Around the Dome

by Del Chenault, Senior Vice President, Government Affairs
Scofes & Associates Consulting, Inc. (S&A)

July, 2003

LAND USE COUNCIL REVIEWS REPORT DRAFT
This week the Land Use Leadership Council moves a step closer towards reaching its goal of a plan to improve development rules in Michigan.

The main idea of the report is to support different levels of government to work together to develop land-use plans, preserve farmland and encourage denser development and redevelopment of urban areas.

A key recommendation in the draft report is agriculture security zones. These would include large areas of land where agriculture is going to be.

Based on the size of the zones, it will require counties and townships to work together to develop and enforce them. This was an idea that was first developed in a report to former Governor John Engler in 1994, but was never implemented.

The theme throughout the report is the idea of local governments working together. At the present time, government entities are working individually. This plan would include all entities working together on the planning process at the local level, which would also include not only townships and cities, but also regional governments and school districts.

One difference with this idea is placing the blame for the trend on government rather than on developers. The rules of process come from the government, not the development community.

The draft also recommends that state office buildings be located in urban areas rather than undeveloped rural areas, and wherever possible, restored in historical buildings. In addition, the report suggest that Michigan look for denser developments, giving priority for state and federal support to areas either already developed or planning multi-use developments.

There is expected change on the draft report after Monday's meeting. The final report will be determined by the legislature.

SENATE PASSES SUPPLEMENTAL APPROPRIATIONS BILL
A $448.5 million supplemental appropriations bill for the current year was approved by the Senate Thursday, July 3, 2003. This included a different method taken by the House for a $10 million item, which helps Kalamazoo deal with the outcome of the Pharmacia merge with Pfizer.

Senate Bill 540, which passed 36 to 1, has a provision that designates $10 million for a biosciences research and commercialization center in Kalamazoo including a partnership headed by Western Michigan University. The House had also approved $10 million, with the inclusion that it be made available in a grant through the Michigan Economic Development Corporation, which would decide how to use the funds based on applications.

In the Senate version, the money designates biosciences with discovering knowledge, generating and acquiring intellectual property, commercializing intellectual property, advancing economic development and enriching the culture of the community.

Previous Senate strategies had placed the money directly into WMU’s budget; however, House members opposed it because it would falsely increase the state aid levels for the university.

In the new provision, the group organizing the money will include the university, medial organizations, economic developers and others.

BUDGET TAKES A RECESS
Governor Jennifer Granholm, legislative leaders, and other officials met to confirm final action on the 2003-04 budget blueprint for Michigan, which will not see action until after the July 4 recess. Everyone seemed satisfied with the progress that has been made and feel that they are down to final issues.

The House returns to session on July 15, 2003. The Senate is trying to decide whether to turn July 15, which is now set as a tentative session day, to a definitive one. Otherwise, the Senate will return August 13, 2003.

Governor Granholm explained to reporters that negotiations are now getting down to the wire; however, she declined to elaborate. Governor Granholm is confident a budget agreement will be reached in time to accommodate planning by K-12 schools, universities and others beginning their fiscal year on July 1.

House Speaker Rick Johnson stated that the budget negotiations with the Governor are going well enough that the K-12, community colleges and public university budgets should be ready for final passage when the House returns to session on July 15.

Speaker Johnson said his intentions are to complete the budget process by July 15. An additional session day is set for July 16, which might be possible.

Scofes, Kindsvatter & Associates, Inc. will continue to keep BOMA abreast of its most important issues on a weekly basis, which include the following:

Service Taxes – BOMA strongly opposes ANY type of new service taxes in Michigan. This would have a harmful ripple effect on the building and real estate industry and we vehemently oppose efforts to raise state revenues through any new Service Taxes.

Single Business Tax Cuts – We support efforts to further reduce the SBT in Michigan or maintain the tax at its current level. We understand the state’s requirement to balance its budget but this must be balanced against the need for job creation sparked by lower business taxes.

Mold – BOMA promotes high standards to protect the health and safety of building occupants. To that end, BOMA supports additional research to examine potential health effects of mold in indoor environments. BOMA opposes state initiatives to write model building codes and standards regulating mold and moisture. Building codes and standards designed to address mold and moisture should be developed through the industry standards consensus processes.

Utility Deregulation – BOMA fully supports the transition towards a competitive marketplace for electricity through the unbundling of generation, transmission and distribution. The generation of electricity must become competitive as soon as possible so that all Michigan consumers may realize the benefits of lower prices and enhanced services.

Urban Sprawl/Smart Growth – We encourage the use of the Brownfield’s law for redevelopment of urban areas and adaptive re-use of obsolete buildings. We feel the restrictions of local zoning boards and planning commissions are adequate to deal with urban sprawl issues and while we do not oppose state efforts at a cohesive plan for Smart Growth, we feel the best government in this case is the local government.

MEDC Funding Cuts – While sympathetic to the tough decisions that must be made during today’s budget crunch, BOMA Michigan is opposed to efforts to reduce or eliminate funding for the Michigan Economic Development Corporation. We view any such moves as shortsighted and contrary to the steps Michigan needs to make to keep our state attractive to the development or relocation of businesses to our area.

Brownfield Tax Extension – We applaud the Michigan Legislature for extending the Brownfield’s Tax Credit in December through 2008. This is the type of tax law that will spark urban development and curtail suburban sprawl. We encourage the state to invest more in Brownfield Development as future funding allows.

Read previous Around the Dome reports

The "Around the Dome" newsletter is written monthly by BOMA's Michigan lobbying firm Scofes-Kindsvatter & Associates (SKA) for BOMA members to be aware of key issues in Lansing. In addition, SKA is monitoring top issues identified by the Government Affairs Committee. If you have comments on the newsletter or BOMA issues, please direct them to GAC Chair Bruce Babiarz at bruce.babiarz@bartonmalow.com or Cynthia Andary of BOMA staff. We welcome your comments and questions on BOMA advocacy issues.