STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 6689

August 8, 1991

ECONOMIC DEVELOPMENT PROJECT:

Contract for conditional property transfer between governmental units

MUNICIPALITIES:

Contract for conditional property transfer between governmental units

The transfer of a parcel of land intended for use as a mobile home park is a commercial enterprise and, accordingly, a mobile home park falls within the definition of economic development project as defined in 1984 PA 425.

Honorable Debbie Stabenow

State Senator

The Capitol

Lansing, MI 48909

You have asked whether a mobile home park falls within the definition of an economic development project pursuant to 1984 PA 425, MCL 124.21 et seq; MSA 5.4087(21) et seq (Act 425). The act permits the conditional transfer of property for economic development projects for a period of not more than fifty years by agreement between two or more local units of government.

Act 425 defines "economic development project" to mean, inter alia, "land and existing or planned improvements suitable for use by an industrial or commercial enterprise, or housing development...." (Emphasis added.)

Your letter indicates that a mobile home park in the City of Mason receives water, sewer, and other services from the city. A parcel of land adjacent to the mobile home park is in Vevay Township which does not furnish water and sewer services. The city and township are considering a transfer to the city under Act 425 of the property located in the township. The owner-developer would construct water and sewer lines which would connect to the city's system. In addition, the owner would construct roads, mobile home pads, and other improvements in the parcel.

You further advise that no homes or housing would be constructed by the mobile home park developer, and the developer would not own any housing on the sites. The parcel would not be a housing development of the mobile home park developer. The sites would be rented to prospective tenants who would own any mobile home placed on the developer's premises. You advise that the plan of the developer is for a commercial enterprise, and housing would be incidental to the enterprise.

To respond to your question, it is necessary to determine whether a transfer of the parcel for intended use as a mobile home park qualifies as a commercial enterprise contemplated by Act 425.

Mobile home parks are licensed and regulated under the Mobile Home Commission Act, 1987 PA 96, MCL 125.2301 et seq; MSA 19.855(101) et seq (MHCA). Review of the MHCA reveals that a mobile home park is defined as "a parcel or tract of land under the control of a person upon which 3 or more mobile homes are located on a continual, non-recreational basis and which is offered to the public for that purpose regardless of whether a charge is made therefor...." MHCA, Sec. 2(i). A person is prohibited from operating a mobile home park without a license which the Department of Commerce is authorized to issue. MHCA, Sec. 16.

The MHCA authorizes the Mobile Home Code Commission to adopt administrative rules. The administrative rules are found at 1991 MR 1, R 125.1101 through R 125.3061. Review of the rules reveals that a minimum one year lease must be offered for each mobile home site under regulations relating to mobile home park business practices. 1991 MR 1, R 125.2005.

The Legislature has authorized the transfer of governmental jurisdiction over land suitable for use by an industrial or commercial enterprise. OAG, 1987-1988, No 6469, p 200 (September 30, (1987). In a narrow sense, commercial activity relates to the buying and selling of goods. In its broad sense, as used today, commercial activity includes any type of business or activity which is carried on for profit. See Lanski v Montealegre, 361 Mich 44, 49; 104 NW2d 772 (1960). The Legislature did not define "commercial enterprise." The phrase "commercial enterprise" is not technical and has not acquired a particular and appropriate meaning in the law. Accordingly, the phrase should be construed in accordance with common and approved usage whenever Michigan statutes are being construed. MCL 8.3a; MSA 2.212(1), and Jacobs v Michigan Mutual Ins Co, 106 MichApp 18, 22; 307 NW2d 693 (1981). Clearly, a mobile home park can be maintained as a business or activity which is carried on for a profit.

It is my opinion, therefore, that the transfer of a parcel of land intended for use as a mobile home park is a commercial enterprise and, accordingly, a mobile home park falls within the definition of "economic development project" as defined in Act 425.

Frank J. Kelley

Attorney General