View the PDF version Google Docs PDF Viewer
CITY OF MUSKEGON CITY COMMISSION WORKSESSION AND COMMUNITY RELATIONS COMMITTEE Monday, January 7, 2008 5:30 p.m. City Commission Chambers AGENDA 1. Withdraw Paving Petition - Harbor Towne Circle. ENGINEERING th 2. Removal of Street Lights along Muskegon and Webster between 9 and Spring. ENGINEERING 3. Renaissance Zone Extension for Heritage Square Development. PLANNING & ECONOMIC DEVELOPMENT 4. Casino Development Presentation/Lac Vieux Desert Band of Lake Superior Chippewa Indians. CITY MANAGER 5. City Commission Goal Setting Date. CITY MANAGER 6. Any Other Business. COMMUNITY RELATIONS AGENDA 1. Approval of December 3, 2007 Minutes. 2. Appointment to Boards and Committees. 3. Any Other Business. 4. Adjournment. City of Muskegon City Commission Worksession January 7, 2008 City Commission Chambers 5:30 PM MINUTES 2008-2 Present: Commissioners Warmington, Wisneski, Gawron, Shepherd, Spataro, Wierengo, and Carter. Absent: None. Withdraw Paving Petition - Harbor Town Circle It was the consensus of the Commission to withdraw the paving petition. th Removal of Street Lights along Muskegon and Webster between 9 and Spring City Engineer, Mohammad Al Shatel, stated the cost to remove the lights will be $30,000 - $35,000. The approximate cost to continue with the lighting is $400. Engineering will verify these figures and report to the Commission. th th It was requested to obtain figures for the residential section between 4 and 9 Street. Renaissance Zone Extension for Heritage Square Development Gary Post is asking the City Commission to extend the Renaissance Zone for a minimum of seven years. The project includes 22 units. The market requires an incentive to move to the downtown at this time, and a renaissance zone would be it. There are currently two reservations for the development. A decision by the City Commission will be made on the Tuesday, January 8, 2008 Commission meeting. Casino Development Presentation/LacVieux Desert Band of Lake Superior Chippewa Indians A presentation for a proposed casino at the SPX Building in downtown Muskegon was given by Paul Vilser, an attorney representing the Lac Vieux Desert Band of Lake Superior Chippewa Indians. Limited entertainment and food services will be made available. The tribe is willing to pay reasonable attorney fees for the City. The City Commission will submit questions for follow up. It was the consensus of the City Commission to allow staff to continue discussions with the group and to report to the City Commission. A tornado warning was issued and the entire Commission and audience were evacuated to the basement for approximately 30 minutes. Adjournment Motion by Commissioner Carte,·, seconded by Commissioner Wisneski to adjourn at 7:42 p.m. MOTION PASSES I \ \~::,[1)\~J~,}L'-"\i/~ Ann Marie Becker, MMC City Clerk •t ••• ••• . ( ,.,• . •• •• (.·• ~ ,. 'i ~~ ~, 2'~ •• •• II • (~ s; ~. ·. ·. ·.• .·.•·•.;.- . ii • 14' IA ~i; ,'/lf/lJ • "a ·~ • 1t ~ '.ti ~ • ~ ·• .,_.v ;. r:'llj ... ~ (a ,;~ (,ii>, '_'Pl . Ct HARBOUR TOWNE CONDO ASSOCIATION November 28, 2007 RECEIVED CITY OF MUSKEGON Mr. Byron Mazade, City Manager 933 Terrace St. OEC 1 O2001 Muskegon,MI 49441-6412 ENGINEERlNG DEPARTMENT Dear Sir: On Friday November 9, 2007 Mr. George Chmelar and myself had the pleasure to meet with Mr. Mohammed S. Al-Shatel, P.E. concerning the proposed repaving project on East and West Harbour Towne Circle. Mr. Al-Shatel was most helpful and provided us all the pertinent information he had on the proposed project. I have conferred with our governing board considering all of the issues involved in obtaining permission from our membership to proceed with this project. Our Master Deed requires that all common grounds, which are all of the property fronting the proposed paving, be paid for out of our reserve fund. At present we could not afford to meet this obligation from our reserve. In order to raise the funds a special assessment election would have to be held and two thirds of the co-owners would be needed for approval. Based on the timelines we have to deal with the Harbour Towne Condominium Association is unable, at this time, to move forward on the repaving project. Therefore, . the Harbour Towne Condominium Association withdraws from the proposed repaving of East and West Harbour Towne Circle tentatively scheduled for the summer of 2008. If you should have any questions or concerns about this Board decision please feel to contact me. ~b~- Cs~t~ ~ i d R. Taylor, Harbour Towne Condo~!i Association 3529 Sand Bar Ct. Muskegon, MI Res: 231-759-1193 E-mail: davidrtaylor@comcast.net V cc: Mr. Mohammed S. Al-Shatel, P.E. Commission Meeting Date: January 8, 2008 Date: January 2, 2008 To: Honorable Mayor & City Commission From: Planning & Economic Development c£C,.,, Department RE: Renaissance Zone Extension for Heritage Square Development SUMMARY OF REQUEST: To approve the attached Development Agreement and Resolution extending the duration of Renaissance Zone designation for the properties owned by Heritage Square Development, LLC. FINANCIAL IMPACT: The City will forego approximately $6,300 per year for a total of $50,133 in taxes for the additional eight years of Renaissance Zone designation. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the Development Agreement and the Resolution extending the Renaissance Zone designation. COMMITTEE RECOMMENDATION: At its last meeting, the Brownfield Redevelopment Authority passed a motion to support a Renaissance Zone extension for Heritage Square Development, LLC. DEVELOPMENT AGREEMENT CITY OF MUSKEGON RENAISSANCE ZONE THIS IS AN AGREEMENT between the CITY OF MUSKEGON, a municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49441 ("City") and Heritage Square Development, LLC, a limited liability association, of 4460 Deer Creek, Muskegon, Michigan 49443. ("Company"). Recitals: A. The City has an established Renaissance Zone. The Company desires to acquire property within the Renaissance Zone. The City deems this Agreement to constitute a necessary element in the City's determination regarding the location of the Company in the Renaissance Zone. B. The Company intends to install the projects set fotth in its Application (Attached as Exhibit C) for Renaissance Zone location and approval. The Company understands that the City relies upon the undertakings of the Company in the Agreement to establish and to continue the Company's status as a Renaissance Zone Company. NOW THEREFORE THAT PARTIES AGREE: I. DOCUMENTS ATTACHED. Included in this Agreement are the following documents which have been collected and relied upon by the parties: Exhibit A Copy of the Renaissance Zone Act, as amended to date. Exhibit B City of Muskegon Extension of Time Period for Existing Renaissance Zone Parcels Exhibit C The application for Renaissance Zone Designation filed by Heritage Square Development, LLC. Exhibit D Special Assessment Agreement. 2. COMPANY AGREEMENT. The Company agrees to the following commitments which it shall perform in a timely and reasonably acceptable manner: 2.1 The development, to comply with all construction codes, of parcels at 274, 276, 290, & 296 W. Clay and 887 & 889 First St. The development will consist of twenty-two units of row house style, live-work, residential condominiums. The live-work units will be available for light commercial office space and modest retail space, creating between twelve and twenty- four jobs. 2.2 Private investment in the amount of at least $2,000,000 within two (2) years from the date of the property's designation of Renaissance Zone extension status by the State of Michigan, pursuant to paragraph 2.7. 2.3 The performance of all other undertakings set forth in the application. 2.4 Assurance and completion of the payment of all real and personal property taxes due for all years prior to the creation of the Renaissance Zone on the properties. 2.5 Cooperation with City representatives to supply all requested and required documentation necessary in the City's reasonable judgment to determine compliance with the undertakings set forth in this Agreement and its attachments. 2.6 The Company shall take all required precautions to avoid the release of any hazardous substance in violation of any environmental law on its premises, and shall report any releases to the appropriate authority in a timely and complete manner as required by law, providing copies of said documentation to the City. Subject to its rights to contest any proposed orders and actions, the Company shall comply with all orders and actions of any governmental agency having authority. 2. 7 The Company shall improve the properties and improvements, in accordance with the Renaissance Zone proposal submitted Heritage Square Development, LLC. 2.8 The Company shall maintain the equipment and improvements so as to minimize physical or functional obsolescence. 3. AGREEMENT BY THE CITY. Provided this Agreement has been executed and further provided all applications concerning Renaissance Zone status have been properly filed, the City shall, in a timely manner, proceed with the appropriate meetings or applications including as necessary the State of Michigan Renaissance Zone Review Board, and with all local review entities by law. The City may consider this agreement in a meeting separate from and prior to the meeting in which the City or any entity considers the creation of the district or approval of the application for Renaissance Zone extension status. 4. EVENTS OF DEFAULT. The following actions or failures to comply, subject to events of force majeure, shall be considered events of default by the Company if not cured within sixty (60) days after receipt of written notice from the City of such act or failure to comply. 2 4.1 Failure to meet any of the commitments set fotih above. 4.2 Failure to afford to the City the documentation and reporting required. 4.3 Failure to expend the funds on equipment and improvements as represented in the attachments within the times required hereby. 4.4 The bankruptcy or insolvency of the Company. 4.5 The failure to pay any taxes other than those exempted by the Renaissance Zone Act, and the failure to pay any special assessments levied on the Company's property timely after levy or final appeal. 4.6 The violation of any provisions, promises, commitments, considerations or covenants of this Agreement. 5. REMEDIES ON DEFAULT. In the event that any of the above defaults the City shall have the following remedies which it may invoke without notice, except as may be reasonably required by the Company's rights to due process. The amounts due by reason of the exercise of the remedies, shall be payable by a special assessment as outlined in the attached Special Assessment agreement. 5.1 In the event of default and after investigation of the facts and a public hearing, the Company shall be immediately liable for the amounts below, to be paid fotihwith to the City, and the Renaissance Zone status of the Company shall be revoked or void, with the following consequences: 5. I. I The Company shall begin making payments, as outlined in the attached Special Assessment agreement, to the City, the amount of $6,266.67 per year. The assessment will not be charged during the first two years, pending substantial completion of the proposed project. If substantial completion has not been made within the first two years, the Company shall be liable for payment of the assessment for those two years plus future year's assessments. 5.1.2 The Company shall pay to the State of Michigan all amounts of the corporate income tax which have been abated under the Renaissance Zone Act, if any. 5.1.3 The Company shall immediately pay to the City any corporate City income tax which have been abated under the Renaissance Zone Act, if any. 5.2 Failure to Install Improvements. In the event the improvements, renovations and the equipment have not been completed or installed by the 3 time set forth in the attachments, the Special Assessment shall be paid to the City. 5.3 Failure to Expend the Funds Represented. In the event the improvements, renovations and the equipment have not been completed or installed by the time set forth in the attachments, the Special Assessment shall be paid to the City. 5.4 Other Violations. For any material violations of this Agreement, the City reserves the right to seek declaration by a court entity with authority that the Special Assessment shall be paid to the City. 5.5 Special Assessment. For any amount to be paid to the City as a result of default by the Company, the Company consents that the City shall have a personal action against the Company for the said amount, and in addition, cumulatively, and not by election, the City shall have a special assessment lien on all the property of the Company, personal and real, located in the City, for the collection of the amounts due as and in the manner of property taxes. 5.6 City Considerations for Determination in Matters of Default. The City shall consider the following factors, but the determination to invoke remedies are the sole and reasonable discretion of the City: 5.6.1 The economic conditions, if any, reasonably known to the City, which are found to be directly related to the default or circumstance causing the proposed action by the City. 5.6.2 The performance of the Company in meeting the commitments and requirements of the Application, the submitted materials, and the provisions of the Certificate and this Agreement. 5.6.3 Whether the effect on the City's finances of the Company's actions is material and substantial. 5.6.4 Whether the circumstance affecting the status of the Company was created by occurrences beyond the control of the Company or could reasonably have been avoided, and, in particular, whether the Company could economically and feasibly continue to perform as required by this Agreement. 6. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Michigan applicable to contracts made and to be performed within the State of Michigan, and in particular the Renaissance Zone Act of the State, as amended. 4 7. Counterpaiis. This Agreement may be executed in one or more counterparts. Notwithstanding such execution all such counterparts shall constitute one and the same Agreement. 8. Benefits. This Agreement shall be binding upon and inure to the benefit of the respective parties, their successors and personal representatives. 9. Effective Date. This Agreement shall be effective on the date the State of Michigan grants the Renaissance Zone designation. 10. Invalidity. In the event any provision of this agreement is declared invalid by a court or tribunal having competent jurisdiction, the remainder of the agreement shall remain in full force and effect. CITY OF MUSKEGON, a municipal corporation By _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Stephen J. Warmington, Mayor and _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Ann Marie Becker, Clerk Dated: - - - - - -, 2008 a _ _ _ _ _ _ Corporation By _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ , Its _ _ _ _ __ Dated: - - - - - - -, 2008 5 MICHIGAN RENAISSANCE ZONE ACT Act 376 of 1996 AN ACT to create and expand certain renaissance zones; to foster economic opportunities in this state; to facilitate economic development~ to stimulate industrial, commercial, and residential improvements; to prevent physical and infrastructure deterioration of geographic areas in this state; to authorize expendih1res; to provide exemptions and credits from certain taxes; to create certain obligations of this state and local governmental units; to require disclosure of certain transactions and gifts; to provide for appropriations; and to prescribe the powers and duties of certain state and local departments, agencies, and officials. History: !996, Act 376, [md. Eff. July !7, 1996;-Am. 1999, Act 98, Eff. Oct. 11, 1999. The People of the State of 1vlichigan enact: 125.2681 Short title, Sec. I. This act shall be known and may be cited as the "Michigan renaissance zone act". History: 1996, Act 3 76, lmd. Eff. July 17, ! 996. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-l, compiled at MCL 445.20 l I. 125.2682 Legislative findings and declarations, Sec. 2. The legislature of this state finds and declares that there exists in this state continuing need for programs to assist certain local governmental units in encouraging economic development, the consequent job creation and retention, and ancillary economic growth in this state. To achieve these purposes, it is necessary to assist and encourage the creation of renaissance zones and provide temporary relief from certain taxes within the renaissance zones. History: 1996, Act 376, fmd. Eff. Ju!y 17, ]996. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.20 I ! . 125.2683 Definitions. Sec. 3. As used in this act: (a) "Agricultural processing facility" means I or more facilities or operations that transform, package, sort, or grade livestock or livestock products, agricultural commodities, or plants or plant products, excluding forest products, into goods that are used for intermediate or final consumption including goods for nonfood use, and surrounding property. (b) "Board" means the state administrative board created in 1921 PA 2, MCL 17.1 to 17.3. (c) "Development plan" means a written plan that addresses the criteria in section 7 and includes all of the following: (i) A map of the proposed renaissance zone that indicates the geographic boundaries, the total area, and the present use and conditions generally of the land and structures within those boundaries. (ii) Evidence of community support and commitment from residential and business interests. (iii) A description of the methods proposed to increase economic opportunity and expansion, facilitate infrastructure improvement, and identify job training opportunities. (iv) CwTent social, economic, and demographic characteristics of the proposed renaissance zone and anticipated improvements in education, health, human services, public safety, and employment if the renaissance zone is created. (v) Any other information required by the board. (d) "Elected county executive" means the elected county executive in a county organized under 1966 PA 293, MCL 45.501 to 45.521, or 1973 PA 139, MCL45.551 to 45.573. --------1c-e)...'..'.Eorest-prnduct-s-proeessing-faei-!-ity_l_!__means-l-or-more-faci-lities-oruperatiuns-th·ar-trawsfonn-;-pacKa:ge, sort, recycle, or grade forest or paper products into goods that are used for intermediate or final use or consumption or for the creation of biomass or alternative fuels through the utilization of forest products or forest residue 1 and surrounding property. Forest products processing facility does not include an existing --------+acHity-or-operatforrihalts-10-catedlfl-tl-Iis state that relocates to a renaissance zone tor a forest products processing facility. Forest products processing facility does not include a facility or operation that engages primarily in retail sales. (f) "Local governmental unit" means a county, city, village, or township. (g) "Person" means an individual, partnership, corporation, association, limited liability company, Rendered Wednesday, August 15, 2007 Page 1 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courtesy of wi,vw,/egislature.migov governmental entity, or other legal entity. (h) "Qualified local governmental unit" means either of the following: (i) A county. (ii) A city, village, or township that contains an eligible distressed area as defined in section 11 of the state housing development authority act of 1966, 1966 PA 346, MCL 125.1411. (i) "Recovery zone 11 means a tool and die renaissance recovery zone created in section 8d. U) "Renaissance zone" means a geographic area designated under this act. (k) "Renewable energy facility" means a system that creates energy from a process using residues from agricultural products, forest products, paper products industries, and food production and processing; trees and grasses grown specifically to be used as energy crops; and gaseous fuels produced from solid biomass, animal wastes, or landfills. ([) "Residential rental property" means that term as defined in section 7ff of the general property tax act, 1893 PA 206, MCL 211.?ff. (m) "Review boardu means the renaissance zone review board created in section 5. (n) "Rural area" means an area that lies outside of the boundaries of an urban area. (o) "Urban area" means an urbanized area as determined by the economics and statistics administration, United States bureau of the census according to the 1990 census. History: 1996, Act 376, Imd. Eff. July 17, 1996;-Am. 1999, Act 98, Eff. Oct. ll, 1999;-Am. 2000, Act 259, Imd. Eff. June 29, 2000;-Am. 2005, Act 275, Imd. Eff. Dec. 19, 2005;-Am. 2006, Act 273, Imd. Eff. July 7, 2006;-Am. 2006, Act 304, Imd. Eff July 20, 2006. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 200].J, compiled at MCL 445.2011. 125.2684 Designation of local governmental unit as renaissance zone; application; criteria; additional distinct geographic areas; extension of status. Sec. 4. (I) 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 unils 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 IO 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 4 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 (l)(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(l) or (3) may designate additional distinct geographic areas not to exceed a total of IO 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 and 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 Rendered Wednesday, August 15, 2007 Page 2 Michigan Compiled Laws Complete Through PA 50 of2007 © Legislative Council, State of Michigan Cowtesy of www.legislature.mi.gov was designated under section 8 or Sa 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 Sa(l) or (3) that has not experienced significant development 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. The board of the Michigan strategic fund may extend renaissance zone status for I 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. History: 1996, Act 376, Imd. Eff. July 17, 1996;-Am. 1999, Act 139, lmd. Eff, Oct. 11, 1999;-Am. 2000, Act 259, Imd. Eff. June 29, 2000;~Am. 2002, Act 477, lmd. Eff. June 27, 2002;-Am. 2006, Act 440, Imd. Eff. Oct. 5, 2006. Compiler's note: Enacting section I of Act 477 of 2002 provides: "Enacting section l. This amendatory act is retroactive and is effective for I or more distinct geographic areas whose duration of renaissance zone status has been extended on and after April I, 2002. Any action by a qualified local governmental unit on and after April I, 2002 and until the effective date of this amendatory act to extend the duration of renaissance zone status on additional distinct geographic areas without approval by the board is null and void." For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011. 125.2685 Renaissance zone review board; creation; membership; review of applications; recommendations; submission date; compensation; reimbursement for travel and expenses. Sec. 5. (l) The renaissance zone review board is created. The review board shall consist of the board of the Michigan strategic fund described in section 4 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2004. (2) The review board shall review all applications submitted by qualified local governmental units and make recommendations to the board for approval based on the criteria contained in section 7. (3) The review board and the board shall not consider an application if the application was submitted after September 30, 1996 for designations under section 8. (4) Members of the board and the review board shall serve without compensation for their membership on the board and the review board, but members of the board and the review board may receive reasonable reimbursement for necessary travel and expenses. History: I 996, Act 376, Imd. Eff. July I7, 1996;-Am. 1999, Act 98, Eff. Oct. ll, 1999. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.201 l. 125.2686 Renaissance zone review board; duties; prohibitions; modifications; payment in lieu of taxes. Sec. 6. (1) The board shall review all recommendations submitted by the review board and determine which applications meet the criteria contained in section 7. (2) The board shall do all of the following: (a) Designate renaissance zones. (b) Subject to subsection (3), approve or reject the duration of renaissance zone status. (c) Subject to subsection (3), approve or reject the geographic boundaries and the total area of the renaissance zone as submitted in the application. (3) The board shall not alter the geographic boundaries of the renaissance zone or the duration of renaissance zone status described in the application unless the qualified local governmental unit or units and the local governmental unit or units in which the renaissance zone is to be located consent by resolution to the alteration. (4) The board shall not designate a renaissance zone under section S before November 1, 1996 or after December 31, 1996. (5) The designation of a renaissance zone under this act shall take effect on January 1 in the year following designation. However, for purposes of the taxes exempted under section 9(2), the designation of a renaissance zone under this act shall take effect on December 31 in the year of designation. (6) The board shall not designate a renaissance zone under section Sa after December 31, 2002. (7) Through December 31, 2002, a qualified local governmental unit in which a renaissance zone was designated under section S or Sa may modify the boundaries of that renaissance zone to include contiguous parcels of property as determined by the qualified local governmental unit and approval by the review board. Rendered Wednesday, August 15, 2007 Page 3 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov The additional contiguous parcels of property included in a renaissance zone under this subsection do not constitute an additional distinct geographic area under seclion 4(l)(d). If the boundaries of the renaissance zone are modified as provided in this subsection, the additional contiguous parcels of property shall become part _of the original renaissance zone on the same terms and conditions as the original designation of that renaissance zone. (8) Notwithstanding any other provisions of this act, before July I, 2004, a qualified local governmental unit in which a renaissance zone was designated under section 8a(l) as a renaissance zone located in a rural area may modify the boundaries of that renaissance zone to include a contiguous parcel of property as determined by the qualified local governmental unit. The contiguous parcel of property shall only include property that is less than .5 acres in size and that the qualified local governmental unit previously sought to have included in the zone by submitting an application in February 2002 that was not acted upon by the review board. The additional contiguous parcel of property included in a renaissance zone under this subsection does not constitute an additional distinct geographic area under section 4(l)(d). If the boundaries of the renaissance zone are modified as provided in this subsection, the additional contiguous parcel of property shall become part of the original renaissance zone on the same terms and conditions as the rest of the property in that renaissance zone. (9) A business that is located and conducts business activity within a renaissance zone designated under this act, except as designated under section 8a(2), shall not make a payment in lieu of taxes to any taxing jurisdiction within the qualified local governmental unit in which the renaissance zone is located. (10) Notwithstanding any other provisions of this act, before July I, 2006, a qualified local governmental unit in which a renaissance zone of less than 50 contiguous acres but more than 20 contiguous acres was designated under section 8 or 8a as a renaissance zone in a city located in a county with a population of more than 160,000 and less than l 70,000 may modify the boundaries of that renaissance zone to include a contiguous parcel of property as determined by the qualified local governmental unit. The contiguous parcel of property shall only include property that is less than 12 acres in size. The additional contiguous parcel of property included in a renaissance zone under this subsection does not constitute an additional distinct geographic area under section 4(l)(d). If the boundaries of the renaissance zone are modified as provided in this subsection, the additional contiguous parcel of property shall become part of the original renaissance zone on the same terms and conditions as the rest of the property in that renaissance zone. (I l) Notwithstanding any other provisions of this act, before July 1, 2006, a qualified local governmental unit in which a renaissance zone of more than 500 acres was designated under section 8 or 8a as a renaissance zone in a county with a population of more than 6 I ,000 and less than 64,000 may modify the boundaries of that renaissance zone to include a contiguous parcel of property as determined by the qualified local governmental unit. The contiguous parcel of property shall only include property that is less than 12 acres in size. The additional contiguous parcel of property included in a renaissance zone under this subsection does not constitute an additional distinct geographic area under section 4(1 )( d). If the boundaries of the renaissance zone are modified as provided in this subsection, the additional contiguous parcel of property shall become part of the original renaissance zone on the same tenns and conditions as the rest of the property in that renaissance zone. (12) Notwithstanding any other provisions of this act, before July I, 2006, a qualified local governmental unit in which a renaissance zone of more than 137 acres was designated under section 8 or 8a as a renaissance zone in a county with a population of more than 61,000 and less than 63,000 may modify the boundaries of that renaissance zone to include a parcel of property that is separated from the existing renaissance zone by a roadway as determined by the qualified local governmental unit. The parcel of property shall only include property that is less than 67 acres in size. The additional contiguous parcel of property included in a renaissance zone under this subsection does not constitute an additional distinct geographic area under section 4(1 )( d). If the boundaries of the renaissance zone are modified as provided in this subsection, the additional contiguous parcel of property shall become part of the original renaissance zone on the same terms and conditions as the rest of the property in that renaissance zone. History: 1996, Act 376, Imd. Eff. July 17, 1996;-Am. 1999, Act 139, Imd. Eff. Oct. l l, 1999;-Am. 2000, Act 259, fmd. Eff. June 29, 2000;-Am. 2002, Act 478, Imd. Eff. June 27, 2002;-Am. 2003, Act 93, lmd. Eff. July 24, 2003;-Am. 2004, Act 16, Imd. Eff. Mar. 4, 2004;-Am. 2004, Act 430, lmd. Eff. Dec. 20, 2004;-Am. 2006, Act 116, lmd. Eff. Apr. 11, 2006;-Am. 2006, Act 304, Imd. Eff. July 20, 2006. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011. 125,2687 Renaissance zone; designation; criteria; resolution; report of transaction with or gift to official or employee of local governmental unit. Rendered Wednesday, August 15, 2007 Page4 Michigan Compiled laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courtesy ofwww.legislature.mi.gov Sec. 7. (1) The board shall consider the following criteria in designating a renaissance zone: (a) Shall give priority to applications that include new business activity. (b) Evidence of adverse economic and socioeconomic conditions within the proposed renaissance zone. (c) The viability of the development plan. (d) Whether the development plan is creative and innovative. (e) Public and private commitment to and other resources available for the proposed renaissance zone. (() How renaissance zone designation would relate lo a broader plan for the community as a whole. (g) The level of demonstrated cooperation from surrounding communities. (h) How the local regulatmy burden will be eased for businesses operating in the proposed renaissance zone. (i) Public and private commitment to improving abandoned real property. (j) Any other information required by the board. (2) The board shall not designate an area as a renaissance zone unless each city, village, or township, within which the proposed renaissance zone is to be located, provides a resolution from its governing body that states if the renaissance zone designation is granted, persons and property within the renaissance zone are exempt from taxes levied by that city, village, or township as provided in this act. (3) Within a 12-month period immediately preceding and immediately following designation of a renaissance zone or submission of an application for consideration as a renaissance zone, an individual who is a resident of a renaissance zone or an area being considered for designation as a renaissance zone, a business that is located and conducts business activity within a renaissance zone or an area being considered for designation as a renaissance zone, or an officer of a business that is located and conducts business activity within a renaissance zone or an area being considered for designation as a renaissance zone shall report to the chief executive officer of the local governmental unit in which the renaissance zone is designated or the local governmental unit that has applied for renaissance zone designation any transaction with or gift to any official or employee of that local governmental unit. As used in this subsection, "gift" means that term as defined in section 4 of 1978 PA 472, MCL 4.414. History: 1996, Act 376, lmd. Eff. July 17, 1996;-Am. 2000, Act 259, lmd. Eff. June 29, 2000. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, sec E.R.O. No. 2003~1, compiled at MCL 445.2011. 125.2688 Designation of renaissance zones; limitation; additional zones; submission of designations to legislature; rejection of designations by concurrent resolution. Sec. 8. (1) Except as otherwise provided in this act, the board shall not designate more than 9 renaissance zones within this state. Not more than 6 of the renaissance zones shall be located in urban areas and not more than 4 of the renaissance zones shall be located in rural areas. For purposes of determining whether a renaissance zone is located in an urban area or rural area under this section, if any part of a renaissance zone is located within an urban area, the entire renaissance zone shall be considered to be located in an urban area. (2) The board may designate additional renaissance zones within this state in 1 or more qualified local governmental units if that qualified local governmental unit or units contain a military installation that was operated by the United States department of defense and has closed after 1990. (3) Each renaissance zone designated by the board under section 8a shall be submitted to the legislature, which, by concurrent resolution adopted by a majority vote of those elected to and serving in each house, on a record roll call vote, may reject that designation no later than the earlier of 45 days following the date of the designation by the board or December 31 of the year of designation. History: 1996, Act 376, lmd. Eff. July 17, 1996;-Am. 1999, Act 139, lmd. Eff. Oct. 11, 1999;-Am. 2003, Act 93, lmd. Eff. July 24, 2003;-Am. 2003, Act 266, Imd. Eff. Jan. 5, 2004;-Am. 2006, Act 304, lmd. Eff. July 20, 2006. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.0. No. 2003-1, compiled at MCL 445.201 J. 125.2688a Additional renaissance zones; designation; property located in alternative energy zone; definitions. Sec. 8a. (1) Except as provided in subsections (2), (3), and (4), the board shall not designate more than 9 additional renaissance zones within this state under this section. Not more than 6 of the renaissance zones shall be located in urban areas and not more than 5 of the renaissance zones shall be located in rural areas. For purposes of determining whether a renaissance zone is located in an urban area or rural area under this section, if any part of a renaissance zone is located within an urban area, the entire renaissance zone shall be considered to be located in an urban area. (2) The board of the Michigan strategic fund described in section 4 of the Michigan strategic fund act, Rendered Wednesday, August 15, 2007 Page 5 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov 1984 PA 270, MCL 125.2004, may designate not more than 13 additional renaissance zones within this state in 1 or more cities, villages, or townships if that city, village, or township or combination of cities, villages, or townships consents to the creation of a renaissance zone within their boundaries. The board of the Michigan strategic fund may designate not more than 1 of the 13 additional renaissance zones described in this subsection as an alternative energy zone, An alternative energy zone shall promote and increase the research, development, testing, and manufacturing of alternative energy technology, alternative energy systems, and allemative energy vehicles, as those terms are defined in the Michigan next energy authority act, 2002 PA 593, MCL 207.821 to 207,827. An alternative energy zone shall have a duration of renaissance zone status for a period not to exceed 20 years as determined by the board of the Michigan strategic fund. Not later than April 16, 2004, the board of the Michigan strategic fund may designate not more than I of the 13 additional renaissance zones described in this subsection as a phannaceutical renaissance zone. A pharmaceutical renaissance zone shall promote and increase the research, development, and manufacturing of pharmaceutical products of an eligible pharmaceutical company. The board of the Michigan strategic fund may designate not more than 8 of the additional 13 renaissance zones described in this subsection as a redevelopment renaissance zone. A redevelopment renaissance zone shall promote the redevelopment of existing industrial facilities or the development of property for industrial purposes. Before designating a renaissance zone under this subsection, the board of the Michigan strategic fund may enter into a development agreement with the city, township, or village in which the renaissance zone will be located and the owner or developer of the facility or property located in the renaissance zone. The development agreement for a redevelopment renaissance zone described only in subsection (6)(b)(vi) or (vii) may provide for the payment of 1 or more of the taxes described in section 9. (3) In addition to the not more than 9 additional renaissance zones described in subsection (1), the board may designate additional renaissance zones within this state in 1 or more qualified local governmental units if that qualified local governmental unit or units contain a military installation that was operated by the United States department of defense and was closed in 1977 or after 1990, (4) Land owned by a county or the qualified local governmental unit or units adjacent to a zone as described in subsection (3) may be included in this zone. (5) Notwithstanding any other provision of this act, property located in the alternative energy zone that is classified as commercial real property under section 34c of the general property tax act, 1893 PA 206, MCL 211.34c, and that the authority, with the concurrence of the assessor of the local tax collecting unit, detennines is not used to directly promote and increase the research, development, testing, and manufacturing of alternative energy technology, alternative energy systems, and alternative energy vehicles as those terms are defined in the Michigan next energy authority act, 2002 PA 593, MCL 207,821 to 207.827, is not eligible for any exemption, deduction, or credit under section 9, (6) As used in this section: (a) "Eligible phannaccutical company" means a company that meets all of the following criteria: (i) Is engaged primarily in manufacturing, research and development, and sale of phannaceuticals, (ii) Has not less than 8,499 employees located in this state, all of whom are located within a 100-milc radius of each other. (iii) Of the total number of employees located in this state, has not less than 4,800 engaged primarily in research and development of pharmaceuticals. (b) "Redevelopment renaissance zone" means a renaissance zone that meets I of the following: (i) All of the following: (A) Is located in a city with a population of more than 7,500 and less than 8,500 and is located in a county with a population of more than 60,000 and less than 70,000. (B) Contains only all or a portion of an industrial site of 200 or more acres. (ii) All of the following: (A) Is located in a city with a population of more than 13,000 and less than 14,000 and is located in a county with a population of more than 1,000,000 and less than 1,300,000. (B) Contains only all or a portion ofan industrial site of300 or more contiguous acres. (iii) All of the following: (A) Is located in a township with a population of more than 5,500 and is located in a county with a population of less than 24,000. (B) Contains only all or a portion of an industrial site of more than 850 acres and has railroad access. (iv) All of the following: (A) ls located in a city with a population of more than 40,000 and less than 44,000 and is located in a county with a population of more than 81,000 and less than 87,000, (B) Contains only all or a portion ofan industrial site of more than 475 acres. Rendered Wednesday, August 15, 2007 Page 6 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courlesy ofwww.legislature.mi.gov (v) All of the following: (A) Is located in a city with a population of more than 21,000 and less than 26,000 and is located in a county with a population of more than 573,000 and less than 625,000. (B) Contains only all or a portion of an industrial site of less than 45 acres in size. (vi) All of the following: (A) Is located in a city with a population of more than l 90,000 and less than 250,000 and is located in a county with a population of more than 573,000 and less than 625,000. (B) Contains only all or a portion of an industrial site of more than 14 acres and less than 16 acres in size. (C) Is approved by the board of the Michigan strategic fund on or before April I, 2007. (vii) All of the following: (A) Is located in a city with a population of more than 35,500 and less than 36,800 and is located in a county with a population of more than 157,000 and less than 162,000. (B) Contains only all or a portion of an industrial site comprised of 1 or more adjacent parcels totaling 5 or more acres. (C) ls approved by the board of the Michigan strategic fund on or before April I, 2007. (viii) All of the following: (A) Is located in a city with a population of more than 40,000 and less than 44,000 and is located in a county with a population of more than 81,000 and less than 87,000. (B) Contains only all or a portion of an industrial site composed of l or more adjacent parcels totaling l 00 or more acres. (C) ls approved by the board of the Michigan strategic fund on or before April I, 2008. History: Add, 1999, Act 98, Eff. Oct. 11, 1999;-Am. 2000, Act 259, lmd. Eff, June 29, 2000;-Am. 2002, Act 512, lmd. Eff. July 23, 2002;-Am. 2002, Act 587, lmd. Eff. Oct. 16, 2002;-Am. 2004, Act 430, Imd. Eff. Dec. 20, 2004;-Am. 2006, Act 116, Imd. Eff. Apr. 11, 2006;-Am. 2006, Act 440, Imd. Eff. Oct. 5, 2006;-Am. 2006, Act 475, Imd. Eff. Dec. 21, 2006;-Am. 2006, Act 476, Imd. Eff. Dec. 21, 2006. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003- 1, compiled at MCL 445.2011. 125.2688b Applicability of§§ 15.261 to 15.275 to local governmental units. Sec. 8b. It is the intent of the legislature that local governmental units subject to this act shall follow all state statutes that relate to condemnation of property and the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. History: Add. 1999, Act 98, Eff. Oct. 11, 1999. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011. 125.2688c Additional renaissance zones for agricultural processing facilities. Sec. Sc. (l) The board, upon recommendation of the board of the Michigan strategic fund defined in section 4 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2004, and upon recommendation of the commission of agriculture, may designate not more than 30 additional renaissance zones for agricultural processing facilities within this state in 1 or more cities, villages, or townships if that city, village, or township or combination of cities, villages, or townships consents to the creation of a renaissance zone for an agricultural processing facility within their boundaries. (2) Each renaissance zone designated for an agricultural processing facility under this section shall be 1 continuous distinct geographic area. (3) The board may revoke the designation of all or a portion of a renaissance zone for an agricultural processing facility if the board determines that the agricultural processing facility does 1 or more of the following in a renaissance zone designated under this section: (a) Fails to commence operation. (b) Ceases operation. (c) Fails to commence construction or renovation within I year from the date the renaissance zone for the agricultural processing facility is designated. (4) Beginning on the date of the amendatory act that added this subsection, the board shall consider all of the following when designating a renaissance zone for an agricultural processing facility: (a) The economic impact on local suppliers who supply raw materials, goods, and services to the agricultural processing facility. (b) The creation of jobs relative to the employment base of the community rather than the static number of jobs created. Rendered Wednesday, August 15, 2007 Page 7 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov (c) The viability of the project. (d) The economic impact on the community in which the agricultural processing facility is located. (e) All other things being equal, giving preference to a business entity already located in this state. (5) Beginning on the date of the amendatory act that added this subsection, the board shall do all of the following: (a) Require a development agreement between the Michigan strategic fund and the agricultural processing facility. (b) Designate not less than 3 of the renaissance zones for agricultural processing facilities that have an initial capital investment of less than $7,000,000.00. (c) Designate not less than 5 of the renaissance zones for agricultural processing facilities in rural areas. (6) As used in this section, "development agreement" means a written agreement between the Michigan strategic fund and the agricultural processing facility that includes, but is not limited to, a11 of the following: (a) A requirement that the agricultural processing facility comply with all state and local laws. (b) A requirement that the agricultural processing facility report annually to the Michigan strategic fund on all of the following: (i) The amount of capital investment made at the facility. (ii) The number of individuals employed at the facility at the beginning and end of the reporting period as well as the number of individuals transferred to the facility from another facility owned by the agricultural processing facility. (iii) The percentage of raw materials purchased in this state. (c) Any other conditions or requirements reasonably required by the Michigan strategic fund. History: Add. 2000, Act 259, Imd. Eff. June 29, 2000;-Am. 2003, Act 93, Imd. Eff. July 24, 2003;-Am. 2006, Act 284, Imd. Eff. July 10, 2006. Compiler's note: For transfer of Michigan strategic fund from department of management and budget lo department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011. 125.2688d Tool and die renaissance recovery zones; definitions. Sec. 8d. (1) The board of the Michigan strategic fund described in section 4 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2004, may designate not more than 25 tool and die renaissance recovery zones within this state in I or more cities, villages, or townships if that city, village, or township or combination of cities, villages, or townships consents to the creation of a recovery zone within their boundaries. A recovery zone shall have a duration of renaissance zone status for a period of not less than 5 years and not more than 15 years as determined by the board of the Michigan strategic fund. If the Michigan strategic fund determines that the duration of renaissance zone status for a recovery zone is less than 15 years, then the Michigan strategic fund, with the consent of the city, village, or township or combination of cities, villages, or townships in which the qualified tool and die business is located, may extend the duration of renaissance zone status for the recovery zone for 1 or more periods that when combined do not exceed 15 years. Not less than 1 of the recovery zones shall consist of 1 or more qualified tool and die businesses that have a North American industrial classification system (NAICS) of 332997. (2) The board of the Michigan strategic fund may designate a recovery zone within this state if the recovery zone consists of not less than 4 and not more than 20 qualified tool and die businesses at the time of designation. If the board of the Michigan strategic fund designated 1 or more recovery zones that contain less than 20 qualified tool and die businesses before December 19, 2005, the board of the Michigan strategic fund may add additional qualified tool and die businesses to that recovery zone subject to the limitations contained in this subsection. A recovery zone shall consist of only qualified tool and die business property. The board of the Michigan strategic fund may combine existing recovery zones that are comprised solely of tool and die businesses that are parties to the same qualified collaborative agreement. Where 2 or more recovery zones have been combined, the board of the Michigan strategic fund may continue to designate additional recovery zones, provided that no more than 25 tool and die recovery zones exist at 1 time. (3) The board of the Michigan strategic fund may revoke the designation of all or a portion of a recovery zone with respect to 1 or more qualified tool and die businesses if those qualified tool and die businesses fail or cease to participate in or comply with a qualified collaborative agreement. A qualified tool and die business may enter into another qualified collaborative agreement once it is designated part of a recovery zone. ( 4) One or more qualified tool and die businesses subject to a qualified collaborative agreement may merge into another group of qualified tool and die businesses subject to a different qualified collaborative agreement upon application to and approval by the Michigan strategic fund. (5) A qualified tool and die business in a recovery zone may have a different period of renaissance zone status than other qualified tool and die businesses in the same recovery zone. Rendered Wednesday, August 15, 2007 Page 8 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courtesy ofwww.legislature.mi.gov (6) The board of the Michigan strategic fund may modify an existing recovery zone to add l or more qualified tool and die businesses with the consent of all other qualified tool and die businesses that are participating in the recovery zone. (7) As used in this section: (a) "Qualified collaborative agreementn means an agreement that demonstrates synergistic opportunities, including, but not limited to, all of the following: (i) Sales and marketing efforts. (ii) Development of standardized processes. (iii) Development of tooling standards. (iv) Standardized project management methods. (v) Improved ability for specialized or small niche shops to develop expertise, and compete successfully on larger programs. (b) "Qualified tool and die businessn means a business entity that meets all of the following: (i) Has a North American industrial classification system (NAICS) of 332997, 333511, 333512, 333513, 333514, or 333515; or has a North American industrial classification system (NAICS) of 337215 and operates a facility within an existing renaissance zone, which facility is adjacent to real property not located in a renaissance zone and is located within l/4 mile of a Michigan technical education center. (ii) Has entered into a qualified collaboration agreement as approved by the Michigan strategic fund consisting of not fewer than 4 or more than 20 other business entities at the time of designation that have a North American industrial classification system (NAICS) of 332997, 333511, 333512, 333513, 333514, or 333515. (iii) Has fewer than 75 full-time employees. (c) "Qualified tool and die business property" means 1 or more of the following: (i) Property owned by I or more qualified tool and die businesses and used by those qualified tool and die businesses primarily for tool and die business operations, Qualified tool and die business property is used primarily for tool and die business operations if the qualified tool and die businesses that own the qualified tool and die business property generate 75% or more of the qualified tool and die businesses 1 gross revenue from tool and die operations that take place on the qualified tool and die business property at the time of designation. (ii) Property leased by 1 or more qualified tool and die business for which the qualified tool and die business is liable for ad valorem property taxes and which is used by those qualified tool and die businesses primarily for tool and die business operations. Qualified tool and die business property is used primarily for tool and die business operations if the qualified tool and die businesses that lease the qualified tool and die business property generate 75% or more of the qualified tool and die businesses' gross revenue from tool and die operations that take place on the qualified tool and die business property at the time of designation. The qualified tool and die business shall furnish proof of its ad valorem property tax liability to the department of treasury. History: Add. 2003, Act 266, Imd, Eff. Jan. 5, 2004;-Am. 2004, Act 202, Imd. Eff. July 13, 2004;-Am. 2005, Act 276, Imd. Eff. Dec. 19, 2005;-Am. 2006, Act 93, lmd. Eff. Apr. 4, 2006, Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.201 l. 125.2688e Designation of additional renaissance zones for renewable energy facilities. Sec. 8e. (I) The board, upon recommendation of the board of the Michigan strategic fund defined in section 4 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2004, may designate not more than IO additional renaissance zones for renewable energy facilities within this state in l or more cities, villages, or townships if that city, village, or township or combination of cities, villages, or townships consents to the creation of a renaissance zone for a renewable energy facility within their boundaries. (2) Each renaissance zone designated for a renewable energy facility under this section shall be I continuous distinct geographic area. (3) The board may revoke the designation of all or a portion of a renaissance zone for a renewable energy facility if the board determines that the renewable energy facility does l or more of the following in a renaissance zone designated under this section: (a) Fails to commence operation, (b) Ceases operation. (c) Fails to commence construction or renovation within l year from the date the renaissance zone for the renewable energy facility is designated. (4) When designating a renaissance zone for a renewable energy facility, the board shall consider all of the Rendered Wednesday, August 15, 2007 Page9 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courtesy ofwww.legislature.mi.gov following: (a) The economic impact on local suppliers who supply raw materials, goods, and services to the renewable energy facility. (b) The creation of jobs relative to the employment base of the community rather than the static number of jobs created. ( c) The viability of the project. ( d) The economic impact on the community in which the renewable energy facility is located. (e) All other things being equal, giving preference to a business entity already located in this state. (f) Whether the renewable energy facility can be located in an existing renaissance zone designated under section 8 or 8a. (5) Beginning on the effective date of the amendatory act that added this subsection, the board shall require a development agreement between the Michigan strategic fund and the renewable energy facility. (6) Until the maximum number of additional renaissance zones for renewable energy facilities described in subsection (I) is met, if the board designates a renaissance zone under this section, section 8c, or section 8f for a facility that is a forest products processing facility or an agricultural processing facility and that also meets the definition of a renewable energy facility, then the board shall only designate that renaissance zone as a renaissance zone for a renewable energy facility under this section. (7) As used in this section, "development agreement" means a written agreement between the Michigan strategic fund and the renewable energy facility that includes, but is not limited to, all of the following: (a) A requirement that the renewable energy facility comply with all state and local laws. (b) A requirement that the renewable energy facility report annually to the Michigan strategic fund on all of the following: (i) The amount of capital investment made at the facility. (ii) The number of individuals employed at the facility at the beginning and end of the reporting period as well as the number of individuals transferred to the facility from another facility owned by the renewable energy facility. (iii) The percentage of raw materials purchased in this state. (c) Any other conditions or requirements reasonably required by the Michigan strategic fund. History: Add. 2006, Act 270, Tmd. Eff. July 7, 2006. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011. 125.2688f Forest products processing facility; designation of additional renaissance zones. Sec. 8f. (I) The board, upon recommendation of the board of the Michigan strategic fund defined in section 4 of the Michigan strategic fund act, 1984 PA 270, MCL 125.2004, may designate not more than 10 additional renaissance zones for forest products processing facilities within this state in l or more cities, villages, or townships if that city, village, or township or combination of cities, villages, or townships consents to the creation of a renaissance zone for a forest products processing facility within their boundaries. The board shall designate not more than 5 renaissance zones for a forest products processing facility each year until the maximum number of renaissance zones for a forest products processing facility is met. (2) Each renaissance zone designated for a forest products processing facility under this section shall be 1 continuous distinct geographic area. (3) The board may revoke the designation of all or a portion of a renaissance zone for a forest products processing facility if the board determines that the forest products processing facility does 1 or more of the following in a renaissance zone designated under this section: (a) Fails to commence operation. (b) Ceases operation. (c) Fails to commence construction or renovation within 1 year from the date the renaissance zone for the forest products processing facility is designated. (4) Beginning on the effective date of the amendatory act that added this subsection, the board shall consider all of the following when designating a renaissance zone for a forest products processing facility: (a) The economic impact on local suppliers who supply raw materials, goods, and services to the forest products processing facility. (b) The creation of jobs relative to the employment base of the community rather than the static number of jobs created. (c) The viability of the project. (d) The economic impact on the community in which the forest products processing facility is located. (e) Whether the forest products processing facility can be located in an existing renaissance zone Rendered Wednesday, August 15, 2007 Page 10 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov designated under section 8 or 8a. (5) Beginning on the effective date of the amendatory act that added this subsection, the board shall require a development agreement between the Michigan strategic fund and the forest products processing facility. (6) As used in this section, "development agreement" means a written agreement between the Michigan strategic fund and the forest products processing facility that includes, but is not limited to, all of the following: (a) A requirement that the forest products processing facility comply with all state and local laws. (b) A requirement that the forest products processing facility report annually to the Michigan strategic fund on all of the following: (i) The amount of capital investment made at the facility. (ii) The number of individuals employed at the facility at the beginning and end of the reporting period as well as the number of individuals transferred to the facility from another facility owned by the forest products processing facility. (iii) The percentage of raw materials purchased in this state. (c) Any other conditions or requirements reasonably required by the Michigan strategic fund. History: Add. 2006, Act 305, Imd. Eff. July 20, 2006. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, sec E.R.O. No. 2003-1, compiled at MCL 445.2011. 125.2689 Exemption, deduction, or credit. Sec. 9. (1) Except as otherwise provided in section 10, an individual who is a resident of a renaissance zone or a business that is located and conducts business activity within a renaissance zone shall receive the exemption, deduction, or credit as provided in the following for the period provided under section 6(2)(b ): (a) Section 39b of the single business tax act, Act No. 228 of the Public Acts of 1975, being section 208.39b of the Michigan Compiled Laws. (b) Section 31 of the income tax act of 1967, Act No. 281 of the Public Acts of 1967, being section 206.31 of the Michigan Compiled Laws. (c) Section 35 of chapter 2 of the city income tax act, Act No. 284 of the Public Acts of 1964, being section 141.635 of the Michigan Compiled Laws. (d) Section 5 of the city utility users tax act, Act No. I 00 of the Public Acts of 1990, being section 141.1155 of the Michigan Compiled Laws. (2) Except as otherwise provided in section 10, property located in a renaissance zone is exempt from the collection of taxes under all of the following: (a) Section ?ff of the general property tax act, Act No. 206 of the Public Acts of 1893, being section 21 l.?ffofthe Michigan Compiled Laws. (b) Section 11 of Act No. 198 of the Public Acts of 1974, being section 207.561 of the Michigan Compiled Laws. (c) Section 12 of the commercial redevelopment act, Act No. 255 of the Public Acts of 1978, being section 207.662 of the Michigan Compiled Laws. (d) Section 21 c of the enterprise zone act, Act No. 224 of the Public Acts of 1985, being section 125.2121c of the Michigan Compiled Laws. (e) Section I of Act No. 189 of the Public Acts of 1953, being section 211.181 of the Michigan Compiled Laws. (f) Section 12 of the technology park development act, Act No. 385 of the Public Acts of 1984, being section 207.712 of the Michigan Compiled Laws. (g) Section 51105 of part 511 (commercial forests) of the natural resources and environmental protection act, Act No. 451 of the Public Acts of 1994, being section 324.51 I 05 of the Michigan Compiled Laws. (h) Section 9 of the neighborhood enterprise zone act, Act No. 147 of the Public Acts of 1992, being section 207.779 of the Michigan Compiled Laws. (3) During the last 3 years that the taxpayer is eligible for an exemption, deduction, or credit described in subsections ( 1) and (2), the exemption, deduction, or credit shall be reduced by the following percentages: (a) For the tax year that is 2 years before the final year of designation as a renaissance zone, the percentage shall be 25%. (b) For the tax year immediately preceding the final year of designation as a renaissance zone, the percentage shall be 50%. (c) For the tax year that is the final year of designation as a renaissance zone, the percentage shall be 75%. History: 1996, Act 376, lmd. Eff. July 17, 1996. Rendered Wednesday, August 15, 2007 Page 11 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courlesy of www.legislature.mi.gov Compiler's note: For transfer of Michigan strategic fund from department of managemenl and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011. 125.2690 Individuals or businesses ineligible for exemption, deduction, or credit; limitations. Sec. IO. (1) An individual who is a resident ofa renaissance zone or a business that is located and conducts business activity within a renaissance zone or a person that owns property located in a renaissance zone is not eligible for the exemption, deduction, or credit listed in section 9(1) or (2) for that taxable year if 1 or more of the following apply: (a) The resident, business, or property owner is delinquent on December 31 of the prior tax year under l or more of the following: (i) The single business tax act, 1975 PA 228, MCL 208. l to 208.145. (ii) The income tax act of I 967, 1967 PA 281, MCL 206.1 to 206.532. (iii) 1974 PA 198, MCL 207.551 to 207.572. (iv) The commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668. (v) The enterprise zone act, 1985 PA 224, MCL 125.2101 to 125.2123. (vi) 1953 PA 189, MCL 21 l.!81 to 21 l.!82. (vii) The technology park development act, 1984 PA 385, MCL 207.701 to 207.718. (viii) Part 511 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.51101 to 324.51120. (ix) The neighborhood enterprise zone act, 1992 PA 147, MCL 207.771 to 207.786. (x) The city utility users tax act, 1990 PA 100, MCL 14!.l 151 to 14!.l l 77. (b) The resident, business, or property owner is substantially delinquent as defined in a written policy by the qualified local governmental unit in which the renaissance zone is located on December 31 of the prior tax year under I or both of the following: (i) The city income tax act, 1964 PA 284, MCL 141.501 to 141.787. (ii) Taxes, foes, and special assessments collected under the general property tax act, 1893 PA 206, MCL 21!.l to2Il.l57. (c) For residential rental property in a renaissance zone, the residential rental property is not in substantial compliance with all applicable state and local zoning, building, and housing laws, ordinances, or codes and, except as otherwise provided in this subdivision, the residential rental property owner has not filed an affidavit before December 31 in the immediately preceding tax year with the local tax collecting unit in which the residential rental property is located as required under section ?ff of the general property tax act, 1893 PA 206, MCL 21 l.7ff. Beginning December 31, 2004, a residential rental property owner is not required to file an affidavit if the qualified local governmental unit in which the residential rental property is located determines that the residential rental property is in substantial compliance with all applicable state and local zoning, building, and housing laws, ordinances, and codes on December 31 of the immediately preceding tax year. (2) An individual who is a resident of a renaissance zone is eligible for an exemption, deduction, or credit under section 9(1) and (2) until the department of treasury determines that the aggregate state and local tax revenue forgone as a result of all exemptions, deductions, or credits granted under this act to that individual reaches $ I0,000,000.00. (3) A casino located and conducting business activity within a renaissance zone is not eligible for the exemption, deduction, or credit listed in section 9( 1) or (2). Real property in a renaissance zone on which a casino is operated, personal property of a casino located in a renaissance zone, and all property associated or affiliated with the operation of a casino is not eligible for the exemption, deduction, or credit listed in section 9(1) or (2). As used in this subsection, "casino" means a casino or a parking lot, hotel, motel, or retail store owned or operated by a casino, an affiliate, or an affiliated company, regulated by this state pursuant to the Michigan gaming control and revenue act, the Initiated Law of 1996, MCL 432.201 to 432.226. (4) For tax years beginning on or after January 1, 1997, an individual who is a resident of a renaissance zone shall not be denied the exemption under subsection (I) if the individual failed to file a return on or before December 31 of the prior tax year under subsection (] )(a)(ii) and that individual was entitled to a refund under that act. History: 1996, Act 376, Imd. Eff. July 17, 1996;-Am. 1998, Act 239, Imd. Eff. July 3, 1998;-Am. 1999, Act 36, Imd. Eff. June 3, 1999;-Am. 1999, Act 139, Imd. Eff. Oct 11, 1999;-Am. 2000, Act 259, Imd, Eff, June 29, 2000;-Am. 2005, Act 164, Imd, Eff. Oct. 6, 2005. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011, Rendered Wednesday, August 15, 2007 Page 12 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov 125.2691 Application form. Sec. 11. The form of the application for a renaissance zone designation shall be as specified by the Michigan strategic fund. After the form of the application is specified by the Michigan strategic fund, the Michigan strategic fund shall file a copy of the application with each house of the legislature. The board may request any information from an applicant, in addition to that contained in an application, as may be needed to pennit the board to discharge its responsibilities under this act. History: 1996, Act 376, lmd. Eff. July 17, 1996;-Am, 2006, Act 440, Imd. Eff Oct. 5, 2006. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011. 125.2692 Reimbursement to intermediate school districts, local school districts, community college districts, public libraries, and school aid fund. Sec. 12. ( l) This state shall reimburse intermediate school districts each year for all tax revenue lost as the result of the exemption of property under this act, based on the property's taxable value in that year, from taxes levied under section 625a of the revised school code, 1976 PA 451, MCL 380.625a; from taxes levied for area vocational-technical program operating purposes under section 68 I of the revised school code, 1976 PA 451, MCL 380.68 l; and from taxes levied for special education operating purposes under section 1724a of the revised school code, 1976 PA 451, MCL 380.1724a. (2) This state shall reimburse local school districts each year for all tax revenue lost as the result of the exemption of property under this act from taxes levied under section 1211 of the revised school code, 1976 PA 451, MCL 380.1211, based on the property's taxable value in that year. (3) This state shall reimburse a community college district and a public library each year for all tax revenue lost as a result of the exemption of property under this act, based on the property's taxable value in that year, from taxes levied or collected under the general property tax act, 1893 PA 206, MCL 21 l.l to 211.157. (4) Intermediate school districts, community college districts, and public libraries eligible for reimbursement under subsections (1) and (3) shall report to and on a date determined by the department of treasury all revenue lost for which reimbursement under subsections (l) and (3) is claimed. A local school district eligible for reimbursement under subsection (2) shall report each year on a date determined by the department of treasury all revenue lost for which reimbursement under subsection (2) is claimed. (5) This state shall reimburse the school aid fund for all revenues lost as the result of the establishment of renaissance zones. Foundation allowances calculated under section 20 of the state school aid act of 1979, 1979 PA 94, MCL 388.1620, shall not be reduced as a result of lost revenues arising from this act. History: 1996, Act 376, lmd. Eff. July 17, l 996;~Am. 2002, Act 745, lmd. Eff. Dec. 30, 2002. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011. 125.2693 Business conducted at public meeting. Sec. 13. (!) The board and the review board shall conduct all business at public meetings held in compliance with the open meetings act, Act No. 267 of the Public Acts of 1976, being sections 15.261 to 15.275 of the Michigan Compiled Laws. Public notice of the time, date, and place of each meeting shall be given in the manner required by Act No. 267 of the Public Acts of 1976. (2) A record or a portion of a record, material, application, or other data received, prepared, used, or retained by the board or review board is subject to the freedom of information act, Act No. 442 of the Public Acts of 1976, being sections 15.231 to 15.246 of the Michigan Compiled Laws. History: 1996, Act 376, Imd. Eff. July 17, 1996. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.2011. 125.2694 Construction of act. Sec. 14. This act shall be construed liberally to effectuate the legislative intent and the purposes of this act and as complete and independent authority for the perfonnance of each and every act and thing authorized by this act, and all powers granted by this act shall be broadly interpreted to effectuate the intent and purposes of this act and not as a limitation of powers. History: 1996, Act 376, Imd. Eff. July 17, 1996. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.0. No. 2003-1, compiled at MCL 445.201 l. Rendered Wednesday, August 15, 2007 Page 13 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov 125.2695 Report to legislature. Sec. 15. The department of Michigan jobs commission shall annually report to the legislature on the economic effects of this act in each renaissance zone. The report shall include, but is not limited to, all of the following for each renaissance zone: (a) Number of new jobs created. (b) Percentage change in aggregate taxable value and state equalized value. (c) Average wage of new jobs created. ( d) Percentage change of adjusted gross income of residents. History: 1996, Act 376, Imd. Eff. July 17, 1996. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003-1, compiled at MCL 445.201 l. 125.2696 Report by state research university. Sec. 16. A state research university shall annually report to the legislature on the economic effects of this act in each renaissance zone. The report shall include, but is not limited to, all of the following for each renaissance zone: (a) Number of new jobs created. (b) Percentage change in aggregate taxable value and state equalized value. (c) Average wage of new jobs created. ( d) Percentage change of adjusted gross income of residents. History: 1996, Act 376, Imd. Eff. July 17, 1996. Compiler's note: For transfer of Michigan strategic fund from department of management and budget to department of labor and economic growth, see E.R.O. No. 2003~!, compiled at MCL 445.2011. Rendered Wednesday. August 15, 2007 Page 14 Michigan Compiled Laws Complete Through PA 50 of 2007 © Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov CITY COMMISSION POLICY EXTENSION OF TIME PERIOD FOR EXISTING RENAISSANCE ZONE PARCELS (July 24, 2007) POLICY: The City will establish a program which allows individuals, businesses, developers and business areas to submit proposals for extending the timeline for properties in the City's Renaissance zone for significant new economic development projects. Applications will be accepted to extend the time period for individual parcels for specific economic development projects located within the existing Zones and will be evaluated on the basis of the criteria identified in this policy. PURPOSE: To provide guidelines for evaluating and approving requests for extension of Renaissance Zone parcels for new development in zones that have not experienced significant development. GOALS: The City's goals in extending the time period for existing individual Renaissance Zone parcels are: 1. To create jobs; 2. To encourage investment; and 3. To clean up and reutilize vacant and underutilized properties. BACKGROUND In 1999, the Cities of Muskegon and Muskegon Heights were jointly designated as a Renaissance Zone. At that time, the City of Muskegon selected two areas of the city as sub- zones. The City of Muskegon Heights designated four sub-zones. These sub-zones are identified as development zones that are virtually tax free for fifteen years. In 2000, the State of Michigan approved legislation, permitting the Muskegon/Muskegon Heights Renaissance Zone to apply to the Michigan Economic Development Corporation to expand existing zones contiguously and designate up to four new sub-zones. In 2002, four new sub-zones were approved by the State for the City of Muskegon. The goal of the program has been to encourage investment and create jobs by reutilizing vacant, contaminated, and underutilized properties in blighted neighborhoods and industrial zones In 2006, the State of Michigan approved legislation which allows communities to apply to the Michigan Economic Development Corporation to extend the time period for existing Renaissance Zone parcels when a major economic development opportunity is proposed. PROGRAM The City will establish a program which allows individuals, businesses, developers and business areas to submit proposals for extending the timeline for properties in the City's Renaissance Zone for significant new economic development projects. Applications will be accepted to extend the time period for individual parcels for specific economic development projects located within the existing Zones and will be evaluated on the basis of the criteria identified in this policy. REVIEW PROCESS Proposal Content: All proposals must demonstrate that the project cannot reasonably be facilitated in the existing Renaissance Zone time frame. They must identify the parcels being proposed for extension of the Zone, the amount of real and personal property tax currently assessed to the site(s), and verify that the property meets at least three of the threshold criteria. Also, proposals should describe the type of use, amount of investment, jobs to be created, and other pertinent information about the project. A proforma showing the difference in return on investment with and without Renaissance Zone savings must be submitted with the proposal. The applicant will supply a statement of Renaissance Zone outcomes achieved since inclusion of the property in the zone, which include the number of years that the property has been in the Zone, the total investment in the property and building, the investment in personal property, the employment at the start of the Zone and the current employment at the site. The applicant will provide an estimate of the tax savings, to date, from the Renaissance Zone designation. Applicants must pay a $5000 application fee and agree to pay all legal fees associated with the preparation of a Development Agreement. Review: A proposal must meet a minimum of three of the threshold requirements that will be reviewed by City Staff based on the extent to which the project addresses the evaluating factors cited in this policy. A review of the capacity, if any, below the modified (see next paragraph) $500,000 cap of property and income tax revenue the City may forego to support the Renaissance Zone program will be made as each application is reviewed. INVESTMENT CAP LIMITATION • The original City Renaissance Zone established an investment cap in 1999 at $50,000, focusing solely on lost City tax revenue. • This revised policy maintains the $50,000 cap, but will evaluate projects on a case-by-case basis to determine whether the project is cap neutral, adds cap capacity or reduces available cap capacity. • Cap Capacity will be determined by analyzing the annual value of income tax receipts from new jobs created within the City Renaissance Zones. The value will be used to calculate the available cap capacity as follows: $50,000 Base Cap Established 1999 ($8,200) Existing Cap Capacity Utilized $41,800 Existing Cap Capacity (before Income Tax Factor) $1,000 Total 1999 Job Value (from new jobs created in Ren. Zone) $42,800 Total Remaining Cap Capacity Where: Base Cap = The Cap of $50,000 established by City Commission in 1999 Utilized Cap Value = The estimated amount of actual property and income tax abated as of January 1999 Existing Cap Capacity = The difference between the Base Cap and the Utilized Cap Value Job Value = The total number of jobs created by all projects in the City's Renaissance Zone multiplied by an estimated income tax value of $300 per job Remaining Cap Capacity = Amount of City public revenue remaining to be invested in Renaissance Program • A project's cap capacity impact will be determined by calculating the difference between property tax loss and income tax to be generated by the proposal. Projects may be neutral, may add cap capacity or may reduce cap capacity. DEVELOPMENT AGREEMENT Successful applicants will be required to enter into a development agreement with the City committing to the investment and/or job creation it has proposed and posting a performance bond or other guarantee of performance acceptable to the City. The City Commission will make a determination as to the number years each new or expanded area will be designated as a zone on a case-by-case basis and in compliance with State law. In no case will the designation be for more than fifteen years from the date of application to the Board of the Michigan Strategic Fund. THRESHOLD CRITERIA Must meet "a" or "b" of the following criteria plus two others to be considered for a Renaissance Zone Extension. a. Project will be a catalyst for a major development or for multiple redevelopment opportunities in the City. b. Project will add significant new City income tax from the creation of jobs new to Muskegon within three years of project completion. This income tax is to offset the loss of property taxes which are abated under the Renaissance Zone expansion. c. Property has been vacant or fifty percent of building(s) unoccupied, for at least one year. d. Project investment will be significant on a square foot basis. e. Property is a contaminated site or functionally obsolete, as defined by current Michigan law. f. Project shows other evidence of under-utilization or disinvestment. EVALUATION FACTORS Proposals for extending existing Zone areas which meet the appropriate threshold criteria will be considered based on the extent to which a project addresses the following evaluation factors: a. The amount of income tax to be generated by new jobs relative to the amount of local City taxes abated. b. The amount of investment in buildings and equipment. c. The project allows a business to expand in the City, retains a significant number of jobs in the City, and/or will add jobs. d. The project includes other investment in neighborhood revitalization or public infrastructure improvements or utilizes other public and private financing tools to maximize redevelopment benefits. e. In the case of residential property, the extent to which the project will work to deconcentrate poverty, create mixed use redevelopment or develop downtown housing. f. The amount of tax loss for the project does not exceed the amount the City Commission identifies for support of Renaissance Zones. g. The extent to which designation may adversely affect DOA or other City financial obligations. h. The project will enhance an area of the City and/or cause additional investment. i. The project is consistent with the City's Master Plan. j. Compliance with the following City ordinances and policies: 1. All applicants must be current with all real and personal property taxes. 2. All applicants must not be under written orders for violations of the zoning ordinance. 3. All applicants must have a satisfactory record of compliance with regulations enforced by the City's Environmental Services Department. k. History of investment. What is the history of ownership of and investment in the property since it was designated as a Renaissance Zone? What are the reasons that the property is still blighted and underutilized? OTHER CONDITIONS The City reserves the right to not award Renaissance Zone status to any or all proposals, nor is it obligated to abate taxes to the limit of capacity available. It may also decide to exceed the cap, if it believes the benefits of a project to the City warrant doing so. Applications must be filed by October 15, 2011, in order that they can be filed with the State by December 31, 2011. New Renaissance Zone designations are subject to approval by the Michigan Economic Development Corporation. HERITAGE SQ1JARE TOWNHOMES November 12, 2007 Ms. Cathy Brubaker-Clarke Director of Community and Economic Development City of Muskegon 933 Terrace Street P.O. Box 536 Muskegon, MI 49443-0536 Subject: Heritage Square Town Home Renaissance Zone Extension Request Dear Cathy, Please consider this letter as our request and application for an extension of the time period for an existing Renaissance Zone, namely those parcels included in the Heritage Square Townhome development. Request Heritage Square Development, LLC respectfully requests that the City of Muskegon grant a minimum of a seven-year extension to the Renaissance Zone designation for the six parcels (Units 16, 17, 18, 19, 20 and 21 of the Downtown Muskegon Development Center Site Condo No. 1) comprising the Heritage Square Townhome development. As demonstrated in this application, the proposed development meets all the City's goals for extension of an existing Renaissance Zone in that it: 1. creates both short-term and long-term jobs 2. encourages investment 3. cleans up and reutilizes vacant and underutilized properties. Description of Project The proposed project has been expanded to include twenty-two units of a row house style, live-work, residential condominium development in downtown Muskegon. Addition of units allows us to provide a wider range of offerings in both price, size and style. The redevelopment of this designated brownfield site will incorporate sustainable development elements such as rain gardens for P.O. Box732 Muskegon, MI 4-9443-0732 Ph. 231-578-2033 HERITAGE SQ!JARE TOvVNHOMES stormwater management, green roofs on portions of the residences, and preservation of green space as shown on the site plans. The proposed development represents an investment of over $5.0 million in downtown Muskegon. We anticipate that over $1.25 million of that will be construction employment during the build-out of this project. With the live-work concept and units being available for light commercial office space as well as modest retail space, we anticipate between twelve and twenty-four jobs will either be created or relocated into this development. There are currently several different housing options offered or proposed in downtown Muskegon. Heritage Square Townhomes is different from, but complementary of, the other available options. For downtown Muskegon to be a vibrant, twenty-four/seven community, both retail and residential must thrive. A variety of housing options, resulting in an appropriate blend of residents, is also essential to a successful downtown. Muskegon already has New-York-style loft condos, up-scale waterfront housing, historic housing, senior housing, high-rise, modern-living condos, senior housing, and other affordable and market-rate apartments. Heritage Square Townhomes adds another exciting dimension to the housing choices in downtown Muskegon. History of Site Although the site accommodated both residences and businesses in the distant past, since the Muskegon Mall was built In the 1970's the property has been either vacant or used simply for parking for the mall. Since the mall was razed several years ago, the site has been mostly vacant and serves only as overflow parking for downtown events, some parking for residents of 297 Clay and staging for construction equipment and materials. Based on the recent environmental investigation, the property is a contaminated site as defined by current Michigan law. Argument for Renaissance Zone Extension Since the Renaissance Zone was created for the defunct mall properties, there has been no investment in building and property, personal property, or employment at this site. Accordingly, there has been no tax savings to date either from the Ren Zone designation. These incentive programs take time in order to be effective. Developers (and others) need to understand them. Projects need to be conceived. A host of other support services need to be created around them. Often, by the time a project breaks ground, much of the time period has been exhausted. Such is the case with this site and this development. P.O. Box732 Muskegon, Ml 4-9443--0732 Ph. 231-578-2033 HERITAGE S01JARE TOWN HOMES With the original Renaissance Zone created in 1999 - and a fifteen-year incentive period designated - less than half the time remains to benefit from the incentive program. A reasonably anticipated four-year build-out of the project reduces the incentive period even more. By the time the last unit is constructed, the Ren Zone incentives will be phasing out. Also, for this development the Ren Zone benefits do not so much accrue to the developer as they do to the end users/buyers of the units. This project can be built and is financially viable without the Ren Zone benefits. However, the tax incentives offered by the Ren Zone designation are critical to marketing and attracting the residents and business people to this location. We are still in the 'infancy' stage of creating a demand for residences downtown. Also, the current state of the overall housing market creates additional challenges for a development like this. Being able to offer more time under the Ren Zone designation is crttical to the success of this development. Other Considerations The proposed Heritage Square Townhome project includes approximately 40,000 square feet of residential and/or work space, not including garages, basements, decks or outdoor living areas. The $5.0 million cost represents both a significant investment and a major addition to the housing stock in downtown Muskegon. With anticipated annual income levels from $40,000 to over $100,000, the project will also add significantly to the City income tax as units are completed and occupied. The response to this project has so far been very positive. It will no doubt be a catalyst for other developments and redevelopment opportunities in the City. In addition, we anticipate applying for MBT brownfield tax credits in order to maximize the benefits of this project as well as use those funds to make improvements to the public infrastructure such as water and sewer services, sidewalks and streetscapes. Also, as mentioned earlier, we have recently expanded the project to include a wider range of housing styles and prices. We believe good residential development includes a proper balance of offerings that appeal to both higher and lower income levels. The live-work opportunities naturally create mixed-use integrated with downtown housing. We are very excited about this project and expect it will make a significant, positive statement in downtown Muskegon. We are ready to move forward quickly and anticipate doing so. Site engineering is underway and a site plan is P.O. Box 7:12 Muskegon, MI 4944~-0732 Ph. 231-578-2033 HERITAGE SQ!JARE TOvVNHOMES expected to be submitted for approval yet this year. Those plans, along with the proposed floor plans, will be submitted as accompanying documents as soon as they are available. If it is necessary to sign an additional development agreement with the City, we are prepared to review that and do so. You will also find a check enclosed as an indication of our intent to aggressively pursue this project. Thank you for your consideration. If you have any questions or require additional information, please call. Sincerely, HEWTAG~- . ARE DEVELOPMENT, LLC JY~ r)~ Gary Post) PE Member P.O. Box732 Muskegon, MI 49443-0732 Ph. 231-578-2033 CITY OF MUSKEGON SPECIAL ASSESSMENT ROLL Heritage Square Development, LLC, Special Assessment District No. I The undersigned, pursuant to the direction of the City Commission, and based upon the request and consent of Heritage Square Development, LLC, hereby levies a special assessment on the property described in the attached Schedule "A." The following properties are hereby assessed for the said costs: OWNER PROPERTY NO. ASSESSMENT Heritage Square 24-921-012-0001-16 $94,000 Development, LLC 24-921-012-0001-17 24-921-012-0001-18 24-921-012-0001-19 24-921-012-0001-20 24-921-012-0001-21 Installment Payments. The annual principal installments shall be paid over a period of fifteen (15) years. Each said annual payment shall be made on or before December 15. If Heritage Square Development, LLC has fully complied with its obligations pursuant to the Development Agreement for Renaissance Zone status between it and the City, executed on or about January 8, 2008 this special assessment and the consent thereto is void. The payments scheduled for December 15, 2009 and 2010 as in accordance with Schedule B, are waived pending Heritage Square Development, LLC's compliance with terms of the Development Agreement. In the event Heritage Square Development, LLC is in default under the terms of that agreement, the required special assessment shall be due and payable, as in accordance with Schedule B, including amounts temporarily waived in 2009 and 20 IO pending compliance with the Agreement. Acceleration. In the event any annual installment is not timely paid, the entire balance of the assessment, plus interest to accrue a 5% per annum, shall become immediately due and payable. This provision shall apply to the annual installment of the original and unpaid assessment. Deposit and Investment of Assessment Payments. Assessment payments received shall be held and used by the City in such funds as may be required by the Renaissance Zone Act. Certification The above special assessment roll was confirmed on , 2008, at a regular meeting held at the City Hall. The meeting was properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public Acts of 1976. Date: - - -, 2008 CITY OF MUSKEGON By_ _ _ _ _ _ __ Ann Marie Becker, Clerk Endorsement and Warrant The above special assessment roll was confirmed on January __, 2008, and is hereby endorsed. Warrant is hereby issued to the City Treasurer to collect same in accordance with its terms. Date: _____,2008 CITY OF MUSKEGON By_ _ _ _ _ __ Stephen J. Warmington, Mayor Consent to Special Assessment The Special Assessment approved by the City Commission for the City of Muskegon is being done based upon the request of Heritage Square Development, LLC, owner of all property described in schedule A. SCHEDULE "A" Property Description 24-921-012-0001-16 CITY OF MUSKEGON REZ REAL REAL ID #24-233-000-0016-00 DISTRICT 12 DOWNTOWN MUSKEGON DEVELOPMENT CENTER NO 1 24-921-012-0001-17 CITY OF MUSKEGON REZ REAL REAL ID #24-233-000-0017-00 DISTRICT 12 DOWNTOWN MUSKEGON DEVELOPMENT CENTER NO 1 24-921-012-0001-18 CITY OF MUSKEGON REZ REAL REAL ID #24-233-000-0018-00 DISTRICT 12 DOWNTOWN MUSKEGON DEVELOPMENT CENTER NO 1 24-921-012-0001-19 CITY OF MUSKEGON REZ REAL REAL ID #24-233-000-0019-00 DISTRICT 12 DOWNTOWN MUSKEGON DEVELOPMENT CENTER NO 1 24-921-012-0001-20 CITY OF MUSKEGON REZ REAL REAL ID #24-233-000-0020-00 DISTRICT 12 DOWNTOWN MUSKEGON DEVELOPMENT CENTER NO 1 24-921-012-0001-21 CITY OF MUSKEGON REZ REAL REAL ID #24-233-000-0021-00 DISTRICT 12 DOWNTOWN MUSKEGON DEVELOPMENT CENTER NO 1 SCHEDULE "B" Total Assessment February 15, 2009 $6,266.66 (waived) February 15, 2010 $6,266.66(waived) February 15, 2011 $6,266.66 February 15, 2012 $6,266.66 February 15, 2013 $6,266.67 February 15, 2014 $6,266.67 February 15, 2015 $6,266.67 February 15, 2016 $6,266.67 February 15, 2017 $6,266.67 February 15, 2018 $6,266.67 February 15, 2019 $6,266.67 February 15, 2020 $6,266.67 February 15, 2021 $6,266.67 February 15, 2022 $6,266.67 February 15, 2023 $6,266.67 Resolution No. - - - - MUSKEGON CITY COMMISSION RESOLUTION APPROVING EXTENSION OF RENAISSANCE ZONE STATUS. WHEREAS, pursuant to Public Act 376 of 1996, as amended, existing Round II Renaissance Zones have been enabled to modify existing and create new sub-zones (up to 1O); and WHEREAS, the City of Muskegon is committed to the economic growth and well being of its residents; and WHEREAS, the City of Muskegon is in agreement with the concepts of Renaissance Zones and desires to utilize such zones for the revitalization of certain areas within the City; and WHEREAS, the City of Muskegon has adopted a policy governing the time extension of existing sub-zones; and WHEREAS, the City of Muskegon has entered into development agreements with Heritage Square Development, LLC to develop the parcels at 274, 276, 290, & 296 W. Clay and 887 & 889 First St. into units ofrow house style, live-work, residential condominiums. NOW THEREFORE BE IT RESOLVED, that the Muskegon City Commission hereby approves the extension of the Renaissance Zone status to qualify Heritage Square Development, LLC, to be eligible for Renaissance Zone status for 15 years from the creation of the extension, for the properties described in the Development Agreement. BE IT FURTHER RESOLVED, that the Muskegon City Commission approves the request for Heritage Square Development, LLC to develop the parcels at 274, 276, 290, & 296 W. Clay and 887 & 889 First St. into units of row house style, live-work, residential condominiums. Adopted this 8th day of December, 2008. AYES: NAYS: ABSENT: BY: Stephen J. Warmington, Mayor ATTEST: Ann Marie Becker, Clerk C:\Documents and Settings\franzakm\Desktop\heritage square resolution.doc CITY OF MUSKEGON COMMUNITY RELATIONS COMMITTEE City Commission Chambers 6:30p.m. Monday, December 3, 2007 MINUTES The meeting was called to order by Chairman Spataro at 6:30 p.m. Present: Mayor Warmington, Commissioners, Gawron, Shepherd, and Wisneski. Absent: Commissioners Carter and Wierengo. APPROVAL OF MINUTES Moved by Mayor Warmington, seconded by Commissioner Wisneski to approve the November 5, 2007 minutes as presented. MOTION CARRIED. Appointment to the DDA Moved by Mayor Warmington, seconded by Commissioner Wisneski to recommend appointment of Roy Cowdery to the Downtown Development Authority Board. MOTION CARRIED. Meeting adjourned at 6:33 p.m. Ann Marie Becker, MMC City Clerk BOARD OF CANVASSERS PURPOSE Publicly verify election returns in elections. MECHANICS ENABLING LAW: City Charter (Ch. II - Sec. 12) - Oath required. APPOINTED BY: City Commission MEETING: Thursday immediately following a City election @ 10:00 AM. TERM: 4 Years COMPOSITION DESCRIPTION 2 Republicans 2 Democrats CURRENT MEMBERS (Staff Liaison - Ann Marie Becker) TYPE NAME ADDRESS PHONE TERM EXP. A Louis Spyke 1334 Beardsley 755-1004 1/31/10 B Wanda Matsey* 1291 Fourth St. 728-1481 1/31/10 B Patsy Petty 760 Emerald #L 2 725-0725 1/31 /08 A John Bronsema 1168 Creekview Dr. 755-1721 1/31/10 BOARD OF CANVASSERS Request not to fill the position at this time 4 (*•Chairperson) - 4 - 2007 CRC Index Meeting Wanda Patsy John Louis Date Matsey Petty Bronsema Spyke 2/22/2007 p A p p 5/3/2007 p A p p 10/10/2007 p A p p 11/8/2007 p A p p P-Present E-Excused absence A-Unexcused absence R-Resigned N-New member BOARD OF REVIEW PURPOSE Review of the Assessment Rolls. MECHANICS ENABLING LAW: City Charter (Ch. XI - Sec. 2),City Code of Ordinances Section 2-256, Oath not required. APPOINTED BY: City Commission MEETING: Tuesday following first Monday in March, Tuesday following the third Monday in July and Tuesday following the second Monday in December City Hall/1st Floor Conference Room TERM: 2 Years COMPOSITION TYPE DESCRIPTION A 6 Citizens B City Assessor C Deputy Assessor CURRENT MEMBERS (Staff Liaison - Dan VanderKooi) ADDRESS PHONE TERM EXP. Jack Rottman 1171 Creekview Dr. 755-4054 1/31/08 A Lawrence Devoogd 3176 Boltwood Dr. 759-8323 1/31 /08 A Donald Haas 3087 Knollwood Ct. 755-6629 1/31/09 A Georgia Strube* 1895 Sanford #1 755-3541 1/31/09 A Ralph Burr 1275 Emerson Ave. 2 773-5292 1/31/09 A Luther Dease 1379 Lawrence 2 777-2048 1/31/08 B 933 Terrace St. 3 724-6708 Assessor C Dan VanderKooi 933 Terrace St. 3 724-6708 Dep. Assess BOARD OF REVIEW Applications for renewal received from: Jack Rottman 5 Lawrence DeVoogd 2007 CRC Index Luther Dease CITIZEN'S POLICE REVIEW BOARD PURPOSE A. To provide policies and procedures for processing and investigating citizen complaints regarding alleged police misconduct. B. To provide civilian review of the investigations of alleged police misconduct undertaken by the City of Muskegon including investigations conducted by the "Internal Investigations Unit" of the Muskegon Police Department. C. To ensure the integrity of investigations of police misconduct and to thereby enhance community confidence in the Muskegon Police Department D. To encourage compliance with rules and regulations concerning police officers' conduct during interactions with citizens. E. To encourage people who believe they have been mistreated by police officers to use the Internal Affairs system to have that officer's conduct reviewed. F. To create a process that fairly and evenhandedly evaluates and judges the conduct of everyone involved to determine whether or not a breach of departmental rules and regulations has occurred. G. To afford the community a sense of confidence that the community itself is involved as necessary in reviewing the activities of its police officers; and to maintain high morale and good disciplinary practices within the police department. MECHANICS ENABLING LAW: Commission Action #98-117 (g)- Letter of Understanding Dated 11/ 10/98 - Oath not required. APPOINTED BY: Mayor/City Commission MEETING: First Monday of each month @ 6:30 P.M. st City Hall - 1 Floor Conference Room #103 TERM: 2Yeaffi COMPOSITION TYPE DESCRIPTION A 3 Members of Minority Based Organization B 2 Citizens At-Large C 1 Law Enforcement Professional D 3 Neighborhood Association Representatives CURRENT MEMBERS (Staff Liaison - Denny Powers) TYPE NAME ADDRESS ZIP PHONE TERM EXP. A Charlotte L. Perez 550W. Western #142 0 722-7517 1/31 /08 A William Muhammad • 1112 Ambrosia St. 2 722-2974 1/31 /09 A Carlos Florez 1511 Caterbury 4 288-0240 1/31 /09 B Adelia Sullivan 1866 Continental 2 726-6877 1/31/09 B Barbara Kuipers 1863 Superior 2 726-6674 1/31 /09 C David Burlingame** 2287 McCracken 759-8884 1/31/08 D Ann Martin 1782 Mcilwraith 2 726-3844 1/31 /08 D Dolly Hippchen 325 Houston 1 726-4890 1/31 /09 D Ann Craig 1387 Sixth St. 1 726-6345 1/31 /09 ( ** - Vice Chair) 6 C11ITZEN'S POLICE REVIEW BOARD 2007 C RC Index Called Charlotte Perez - she will mail application Adelia Sullivan no longer interested - Term expired January 31, 2009 - Citizen at large David Burlingame no longer interested - Law Enforcement Professional Ann Martin no longer interested - Neighborhood Association Representative Meeting Ann William David Barbara Quinlan Dolly Charlotte Ann Carlos Adelia Date Martin Muhammad Burlingame Kuipers Cooley Hippchen Perez Craig Florez Winchel January p p E p p p p E February p E p p p E p p March p p E p p A p E April p p E p p E E N p May E p p p p E p p p June p p p R p E p p E July NO MEETING Auqust p p p N p p p p A September NO MEETING October p p p p p A p A E ' ' ' ' November P-Present E-Excused absence A-Unexcused absence R-Resigned N-New member CIVIL SERVICE COMMl$$ION PURPOSE Classify all the offices of employment; make rules for the examination and selection of persons to fill the offices and positions in classified service; supervise and administer Civil Service Rules, hold examinations, certify eligibility list of those passing examination. Enforce provisions of Charter relating to Civil Service. MECHANICS ENABLING LAW: City Charter (Ch. XV) - Oath required within 10 days of appointment. APPOINTED BY: Mayor/City Commission MEETING: First Wednesday of each month @ 4:00 P.M. City Hall- Commission Chambers TERM: 6 Years COMPOSITION DESCRIPTION 3 Citizens CURRENT MEMBERS (Staff Liaison - Karen Scholle) TYPE ADDRESS PHONE TERM EXP. A Shontea Jenkins 2314 Vincent 759-4476 1/31/09 A Roger Brink 1460 E. Harbour Towne 1 755·3874 1/31/11 A David-George Newsome 428 Marquette 2 722-1316 1/31/13 CIVIL SERVICE COMMISSION No appointments required. 7 (* - Chairperson) - 7 - 2007 CRC Index Jenkins January NO MEETING February E p I p March NO MEETING April NO MEETING May p p I p June E p I p July NO MEETING August p p I p September NO MEETING October NO MEETING November NO MEETING December P-Present E-Excused absence A-Unexcused absence R-Resigned N-New member COMMUNITY DEVELOPMENT BLOCK GRANT - CITIZEN'S DISTRICT COUNCIL PURPOSE Shall act in an advisory capacity to the City Commission on all matters dealing with the Federal Housing and Urban Development Programs. MECHANICS ENABLING LAW: City Code of Ordinances, Section 2-146 thru 2-150 - Oath not required. APPOINTED BY: Mayor/City Commission MEETING: First Tuesday of each month @ 5:30 P.M. City Hall • 2" Floor Conference Room #203 TERM: 3 Years COMPOSITION TYPE DESCRIPTION A 4 Citizens representing each of the four (4) Wards B 3 Citizens at large C 2 Target Area Representatives D 1 Member of the City Commission CURRENT MEMBERS (Staff Liaison -Wilmern Griffin) TYPE NAME ADDRESS ZIP PHONE TERM EXP. A Patricia Montney • (1) 925 Irwin 2 773-9025 1/31/09 A Marcia Hovey-Wright (2) 452 Webster 0 726-4929 1/31/09 A James A. Dalum (3) 1728 Wood St. 2 726-6128 1/31/09 A G. Ellouise Hieftje (4) 1960 Cutler 1 755-4386 1/31/09 B Dan Rinsema-Sybenga 154 Campus Ave. 1 724-3180 1/31/09 B Addie Sanders-Randall 38 E. Iona Ave. 2 728-2113 1/31/10 B Michael J. Miller 283 Houston 903-2636 1/31/10 C Virgie Jackson 1445 Dudley 2 777-1146 1/31/10 C Ryan McCabe 1191 Sanford St. 1 722-0219 1/31/10 D Stephen Gawron 1362 Palmer 1 755-3425 Commission 8 COMMUNITY DEVELOPMENT BLOCK GRANT 2007 CRC lndex: No appointments required. James G. Ellouise Dan I Addie Michael Virgie ,- ht Dalum Hieftje Rinsema-Sybenga Randall I Miller I Jackson January February March NO MEETING April NO MEETING Mav NO MEETING June NO MEETING July NO MEETING August p I p I p I p I p I E I p I p I p I p September NO MEETING October NO MEETING CONSTRUCTION CODE BOARD OF APPEALS PURPOSE The purpose of the Construction Code Board of Appeals shall be as follows: a To determine appeals and variances in connection with the State of Michigan Construction Code, including its building, electrical, mechanical, and plumbing provisions, together with Codes in force in the City of Muskegon from time to time. MECHANICS ENABLING LAW: City Code of Ordinances, Article II, Section 10-31 to 10-64 APPOINTED BY: City Manager MEETING: Upon Demand - Minimum of twice per year TERM: 2 Years COMPOSITION TYPE DESCRIPTION A Architect B Electrical C Mechanical D Plumbing E Public Health F Construction Manager G Fire CURRENT MEMBERS (Staff Liaison - Tony Kleibecker) TYPE NAME ADDRESS ZIP PHONE TERM EXP. A Stephen Parker 2116 Harrison- 49441 755-6219 1/31 /08: B Robert Lowder 2555 E. White Lake Drive' Twin Lal
Sign up for City of Muskegon Emails