URBAN REDEVELOPMENT CORPORATIONS LAW (EXCERPT)
Act 250 of 1941
125.912 Exemption from increase in assessed value; limitations; development plan; “qualified entity” defined.
(1) A local legislative body is authorized by the adoption or enactment of an ordinance or local law to exempt real property located within the city or township owned by a redevelopment corporation or a qualified entity during a maximum exemption period that shall not exceed 40 years from any increase in assessed value over the maximum assessed value. After the adoption or enactment of the ordinance or local law, every parcel of real property owned by any redevelopment corporation or a qualified entity in a development shall be exempt during the maximum exemption period from any increase in assessed value over or in excess of the maximum assessed value. An exemption described in this subsection shall not, however, apply to any improvement made upon the real property after the beginning of the maximum exemption period but the local legislative body may, by appropriate legislative action, establish a maximum assessed value and maximum exemption period, not to exceed 40 years, for those subsequent improvements.
(2) For the purpose of fixing the date of commencement of the maximum exemption period for a group of parcels of real property in a development area, the city or township is authorized with the approval of its local legislative body to contract with a redevelopment corporation to place in 1 or more groups the various parcels of real property in a development area. A contract described in this subsection may provide that all the parcels in each group shall be considered to have a common stated date of completion of the development by the redevelopment corporation or qualified entity.
(3) A development plan may include property located in a township only if that property was previously used by this state for an office, hospital, prison, institution of higher education, or other state facility.
(4) For purposes of this section, “qualified entity” means either of the following:
(a) A Michigan nonprofit corporation or a Michigan limited partnership having a Michigan nonprofit corporation as its sole general partner, if 1 or more of the following apply:
(i) A majority of each class of stock in the nonprofit corporation is owned by the redevelopment corporation.
(ii) A majority of the members of the board of directors of the nonprofit corporation are elected and removable by the redevelopment corporation.
(iii) The redevelopment corporation is the sole member of the nonprofit corporation.
(b) A for-profit corporation, partnership, or limited liability company formed or incorporated by the redevelopment corporation for the sole purpose of syndicating historic tax credits or low-income housing tax credits in connection with the redevelopment of a property that has been owned by the redevelopment corporation, if the redevelopment corporation maintains oversight responsibility for the management and operation of the property for which historic tax credits or low-income housing tax credits were syndicated and the for-profit entity does not engage in any other business activity unrelated to the property.
History: 1941, Act 250, Imd. Eff. June 16, 1941
CL 1948, 125.912
Am. 1968, Act 325, Imd. Eff. July 3, 1968
Am. 1998, Act 385, Imd. Eff. Oct. 23, 1998
© 2015 Legislative Council, State of Michigan