The Legislature this week completed the Next Michigan package (also called the Aerotropolis legislation). This legislation creates the Next Michigan Act, which allows five regions (counties and communities) to join together in an interlocal agreement which can use core community economic development tools to attract businesses that are multi-modal. The tools include renaissance zones, personal property tax abatements, IFT’s, and LDFA’s. The controversial bill dealt with Renaissance Zones (HB 5349). That bill was narrowed at the final hour of session and passed. The new version only allows 25 businesses to be qualified as Next Michigan businesses, and specifies that each Next Michigan Development Area can only have a maximum of 10 of these businesses. The most recent version also removed language that allowed the abatement to go into effect automatically if MEDC does not approve them within 49 days. Finally, this bill included 10 new floating Renaiisnce Zones (increasing the current 17 to 27) that can be used anywhere in the state, and specified that three of them must be in rural areas. The language also specified that the maximum number of Next Michigan renaissance zones must be used before these new floating renaissance zones can be approved. HB 5346, 5347, and 5349 have been presented to the Governor. The other bills will be presented shortly.
Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at aschor@mml.org.
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