Bill Text: MI SB1061 | 2015-2016 | 98th Legislature | Engrossed

Michigan Senate Bill 1061 (Prior Session Legislation)

Bill Title: Economic development; brownfield redevelopment authority; transformational brownfield plans; provide for. Amends secs. 2, 8a, 11, 13, 15 & 16 of 1996 PA 381 (MCL 125.2652 et seq.) & adds secs. 13a & 14a.

Spectrum: Slight Partisan Bill (Republican 9-5)

Status: (Engrossed - Dead) 2016-11-29 - Referred To Committee On Local Government [SB1061 Detail]

Download: Michigan-2015-SB1061-Engrossed.html

SB-1061, As Passed Senate, November 29, 2016

SUBSTITUTE FOR

SENATE BILL NO. 1061

A bill to amend 1996 PA 381, entitled

"Brownfield redevelopment financing act,"

by amending sections 2, 8a, 11, 13, 15, and 16 (MCL 125.2652,

125.2658a, 125.2661, 125.2663, 125.2665, and 125.2666), section 2

as amended by 2013 PA 67 and section 8a as added and sections 13,

15, and 16 as amended by 2012 PA 502, and by adding sections 13a

and 14a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2. As used in this act:

(a) "Additional response activities" means response activities

identified as part of a brownfield plan that are in addition to

baseline environmental assessment activities and due care

activities for an eligible property.

(b) "Authority" means a brownfield redevelopment authority

created under this act.

defined in section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

(d) "Baseline environmental assessment activities" means those

response activities identified as part of a brownfield plan that

are necessary to complete a baseline environmental assessment for

an eligible property in the brownfield plan.

(e) "Blighted" means property that meets any of the following

criteria as determined by the governing body:

(i) Has been declared a public nuisance in accordance with a

local housing, building, plumbing, fire, or other related code or

ordinance.

(ii) Is an attractive nuisance to children because of physical

condition, use, or occupancy.

(iii) Is a fire hazard or is otherwise dangerous to the safety

of persons or property.

(iv) Has had the utilities, plumbing, heating, or sewerage

permanently disconnected, destroyed, removed, or rendered

ineffective so that the property is unfit for its intended use.

(v) Is tax reverted property owned by a qualified local

governmental unit, by a county, or by this state. The sale, lease,

or transfer of tax reverted property by a qualified local

governmental unit, county, or this state after the property's

inclusion in a brownfield plan shall not result in the loss to the

property of the status as blighted property for purposes of this

act.

(vi) Is property owned or under the control of a land bank

fast track authority, whether or not located within a qualified

local governmental unit. Property included within a brownfield plan

prior to the date it meets the requirements of this subdivision to

be eligible property shall be considered to become eligible

property as of the date the property is determined to have been or

becomes qualified as, or is combined with, other eligible property.

The sale, lease, or transfer of the property by a land bank fast

track authority after the property's inclusion in a brownfield plan

shall not result in the loss to the property of the status as

blighted property for purposes of this act.

(vii) Has substantial subsurface demolition debris buried on

site so that the property is unfit for its intended use.

(f) "Board" means the governing body of an authority.

(g) "Brownfield plan" means a plan that meets the requirements

of section 13 and is adopted under section 14.

(h) "Captured taxable value" means the amount in 1 year by

which the current taxable value of an eligible property subject to

a brownfield plan, including the taxable value or assessed value,

as appropriate, of the property for which specific taxes are paid

in lieu of property taxes, exceeds the initial taxable value of

that eligible property. The state tax commission shall prescribe

the method for calculating captured taxable value.

(i) "Chief executive officer" means the mayor of a city, the

village manager of a village, the township supervisor of a

township, or the county executive of a county or, if the county

does not have an elected county executive, the chairperson of the

county board of commissioners.

(j) "Combined brownfield plan" means a brownfield plan that

also includes the information necessary to submit the plan to the

department or Michigan strategic fund under section 15(25).

(k) "Department" means the department of environmental

quality.

(l) "Due care activities" means those response activities

identified as part of a brownfield plan that are necessary to allow

the owner or operator of an eligible property in the plan to comply

with the requirements of section 20107a of the natural resources

and environmental protection act, 1994 PA 451, MCL 324.20107a.

(m) "Economic opportunity zone" means 1 or more parcels of

property that meet all of the following:

(i) That together are 40 or more acres in size.

(ii) That contain or contained a manufacturing facility that

consists or consisted of 500,000 or more square feet.

(iii) That are located in a municipality that has a population

of 30,000 or less and that is contiguous to a qualified local

governmental unit.

(n) "Eligible activities" or "eligible activity" means 1 or

more of the following:

(i) Baseline environmental assessment activities.

(ii) Due care activities.

(iii) Additional response activities.

(iv) For eligible activities on eligible property that was

used or is currently used for commercial, industrial, or

residential purposes that is in a qualified local governmental

unit, that is owned or under the control of a land bank fast track

authority, or that is located in an economic opportunity zone, and

is a facility, historic resource, functionally obsolete, or

blighted, and except for purposes of section 38d of former 1975 PA

228, the following additional activities:

(A) Infrastructure improvements that directly benefit eligible

property.

(B) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

(D) Site preparation that is not response activity under

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

(E) Assistance to a land bank fast track authority in clearing

or quieting title to, or selling or otherwise conveying, property

owned or under the control of a land bank fast track authority or

the acquisition of property by the land bank fast track authority

if the acquisition of the property is for economic development

purposes.

(F) Assistance to a qualified local governmental unit or

authority in clearing or quieting title to, or selling or otherwise

conveying, property owned or under the control of a qualified local

governmental unit or authority or the acquisition of property by a

qualified local governmental unit or authority if the acquisition

of the property is for economic development purposes.

(v) Relocation of public buildings or operations for economic

development purposes.

(vi) For eligible activities on eligible property that is a

qualified facility that is not located in a qualified local

governmental unit and that is a facility, functionally obsolete, or

blighted, the following additional activities:

(A) Infrastructure improvements that directly benefit eligible

property.

(B) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

(D) Site preparation that is not response activity under

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

(vii) For eligible activities on eligible property that is not

located in a qualified local governmental unit and that is a

facility, historic resource, functionally obsolete, or blighted,

the following additional activities:

(A) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

(B) Lead or asbestos abatement.

(viii) Reasonable costs of developing and preparing brownfield

plans, combined brownfield plans, and work plans.

(ix) For property that is not located in a qualified local

governmental unit and that is a facility, functionally obsolete, or

blighted, that is a former mill that has not been used for

industrial purposes for the immediately preceding 2 years, that is

located along a river that is a federal superfund site listed under

the comprehensive environmental response, compensation, and

liability act of 1980, 42 USC 9601 to 9675, and that is located in

a city with a population of less than 10,000 persons, the following

additional activities:

(A) Infrastructure improvements that directly benefit the

property.

(B) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

(D) Site preparation that is not response activity under

section 20101 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.20101.

(x) For eligible activities on eligible property that is

located north of the 45th parallel, that is a facility,

functionally obsolete, or blighted, and the owner or operator of

which makes new capital investment of $250,000,000.00 or more in

this state, the following additional activities:

(A) Demolition of structures that is not response activity

under section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

(B) Lead or asbestos abatement.

(xi) Reasonable costs of environmental insurance.

(xii) For eligible activities on eligible property that is

included in a transformational brownfield plan, any demolition,

construction, restoration, alteration, renovation, or improvement

of buildings or site improvements on eligible property, including

infrastructure improvements that directly benefit eligible

property.

(o) Except as otherwise provided in this subdivision,

"eligible property" means property for which eligible activities

are identified under a brownfield plan that was used or is

currently used for commercial, industrial, public, or residential

purposes, including personal property located on the property, to

the extent included in the brownfield plan, and that is 1 or more

of the following:

(i) Is in a qualified local governmental unit and is a

facility, historic resource, functionally obsolete, or blighted and

includes parcels that are adjacent or contiguous to that property

if the development of the adjacent and contiguous parcels is

estimated to increase the captured taxable value of that property.

(ii) Is not in a qualified local governmental unit and is a

facility, and includes parcels that are adjacent or contiguous to

that property if the development of the adjacent and contiguous

parcels is estimated to increase the captured taxable value of that

property.

(iii) Is tax reverted property owned or under the control of a

land bank fast track authority.

(iv) Is not in a qualified local governmental unit, is a

qualified facility, and is a facility, functionally obsolete, or

blighted, if the eligible activities on the property are limited to

the eligible activities identified in subdivision (n)(vi).

(v) Is not in a qualified local governmental unit and is a

facility, historic resource, functionally obsolete, or blighted, if

the eligible activities on the property are limited to the eligible

activities identified in subdivision (n)(vii).

(vi) Is not in a qualified local governmental unit and is a

facility, functionally obsolete, or blighted, if the eligible

activities on the property are limited to the eligible activities

identified in subdivision (n)(ix).

(vii) Is located north of the 45th parallel, is a facility,

functionally obsolete, or blighted, and the owner or operator makes

new capital investment of $250,000,000.00 or more in this state.

Eligible property does not include qualified agricultural property

exempt under section 7ee of the general property tax act, 1893 PA

206, MCL 211.7ee, from the tax levied by a local school district

for school operating purposes to the extent provided under section

1211 of the revised school code, 1976 PA 451, MCL 380.1211.

(viii) Is a transit-oriented development.

(ix) Is a transit-oriented facility.

(x) Is located in a qualified local governmental unit and

contains a targeted redevelopment area, as designated by resolution

of the governing body and approved by the Michigan strategic fund,

of not less than 40 and not more than 500 contiguous parcels. A

qualified local governmental unit is limited to designating no more

than 2 targeted redevelopment areas for the purposes of this

section in a calendar year. The Michigan strategic fund may approve

no more than 5 redevelopment areas for the purposes of this section

in a calendar year.

(xi) Is undeveloped property that was eligible property in a

previously approved brownfield plan abolished under section 16.

(p) "Environmental insurance" means liability insurance for

environmental contamination and cleanup that is not otherwise

required by state or federal law.

(q) "Facility" means that term as defined in section 20101 of

the natural resources and environmental protection act, 1994 PA

451, MCL 324.20101.

(r) "Fiscal year" means the fiscal year of the authority.

(s) "Functionally obsolete" means that the property is unable

to be used to adequately perform the function for which it was

intended due to a substantial loss in value resulting from factors

such as overcapacity, changes in technology, deficiencies or

superadequacies in design, or other similar factors that affect the

property itself or the property's relationship with other

surrounding property.

(t) "Governing body" means the elected body having legislative

powers of a municipality creating an authority under this act.

(u) "Historic resource" means that term as defined in section

90a of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090a.

(v) "Income tax" means the tax levied and imposed under part 1

of the income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.532.

(w) "Income tax capture revenues" means funds equal to the

amount for 1 tax year by which the income tax revenue collected

from individuals domiciled within the eligible property subject to

a transformational brownfield plan exceeds the initial income tax

value. The state treasurer shall calculate annually the income tax

capture revenues associated with each transformational brownfield

plan, and shall develop the methods necessary to carry out this

function.

(x) ~~(v)~~ "Infrastructure improvements" means a street, road,

sidewalk, parking facility, pedestrian mall, alley, bridge, sewer,

sewage treatment plant, property designed to reduce, eliminate, or

prevent the spread of identified soil or groundwater contamination,

drainage system, waterway, waterline, water storage facility, rail

line, utility line or pipeline, transit-oriented development,

transit-oriented facility, or other similar or related structure or

improvement, together with necessary easements for the structure or

improvement, owned or used by a public agency or functionally

connected to similar or supporting property owned or used by a

public agency, or designed and dedicated to use by, for the benefit

of, or for the protection of the health, welfare, or safety of the

public generally, whether or not used by a single business entity,

provided that any road, street, or bridge shall be continuously

open to public access and that other property shall be located in

public easements or rights-of-way and sized to accommodate

reasonably foreseeable development of eligible property in

adjoining areas. Infrastructure improvements also include 1 or more

of the following whether publicly or privately owned or operated or

located on public or private property:

(i) Underground parking.

(ii) Multilevel parking structures.

(iii) Urban storm water management systems.

(y) "Initial income tax value" means the amount of income tax

revenue collected from individuals domiciled within the eligible

property subject to a transformational brownfield plan for the tax

year in which the resolution adding that eligible property in the

transformational brownfield plan is adopted.

(z) "Initial sales and use tax value" means the amount of

sales and use tax paid by businesses located within the eligible

property subject to a transformational brownfield plan for the

calendar year in which the resolution adding that eligible property

in the transformational brownfield plan is adopted. For purposes of

this act, "businesses" means any taxpayer licensed under section 53

of the general sales tax act, 1933 PA 167, MCL 205.53, or who is

engaged in the business of furnishing rooms or lodging under

section 93a of the use tax act, 1937 PA 94, MCL 205.93a. The state

treasurer shall require those businesses located within a

transformational brownfield plan to file a separate return for the

location within the transformational brownfield plan, and shall

calculate the initial sales and use tax value as the total sales

and use tax paid pursuant to those returns.

(aa) ~~(w)~~ "Initial taxable value" means the taxable value of an

eligible property identified in and subject to a brownfield plan at

the time the resolution adding that eligible property in the

brownfield plan is adopted, as shown either by the most recent

assessment roll for which equalization has been completed at the

time the resolution is adopted or, if provided by the brownfield

plan, by the next assessment roll for which equalization will be

completed following the date the resolution adding that eligible

property in the brownfield plan is adopted. Property exempt from

taxation at the time the initial taxable value is determined shall

be included with the initial taxable value of zero. Property for

which a specific tax is paid in lieu of property tax shall not be

considered exempt from taxation. The state tax commission shall

prescribe the method for calculating the initial taxable value of

property for which a specific tax was paid in lieu of property tax.

(bb) ~~(x)~~ "Land bank fast track authority" means an authority

created under the land bank fast track act, 2003 PA 258, MCL

124.751 to 124.774.

(cc) ~~(y)~~ "Local taxes" means all taxes levied other than taxes

levied for school operating purposes.

(dd) ~~(z)~~ "Michigan strategic fund" means the Michigan

strategic fund created under the Michigan strategic fund act, 1984

PA 270, MCL 125.2001 to 125.2094.

(ee) "Mixed-use" means a real estate project with planned

integration of some combination of retail, office, residential,

hotel, recreation, or other functions.

(ff) ~~(aa)~~ "Municipality" means all of the following:

(i) A city.

(ii) A village.

(iii) A township in those areas of the township that are

outside of a village.

(iv) A township in those areas of the township that are in a

village upon the concurrence by resolution of the village in which

the zone would be located.

(v) A county.

(gg) ~~(bb)~~ "Owned or under the control of" means that a land

bank fast track authority has 1 or more of the following:

(i) An ownership interest in the property.

(ii) A tax lien on the property.

(iii) A tax deed to the property.

(iv) A contract with this state or a political subdivision of

this state to enforce a lien on the property.

(v) A right to collect delinquent taxes, penalties, or

interest on the property.

(vi) The ability to exercise its authority over the property.

(hh) ~~(cc)~~ "Qualified facility" means a landfill facility area

of 140 or more contiguous acres that is located in a city and that

contains a landfill, a material recycling facility, and an asphalt

plant that are no longer in operation.

(ii) ~~(dd)~~ "Qualified local governmental unit" means that term

as defined in the obsolete property rehabilitation act, 2000 PA

146, MCL 125.2781 to 125.2797.

(jj) ~~(ee)~~ "Qualified taxpayer" means that term as defined in

sections 38d and 38g of former 1975 PA 228, or section 437 of the

Michigan business tax act, 2007 PA 36, MCL 208.1437, or a recipient

of a community revitalization incentive as described in section 90a

of the Michigan strategic fund act, 1984 PA 270, MCL 125.2090a.

(kk) ~~(ff)~~ "Response activity" means either of the following:

(i) Response activity as that term is defined in section 20101

of the natural resources and environmental protection act, 1994 PA

451, MCL 324.20101.

(ii) Corrective action as that term is defined in section

21302 of the natural resources and environmental protection act,

1994 PA 451, MCL 324.21302.

(ll) "Sales and use tax" means the tax imposed under the

general sales tax act, 1933 PA 167, MCL 205.51 to 205.78, and the

tax imposed under the use tax act, 1937 PA 94, MCL 205.91 to

205.111.

(mm) "Sales and use tax capture revenues" means funds equal to

the amount for each calendar year by which the sales and use tax

paid by businesses located within the eligible property subject to

a transformational brownfield plan exceeds the initial sales and

use tax value. The state treasurer shall require those businesses

located within a transformational brownfield plan to file a

separate return for the location within the transformational

brownfield plan, and shall calculate the sales and use tax capture

revenues based on the total sales and use tax paid pursuant to

those returns.

(nn) ~~(gg)~~ "Specific taxes" means a tax levied under 1974 PA

198, MCL 207.551 to 207.572; the commercial redevelopment act, 1978

PA 255, MCL 207.651 to 207.668; the enterprise zone act, 1985 PA

224, MCL 125.2101 to 125.2123; 1953 PA 189, MCL 211.181 to 211.182;

the technology park development act, 1984 PA 385, MCL 207.701 to

207.718; the obsolete property rehabilitation act, 2000 PA 146, MCL

125.2781 to 125.2797; the neighborhood enterprise zone act, 1992 PA

147, MCL 207.771 to 207.786; the commercial rehabilitation act,

2005 PA 210, MCL 207.841 to 207.856; or that portion of the tax

levied under the tax reverted clean title act, 2003 PA 260, MCL

211.1021 to 211.1025a, that is not required to be distributed to a

land bank fast track authority.

(oo) ~~(hh)~~ "State brownfield redevelopment fund" means the

state brownfield redevelopment fund created in section 8a.

(pp) ~~(ii)~~ "Tax increment revenues" means the amount of ad

valorem property taxes and specific taxes attributable to the

application of the levy of all taxing jurisdictions upon the

captured taxable value of each parcel of eligible property subject

to a brownfield plan and personal property located on that

property, regardless of whether those taxes began to be levied

after the brownfield plan was adopted. Tax increment revenues do

not include any of the following:

(i) Ad valorem property taxes specifically levied for the

payment of principal of and interest on either obligations approved

by the electors or obligations pledging the unlimited taxing power

of the local governmental unit, and specific taxes attributable to

those ad valorem property taxes.

(ii) For tax increment revenues attributable to eligible

property also exclude the amount of ad valorem property taxes or

specific taxes captured by a downtown development authority, tax

increment finance authority, or local development finance authority

if those taxes were captured by these other authorities on the date

that eligible property became subject to a brownfield plan under

this act.

(iii) Ad valorem property taxes levied under 1 or more of the

following or specific taxes attributable to those ad valorem

property taxes:

(A) The zoological authorities act, 2008 PA 49, MCL 123.1161

to 123.1183.

(B) The art institute authorities act, 2010 PA 296, MCL

123.1201 to 123.1229.

(qq) ~~(jj)~~ "Taxable value" means the value determined under

section 27a of the general property tax act, 1893 PA 206, MCL

211.27a.

(rr) ~~(kk)~~ "Taxes levied for school operating purposes" means

all of the following:

(i) The taxes levied by a local school district for operating

purposes.

(ii) The taxes levied under the state education tax act, 1993

PA 331, MCL 211.901 to 211.906.

(iii) That portion of specific taxes attributable to taxes

described under subparagraphs (i) and (ii).

(ss) "Transformational brownfield plan" means a brownfield

plan that meets the requirements of section 13a and is adopted

under section 14a and, as designated by resolution of the governing

body and approved by the Michigan strategic fund, will have a

transformational impact on local economic development and community

revitalization based on the extent of brownfield redevelopment and

growth in population, commercial activity, and employment that will

result from the plan. To be designated a transformational

brownfield plan, a transformational brownfield plan under this

subdivision shall be for mixed-used development and shall be

expected to result in the following levels of capital investment:

(i) In a municipality that is not a county and that has a

population of at least 600,000, $500,000,000.00.

(ii) In a municipality that is not a county and that has a

population of at least 150,000 and not more than 599,000,

$100,000,000.00.

(iii) In a municipality that is not a county and that has a

population of at least 100,000 and not more than 149,999,

$75,000,000.00.

(iv) In a municipality that is not a county and that has a

population of at least 50,000 and not more than 99,999,

$50,000,000.00.

(v) In a municipality that is not a county and that has a

population of at least 25,000 and not more than 49,999,

$25,000,000.00.

(vi) In a municipality that is not a county and that has a

population of less than 25,000, $15,000,000.00.

(tt) (ll) "Transit-oriented development" means infrastructure

improvements that are located within 1/2 mile of a transit station

or transit-oriented facility that promotes transit ridership or

passenger rail use as determined by the board and approved by the

municipality in which it is located.

(uu) ~~(mm)~~ "Transit-oriented facility" means a facility that

houses a transit station in a manner that promotes transit

ridership or passenger rail use.

(vv) ~~(nn)~~ "Work plan" means a plan that describes each

individual activity to be conducted to complete eligible activities

and the associated costs of each individual activity.

(ww) ~~(oo)~~ "Zone" means, for an authority established before

June 6, 2000, a brownfield redevelopment zone designated under this

act.

Sec. 8a. (1) The state brownfield redevelopment fund is

created as a revolving fund within the department of treasury to be

administered as provided in this section. The state treasurer shall

direct the investment of the state brownfield redevelopment fund.

Money in the state brownfield redevelopment fund at the close of

the fiscal year shall remain in the state brownfield redevelopment

fund and shall not lapse to the general fund.

(2) The state treasurer shall credit to the fund money from

the following sources:

(a) All amounts deposited into the state brownfield

redevelopment fund under subsection (6) and section 13(21).

(b) The proceeds from repayment of a loan, including interest

on those repayments, under subsection (5)(f).

redevelopment fund.

(d) Money obtained from any other source authorized by law.

(3) The state brownfield redevelopment fund may be used only

for the following purposes:

(a) To pay administrative costs of all of the following:

(i) The Michigan strategic fund to implement this act.

(ii) The department to implement this act.

(iii) The department to implement part 196 of the natural

resources and environmental protection act, 1994 PA 451, MCL

324.19601 to 324.19616.

(iv) The department of treasury to implement this act.

(b) To fund a grant and loan program for the costs of eligible

activities described in section 13(15) on eligible property as

provided in subsection (5).

fund under section 19606(2)(d) of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.19606, for use

in providing grants and loans under part 196 of the natural

resources and environmental protection act, 1994 PA 451, MCL

324.19601 to 324.19616.

(d) To distribute sales and use tax capture revenues and

income tax capture revenues in accordance with a transformational

brownfield plan under subsection (6).

(4) Not more than 15% of the amounts deposited annually into

the state brownfield redevelopment fund may be used for purposes of

subsection (3)(a).

(5) The state brownfield redevelopment fund may be used to

fund a grant and loan program for the costs of eligible activities

described in section 13(15) on eligible property under this

subsection. The grant and loan program shall provide for all of the

following:

(a) The Michigan strategic fund shall create and operate a

grant and loan program to provide grants and loans to fund eligible

activities described in section 13(15) on eligible property. The

Michigan strategic fund shall develop and use a detailed

application, approval, and compliance process adopted by resolution

of the board of the Michigan strategic fund. This process shall be

published and available on the Michigan strategic fund website.

Program standards, guidelines, templates, or any other forms to

implement the grant and loan program shall be approved by the board

of the Michigan strategic fund. The Michigan strategic fund may

delegate its approval authority under this subsection to a

designee.

(b) A person may apply to the Michigan strategic fund for

approval of a grant or loan to fund eligible activities described

in section 13(15) on eligible property.

application not more than 90 days after receipt of an

administratively complete application. If the application is

neither approved nor denied within 90 days, it shall be considered

by the board of the Michigan strategic fund, or its designee if

delegated, for action at, or by, the next regularly scheduled board

meeting. The Michigan strategic fund may delegate the approval or

denial of an application to the chairperson of the Michigan

strategic fund or other designees determined by the board.

(d) When an application is approved under this subsection, the

Michigan strategic fund shall enter into a written agreement with

the applicant. The written agreement shall provide all the

conditions imposed on the applicant and the terms of the grant or

loan. The written agreement shall also provide for penalties if the

applicant fails to comply with the provisions of the written

agreement.

(e) After the Michigan strategic fund and the applicant have

entered into a written agreement under subdivision (d), the

Michigan strategic fund shall distribute the proceeds to the

applicant according to the terms of the written agreement.

(f) Any proceeds from repayment of a loan, including interest

on those repayments, under this subsection shall be paid into the

state brownfield redevelopment fund.

(6) The state treasurer shall deposit annually from the

general fund into the state brownfield redevelopment fund an amount

equal to the sales and use tax capture revenues and income tax

capture revenues due to be transmitted under all transformational

brownfield plans. The Michigan strategic fund shall distribute the

sales and use tax capture revenues and income tax capture revenues

to an authority, or to the owner or developer of the eligible

property to which the revenues are attributable, in accordance with

section 16(9) and the terms of the written development or

reimbursement agreement for each transformational brownfield plan.

Amounts transferred into the state brownfield redevelopment fund

attributable to a specific transformational brownfield plan shall

be accounted for separately within the state brownfield

redevelopment fund and shall not be used for any other purpose or

activity under this section or for any transformational brownfield

plan other than the plan to which the revenues are attributable or

for the additional administrative costs under this section

associated with the implementation of a transformational brownfield

plan.

Sec. 11. The activities of the authority shall be financed

from 1 or more of the following sources:

(a) Contributions, contractual payments, or appropriations to

the authority for the performance of its functions or to pay the

costs of a brownfield plan of the authority.

(b) Revenues from a property, building, or facility owned,

leased, licensed, or operated by the authority or under its

control, subject to the limitations imposed upon the authority by

trusts or other agreements.

and 15, 1 or both of the following:

(i) Tax increment revenues received under a brownfield plan

established under sections 13 and 14.

(ii) Proceeds of tax increment bonds and notes issued under

section 17.

(d) Proceeds of revenue bonds and notes issued under section

12.

(e) Revenue available in the local site remediation revolving

fund for the costs described in section 8.

(f) Sales and use tax capture revenues and income tax capture

revenues received under a transformational brownfield plan

established under sections 13a and 14a.

(g) ~~(f)~~ Money obtained from all other sources approved by the

governing body of the municipality or otherwise authorized by law

for use by the authority or the municipality to finance activities

authorized under this act.

Sec. 13. (1) Subject to section 15, the board may implement a

brownfield plan. The brownfield plan may apply to 1 or more parcels

of eligible property whether or not those parcels of eligible

property are contiguous and may be amended to apply to additional

parcels of eligible property. Except as otherwise authorized by

this act, if more than 1 eligible property is included within the

plan, the tax increment revenues under the plan shall be determined

individually for each eligible property. Each plan or an amendment

to a plan shall be approved by the governing body of the

municipality and shall contain all of the following:

(a) A description of the costs of the plan intended to be paid

for with the tax increment revenues or, for a plan for eligible

properties qualified on the basis that the property is owned or

under the control of a land bank fast track authority, a listing of

all eligible activities that may be conducted for 1 or more of the

eligible properties subject to the plan.

(b) A brief summary of the eligible activities that are

proposed for each eligible property or, for a plan for eligible

properties qualified on the basis that the property is owned or

under the control of a land bank fast track authority, a brief

summary of eligible activities conducted for 1 or more of the

eligible properties subject to the plan.

increment revenues for each year of the plan from the eligible

property. The plan may provide for the use of part or all of the

captured taxable value, including deposits in the local site

remediation revolving fund, but the portion intended to be used

shall be clearly stated in the plan. The plan shall not provide

either for an exclusion from captured taxable value of a portion of

the captured taxable value or for an exclusion of the tax levy of 1

or more taxing jurisdictions unless the tax levy is excluded from

tax increment revenues in section ~~2(ii),~~ 2(pp), or unless the tax

levy is excluded from capture under section 15.

(d) The method by which the costs of the plan will be

financed, including a description of any advances made or

anticipated to be made for the costs of the plan from the

municipality.

(e) The maximum amount of note or bonded indebtedness to be

incurred, if any.

(f) The beginning date and duration of capture of tax

increment revenues for each eligible property as determined under

subsection (22).

(g) An estimate of the impact of tax increment financing on

the revenues of all taxing jurisdictions in which the eligible

property is located.

(h) A legal description of the eligible property to which the

plan applies, a map showing the location and dimensions of each

eligible property, a statement of the characteristics that qualify

the property as eligible property, and a statement of whether

personal property is included as part of the eligible property. If

the project is on property that is functionally obsolete, the

taxpayer shall include, with the application, an affidavit signed

by a level 3 or level 4 assessor, that states that it is the

assessor's expert opinion that the property is functionally

obsolete and the underlying basis for that opinion.

(i) Estimates of the number of persons residing on each

eligible property to which the plan applies and the number of

families and individuals to be displaced. If occupied residences

are designated for acquisition and clearance by the authority, the

plan shall include a demographic survey of the persons to be

displaced, 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.

(j) A plan for establishing priority for the relocation of

persons displaced by implementation of the plan.

(k) Provision for the costs of relocating persons displaced by

implementation of the plan, 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.

(l) A strategy for compliance with 1972 PA 227, MCL 213.321 to

213.332.

(m) A description of proposed use of the local site

remediation revolving fund.

(n) Other material that the authority or governing body

considers pertinent.

(2) The percentage of all taxes levied on a parcel of eligible

property for school operating expenses that is captured and used

under a brownfield plan and all tax increment finance plans under

1975 PA 197, MCL 125.1651 to 125.1681, the tax increment finance

authority act, 1980 PA 450, MCL 125.1801 to 125.1830, or the local

development financing act, 1986 PA 281, MCL 125.2151 to 125.2174,

shall not be greater than the combination of the plans' percentage

capture and use of all local taxes levied for purposes other than

for the payment of principal of and interest on either obligations

approved by the electors or obligations pledging the unlimited

taxing power of the local unit of government. This subsection shall

apply only when taxes levied for school operating purposes are

subject to capture under section 15.

(3) Except as provided in this subsection, ~~and~~ subsections

(5), (15), and (16), and section 13a(12), tax increment revenues

related to a brownfield plan shall be used only for costs of

eligible activities attributable to the eligible property, the

captured taxable value of which produces the tax increment

revenues, including the cost of principal of and interest on any

obligation issued by the authority to pay the costs of eligible

activities attributable to the eligible property, and the

reasonable costs of preparing a brownfield plan, combined

brownfield plan, or a work plan for the eligible property. For

property owned or under the control of a land bank fast track

authority, tax increment revenues related to a brownfield plan may

be used for eligible activities attributable to any eligible

property owned or under the control of the land bank fast track

authority, the cost of principal of and interest on any obligation

issued by the authority to pay the costs of eligible activities,

the reasonable costs of preparing a combined brownfield plan or

work plan. Except as provided in subsection (18), tax increment

revenues captured from taxes levied by this state under the state

education tax act, 1993 PA 331, MCL 211.901 to 211.906, or taxes

levied by a local school district shall not be used for eligible

activities described in section 2(n)(iv)(E).

(4) Except as provided in subsection (5), a brownfield plan

shall not authorize the capture of tax increment revenue from

eligible property after the year in which the total amount of tax

increment revenues captured is equal to the sum of the costs

permitted to be funded with tax increment revenues under this act.

(5) A brownfield plan may authorize the capture of additional

tax increment revenue from an eligible property in excess of the

amount authorized under subsection (4) during the time of capture

for the purpose of paying the costs permitted under subsection (3),

or for not more than 5 years after the time that capture is

required for the purpose of paying the costs permitted under

subsection (3), or both. Excess revenues captured under this

subsection shall be deposited in the local site remediation

revolving fund created under section 8 and used for the purposes

authorized in section 8. If tax increment revenues attributable to

taxes levied for school operating purposes from eligible property

are captured by the authority for purposes authorized under

subsection (3), the tax increment revenues captured for deposit in

the local site remediation revolving fund also may include tax

increment revenues attributable to taxes levied for school

operating purposes in an amount not greater than the tax increment

revenues levied for school operating purposes captured from the

eligible property by the authority for the purposes authorized

under subsection (3). Excess tax increment revenues from taxes

levied for school operating purposes for eligible activities

authorized under subsection (15) by the Michigan strategic fund

shall not be captured for deposit in the local site remediation

revolving fund.

(6) An authority shall not expend tax increment revenues to

acquire or prepare eligible property, unless the acquisition or

preparation is an eligible activity.

(7) Costs of eligible activities attributable to eligible

property include all costs that are necessary or related to a

release from the eligible property, including eligible activities

on properties affected by a release from the eligible property. For

purposes of this subsection, "release" means that term as defined

in section 20101 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101.

(8) Costs of a response activity paid with tax increment

revenues that are captured pursuant to subsection (3) may be

recovered from a person who is liable for the costs of eligible

activities at an eligible property. This state or an authority may

undertake cost recovery for tax increment revenue captured. Before

an authority or this state may institute a cost recovery action, it

must provide the other with 120 days' notice. This state or an

authority that recovers costs under this subsection shall apply

those recovered costs to the following, in the following order of

priority:

(a) The reasonable attorney fees and costs incurred by this

state or an authority in obtaining the cost recovery.

(b) One of the following:

(i) If an authority undertakes the cost recovery action, the

authority shall deposit the remaining recovered funds into the

local site remediation fund created pursuant to section 8, if such

a fund has been established by the authority. If a local site

remediation fund has not been established, the authority shall

disburse the remaining recovered funds to the local taxing

jurisdictions in the proportion that the local taxing

jurisdictions' taxes were captured.

(ii) If this state undertakes a cost recovery action, this

state shall deposit the remaining recovered funds into the

revitalization revolving loan fund established under section 20108a

of the natural resources and environmental protection act, 1994 PA

451, MCL 324.20108a.

(iii) If this state and an authority each undertake a cost

recovery action, undertake a cost recovery action jointly, or 1 on

behalf of the other, the amount of any remaining recovered funds

shall be deposited pursuant to subparagraphs (i) and (ii) in the

proportion that the tax increment revenues being recovered

represent local taxes and taxes levied for school operating

purposes, respectively.

(9) Approval of the brownfield plan or an amendment to a

brownfield plan shall be in accordance with the notice and approval

provisions of this section and section 14.

(10) Before approving a brownfield plan for an eligible

property, the governing body shall hold a public hearing on the

brownfield plan. By resolution, the governing body may delegate the

public hearing process to the authority or to a subcommittee of the

governing body subject to final approval by the governing body.

(11) Notice of the time and place of the hearing on a

brownfield plan shall contain all of the following:

(a) A description of the property to which the plan applies in

relation to existing or proposed highways, streets, streams, or

otherwise.

(b) A statement that maps, plats, and a description of the

brownfield plan are available for public inspection at a place

designated in the notice and that all aspects of the brownfield

plan are open for discussion at the public hearing required by this

section.

appropriate.

(12) At the time set for the hearing on the brownfield plan

required under subsection (10), the governing body shall ensure

that interested persons have an opportunity to be heard and that

written communications with reference to the brownfield plan are

received and considered. The governing body shall ensure that a

record of the public hearing is made and preserved, including all

data presented at the hearing.

(13) Not less than 10 days before the hearing on the

brownfield plan, the governing body shall provide notice of the

hearing to the taxing jurisdictions that levy taxes subject to

capture under this act. The authority shall fully inform the taxing

jurisdictions about the fiscal and economic implications of the

proposed brownfield plan. At that hearing, an official from a

taxing jurisdiction with millage that would be subject to capture

under this act has the right to be heard in regard to the adoption

of the brownfield plan. Not less than 10 days before the hearing on

the brownfield plan, the governing body shall provide notice of the

hearing to the department if the brownfield plan involves the use

of taxes levied for school operating purposes to pay for eligible

activities that require the approval of a combined brownfield plan

or a work plan by the department under section 15(1)(a) and the

Michigan strategic fund, or its designee, if the brownfield plan

involves the use of taxes levied for school operating purposes to

pay for eligible activities subject to subsection (15) or (18).

(14) The authority shall not enter into agreements with the

taxing jurisdictions and the governing body of the municipality to

share a portion of the captured taxable value of an eligible

property. Upon adoption of the plan, the collection and

transmission of the amount of tax increment revenues as specified

in this act shall be binding on all taxing units levying ad valorem

property taxes or specific taxes against property located in the

zone.

(15) Except as provided by subsection (18), if a brownfield

plan includes the capture of taxes levied for school operating

purposes approval of a combined brownfield plan or a work plan by

the Michigan strategic fund to use taxes levied for school

operating purposes and a development agreement or reimbursement

agreement between the municipality or authority and an owner or

developer of eligible property are required if the taxes levied for

school operating purposes will be used for infrastructure

improvements that directly benefit eligible property, demolition of

structures that is not response activity under part 201 of the

natural resources and environmental protection act, 1994 PA 451,

MCL 324.20101 to 324.20142, lead or asbestos abatement, site

preparation that is not response activity under section 20101 of

the natural resources and environmental protection act, 1994 PA

451, MCL 324.20101, relocation of public buildings or operations

for economic development purposes, or acquisition of property by a

land bank fast track authority if acquisition of the property is

for economic development purposes. The eligible activities to be

conducted described in this subsection shall be consistent with the

work plan submitted by the authority to the Michigan strategic

fund. The department's approval is not required for the capture of

taxes levied for school operating purposes for eligible activities

described in this subsection.

(16) The limitations of section 15(1) upon use of tax

increment revenues by an authority shall apply except as follows:

(a) The limitations of section 15(1) upon use of tax increment

revenues by an authority shall not apply to the following costs and

expenses:

(i) In each fiscal year of the authority, the amount described

in subsection (19) for the following purposes for tax increment

revenues attributable to local taxes:

(A) Reasonable and actual administrative and operating

expenses of the authority.

(B) Baseline environmental assessments, due care activities,

and additional response activities conducted by or on behalf of the

authority related directly to work conducted on prospective

eligible properties prior to approval of the brownfield plan.

(ii) Reasonable costs of preparing a work plan for which tax

increment revenues may be used under section 13(3).

(b) The limitations of section 15(1)(a), (b), and (c) upon the

use of taxes levied for school operating purposes by an authority

shall not apply to the costs of 1 or more of the following incurred

by a person other than the authority:

(i) Site investigation activities required to conduct a

baseline environmental assessment and to evaluate compliance with

section 20107a of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20107a.

(ii) Completing a baseline environmental assessment report.

(iii) Preparing a plan for compliance with section 20107a of

the natural resources and environmental protection act, 1994 PA

451, MCL 324.20107a.

increment revenues by an authority shall not apply to the following

costs and expenses:

(i) For tax increment revenues attributable to taxes levied

for school operating purposes, eligible activities associated with

unanticipated response activities conducted on eligible property if

that eligible property has been included in a brownfield plan, if

the department is consulted on the unanticipated response

activities before they are conducted and the costs of those

activities are subsequently included in a brownfield plan approved

by the authority and a combined brownfield plan or a work plan

approved by the department.

(ii) For tax increment revenues attributable to local taxes,

any eligible activities conducted on eligible property or

prospective eligible properties prior to approval of the brownfield

plan, if those costs and the eligible property are subsequently

included in a brownfield plan approved by the authority.

(iii) For tax increment revenues attributable to taxes levied

for school operating purposes, eligible activities described in

section 13(15) and conducted on eligible property or prospective

eligible properties prior to approval of the brownfield plan, if

those costs and the eligible property are subsequently included in

a brownfield plan approved by the authority and a combined

brownfield plan or work plan approved by the Michigan strategic

fund.

(17) A brownfield authority may reimburse advances, with or

without interest, made by a municipality under section 7(3), a land

bank fast track authority, or any other person or entity for costs

of eligible activities with any source of revenue available for use

of the brownfield authority under this act. If an authority

reimburses a person or entity under this section for an advance for

the payment or reimbursement of the cost of eligible activities and

interest thereon, the authority may capture local taxes for the

payment of that interest. If an authority reimburses a person or

entity under this section for an advance for the payment or

reimbursement of the cost of baseline environmental assessments,

due care, and additional response activities and interest thereon

included in a combined brownfield plan or a work plan approved by

the department, the authority may capture taxes levied for school

operating purposes and local taxes for the payment of that

interest. If an authority reimburses a person or entity under this

section for an advance for the payment or reimbursement of the cost

of eligible activities that are not baseline environmental

assessments, due care, and additional response activities and

interest thereon included in a combined brownfield plan or a work

plan approved by the Michigan strategic fund, the authority may

capture taxes levied for school operating purposes and local taxes

for the payment of that interest provided that the Michigan

strategic fund grants an approval for the capture of taxes levied

for school operating purposes to pay such interest. An authority

may enter into agreements related to these reimbursements and

payments. A reimbursement agreement for these purposes and the

obligations under that reimbursement agreement shall not be subject

to section 12 or the revised municipal finance act, 2001 PA 34, MCL

141.2101 to 141.2821.

(18) If a brownfield plan includes the capture of taxes levied

for school operating purposes, approval of a combined brownfield

plan or a work plan by the Michigan strategic fund in the manner

required under section 15(14) to (16) or (25) is required in order

to use tax increment revenues attributable to taxes levied for

school operating purposes for purposes of eligible activities

described in section 2(n)(iv)(E) for 1 or more parcels of eligible

property. The combined brownfield plan or work plan to be submitted

to the Michigan strategic fund under this subsection shall be in a

form prescribed by the Michigan strategic fund. The eligible

activities to be conducted and described in this subsection shall

be consistent with the combined brownfield plan or work plan

submitted by the authority to the Michigan strategic fund. The

department's approval is not required for the capture of taxes

levied for school operating purposes for eligible activities

described in this section.

(19) In each fiscal year of the authority, the amount of tax

increment revenues attributable to local taxes that an authority

can use for the purposes described in subsection (16)(a) shall be

determined as follows:

(a) For authorities that have 5 or fewer active projects,

$100,000.00.

(b) For authorities that have 6 or more but fewer than 11

active projects, $125,000.00.

active projects, $150,000.00.

(d) For authorities that have 16 or more but fewer than 21

active projects, $175,000.00.

(e) For authorities that have 21 or more but fewer than 26

active projects, $200,000.00.

(f) For authorities that have 26 or more but fewer than 31

active projects, $300,000.00.

(g) For authorities that have 31 or more active projects,

$500,000.00.

(20) As used in subsection (19), "active project" means a

project in which the authority is currently capturing taxes under

this act. The amounts of tax increment revenues attributable to

local taxes listed in subsection (19) that an authority can use for

the purposes described in subsection (16)(a) may be increased by 2%

for each written agreement entered into by an authority in either

of the following situations up to a total maximum increase of 10%:

(a) The authority is an authority established by a county and

that authority enters into a written agreement with 1 or more

municipalities within that county to serve as the only authority

for those other municipalities.

(b) The authority enters into a written agreement with 1 or

more other authorities to administer 1 or more administrative

operations of those other authorities.

(21) Notwithstanding anything to the contrary in this act, for

a brownfield plan that includes the capture of taxes levied for

school operating purposes from eligible property included in a

brownfield plan after January 1, 2013, an authority shall pay to

the department of treasury at least once annually an amount equal

to 3 mills of the taxes levied under the state education tax, 1993

PA 331, MCL 211.901 to 211.906, that are captured under the

brownfield plan for up to the first 25 years of the duration of

capture of tax increment revenues for each eligible property

included in the brownfield plan. The department of treasury shall

deposit these amounts into the state brownfield redevelopment fund.

If an authority pays an amount equal to 3 mills of the taxes levied

under the state education tax, 1993 PA 331, MCL 211.901 to 211.906,

on a parcel of eligible property to the department of treasury

under this subsection, the percentage of local taxes levied on that

parcel and used to reimburse eligible activities for a project

under a brownfield plan shall not exceed the percentage of local

taxes levied on that parcel that would have been used to reimburse

eligible activities for the project under a brownfield plan if the

3 mills of the taxes levied under the state education tax, 1993 PA

331, MCL 211.901 to 211.906, on that parcel were not paid to the

department of treasury under this subsection. If, due to an appeal

of any tax assessment, an authority is required to reimburse a

taxpayer for any portion of the 3 mills that are paid to the

department of treasury under this subsection, the department of

treasury shall reimburse that amount to the authority within 30

days after receiving a request from the authority for

reimbursement.

(22) The duration of capture of tax increment revenues under a

brownfield plan for a particular eligible property shall not exceed

the lesser of the period authorized under subsections (4) and (5)

or 30 years from the beginning date of the capture of tax increment

revenues for that eligible property. The beginning date of capture

of tax increment revenues for an eligible property shall not be

later than 5 years following the date of the resolution including

the eligible property in the brownfield plan. The authority may

amend the beginning date of capture of tax increment revenues for a

particular eligible property to a date not later than 5 years

following the date of the resolution including the eligible

property in the brownfield plan. The authority may not amend the

beginning date of capture of tax increment revenues for a

particular eligible property if the authority has begun to

reimburse eligible activities from the capture of tax increment

revenues from that eligible property. Any tax increment revenues

captured from an eligible property before the beginning date of

capture of tax increment revenues for that eligible property shall

revert proportionately to the respective tax bodies. If an

authority amends the beginning date for capture of tax increment

revenues that includes the capture of tax increment revenues for

school operating purposes, then the authority shall notify the

department or the Michigan strategic fund, as applicable, within 30

days after amending the beginning date.

Sec. 13a. (1) Subject to the approval of the governing body

and Michigan strategic fund under section 14a, the board may

implement a transformational brownfield plan. The transformational

brownfield plan may consist of a single development on eligible

property or a series of developments on eligible property that are

part of a related program of investment, whether or not located on

contiguous parcels, and may be amended to apply to additional

parcels of eligible property. Each amendment to a transformational

brownfield plan shall be approved by the governing body of the

municipality in which it is located and the Michigan strategic fund

and shall be consistent with the approval requirements in this

section.

(2) A transformational brownfield plan may authorize the use

of sales and use tax capture revenues, income tax capture revenues,

and tax increment revenues for eligible activities described in

section 2(n)(xii). Except as provided for in section 15(1)(e),

sales and use tax capture revenues and income tax capture revenues

shall be used only for the costs of eligible activities included

within the transformational brownfield plan to which the revenues

are attributable, including the cost of principal of and interest

on any obligation to pay the cost of the eligible activities.

(3) A transformational brownfield plan is a brownfield plan

and, except as otherwise provided, is subject to sections 13, 14,

and 15 of this act. In addition to the information required under

section 13(1), a transformational brownfield plan shall contain all

of the following:

(a) The basis for designating the plan as a transformational

brownfield plan under section 2(ss).

(b) A description of the costs of the transformational

brownfield plan intended to be paid for with sales and use tax

capture revenues and income tax capture revenues.

revenues and income tax capture revenues expected to be generated

for each year of the transformational brownfield plan from the

eligible property.

(d) The beginning date and duration of capture of sales and

use tax capture revenues and income tax capture revenues for each

eligible property as determined under subsections (8) and (11).

(4) Subject to section 14a(5), the transformational brownfield

plan may provide for the use of part or all of the sales and use

tax capture revenues and income tax capture revenues. The portion

of sales and use tax capture revenues and income tax revenues to be

used may vary over the duration of the transformational brownfield

plan, but the portion intended to be used shall be clearly stated

in the transformational brownfield plan.

(5) Approval of a transformational brownfield plan, or an

amendment to a transformational brownfield plan, shall be in

accordance with the notice, approval, and public hearing

requirements of sections 13 and 14a, except that the governing body

shall provide notice to the Michigan strategic fund not less than

30 days before the hearing on a transformational brownfield plan.

(6) If a transformational brownfield plan authorizes the use

of sales and use tax capture revenues or income tax capture

revenues, approval of a combined brownfield plan or work plan by

the Michigan strategic fund and a written development or

reimbursement agreement are required between the owner or developer

of the eligible property, the authority, and the Michigan strategic

fund. If a plan authorizes the use of tax increment revenues for

eligible activities under section 2(n)(xii) other than eligible

activities described in section 13, approval of a work plan or

combined brownfield plan by the Michigan strategic fund to use tax

increment revenues for those additional eligible activities is

required. A work plan or combined brownfield plan under this

subsection shall be consolidated with a work plan or combined

brownfield plan under section 13(15). The eligible activities to be

conducted shall be consistent with the work plan submitted by the

authority to the Michigan strategic fund.

(7) Upon approval of the transformational brownfield plan by

the governing body and Michigan strategic fund, and the execution

of the written development or reimbursement agreement, the transfer

and distribution of sales and use tax capture revenues and income

tax capture revenues as specified in this act and in the plan shall

be binding on this state.

(8) A transformational brownfield plan shall not authorize the

capture or use of sales and use tax capture revenues or income tax

capture revenues after the year in which the total amount of the

revenue captured under the transformational brownfield plan is

equal to the sum of the costs permitted to be funded with the

revenue under the transformational brownfield plan.

(9) The brownfield authority and Michigan strategic fund may

reimburse advances, with or without interest, made by a

municipality under section 7(3), a land bank fast track authority,

or any other person or entity for costs of eligible activities

included within a transformational brownfield plan using sales and

use tax capture revenues or income tax capture revenues

attributable to that plan. Upon approval of the Michigan strategic

fund, the amount of sales and use tax increment revenues and income

tax capture revenues authorized to be captured under a

transformational brownfield plan may include amounts required for

the payment of interest under this subsection. A written

development or reimbursement agreement shall be entered into under

subsection (5) before any reimbursement or payment using sales and

use tax capture revenues or income tax capture revenues may

commence. A reimbursement agreement for these purposes and the

obligations under that reimbursement agreement shall not be subject

to section 12 or the revised municipal finance act, 2001 PA 34, MCL

141.2101 to 141.2821.

(10) Eligible activities conducted on eligible property prior

to approval of the transformational brownfield plan may be

reimbursed from sales and use tax capture revenues and income tax

capture revenues if those costs and the eligible property are

subsequently included in a transformational brownfield plan

approved by the governing body and Michigan strategic fund, a

combined work brownfield plan or work plan approved by the Michigan

strategic fund, and a written development or reimbursement

agreement under subsection (5). Reimbursement under this subsection

shall be limited to eligible expenses incurred within 90 days of

the approval of the transformational brownfield plan by the

Michigan strategic fund.

(11) The duration of the capture of sales and use tax capture

revenues and income tax capture revenues under a transformational

brownfield plan for a particular eligible property shall not exceed

the lesser of the period authorized under subsection (7) or 30

years from the beginning date of the capture of sales and use tax

capture revenues and income tax capture revenues for that eligible

property. The beginning date for the capture of sales and use tax

capture revenues and income tax capture revenues for an eligible

property shall not be later than 5 years following the date the

Michigan strategic fund approves the inclusion of the eligible

property in a transformational brownfield plan. Subject to the

approval of the governing body and Michigan strategic fund, the

authority may amend the beginning date of capture of sales and use

tax capture revenues and income tax capture revenues to a date not

later than 5 years following the date the Michigan strategic fund

approved inclusion of the eligible property in the transformational

brownfield plan so long as capture of the revenues under the

transformational brownfield plan has not yet commenced.

(12) For purposes of subsection (1), a series of developments

on parcels that are not contiguous shall be considered a related

program of investment if all of the following are met:

(a) The developments are proposed to be undertaken

concurrently or in reasonable succession.

(b) For developments under affiliated ownership, the

developments are part of a program of investment in a logically

defined geography, including, but not limited to, a downtown

district as defined in section 1 of 1975 PA 197, MCL 125.1651, or a

principal shopping district or business improvement district as

defined in section 1 of 1961 PA 120, MCL 125.981, and including

areas that are logically related to those districts and that will

promote infill development.

developments are part of a master development plan, area plan, sub-

area plan, or similar development plan that has been approved or

adopted by resolution of the governing body.

(d) The designation of the developments as a related program

of investment is consistent with the purposes of this act.

(13) Where undeveloped property included in a transformational

brownfield plan has been designated as a renaissance zone under the

Michigan renaissance zone act, 1996 PA 376, MCL 125.2681 to

125.2696, upon the request of the owner or developer of the

eligible property and the local government unit that designated the

zone, the Michigan strategic fund, and a city levying a tax under

the city income tax act, 1964 PA 284, MCL 141.501 to 141.787, may

elect under section 9(4) of the Michigan renaissance zone act, 1996

PA 376, MCL 125.2689, to terminate the exemptions, deductions, or

credits provided for in section 9(1)(b) and (c) of that act, and

reimburse the authority, or owner or developer of the eligible

property, an annual amount equal to the revenue collected for each

tax year as a result of the termination of the exemptions,

deductions, or credits that would otherwise be in effect. In

implementing this subsection, all of the following apply:

(a) The authority and Michigan strategic fund shall include

amounts anticipated to be collected under this subsection in the

income tax capture revenues authorized to be used under the

transformational brownfield plan and associated work plan or

combined brownfield plan.

(b) The state treasurer shall calculate for each tax year the

amount of revenue the state of Michigan collected as a result of

the operation of this subsection and shall deposit that amount as

income tax capture revenues into the state brownfield redevelopment

fund, where the funds shall be transmitted in the manner provided

for in sections 8a(6) and 16(9).

act, 1964 PA 284, MCL 141.501 to 141.787, shall calculate for each

tax year the amount of revenue the city collected as a result of

the operation of this subsection and shall enter into a binding

reimbursement agreement with the authority, and owner or developer

of the eligible property, providing for the payment of the amounts

to the authority, or the owner or developer of the eligible

property, for eligible activities as provided for in the

transformational brownfield plan.

(14) The authority and governing body are solely responsible

for deciding whether to seek approval of a brownfield plan as a

transformational brownfield plan. Nothing in this section or

section 14a shall operate to prejudice or limit consideration of a

brownfield plan under sections 13 and 14, including a decision by

the Michigan strategic fund not to approve a plan as a

transformational brownfield plan.

Sec. 14a. (1) The governing body and Michigan strategic fund

shall determine whether to approve a transformational brownfield

plan in accordance with the provisions of this section.

(2) The governing body shall make an initial determination as

to whether the transformational brownfield plan constitutes a

public purpose in accordance with section 14(1). If the governing

body determines the transformational brownfield plan does not

constitute a public purpose, it shall reject the transformational

brownfield plan.

(3) If the governing body determines that the transformational

brownfield plan constitutes a public purpose, the governing body

may then approve or reject the transformational brownfield plan, or

approve it with modification, by resolution based on all of the

following considerations:

(a) Whether the transformational brownfield plan meets the

requirements of section 2(ss), which must include a determination

that the transformational brownfield plan is calculated to, and has

the reasonable likelihood to, have a transformational impact on

local economic development and community revitalization based on

the extent of brownfield redevelopment and growth in population,

commercial activity, and employment that will result from the

transformational brownfield plan.

(b) Whether the transformational brownfield plan meets the

requirements of section 13 and section 13a.

reasonable and necessary to carry out the purposes of this act.

(d) Whether the amount of captured taxable value, sales and

use tax capture revenues, and income tax capture revenues estimated

to result from adoption of the transformational brownfield plan are

reasonable.

(e) Whether, based on an economic and fiscal impact analysis,

the transformational brownfield plan will result in an overall

positive fiscal impact to this state.

(f) Whether the transformational brownfield plan takes into

account the criteria described in section 90b(4) of the Michigan

strategic fund act, 1984 PA 270, MCL 125.2090b.

(4) Within 90 days of the approval of a transformational

brownfield plan by the governing body, the Michigan strategic fund

shall approve or reject the transformational brownfield plan, or

approve it with modification, by resolution based on the criteria

in subsection (3).

(5) In determining whether to approve a transformational

brownfield plan under subsection (3)(c) and (d), the Michigan

strategic fund shall conduct a financial and underwriting analysis

of the developments included in the plan. The Michigan strategic

fund shall not approve the use of sales and use tax capture

revenues and income tax capture revenues beyond the amount

determined to be necessary for the project to be economically

viable. The Michigan strategic fund shall develop standardized

underwriting criteria for determining economic viability.

(6) Except as otherwise provided in this section, the Michigan

strategic fund shall not approve a transformational brownfield plan

under subsection (3)(e) unless it determines that the

transformational brownfield plan will result in an overall positive

fiscal impact to this state. In making that determination, the

Michigan strategic fund shall take into account both of the

following:

(a) The potential displacement of tax revenue from other areas

of this state.

(b) The effects of the transformational brownfield plan on

economic development in the surrounding area.

(7) The Michigan strategic fund shall require an independent,

third-party underwriting analysis under subsection (3)(d) and an

independent, third-party fiscal and economic impact analysis under

subsection (3)(e) for any plan that proposes to use more than

$1,500,000.00 in any year in sales and use tax capture revenues and

income tax capture revenues, as determined by the first full year

of tax capture under the plan. The Michigan strategic fund shall

consult with the state treasurer prior to approving any

transformational brownfield plan subject to this subsection.

Nothing in this subsection shall limit the ability of the Michigan

strategic fund to utilize independent, third-party analyses on

plans not subject to this subsection.

(8) A governing body of a municipality may approve not more

than 1 transformational brownfield plan in a calendar year. The

Michigan strategic fund may approve not more than 5

transformational brownfield plans in a calendar year.

(9) The Michigan strategic fund shall presume that a

transformational brownfield plan that proposes to use 25% or less

of the income tax capture revenues satisfies the requirements of

subsections (5) and (6) with respect to income tax capture

revenues. The Michigan strategic fund may not approve a

transformational brownfield plan that proposes to use more than 50%

of the income tax capture revenues unless those revenues are

attributable to the election under section 13a(13). The Michigan

strategic fund may modify the amount of sales and use tax capture

revenues and income tax capture revenues before approving a

transformational brownfield plan in order to bring the

transformational brownfield plan into compliance with subsections

(5) and (6).

(10) Upon approval by the Michigan strategic fund, the minimum

investment requirements in section 2(ss) and limitation on

designations under subsection (8) may be waived if the

transformational brownfield plan meets 1 of the following criteria:

(a) Is for eligible property in an area approved by the state

housing development authority as eligible for blight elimination

program funding under the housing finance agency innovation fund

for the hardest hit housing markets authorized pursuant to the

emergency economic stabilization act of 2008, Public Law 110-343,

12 USC 5201 to 5261. For purposes of this subdivision, an area

approved as eligible for blight elimination program funding means

that specific portion or portions of a municipality where the

Michigan state housing development authority approved the

expenditure of blight elimination program funds pursuant to an

application identifying the target areas.

(b) Is for eligible property in a municipality that was

subject to a state of emergency under the Michigan emergency

management act issued for drinking water contamination.

the Michigan strategic fund determines the redevelopment is not

economically feasible absent the transformational brownfield plan.

(11) In determining whether a plan under subsection (10) has a

transformational impact for purposes of section 2(ss) and

subsection (3)(a), the governing body and Michigan strategic fund

shall consider the impact of the transformational brownfield plan

in relation to existing investment and development conditions in

the project area and whether the transformational brownfield plan

will act as a catalyst for additional revitalization of the area in

which it is located.

(12) A governing body of a municipality may approve not more

than 1 transformational brownfield plan in a calendar year, and the

Michigan strategic fund may approve not more than 5

transformational brownfield plans in a calendar year, under

subsection (10).

(13) The Michigan strategic fund shall require the owner or

developer of the eligible property to certify the actual capital

investment, as determined in accordance with section 2(n)(xii) and

section 2(ss), upon the completion of construction and before the

commencement of reimbursement for the plan or the distinct phase or

project within the plan for which reimbursement will be provided.

If the actual capital investment is less than the amount included

in the plan, the Michigan strategic fund shall review the

determination under subsection (5) and may modify the amount of

reimbursement if, and to the extent, such a modification is

necessary to maintain compliance with subsection (5). The

transformational brownfield plan, work plan, and development and

reimbursement agreement shall include provisions to enforce the

requirements and remedies under this subsection. If the actual

level of capital investment does not meet the applicable minimum

investment requirement under section 2(ss) and is outside of the

safe harbor under subsection (16), the Michigan strategic fund may

take 1 of the following remedial actions:

(a) For a plan that consists of a single development, reduce

the amount of reimbursement under the plan.

(b) For a plan that consists of distinct phases or projects,

where the failure to meet the minimum investment threshold is the

result of failure to undertake additional distinct phases or

projects as provided for in the plan, 1 or more of the following:

(i) Permanently rescind the authorization to use tax increment

revenues, sales and use tax capture revenues, and income tax

capture revenues for the additional distinct phases or projects in

the plan.

(ii) If the Michigan strategic fund determines that the

applicable owner or developer acted in bad faith, reduce the amount

of reimbursement for completed phases of the plan.

(14) Except as provided in this subsection, amendments to an

approved transformational brownfield plan shall be submitted by the

authority to the governing body and to the Michigan strategic fund

for approval or rejection following the same notice necessary for

approval or rejection of the original transformational brownfield

plan. Notice is not required for revisions in the estimates of

sales and use tax capture revenues or income tax capture revenues.

(15) The procedure, adequacy of notice, and findings under

this section shall be presumptively valid unless contested in a

court of competent jurisdiction within 60 days after approval of

the transformational brownfield plan by the Michigan strategic

fund. An approved amendment to a conclusive transformational

brownfield plan shall likewise be conclusive unless contested

within 60 days after approval of the amendment by the Michigan

strategic fund. If a resolution adopting an amendment to the

transformational brownfield plan is contested, the original

resolution adopting the transformational brownfield plan is not

open to contest.

(16) The determination as to whether a transformational

brownfield plan complies with the minimum investment requirements

in section 2(ss) shall be made with reference to the most recent

decennial census data available at the time of approval by the

authority. A plan in a municipality that exceeds a population tier

under section 2(ss) by not more than 10 percent of the maximum

population for that tier shall, upon election of the authority, be

subject to the investment requirement for that tier. A

transformational brownfield plan that is expected to result in, or

does result in, a total capital investment that is within 10% of

the applicable minimum investment requirement shall be considered

to satisfy the applicable requirement under section 2(ss).

(17) For purposes of a transformational brownfield plan,

determination as to whether property is functionally obsolete as

defined under section 2(s) may include considerations of economic

obsolescence as determined in accordance with the Michigan state

tax commission's assessor's manual.

(18) Except as provided in this subsection, an amendment to an

approved transformational brownfield plan under section 13a(1)

shall not be considered a new plan approval subject to the

limitation in section 14a(8) or (12). The Michigan strategic fund

may consider an amendment as a new plan approval only where the

amendment adds eligible property and the Michigan strategic fund

determines that approving the addition as an amendment would be

inconsistent with the purposes of this act. In that instance, the

proposed amendment shall not have priority over new

transformational brownfield plan applications.

(19) Any positive or negative determination by the Michigan

strategic fund under this section shall be supported by objective

analysis and documented in the record of its proceedings.

(20) The Michigan strategic fund may charge and collect a

reasonable application fee as necessary to cover the costs

associated with the review and approval of a transformational

brownfield plan.

(21) The Michigan strategic fund shall not approve more than

$50,000,000.00 in new annual tax capture under all transformational

brownfield plans. For purposes of this subsection, "new annual tax

capture" means the amount of sales and use tax capture revenues and

income tax capture revenues provided for in the first full year of

tax capture under a transformational brownfield plan, as determined

at the time of plan approval. If a plan consists of multiple

projects or phases, the new annual tax capture shall be the sum of

the sales and use tax capture revenues and income tax capture

revenues provided for in the first full year of tax capture for

each distinct phase or project in the plan.

Sec. 15. (1) An authority shall not do any of the following:

(a) For eligible activities not described in section 13(15) or

section 13a(5), use taxes levied for school operating purposes

captured from eligible property unless the eligible activities to

be conducted on the eligible property are eligible activities under

part 201 of the natural resources and environmental protection act,

1994 PA 451, MCL 324.20101 to 324.20142, consistent with a combined

brownfield plan or a work plan approved by the department after

July 24, 1996.

(b) Use taxes captured from eligible property to pay for

eligible activities conducted before approval of the brownfield

plan except for costs described in section 13(16).

from eligible property for response activities that benefit a party

liable under section 20126 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.20126, except

that a municipality that established the authority may use taxes

levied for school operating purposes captured from eligible

property for response activities associated with a landfill.

(d) Use taxes captured from eligible property to pay for

administrative and operating activities of the authority or the

municipality on behalf of the authority except for costs described

in section 13(16) and for the reasonable costs for preparing a

combined brownfield plan or a work plan for the eligible property.

(e) Use sales and use tax capture revenues or income tax

capture revenues to pay for eligible activities conducted before

approval of the transformational brownfield plan except for costs

described in section 13a(10).

(f) Use sales and use tax capture revenues and income tax

capture revenues for any expense other than as provided for in

section 13a(2), except for the reasonable costs for preparing a

transformational brownfield plan and the additional administrative

and operating expenses of the authority or municipality as are

specifically associated with the implementation of a

transformational brownfield plan. For purposes of this subsection,

the reasonable costs of preparing a transformational brownfield

plan include the reasonable costs of preparing an associated work

plan, combined brownfield plan, and development or reimbursement

agreement.

(2) To seek department approval of a work plan under

subsection (1)(a), the authority shall submit all of the following

for each eligible property:

(a) A copy of the brownfield plan.

(b) Current ownership information for each eligible property

and a summary of available information on proposed future

ownership, including the amount of any delinquent taxes, interest,

and penalties that may be due.

current use of each eligible property, including a brief summary of

site conditions and what is known about environmental contamination

as that term is defined in section 20101 of the natural resources

and environmental protection act, 1994 PA 451, MCL 324.20101.

(d) Existing and proposed future zoning for each eligible

property.

(e) A brief summary of the proposed redevelopment and future

use for each eligible property.

(3) Upon receipt of a request for approval of a work plan

under subsection (2) or a portion of a work plan that pertains to

only baseline environmental assessment activities or due care

activities, or both, the department shall review the work plan

according to subsection (4) and provide 1 of the following written

responses to the requesting authority within 60 days:

(a) An unconditional approval.

(b) A conditional approval that delineates specific necessary

modifications to the work plan to meet the criteria of subsection

(4), including, but not limited to, individual activities to be

added or deleted from the work plan and revision of costs.

department to respond under subdivision (a), (b), or (d) for any

specific activity, a letter stating with specificity the necessary

additions or changes to the work plan to be submitted before that

activity will be considered by the department. The department shall

respond under subdivision (a), (b), or (d) according to this

section for the other activities in the work plan.

(d) A denial if the property is not an eligible property under

this act, if the work plan contemplates the use of taxes levied for

school operating purposes prohibited by subsection (1)(c), or for

any specific activity if the activity is prohibited by subsection

(1)(b). The department may also deny any activity in a work plan

that does not meet the conditions in subsection (4) only if the

department cannot respond under subdivision (b) or (c). The

department shall accompany the denial with a letter that states

with specificity the reason for the denial. The department shall

respond under subdivision (a), (b), or (c) according to this

section for any activities in the work plan that are not denied

under this subdivision. If the department denies all or a portion

of a work plan under this subdivision, the authority may

subsequently resubmit the work plan.

(4) The department may approve a work plan if the following

conditions have been met:

(a) Whether some or all of the activities constitute due care

activities or additional response activities other than activities

that are exempt from the work plan approval process under

subsection (1)(a).

(b) The due care activities and response activities, other

than the activities that are exempt from the work plan approval

process under subsection (1)(a), are protective of the public

health, safety, and welfare and the environment. The department may

approve additional response activities that are more protective of

the public health, safety, and welfare and the environment than

required by section 20107a of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.20107a, if those

activities provide public health or environmental benefit. In

review of a work plan that includes activities that are more

protective of the public health, safety, and welfare and the

environment, the department's considerations may include, but are

not limited to, all of the following:

(i) Proposed new land use and reliability of restrictions to

prevent exposure to contamination.

(ii) Cost of implementation activities minimally necessary to

achieve due care compliance, the incremental cost of all additional

response activities relative to the cost of all response

activities, and the total cost of all response activities.

(iii) Long-term obligations associated with leaving

contamination in place and the value of reducing or eliminating

these obligations.

reasonable for the stated purpose. Except as provided in

subdivision (b), the department shall make the determination in

this subdivision only after the department determines that the

conditions in subdivisions (a) and (b) have been met.

(5) If the department fails to provide a written response

under subsection (3) within 60 days after receipt of a request for

approval of a work plan, the authority may proceed with the

activities as outlined in the work plan as submitted for approval.

Except as provided in subsection (6), activities conducted pursuant

to a work plan that was submitted to the department for approval

but for which the department failed to provide a written response

under subsection (3) shall be considered approved for the purposes

of subsection (1). Within 45 days after receiving additional

information requested from the authority under subsection (3)(c),

the department shall review the additional information according to

subsection (4) and provide 1 of the responses described in

subsection (3) to the requesting authority for the specific

activity. If the department does not provide a response to the

requesting authority within 45 days after receiving the additional

information requested under subsection (3)(c), the activity is

approved under subsection (1).

(6) The department may issue a written response to a work plan

more than 60 days but less than 6 months after receipt of a request

for approval. If the department issues a written response under

this subsection, the authority is not required to conduct

individual activities that are in addition to the individual

activities included in the work plan as it was submitted for

approval and failure to conduct these additional activities shall

not affect the authority's ability to capture taxes under

subsection (1) for the eligible activities described in the work

plan initially submitted under subsection (5). In addition, at the

option of the authority, these additional individual activities

shall be considered part of the work plan of the authority and

approved for purposes of subsection (1). However, any response by

the department under this subsection that identifies additional

individual activities that must be carried out to satisfy part 201

of the natural resources and environmental protection act, 1994 PA

451, MCL 324.20101 to 324.20142, must be satisfactorily completed

for the activities to be considered acceptable for the purposes of

compliance with part 201 of the natural resources and environmental

protection act, 1994 PA 451, MCL 324.20101 to 324.20142.

(7) If the department issues a written response under

subsection (6) to a work plan and if the department's written

response modifies an individual activity proposed by the work plan

of the authority in a manner that reduces or eliminates a proposed

response activity, the authority must complete those individual

activities in accordance with the department's response in order

for that portion of the work plan to be considered approved for

purposes of subsection (1), unless 1 or more of the following

conditions apply:

(a) Obligations for the individual activity have been issued

by the authority, or by a municipality on behalf of the authority,

to fund the individual activity prior to issuance of the

department's response.

(b) The individual activity has commenced or payment for the

work has been irrevocably obligated prior to issuance of the

department's response.

(8) It shall be in the sole discretion of an authority to

propose to undertake additional response activities at an eligible

property under a brownfield plan. The department shall not require

a work plan to include additional response activities.

(9) The department shall review the portion of a work plan

that includes additional response activities in accordance with

subsection (4).

(10) The department's approval or denial of a work plan

submitted under this section constitutes a final decision in regard

to the use of taxes levied for school operating purposes but does

not restrict an authority's use of tax increment revenues

attributable to local taxes to pay for eligible activities under a

brownfield plan. If a person is aggrieved by the final decision,

the person may appeal under section 631 of the revised judicature

act of 1961, 1961 PA 236, MCL 600.631.

(11) Through December 31, 2012, the authority shall reimburse

the department for the actual cost incurred by the department or a

contractor of the department to review a work plan under subsection

(1)(a) under this section. Funds paid to the department under this

subsection shall be deposited in the cost recovery subaccount of

the cleanup and redevelopment fund created under section 20108 of

the natural resources and environmental protection act, 1994 PA

451, MCL 324.20108.

(12) The department shall submit a report each year to each

member of the legislature as provided in section 16(4).

(13) To seek Michigan strategic fund approval of a work plan

under section 13(15) or section 13a(5), the authority shall submit

all of the following for each eligible property:

(a) A copy of the brownfield plan or transformational

brownfield plan.

(b) Current ownership information for each eligible property

and a summary of available information on proposed future

ownership, including the amount of any delinquent taxes, interest,

and penalties that may be due.

current use of each eligible property.

(d) Existing and proposed future zoning for each eligible

property.

(e) A brief summary of the proposed redevelopment and future

use for each eligible property.

(f) A separate work plan, or part of a work plan, for each

eligible activity described in section 13(15) to be undertaken. For

a transformational brownfield plan, the Michigan strategic fund

shall prescribe the form and content for the work plan to address

additional eligible activities under section 2(n)(xii).

(g) A copy of the development agreement or reimbursement

agreement required under section 13(15) or section 13a(5), which

shall include, but is not limited to, a detailed summary of any and

all ownership interests, monetary considerations, fees, revenue and

cost sharing, charges, or other financial arrangements or other

consideration between the parties.

(14) Upon receipt of a request for approval of a work plan,

the Michigan strategic fund shall provide 1 of the following

written responses to the requesting authority within 65 days:

(a) An unconditional approval that includes an enumeration of

eligible activities and a maximum allowable capture amount.

(b) A conditional approval that delineates specific necessary

modifications to the work plan, including, but not limited to,

individual activities to be added or deleted from the work plan and

revision of costs.

for the denial. If a work plan is denied under this subsection, the

work plan may be subsequently resubmitted.

(15) In its review of a work plan under section 13(15) and

section 13a(5), the Michigan strategic fund shall consider the

following criteria to the extent reasonably applicable to the type

of activities proposed as part of that work plan when approving or

denying a work plan:

(a) Whether the individual activities included in the work

plan are sufficient to complete the eligible activity.

(b) Whether each individual activity included in the work plan

is required to complete the eligible activity.

reasonable.

(d) The overall benefit to the public.

(e) The extent of reuse of vacant buildings and redevelopment

of blighted property.

(f) Creation of jobs.

(g) Whether the eligible property is in an area of high

unemployment.

(h) The level and extent of contamination alleviated by or in

connection with the eligible activities.

(i) The level of private sector contribution.

(j) The cost gap that exists between the site and a similar

greenfield site as determined by the Michigan strategic fund.

(k) If the developer or projected occupant of the new

development is moving from another location in this state, whether

the move will create a brownfield.

(l) Whether the project of the developer, landowner, or

corporate entity that is included in the work plan is financially

and economically sound.

(m) Other state and local incentives available to the

developer, landowner, or corporate entity for the project of the

developer, landowner, or corporate entity that is included in the

work plan.

(n) Any other criteria that the Michigan strategic fund

considers appropriate for the determination of eligibility or for

approval of the work plan.

(16) If the Michigan strategic fund fails to provide a written

response under subsection (14) within 65 days after receipt of a

request for approval of a work plan or 90 days in the case of a

transformational brownfield plan, the eligible activities shall be

considered approved and the authority may proceed with the eligible

activities described in section 13(15) and section 13a(5) as

outlined in the work plan as submitted for approval.

(17) The Michigan strategic fund approval of a work plan under

section 13(15) and section 13a(5) is final.

(18) Through December 31, 2012, the authority shall reimburse

the Michigan strategic fund for the actual cost incurred by the

Michigan strategic fund or a contractor of the Michigan strategic

fund to review a work plan under this section.

(19) The Michigan strategic fund shall submit a report each

year to each member of the legislature as provided in section

16(4).

(20) All taxes levied for school operating purposes that are

not used for eligible activities consistent with a combined

brownfield plan or a work plan approved by the department or the

Michigan strategic fund or for the payment of interest under

section 13 and that are not deposited in a local site remediation

revolving fund shall be distributed proportionately between the

local school district and the school aid fund.

(21) An authority shall not use taxes levied for school

operating purposes captured from eligible property for eligible

activities for a qualified facility or for eligible activities for

property located in an economic opportunity zone.

(22) The department's approval of a work plan under subsection

(3)(a) or (b) does not imply an entitlement to reimbursement of the

costs of the eligible activities if the work plan is not

implemented as approved.

(23) The applicant and the department can, by mutual

agreement, extend the time period for any review described in this

section. An agreement described in this subsection shall be

documented in writing.

(24) If a brownfield plan includes the capture of taxes levied

for school operating purposes, the chairperson of the Michigan

strategic fund may approve combined brownfield plans and work plans

that address eligible activities described in section 13(15)

totaling an amount of $500,000.00 or less according to subsections

(13), (14), (15), (16), (17), and (18).

(25) In lieu of seeking approval of a work plan under section

13(15), section 13a(5), or subsection (1)(a), an authority may seek

approval of a combined brownfield plan from the department or

Michigan strategic fund under this subsection as follows:

(a) To seek approval of a combined brownfield plan under this

subsection, the authority shall, at least 30 days before the

hearing on the combined brownfield plan to allow for consultation

between the authority and the department or the Michigan strategic

fund, and at least 60 days in the case of a transformational

brownfield plan, provide notice that the authority will be seeking

approval of a combined brownfield plan in lieu of a work plan to 1

or more of the following:

(i) The department, if the combined brownfield plan involves

the use of taxes levied for school operating purposes to pay for

eligible activities that require approval by the department under

subsection (1)(a).

(ii) The Michigan strategic fund, if the combined brownfield

plan involves the use of taxes levied for school operating purposes

to pay for eligible activities subject to subsection (15) or

section 13a(5), or the use of sales and use tax capture revenues or

income tax capture revenues.

(b) After the governing body approves a combined brownfield

plan, the authority shall submit the combined brownfield plan to

the department under the circumstances described in subdivision

(a)(i) or Michigan strategic fund under the circumstances described

in subdivision (a)(ii).

according to subdivision (e). The Michigan strategic fund shall

review a combined brownfield plan according to subdivision (f).

(d) Upon receipt of a combined brownfield plan under

subdivision (b), the department or Michigan strategic fund shall

provide 1 of the following written responses to the requesting

authority within 65 days or, in the case of a transformational

brownfield plan, within 90 days:

(i) An unconditional approval that includes an enumeration of

eligible activities and a maximum allowable capture amount.

(ii) A conditional approval that delineates specific necessary

modifications to the combined brownfield plan, including, but not

limited to, individual activities to be added to or deleted from

the combined brownfield plan and revision of costs.

(iii) A denial and a letter stating with specificity the

reason for the denial. If a combined brownfield plan is denied

under this subdivision, the combined brownfield plan may be

subsequently resubmitted.

(e) The department may approve a combined brownfield plan if

the authority submits the information identified in subsection

(2)(b) to (e) and if the conditions identified in subsection (4)

are met.

(f) The Michigan strategic fund shall consider the criteria

identified in subsection (15)(a) to (n) to the extent reasonably

applicable to the type of activities proposed as part of a combined

brownfield plan when approving or denying the combined brownfield

plan and, in the case of a transformational brownfield plan, shall

also consider the criteria described in section 14a(3).

(g) If the department or Michigan strategic fund issues a

written response to a requesting authority under subdivision (d)(i)

or (ii), the governing body or its designee may administratively

approve any modifications to a combined brownfield plan required by

the written response without the need to follow the notice and

approval process required by section 14(2) unless the modifications

add 1 or more parcels of eligible property or increase the maximum

amount of tax increment revenues or, in the case of a

transformational brownfield plan, sales and use tax capture

revenues and income tax capture revenues approved for the project.

(h) If the department or Michigan strategic fund fails to

provide a written response under subdivision (d) within 65 days

after receipt of a combined brownfield plan, or 90 days in the case

of a transformational brownfield plan, the eligible activities

shall be considered approved as submitted.

(i) The approval of a combined brownfield plan by the

department or Michigan strategic fund under this subsection is

final.

Sec. 16. (1) The municipal and county treasurers shall

transmit tax increment revenues to the authority not more than 30

days after tax increment revenues are collected.

(2) The authority shall expend the tax increment revenues

received only in accordance with the brownfield plan. All surplus

funds not deposited in the local site remediation revolving fund of

the authority under section 13(5) shall revert proportionately to

the respective taxing bodies, except as provided in section 15(20).

(3) The authority shall submit annually to the governing body,

the department, and the Michigan strategic fund a financial report

on the status of the activities of the authority for each calendar

year. The report shall include all of the following:

(a) The amount and source of tax increment revenues received.

(b) The amount and purpose of expenditures of tax increment

revenues.

indebtedness.

(d) The initial taxable value of all eligible property subject

to the brownfield plan.

(e) The captured taxable value realized by the authority for

each eligible property subject to the brownfield plan.

(f) The amount of actual capital investment made for each

project.

(g) The amount of tax increment revenues attributable to taxes

levied for school operating purposes used for activities described

in section 15(1)(a) and section 2(n)(vii).

(h) The number of residential units constructed or

rehabilitated for each project.

(i) The amount, by square foot, of new or rehabilitated

residential, retail, commercial, or industrial space for each

project.

(j) The number of new jobs created at the project.

(k) All additional information that the governing body, the

department, or the Michigan strategic fund considers necessary.

(4) The department and the Michigan strategic fund shall

collect the financial reports submitted under subsection (3),

compile a combined report, which includes the use of local taxes,

taxes levied for school operating purposes, and the state

brownfield redevelopment fund, based on the information contained

in those reports and any additional information considered

necessary, and submit annually a report based on that information

to each member of the legislature.

(5) Beginning on January 1, 2013, all of the following

reporting obligations apply:

(a) The department shall on a quarterly basis post on its

website the name, location, and amount of tax increment revenues,

including taxes levied for school operating purposes, for each

project approved by the department under this act during the

immediately preceding quarter.

(b) The Michigan strategic fund shall on a quarterly basis

post on its website the name, location, and amount of tax increment

revenues, including taxes levied for school operating purposes, for

each project approved by the Michigan strategic fund under this act

during the immediately preceding quarter.

(6) In addition to any other requirements under this act, not

less than once every 3 years beginning not later than June 30,

2008, the auditor general shall conduct and report a performance

postaudit on the effectiveness of the program established under

this act. As part of the performance postaudit, the auditor general

shall assess the extent to which the implementation of the program

by the department and the Michigan strategic fund facilitate and

affect the redevelopment or reuse of eligible property and identify

any factors that inhibit the program's effectiveness. The

performance postaudit shall also assess the extent to which the

interpretation of statutory language, the development of guidance

or administrative rules, and the implementation of the program by

the department and the Michigan strategic fund is consistent with

the fundamental objective of facilitating and supporting timely and

efficient brownfield redevelopment of eligible properties.

(7) The owner or developer for an active project included

within a brownfield plan must annually submit to the authority a

report on the status of the project. The report shall be in a form

developed by the authority and must contain information necessary

for the authority to report under subsection (3)(f), (h), (i), (j),

and (k). The authority may waive the requirement to submit a report

under this subsection. As used in this subsection, "active project"

means a project for which the authority is currently capturing

taxes under this act.

(8) A brownfield plan or plan amendment may be abolished or

terminated according to this subsection subject to all of the

following:

(a) The governing body may abolish a brownfield plan when it

finds that the purposes for which the plan was established are

accomplished.

(b) The governing body may terminate a brownfield plan or plan

amendment for an eligible property if the project for which

eligible activities were identified in the brownfield plan or plan

amendment fails to occur with respect to the eligible property for

at least 5 years following the date of the resolution approving the

brownfield plan or plan amendment.

subdivision (b), the governing body may approve a new brownfield

plan or plan amendment for the eligible property under which tax

increment revenues may be captured for up to 30 years as provided

in section 13(22).

(d) Notwithstanding anything in this subsection to the

contrary, a brownfield plan or plan amendment shall not be

abolished or terminated until the principal and interest on bonds

issued under section 17 and all other obligations to which the tax

increment revenues are pledged have been paid or funds sufficient

to make the payment have been identified or segregated.

(9) For a transformational brownfield plan, all of the

following shall also apply:

(a) The state treasurer shall transfer to the state brownfield

redevelopment fund each fiscal year an amount equal to the sales

and use tax capture revenues and income tax capture revenues under

all approved plans as provided for in section 8a(6). Funds shall be

transmitted to the authority, or owner or developer of the eligible

property to which the revenues are attributable, within 30 days of

transfer to the state brownfield redevelopment fund.

(b) The authority, the department, and the Michigan strategic

fund shall follow the reporting requirements of subsections (3),

(4), and (5) with respect to all approved transformational

brownfield plans, and shall provide information on the amount and

use of sales and use tax capture revenues and income tax capture

revenues to the same extent required for tax increment revenues.

a transformational brownfield plan shall provide the information

required for the authority, the department, and the Michigan

strategic fund to satisfy the reporting requirements of this

section.

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Bill Text: MI SB1061 | 2015-2016 | 98th Legislature | Engrossed

Michigan Senate Bill 1061 (Prior Session Legislation)

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