HOUSE BILL No. 4181

 

February 11, 2003, Introduced by Reps. Kolb, Gieleghem, Stallworth, McConico, Lipsey and Minore and referred to the Committee on Land Use and Environment.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to provide for a pilot project for the sale and                            

                                                                                

    purchase of certain rights to develop land; to provide for the              

                                                                                

    financing of the purchase of such rights by certain local units             

                                                                                

    of government; and to provide for the powers and duties of                  

                                                                                

    certain local governmental officers and entities.                           

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 1.  This act shall be known and may be cited as the                    

                                                                                

2   "development rights market act".                                            

                                                                                

3       Sec. 3.  As used in this act:                                               

                                                                                

4       (a) "Agricultural land" means substantially undeveloped land                

                                                                                

5   devoted in whole or in part to the production of plants and                 

                                                                                

6   animals useful to humans, including forage and sod crops; grains,           

                                                                                

7   feed crops, and field crops; dairy animals and dairy products;              

                                                                                

8   poultry and poultry products; livestock, including breeding and             

                                                                                

9   grazing of cattle, swine, and similar animals; berries; herbs;              

                                                                                


                                                                                

1   flowers; seeds; grasses; nursery stock; fruits; vegetables;                 

                                                                                

2   Christmas trees; and other similar uses and activities.                     

                                                                                

3   Agricultural land includes land enrolled in a federal acreage               

                                                                                

4   set-aside program or a federal conservation reserve program.                

                                                                                

5       (b) "Commission" means the commission of agriculture.                       

                                                                                

6       (c) "Department" means the department of agriculture.                       

                                                                                

7       (d) "Development rights" means the rights to develop land to                

                                                                                

8   the maximum intensity of development authorized by law.                     

                                                                                

9       (e) "DRM ordinance" means a development rights market                       

                                                                                

10  ordinance adopted under section 5.                                          

                                                                                

11      (f) "DRM program" means a development rights market program                 

                                                                                

12  provided for by a DRM ordinance.                                            

                                                                                

13      (g) "Intensity of development" means the height, bulk, area,                

                                                                                

14  density, setback, use, and other similar characteristics of                 

                                                                                

15  development.                                                                

                                                                                

16      (h) "Pilot project" means the development rights market pilot               

                                                                                

17  project provided for in section 5.                                          

                                                                                

18      (i) "Receiving zone" means an area of land identified by a                  

                                                                                

19  DRM ordinance to which development rights can be attached to                

                                                                                

20  increase the intensity of development without adversely affecting           

                                                                                

21  public health, safety, or welfare.                                          

                                                                                

22      (j) "Sending zone" means an area of land identified by a DRM                

                                                                                

23  ordinance where development should be less intense than permitted           

                                                                                

24  by the development rights attached to that land to achieve a                

                                                                                

25  public benefit set forth in the DRM ordinance and from which                

                                                                                

26  development rights can be severed and sold.                                 

                                                                                

27      Sec. 5.  (1) Within 6 months after the effective date of                    

                                                                                


                                                                                

1   this act, the commission shall select not more than 5 townships             

                                                                                

2   for participation in a development rights market pilot project.             

                                                                                

3   The townships shall be located in different counties.  The                  

                                                                                

4   township board of a township selected to participate in the pilot           

                                                                                

5   project may adopt a development rights market ordinance providing           

                                                                                

6   for the establishment, financing, and administration of a                   

                                                                                

7   development rights market program.                                          

                                                                                

8       (2) To be eligible for selection for participation in the                   

                                                                                

9   pilot project, a township shall meet all of the following                   

                                                                                

10  requirements:                                                               

                                                                                

11      (a) The township must have adopted a zoning ordinance under                 

                                                                                

12  the township zoning act, 1943 PA 184, MCL 125.271 to 125.310.               

                                                                                

13      (b) The township board shall submit an application to the                   

                                                                                

14  department on a form prescribed by the department.                          

                                                                                

15      (3) The department shall select the townships to participate                

                                                                                

16  in the pilot project based on the following factors:                        

                                                                                

17      (a) The market for residential and commercial development                   

                                                                                

18  threatening agricultural land in the township.                              

                                                                                

19      (b) The amount and quality of agricultural land threatened                  

                                                                                

20  by development in the township.                                             

                                                                                

21      (c) The ability of a proposed receiving zone to accommodate,                

                                                                                

22  in terms of both land availability and infrastructure capacity,             

                                                                                

23  the intensity of development associated with development rights             

                                                                                

24  that may be purchased from a sending zone.  In determining                  

                                                                                

25  infrastructure capacity, the commission shall consider current              

                                                                                

26  infrastructure and the township's ability to provide any                    

                                                                                

27  necessary additional infrastructure.                                        

                                                                                


                                                                                

1       (d) Other factors that the commission considers relevant.                   

                                                                                

2       (4) If requested, the department shall provide advice to a                  

                                                                                

3   township selected to participate in the pilot project on the                

                                                                                

4   drafting of a DRM ordinance and the implementation of a DRM                 

                                                                                

5   program.                                                                    

                                                                                

6       (5) A DRM program shall allow a landowner to increase the                   

                                                                                

7   intensity of development on land, beyond that otherwise                     

                                                                                

8   authorized by law, by utilizing additional development rights               

                                                                                

9   purchased from other landowners.  A DRM program shall provide for           

                                                                                

10  the severance of development rights from land in a sending zone             

                                                                                

11  and the attachment of those development rights to land in a                 

                                                                                

12  receiving zone.                                                             

                                                                                

13      (6) The purchase and sale of development rights under a DRM                 

                                                                                

14  program, including, but not limited to, the purchase and sale of            

                                                                                

15  development rights under section 9(2), shall be voluntary.                  

                                                                                

16  Subject to section 9(2), the purchase and sale of development               

                                                                                

17  rights under a DRM program shall be at a price negotiated and               

                                                                                

18  agreed upon by the parties.  A DRM program shall not acquire                

                                                                                

19  development rights by condemnation.                                         

                                                                                

20      (7) A landowner may develop land within a receiving zone at                 

                                                                                

21  the intensity of development allowed under applicable zoning,               

                                                                                

22  building, and other ordinances apart from the DRM ordinance or,             

                                                                                

23  if additional development rights have been purchased and attached           

                                                                                

24  to the land, may develop the land at a higher intensity of                  

                                                                                

25  development as allowed under the DRM ordinance.                             

                                                                                

26      (8) If development rights have not been severed from land in                

                                                                                

27  a sending zone and sold, the landowner may develop the land at              

                                                                                


                                                                                

1   the intensity of development allowed under applicable zoning,               

                                                                                

2   building, and other ordinances apart from the DRM ordinance.                

                                                                                

3       Sec. 7.  (1) A DRM ordinance shall specify all of the                       

                                                                                

4   following:                                                                  

                                                                                

5       (a) The public benefits that the township may seek through                  

                                                                                

6   the DRM program, which shall be 1 or more of the following:                 

                                                                                

7                                                                                (i) The voluntary protection of natural, scenic,                                    

                                                                                

8   agricultural, and open space qualities.                                     

                                                                                

9       (ii) The voluntary enhancement of sites and areas of special                 

                                                                                

10  character or special historical, cultural, aesthetic, or economic           

                                                                                

11  interest or value.                                                          

                                                                                

12      (iii) The voluntary protection and management of land, water,                

                                                                                

13  and other natural resources.                                                

                                                                                

14      (iv) The management of a community's overall intensity of                    

                                                                                

15  development while allowing landowners to voluntarily purchase               

                                                                                

16  additional development rights to increase the intensity of                  

                                                                                

17  development in designated areas.                                            

                                                                                

18      (v) The encouragement of development in enterprise zones                    

                                                                                

19  under the enterprise zone act, 1985 PA 224, MCL 125.2101 to                 

                                                                                

20  125.2123, in brownfields, and in other redevelopment areas.                 

                                                                                

21      (b) The precise location of each sending zone and receiving                 

                                                                                

22  zone and the nature and quantity of development rights that may             

                                                                                

23  be severed from land in each sending zone and attached to land in           

                                                                                

24  each receiving zone.  To determine this information, the township           

                                                                                

25  board shall do at least all of the following:                               

                                                                                

26                                                                               (i) Consider an estimate of population and economic growth                          

                                                                                

27  during the next 10 years in the township and an estimate of the             

                                                                                


                                                                                

1   development potential of each proposed sending zone and receiving           

                                                                                

2   zone.                                                                       

                                                                                

3       (ii) Consider the intensity of development otherwise allowed                 

                                                                                

4   under applicable zoning, building, and other ordinances before              

                                                                                

5   the adoption of a DRM ordinance.                                            

                                                                                

6       (iii) Consider existing and proposed infrastructure,                         

                                                                                

7   including services and facilities, for each proposed receiving              

                                                                                

8   zone.                                                                       

                                                                                

9       (iv) Ensure that a receiving zone is able to accommodate, in                 

                                                                                

10  terms of both land availability and infrastructure capacity, the            

                                                                                

11  intensity of development associated with development rights that            

                                                                                

12  may be purchased from a sending zone.                                       

                                                                                

13      (v) Ensure consistency with the plan upon which the                         

                                                                                

14  township's zoning ordinance is based.                                       

                                                                                

15      (c) The procedure for the severance, sale, purchase, and                    

                                                                                

16  attachment of development rights, including the procedure by                

                                                                                

17  which 1 or more property owners may by application initiate such            

                                                                                

18  a transaction.  An application shall include, but need not be               

                                                                                

19  limited to, all of the following:                                           

                                                                                

20                                                                               (i) The identity of the land within a sending zone from which                       

                                                                                

21  the development rights are proposed to be severed.                          

                                                                                

22      (ii) Except as provided in section 9(2), the identity of the                 

                                                                                

23  land within a receiving zone to which the development rights are            

                                                                                

24  proposed to be attached.                                                    

                                                                                

25      (iii) The quantity and nature of the development rights                      

                                                                                

26  proposed to be transferred.                                                 

                                                                                

27      (d) The procedure for ensuring that the severance of                        

                                                                                


                                                                                

1   development rights from land in a sending zone and the attachment           

                                                                                

2   of those development rights to land in a receiving zone are both            

                                                                                

3   of the following:                                                           

                                                                                

4                                                                                (i) Simultaneous, except for the period during which                                

                                                                                

5   development rights may be temporarily held by a township under              

                                                                                

6   section 9(2).                                                               

                                                                                

7       (ii) Fixed by a legal instrument so as to run with the land                  

                                                                                

8   from which the development rights have been severed and to which            

                                                                                

9   the development rights have attached, respectively.  The                    

                                                                                

10  development rights ordinance shall require that the legal                   

                                                                                

11  instrument be promptly recorded in the office of the register of            

                                                                                

12  deeds.                                                                      

                                                                                

13      (2) The township shall designate sending zones and receiving                

                                                                                

14  zones on its zoning map.                                                    

                                                                                

15      (3) The adoption of a DRM ordinance or an amendment to a DRM                

                                                                                

16  ordinance in a township shall be governed by the same procedures            

                                                                                

17  as apply to the adoption of an amendment to a zoning ordinance              

                                                                                

18  under the township zoning act, 1943 PA 184, MCL 125.271 to                  

                                                                                

19  125.310, including, but not limited to, procedures governing                

                                                                                

20  petitions and the role of the zoning commission or zoning board.            

                                                                                

21  For the purposes of this subsection, properties in a sending zone           

                                                                                

22  or receiving zone shall be considered to be properties proposed             

                                                                                

23  for rezoning, except in the case of an amendment to a DRM                   

                                                                                

24  ordinance that only affects other sending zones or receiving                

                                                                                

25  zones.                                                                      

                                                                                

26      Sec. 9.  (1) The township board shall approve an application                

                                                                                

27  under section 7(1)(c) if all of the following apply:                        

                                                                                


                                                                                

1       (a) The application complies with the DRM ordinance.                        

                                                                                

2       (b) The development rights proposed to be sold are unused and               

                                                                                

3   consequently available for severance from land in the sending               

                                                                                

4   zone.                                                                       

                                                                                

5       (c) Under the DRM ordinance, the development rights proposed                

                                                                                

6   to be sold can be used on the land in the receiving zone to which           

                                                                                

7   they are to be attached.                                                    

                                                                                

8       (2) A township with a DRM program may purchase development                  

                                                                                

9   rights from a landowner in a sending zone at fair market value,             

                                                                                

10  based upon a bona fide appraisal, temporarily hold the                      

                                                                                

11  development rights, and resell the development rights to a                  

                                                                                

12  landowner for attachment to land in a receiving zone.  The price            

                                                                                

13  at which development rights are resold by the township shall not            

                                                                                

14  exceed the price at which those development rights were purchased           

                                                                                

15  by the township.                                                            

                                                                                

16      (3) Except as provided pursuant to subsection (2),                          

                                                                                

17  development rights shall not be severed under this act unless the           

                                                                                

18  township has approved the attachment of those development rights            

                                                                                

19  to land in a receiving zone.                                                

                                                                                

20      (4) A DRM program may be financed by any legal means.                       

                                                                                

21      Sec. 11.  (1) Each township selected to participate in the                  

                                                                                

22  pilot project shall submit to the department a series of 5 annual           

                                                                                

23  reports on that township's DRM program.  The reports shall                  

                                                                                

24  contain information requested by the department and shall be                

                                                                                

25  submitted on a schedule determined by the department.                       

                                                                                

26      (2) By 4 months after the deadline for townships to submit                  

                                                                                

27  the last of the series of reports required under subsection (1),            

                                                                                


                                                                                

1   the commission shall review the DRM programs of townships                   

                                                                                

2   selected to participate in the pilot project and shall submit a             

                                                                                

3   report to the legislature on the programs.                                  

                                                                                

4       Sec. 13.  The department may promulgate rules to implement                  

                                                                                

5   this act pursuant to the administrative procedures act of 1969,             

                                                                                

6   1969 PA 306, MCL 24.201 to 24.328.