HOUSE BILL No. 5818

April 22, 2004, Introduced by Reps. Hunter, Tobocman, Rivet and McConico and referred to the Committee on Commerce.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1909 PA 279, entitled                                             

                                                                                

    "The home rule city act,"                                                   

                                                                                

    (MCL 117.1 to 117.38) by amending the title, as amended by 1998             

                                                                                

    PA 150, and by adding section 5k.                                           

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1                                 TITLE                                         

                                                                                

2                                                                                An act to provide for the incorporation of cities and for                          

                                                                                

3   revising and amending their charters; to provide for certain                

                                                                                

4   powers and duties; to provide for the levy and collection of                

                                                                                

5   taxes and certain other fees by cities, borrowing of money, and             

                                                                                

6   issuance of bonds or other evidences of indebtedness; to create             

                                                                                

7   funds for certain purposes; to validate actions taken, bonds                

                                                                                

8   issued, and obligations heretofore incurred; to prescribe                   

                                                                                

9   penalties and provide remedies; and to repeal acts and parts of             

                                                                                

10  acts.  on specific dates.                                                   

                                                                                


                                                                                

1       Sec. 5k.  (1) The legislature finds and declares all of the                 

                                                                                

2   following:                                                                  

                                                                                

3       (a) A serious public emergency exists with respect to the                   

                                                                                

4   housing and employment of a substantial number of the citizens of           

                                                                                

5   this state.                                                                 

                                                                                

6       (b) There is not an adequate supply of affordable housing                   

                                                                                

7   for low and moderate income residents of this state.                        

                                                                                

8       (c) In order to supply affordable housing for low and                       

                                                                                

9   moderate income residents in this state, new large-scale                    

                                                                                

10  commercial real estate developments shall mitigate their adverse            

                                                                                

11  impacts on the availability of affordable housing by providing              

                                                                                

12  revenue to meet the public exigency of the provision of                     

                                                                                

13  affordable housing.                                                         

                                                                                

14      (d) There is not an adequate supply of employment                           

                                                                                

15  opportunities for low and moderate income residents in this                 

                                                                                

16  state.                                                                      

                                                                                

17      (e) The construction of new large-scale commercial real                     

                                                                                

18  estate developments in this state tends to increase competition             

                                                                                

19  for jobs for which low and moderate income residents of the city            

                                                                                

20  are qualified.                                                              

                                                                                

21      (f) In order to supply job opportunities to low and moderate                

                                                                                

22  income residents in this state, new large-scale commercial real             

                                                                                

23  estate developments shall mitigate their adverse impacts on the             

                                                                                

24  availability of the employment opportunities by providing revenue           

                                                                                

25  to meet the public exigency of the provision of job training for            

                                                                                

26  low and moderate income residents of the city.                              

                                                                                

27      (2) The city shall create and deposit the revenue received                  


                                                                                

1   from the fees collected under this section into the Michigan                

                                                                                

2   linkage fee program fund to be used solely for the purposes                 

                                                                                

3   described in subsection (3).  The fund shall consist of separate            

                                                                                

4   housing trust, job training trust, and child care and youth                 

                                                                                

5   recreation center trust accounts.                                           

                                                                                

6       (3) The fee collected under this section shall be used for                  

                                                                                

7   the construction of new affordable housing, for job training                

                                                                                

8   programs, and for the creation of child care and youth recreation           

                                                                                

9   centers for residents or potential residents located within 10              

                                                                                

10  miles of the new large scale commercial real estate development.            

                                                                                

11      (4) A city may levy a Michigan linkage fee in an amount not                 

                                                                                

12  to exceed $5.00 per square foot on each square foot of gross                

                                                                                

13  floor area above 100,000 square feet, exclusive of parking areas,           

                                                                                

14  on each new large-scale commercial real estate development                  

                                                                                

15  composed primarily of office, retail, and hotel space constructed           

                                                                                

16  on or after the effective date of this section.  The fee shall be           

                                                                                

17  paid either at the time of approval by the city of initial                  

                                                                                

18  construction of the development or may be spread in annual                  

                                                                                

19  payments over a period not to exceed 5 years.                               

                                                                                

20      (5) Instead of the linkage fee required by subsection (4),                  

                                                                                

21  the city may allow the developer of the new large-scale                     

                                                                                

22  commercial real estate development to actually provide for the              

                                                                                

23  creation of affordable housing, job training programs, and child            

                                                                                

24  care and youth recreation centers at a cost equal to or greater             

                                                                                

25  than the linkage fee that would be levied under this section.               

                                                                                

26      (6) As used in this section:                                                

                                                                                

27      (a) "New large-scale commercial real estate development"                    


                                                                                

1   means a proposed new building or buildings composed primarily of            

                                                                                

2   office, retail, and hotel space with a gross floor area,                    

                                                                                

3   exclusive of parking areas, of more than 100,000 square feet or             

                                                                                

4   to substantially rehabilitate an existing building or buildings             

                                                                                

5   resulting in a gross floor area, exclusive of parking areas, of             

                                                                                

6   more than 100,000 square feet.                                              

                                                                                

7       (b) "Substantially rehabilitate" means an alteration, repair,               

                                                                                

8   or expansion of an existing building or buildings described in              

                                                                                

9   subdivision (a) that costs more than 50% of the assessed value of           

                                                                                

10  the building or buildings on the January 1 immediately preceding            

                                                                                

11  the beginning of construction of the alteration, repair, or                 

                                                                                

12  expansion.