SENATE BILL No. 553

 

 

September 25, 2013, Introduced by Senator KAHN and referred to the Committee on Economic Development.

 

 

 

     A bill to amend 1996 PA 376, entitled

 

"Michigan renaissance zone act,"

 

by amending section 4 (MCL 125.2684), as amended by 2008 PA 116.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4. (1) One or more qualified local governmental units may

 

apply to the review board to designate the qualified local

 

governmental unit or units as a renaissance zone if all of the

 

following criteria are met:

 

     (a) The geographic area of the proposed renaissance zone is

 

located within the boundaries of the qualified local governmental

 

unit or units that apply.

 

     (b) The application includes a development plan.

 

     (c) The proposed renaissance zone is not more than 5,000 acres

 


in size.

 

     (d) The renaissance zone does not contain more than 10

 

distinct geographic areas. Except as otherwise provided in this

 

subdivision, the minimum size of a distinct geographic area is not

 

less than 5 acres. A qualified local governmental unit or units may

 

designate not more than 8 distinct geographic areas in each

 

renaissance zone to have no minimum size requirement.

 

     (e) The application includes the proposed duration of

 

renaissance zone status, not to exceed 15 years, except as

 

otherwise provided in this section.

 

     (f) If the qualified local governmental unit has an elected

 

county executive, the county executive's written approval of the

 

application.

 

     (g) If the qualified local governmental unit is a city, that

 

city's mayor's written approval of the application.

 

     (2) A qualified local governmental unit may submit not more

 

than 1 application to the review board for designation as a

 

renaissance zone. A resolution provided by a city, village, or

 

township under section 7(2) does not constitute an application of a

 

city, village, or township for a renaissance zone under this act.

 

     (3) For a distinct geographic area described in subsection

 

(1)(d), a village may include publicly owned land within the

 

boundaries of any distinct geographic area.

 

     (4) Beginning December 1, 2006 through December 31, 2011, a

 

qualified local governmental unit or units in which a renaissance

 

zone was designated under section 8 or 8a(1) or (3) may designate

 

additional distinct geographic areas not to exceed a total of 10

 


distinct geographic areas upon application to and approval by the

 

board of the Michigan strategic fund if the distinct geographic

 

area is located in an eligible distressed area as defined in

 

section 11 of the state housing development authority act of 1966,

 

1966 PA 346, MCL 125.1411, or is contiguous to an eligible

 

distressed area, and if the additional distinct geographic area

 

will increase capital investment or job creation. The duration of

 

renaissance zone status for the additional distinct geographic

 

areas shall not exceed 15 years.

 

     (5) Through December 31, 2002, if a qualified local

 

governmental unit or units designate additional distinct geographic

 

areas in a renaissance zone under subsection (4), the qualified

 

local governmental unit or units may extend the duration of the

 

renaissance zone status of 1 or more distinct geographic areas in

 

that renaissance zone until 2017 upon application to and approval

 

by the board.

 

     (6) Through December 31, 2002, a qualified local governmental

 

unit or units in which a renaissance zone was designated under

 

section 8 or 8a may, upon application to and approval by the board,

 

seek to extend the duration of renaissance zone status until 2017.

 

Upon application, the board may extend the duration of renaissance

 

zone status.

 

     (7) Through December 31, 2011, a qualified local governmental

 

unit or units in which a renaissance zone was designated under

 

section 8 or 8a(1) or (3) may, upon application to and approval by

 

the board of the Michigan strategic fund, seek to extend the

 

duration of renaissance zone status for 1 or more portions of the

 


renaissance zone if that zone or portion of a zone is in existence

 

as of March 15, 2008, if the extension will increase capital

 

investment or job creation, and the county in which the portion or

 

portions of the renaissance zone are located consents to extend the

 

duration of renaissance zone status. The board of the Michigan

 

strategic fund may extend renaissance zone status for 1 or more

 

portions of the renaissance zone under this subsection for a period

 

of time not to exceed 15 years from the date of the application to

 

the board of the Michigan strategic fund under this subsection.

 

However, beginning on the effective date of the amendatory act that

 

added this sentence, April 29, 2008, if the board of the Michigan

 

strategic fund extends the duration of 1 or more portions of a

 

renaissance zone under this subsection, the board of the Michigan

 

strategic fund may revoke that extension if the board determines

 

that increased capital investment or job creation will not begin

 

within 1 year of the granting of the extension or otherwise

 

violates the terms of the written development agreement between the

 

owner of the real property and the board of the Michigan strategic

 

fund. Only the qualified local governmental unit that is requesting

 

the extension of time may submit the application. If the board of

 

the Michigan strategic fund extends the duration of 1 or more

 

portions of a renaissance zone, the board of the Michigan strategic

 

fund shall enter into a written development agreement with the

 

owner of all real property located within the boundaries of the

 

portions of the renaissance zone whose duration has been extended.

 

The written development agreement shall include, but is not limited

 

to, all of the following:

 


     (a) The duration of the extension.

 

     (b) The conditions under which the extension is granted.

 

     (c) The amount of capital investment.

 

     (d) The number of jobs to be created.

 

     (e) Any other conditions or requirements reasonably required

 

by the board of the Michigan strategic fund.

 

     (8) If a qualified local governmental unit in which a

 

renaissance zone was designated under section 8 received approval

 

by the Michigan strategic fund to extend the duration of

 

renaissance zone status under subsection (7) for a period of 7

 

years and that renaissance zone is located in a county with a

 

population of more than 190,000 and less than 240,000 according to

 

the most recent decennial census, that qualified local governmental

 

unit may resubmit an application to the Michigan strategic fund

 

before June 30, 2014 to extend the duration of renaissance zone

 

status for an additional 8 years, not to exceed 15 years' total

 

extension. The Michigan strategic fund may grant the extension if

 

the extension shall increase capital investment or job creation in

 

this state and the owner is in compliance with the written

 

agreement described in subsection (7).