Item Coversheet

Resolution

NO. 130

A Resolution encouraging the State Legislature to pass Senate Bill 469/ House Bill 5178 to Reinstate Michigan's Historic Property Tax Credit Program.

BATTLE CREEK, MICHIGAN - 4/17/2018

Resolved by the Commission of the City of Battle Creek:

 

The historic buildings, neighborhoods and places in Michigan villages, towns and cities distinguish each community and provide character and a sense of place that contribute significantly to the quality of life and the economic benefits enjoyed in and by each community; and

 

The preservation and rehabilitation of historic buildings, places and neighborhoods contribute to the beauty, character, and economic vitality of Michigan communities; and

 

The labor-intensive nature of historic rehabilitation creates jobs and investment in local businesses and has been proven to generate more economic activity than equivalent investment in new construction; and

 

Demolition or destruction of historic buildings creates costs to Michigan and its communities by destroying the embodied energy present in each structure and adding significantly to landfills, whose makeup is estimated to be more than 40 percent building materials and waste; and

 

Development and redevelopment within established villages, townships and cities is encouraged to help fulfill Michigan's goals to Restore Our Cities, Protect Our Environment, and Create More and Better Jobs; and

 

Many public policies, financial and lending practices, and policies create disincentives or barriers to the preservation, renovation and rehabilitation historic buildings and resources and create a preferential financial environment for new construction; and

 

Michigan measured the economic impacts of the state historic tax credit (HTC) programs and has seen significant positive direct impacts on neighborhood and community revitalization, affordable and market-rate housing preservation and creation, local skilled jobs creation and additional private investment in areas surrounding tax-credit-drive revitalization projects. Results of those measurements show that each $1.00 of credit issued leverages $11.37 in direct economic impact. During its twelve-year history, the Michigan HTC leveraged $251 million in Federal historic tax credits; and

 

The former Michigan HTC has leveraged $1.46 billion in direct rehabilitation activity and created 36,000 jobs since its enactment in 1999 through its 2011 elimination; and 

 

The Michigan legislature is presently considering Senate Bill 469 and House Bill 5178 that would reinstate an up-to-25 percent investment tax credit for owners of historic residential and commercial properties who substantially rehabilitate their properties; and

 

At its April 9, 2018 meeting, the City of Battle Creek Historic District Commission passed a resolution containing this same language supporting the reinstatement of the State Historic Preservation Tax Credits as found in Senate Bill 469/House Bill 5178.

 

NOW THEREFORE, BE IT RESOLVED that on this date, the City of Battle Creek endorses and supports Senate Bill 469 and House Bill 5178 and calls upon the Michigan Legislature to pass this important legislation and upon its passage, encourages Governor Snyder to sign the legislation in order to stimulate appropriate development and redevelopment and protect the historic character and quality of life of the City of Battle Creek and all other communities in the state.

 

BE IT FURTHER RESOLVED THAT a copy of this Resolution shall be forwarded to State Senator Mike Nofs and State Representative John Bizon, the Senate Finance Committee, Governor Snyder and the Michigan Historic Preservation Network.









I, Victoria Houser, City Clerk of the City of Battle Creek, hereby certify the above and foregoing is a true and correct copy of a Resolution adopted by the Battle Creek City Commission at a Regular meeting held on April 17, 2018.


Victoria Houser


Battle Creek City Commission
4/17/2018
Action Summary

Staff Member: Jill Humphreys Steele, City Attorney 
Department:City Attorney 
SUMMARY 
A Resolution encouraging the State Legislature to pass Senate Bill 469/ House Bill 5178 to Reinstate Michigan's Historic Property Tax Credit Program.

BUDGETARY CONSIDERATIONS
There are none.

HISTORY, BACKGROUND and  DISCUSSION

Senate Bill 469 was Introduced on June 21, 2017 by Senator Wayne Schmidt, and on the same day, referred to the Committee on Finance. On 11/30/2017, the Committee on Finance reported favorably on it without amendment, recommending immediate effect.

 

On 11/30/2017, the Senate Bill was referred to the Committee of the Whole, who on 12/12/2017 reported favorably on it with substitute S-1. The substitute S-1 passed roll call the following day on a 36-2 vote. It was read for a first time with the substitute on 12/13/2017 and referred that same day to the Committee on Tax Policy. December 13, 2017 was the last noted activity on the Senate Bill.

 

House Bill 5178 was introduced on October 25, 2017 by Representative Ben Frederick. On the same day it was referred to the Committee on Tax Policy. There has been no further activity on the House Bill since that referral.


DISCUSSION OF THE ISSUE

POSITIONS
The Historic District Commission voted unanimously in support of the resolution of support and the Planning Department is also in support of this resolution. Commissioner Kaytee Faris supports this resolution and requested that it be placed on the agenda for consideration.

ATTACHMENTS:
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