HOUSE BILL No. 4318

 

February 15, 2005, Introduced by Reps. Meyer, Ball and Gosselin 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 sections 3 and 18 (MCL 125.1653 and 125.1668), section

 

3 as amended by 2004 PA 521.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 3. (1) When the governing body of a municipality


 

determines that it is necessary for the best interests of the

 

public to halt property value deterioration and increase property

 

tax valuation where possible in its business district, to eliminate

 

the causes of that deterioration, and to promote economic growth,

 

or to permit the development of a new commercial property with a

 

total cash value after development of not less than

 

$100,000,000.00, which includes more than 2 detached buildings

 

containing together not less than 500,000 square feet, the

 

governing body may, by resolution, declare its intention to create

 

and provide for the operation of an authority.

 

     (2) In the resolution of intent, the governing body shall set

 

a date for the holding of a public hearing on the adoption of a

 

proposed ordinance creating the authority and designating the

 

boundaries of the downtown district. Notice of the public hearing

 

shall be published twice in a newspaper of general circulation in

 

the municipality, not less than 20 or more than 40 days before the

 

date of the hearing. Not less than 20 days before the hearing, the

 

governing body proposing to create the authority shall also mail

 

notice of the hearing to the property taxpayers of record in the

 

proposed district and for a public hearing to be held after

 

February 15, 1994 to the governing body of each taxing jurisdiction

 

levying taxes that would be subject to capture if the authority is

 

established and a tax increment financing plan is approved.

 

Beginning June 1, 2005, the notice of hearing within the time frame

 

described in this subsection shall be mailed by certified mail to

 

the treasurer, clerk, and chairperson of the board of commissioners

 

of the county in which the business district is located. Failure of


 

a property taxpayer to receive the notice shall not invalidate

 

these proceedings. Notice of the hearing shall be posted in at

 

least 20 conspicuous and public places in the proposed downtown

 

district not less than 20 days before the hearing. The notice shall

 

state the date, time, and place of the hearing, and shall describe

 

the boundaries of the proposed downtown district. A citizen,

 

taxpayer, or property owner of the municipality or an official from

 

a taxing jurisdiction with millage that would be subject to capture

 

has the right to be heard in regard to the establishment of the

 

authority and the boundaries of the proposed downtown district. The

 

governing body of the municipality shall not incorporate land into

 

the downtown district not included in the description contained in

 

the notice of public hearing, but it may eliminate described lands

 

from the downtown district in the final determination of the

 

boundaries.

 

     (3) Not more than 60 days after a public hearing held after

 

February 15, 1994, the governing body of a taxing jurisdiction

 

levying ad valorem property taxes that would otherwise be subject

 

to capture may exempt its taxes from capture by adopting a

 

resolution to that effect and filing a copy with the clerk of the

 

municipality proposing to create the authority. The resolution

 

takes effect when filed with that clerk and remains effective until

 

a copy of a resolution rescinding that resolution is filed with

 

that clerk.

 

     (4) Not less than 60 days after the public hearing, if the

 

governing body of the municipality intends to proceed with the

 

establishment of the authority, it shall adopt, by majority vote of


 

its members, an ordinance establishing the authority and

 

designating the boundaries of the downtown district within which

 

the authority shall exercise its powers. The adoption of the

 

ordinance is subject to any applicable statutory or charter

 

provisions in respect to the approval or disapproval by the chief

 

executive or other officer of the municipality and the adoption of

 

an ordinance over his or her veto. This ordinance shall be filed

 

with the secretary of state promptly after its adoption and shall

 

be published at least once in a newspaper of general circulation in

 

the municipality.

 

     (5) The governing body of the municipality may alter or amend

 

the boundaries of the downtown district to include or exclude lands

 

from the downtown district pursuant to the same requirements for

 

adopting the ordinance creating the authority.

 

     (6) A municipality that has created an authority may enter

 

into an agreement with an adjoining municipality that has created

 

an authority to jointly operate and administer those authorities

 

under an interlocal agreement under the urban cooperation act of

 

1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512.

 

     Sec. 18. (1) The governing body, before adoption of an

 

ordinance approving or amending a development plan or approving or

 

amending a tax increment financing plan, shall hold a public

 

hearing on the development plan. Notice of the time and place of

 

the hearing shall be given by publication twice in a newspaper of

 

general circulation designated by the municipality, the first of

 

which shall be not less than 20 days before the date set for the

 

hearing. Notice of the hearing shall be posted in at least 20


 

conspicuous and public places in the downtown district not less

 

than 20 days before the hearing. Notice shall also be mailed to all

 

property taxpayers of record in the downtown district not less than

 

20 days before the hearing. Beginning June 1, 2005, the notice of

 

hearing within the time frame described in this subsection shall be

 

mailed by certified mail to the treasurer, clerk, and chairperson

 

of the board of commissioners of the county in which the proposed

 

development area is located.

 

     (2) Notice of the time and place of hearing on a development

 

plan shall contain: a description of the proposed development area

 

in relation to highways, streets, streams, or otherwise; a

 

statement that maps, plats, and a description of the development

 

plan, including the method of relocating families and individuals

 

who may be displaced from the area, are available for public

 

inspection at a place designated in the notice, and that all

 

aspects of the development plan will be open for discussion at the

 

public hearing; and other information that the governing body  

 

deems  considers appropriate. At the time set for hearing, the

 

governing body shall provide an opportunity for interested persons

 

to be heard and shall receive and consider communications in

 

writing with reference  thereto  to the development plan. The

 

hearing shall provide the fullest opportunity for expression of

 

opinion, for argument on the merits, and for introduction of

 

documentary evidence pertinent to the development plan. The

 

governing body shall make and preserve a record of the public

 

hearing, including all data presented thereat.