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.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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
(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
(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.