HB-4487, As Passed House, February 18, 2014

















March 21, 2013, Introduced by Reps. Oakes, Tlaib, Lane, Cavanagh, Brunner, Daley, McBroom, Denby, Foster and Slavens and referred to the Committee on Commerce.


     A bill to amend 1975 PA 197, entitled


"An act to provide for the establishment of a downtown development

authority; to prescribe its powers and duties; to correct and

prevent deterioration in business districts; to encourage historic

preservation; to authorize the acquisition and disposal of

interests in real and personal property; to authorize the creation

and implementation of development plans in the districts; to

promote the economic growth of the districts; to create a board; to

prescribe its powers and duties; to authorize the levy and

collection of taxes; to authorize the issuance of bonds and other

evidences of indebtedness; to authorize the use of tax increment

financing; to reimburse downtown development authorities for

certain losses of tax increment revenues; and to prescribe the

powers and duties of certain state officials,"


by amending section 7 (MCL 125.1657), as amended by 2008 PA 226.




     Sec. 7. (1) The board may:


     (a) Prepare an analysis of economic changes taking place in


the downtown district.


     (b) Study and analyze the impact of metropolitan growth upon


the downtown district.


     (c) Plan and propose the construction, renovation, repair,


remodeling, rehabilitation, restoration, preservation, or


reconstruction of a public facility, an existing building, or a


multiple-family dwelling unit which may be necessary or appropriate


to the execution of a plan which, in the opinion of the board, aids


in the economic growth of the downtown district.


     (d) Plan, propose, and implement an improvement to a public


facility within the development area to comply with the barrier


free design requirements of the state construction code promulgated


under the Stille-DeRossett-Hale single state construction code act,


1972 PA 230, MCL 125.1501 to 125.1531.


     (e) Develop long-range plans, in cooperation with the agency


which is chiefly responsible for planning in the municipality,


designed to halt the deterioration of property values in the


downtown district and to promote the economic growth of the


downtown district, and take such steps as may be necessary to


persuade property owners to implement the plans to the fullest


extent possible.


     (f) Implement any plan of development in the downtown district


necessary to achieve the purposes of this act, in accordance with


the powers of the authority as granted by this act.


     (g) Make and enter into contracts necessary or incidental to


the exercise of its powers and the performance of its duties.


     (h) Acquire by purchase or otherwise, on terms and conditions


and in a manner the authority considers proper or own, convey, or


otherwise dispose of, or lease as lessor or lessee, land and other


property, real or personal, or rights or interests in property,


which the authority determines is reasonably necessary to achieve


the purposes of this act, and to grant or acquire licenses,


easements, and options with respect to that property.


     (i) Improve land and construct, reconstruct, rehabilitate,


restore and preserve, equip, improve, maintain, repair, and operate


any building, including multiple-family dwellings, and any


necessary or desirable appurtenances to that property, within the


downtown district for the use, in whole or in part, of any public


or private person or corporation, or a combination of them.


     (j) Fix, charge, and collect fees, rents, and charges for the


use of any building or property under its control or any part


thereof, or facility therein, and pledge the fees, rents, and


charges for the payment of revenue bonds issued by the authority.


     (k) Lease any building or property under its control, or any


part of a building or property.


     (l) Accept grants and donations of property, labor, or other


things of value from a public or private source.


     (m) Acquire and construct public facilities.


     (n) Create, operate, and fund marketing initiatives that


benefit only retail and general marketing of the downtown district.


     (o) Contract for broadband service and wireless technology


service in the downtown district.


     (p) Operate and perform all duties and exercise all


responsibilities described in this section in a qualified township


if the qualified township has entered into an agreement with the


municipality under section 3(7).


     (q) Create, operate, and fund a loan program to fund


improvements for existing buildings located in a downtown district


to make them marketable for sale or lease. The board may make loans


with interest at a market rate or may make loans with interest at a


below market rate, as determined by the board.


     (r) Create, operate, and fund retail business incubators in


the downtown district.


     (s) Create, operate, and fund marketing initiatives,


infrastructure improvements, billing and payment systems, and


technology updates that promote local agriculture, locally produced


agricultural products, locally produced value-added agricultural


products, locally processed agricultural products, and local


farmers markets.


     (2) If it is the express determination of the board to create,


operate, or fund a retail business incubator in the downtown


district, the board shall give preference to tenants who will


provide goods or services that are not available or that are


underserved in the downtown area. If the board creates, operates,


or funds retail business incubators in the downtown district, the


board and each tenant who leases space in a retail business


incubator shall enter into a written contract that includes, but is


not limited to, all of the following:


     (a) The lease or rental rate that may be below the fair market


rate as determined by the board.


     (b) The requirement that a tenant may lease space in the


retail business incubator for a period not to exceed 18 months.


     (c) The terms of a joint operating plan with 1 or more other


businesses located in the downtown district.


     (d) A copy of the business plan of the tenant that contains


measurable goals and objectives.


     (e) The requirement that the tenant participate in basic


management classes, business seminars, or other business education


programs offered by the authority, the local chamber of commerce,


local community colleges, or institutions of higher education, as


determined by the board.