Tool and Die Bills Also Signed
January 5, 2004
Governor Jennifer M. Granholm today signed a bipartisan package of legislation intended to help urban communities return tax reverted property to productive use and back onto local tax rolls. She also signed three bills to strengthen Michigan’s tool and die industry.
The six-bill, bipartisan Land Bank Fast Track Authority legislation presents an innovative approach to relieving the state and local units of tax reverted parcels. Tax reverted properties often contribute to urban decay by discouraging residential or commercial ownership, depressing property values, attracting criminal activity, and creating public health hazards. The land bank authorities would undertake expedited action to clear titles and then ensure redevelopment of the properties, helping urban communities revitalize neighborhoods and business districts.
“These bills represent the first step in our efforts to revitalize our urban areas,” said Granholm. “Allowing land bank authorities to quickly take action and return abandoned properties to useful, productive land helps stimulate and strengthen communities through economic development.”
Bills in the package include:
- HB 4480, sponsored by Rep. Dave Robertson (R-Grand Blanc Township), allows
a fast track authority to take land and put it into an established brownfield
plan. The governing body of the local unit of government must approve
the placement of the land into the brownfield plan.
- HB 4481, sponsored by Rep. Alma Stallworth (D-Detroit), exempts property
sold by the authority from general property taxes for five years.
- HB 4482, sponsored by Rep. Gene DeRossett (R-Manchester), subjects property
sold by the authority to a specific tax at the same rate of the general property
taxes for five years. One-half of the revenue from this specific tax
would fund title clearance and land disposition costs. The remaining
half would be earmarked for local and state collecting units on a pro-rata
basis.
- HB 4483, sponsored by Rep. Chris Kolb (D-Ann Arbor), creates the Land Bank
Fast Track Act and authorizes the Authority to assemble property for sale
or lease to a non-profit corporation or a private or public person, and to
protect or prevent the extinguishing of any lien held by the Redevelopment
Fast Track Authority (RFTA). The Authority may also preserve the value
of the property by demolition, managing or repair of the property.
- HB 4484, sponsored by Ed Gaffney (R-Grosse Pointe Farms), establishes the
procedure that the foreclosing unit of government searches for land owners
to provide notification of future foreclosure.
- HB 4488, sponsored by Rep. Ruth Ann Jamnick (D-Ypsilanti), allows the State
Treasurer to invest surplus funds in loans to RFTAs at the market rate of
interest for the purpose of clearing title to tax reverted property held by
the RFTA. The loan shall not be for a period over ten years.
The Governor also signed three bills aimed at helping Michigan’s tool and die businesses compete with foreign countries, such as China, and encourage this important industry to keep jobs in Michigan.
“The success of the manufacturing sector is vital to our state’s
economic growth and recovery,” said Granholm. “These bills
will help tool and die businesses remain competitive and keep their businesses
and their jobs here in Michigan.”
The Governor signed the following tool and die related bills:
- Senate Bill 825, sponsored by Sen. Jason Allen (R-Traverse City), allows
the Michigan Strategic Fund Board to designate up to 20 tool and die renaissance
recovery zones in the state providing tax deductions, exemptions, or credits
to tool and die businesses.
- House Bill 5247, sponsored by Rep. Philip LaJoy (R-Canton), allows representatives
from skilled trades associations to present information at college and career
nights at high schools.
- House Bill 5254, sponsored by Rep. Neal Nitz (R-Baroda), allows the Michigan
Broadband Development Authority to offer loans to qualified tool and die businesses
to pay for broadband infrastructure upgrades.
