The League scored a victory this week when HB 4759 passed the Senate (after previously passing the House) and was sent to the Governor for his signature!

This legislation creates a new economic development tool for communities by allowing communities to use the Commercial Rehabilitation Act for vacant land in already-designated commercial areas.  This law allows communities to freeze taxes of an existing property for 1 to 10 years, and now it can also be used on vacant land. Click here for the League One-Pager explaining this law. Several communities throughout the state have had fires or extreme blight and have vacant land as a result, and can now use this tool in their downtowns and business distrits to help create new businesses and jobs.

This bill was sponsored by Rep. Sharon Tyler (R-Niles) on behalf of several communities that requested it. Rep Tyler, as a former economic development director, has pushed this legislation since first getting elected in 2008. 

Additionally, language was included in the bill that would allow this tool to be used for a new hotel or motel planned to be built next to the Suburban Showplace convetion center(formerly Rock Financial) in Novi.  Separate legislation had been moving to add these hotels and motels to PA 198, but objections were raised in regards to adding a commercial property to an industrial-focused act.  This provision in HB 4759 ensures that this provision is in a commercial act and not an industrial act. The amendment retained all local approvals.

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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