The House Intergovernmental Committee took up a series of bills allowing local economic development tools to be used for transit-oriented development (TOD). The committee passed legislation that will add TOD to the corridor improvement act, building authorities, TOD investments, and tax increment finance authorities. The committee opted not to vote on the bill that would expand the criteria for certificate of need (CON) for relocation of certain health facilities' beds to include adequate access to public transportation. The Committee chair indicated that the CON commission has done this internally by rule.
One bill still to be considered (HB 1233) would include transit-oriented development in Brownfield plans and for Brownfield Redevelopment Authorities. The Department of Treasury requested that this legislation be amended to specifically exempt state dollars from being capture. The League opposed that amendment because all Brownfield projects now have the ability to capture state dollars, with the approval of the MEDC. In addition, TOD projects are new economy projects and the state should contribute to the jobs created by those projects and not leave the burden to the locals of rebuilding and reinventing for the new economy. Finally, capturing Brownfield TIF will create new growth and will not lessen state dollars…it will ensure that new future dollars are used for these TOD projects and will create new jobs and tax dollars for the locals and state. This bill is expected to come up again in committee before the end of the year.
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.
Chris Hackbarth is Legislative Associate for the Michigan Municipal League. Contact him at (517) 908-0303 or by email at chackbarth@mml.org.
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