan program
created in subsection (1) shall be issued for the purposes provided
in and utilizing the criteria provided in sections 19608a through
19613.
(3) (12)
Loan payments and interest shall be
deposited back
into the revitalization revolving loan fund created in section
20108a.
(13)
Upon default of a loan, as determined by the department,
or
upon the request of the loan recipient as a method to repay the
loan,
the department of treasury shall withhold state payments from
the
loan recipient in amounts consistent with the repayment
schedule
in the loan agreement until the loan is repaid. The
department
of treasury shall deposit these withheld funds into the
revitalization
revolving loan fund created in section 20108a until
the
loan is repaid.
(14)
As used in this section, "brownfield redevelopment
financing
act" means 1996 PA 381, MCL 125.2651 to 125.2672.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) Senate Bill No. 911.
(b) Senate Bill No. 908.
(c) Senate Bill No. 910.
(d) Senate Bill No. 909.
(e) Senate Bill No. 912.
