Michigan Senate Bill SB0289

Michigan 2023-2024 Regular Session

• Introduced: 4/25/23
• Refer: 4/25/23
• Report Pass: 5/9/23
• Refer: 5/9/23
• Report Pass: 5/10/23
• Engrossed: 5/16/23
• Refer: 5/16/23
• Report Pass: 6/13/23
• Enrolled: 6/27/23
• Chaptered: 7/20/23
• Passed: 7/20/23

Caption

Economic development: brownfield redevelopment authority; tax capture revenues; modify. Amends secs. 2, 8a, 11, 13, 13b, 13c, 14a, 15 & 16 of 1996 PA 381 (MCL 125.2652 et seq.).

Impact

If enacted, SB0289 will amend sections of the 1996 Public Act regarding brownfield redevelopment authorities. The impact of these amendments is expected to extend benefits such as increased municipal revenues and enhanced environmental conditions by allowing for more extensive use of tax increment revenues associated with brownfield projects. The revised provisions also stipulate that the Michigan Strategic Fund will be involved in assessing the viability of proposed projects based on anticipated economic outcomes and the necessity of tax revenue capture.

Summary

Senate Bill 289 (SB0289) aims to modify existing legislation related to brownfield redevelopment in Michigan by revising provisions surrounding tax capture revenues. The bill pertains to municipalities' authority to facilitate brownfield plans and create redevelopment zones designed to revitalize and repurpose blighted or obsolete properties. Its focus is on enabling effective implementation of transformational brownfield plans that can stimulate economic activity, improve property values, and enhance job creation within affected communities. Participation from development authorities and the Michigan Strategic Fund is necessary for these plans to be approved and enacted.

Sentiment

The sentiment surrounding SB0289 appears to be generally supportive among those advocating for economic development and urban revitalization. Supporters argue that the revised provisions will provide essential tools for local governments to combat blight and drive economic growth through strategic investments. However, there are concerns voiced by some legislative members about the accountability of funds captured through tax increment financing and the effectiveness of the bill in actually delivering promised developmental outcomes.

Contention

Notable points of contention include the balance between state oversight and local governance in administering brownfield projects. Critics express apprehension regarding the potential for misallocation of resources and insufficiently strict oversight mechanisms that may accompany the operationalization of tax capture revenues. Concerns have also been raised about the long-term effectiveness of these initiatives in genuinely revitalizing disadvantaged neighborhoods without displacing existing residents or businesses.