The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us) STATE OF MICHIGAN
FRANK J. KELLEY, ATTORNEY GENERAL
ECONOMIC DEVELOPMENT PROJECT:
MUNICIPALITIES:
Contract for conditional property transfer between governmental units for an economic development project
Development of a parcel of land as a public park for recreational purposes is not an economic development project under the provisions of 1984 PA 425.
Opinion No. 6936
April 4, 1997
Honorable Donald H. Gilmer
State Representative
The Capitol
Lansing, MI 48933
Under section 2 of 1984 PA 425, MCL 124.21 et seq; MSA 5.4087(21) et seq, two or more local units of government may, by contract, conditionally transfer property for not more than 50 years for the purpose of an economic development project. You have asked whether development of a parcel of land as a public park for recreational purposes is an economic development project under the provisions of 1984 PA 425. The park would include trails, sports fields, parking lots, concessions and restroom facilities.
Information accompanying your inquiry indicates that the property in question is owned by the Village of Vicksburg, located within the townships of Schoolcraft and Brady, and that the village has petitioned for annexation of the land and wishes to develop it for use as a public park. The information further indicates that the townships oppose the village's petition for annexation and have proposed a contract under the provisions of 1984 PA 425 to conditionally transfer the land from the townships to the village for development as a public park. However, the attorneys for the townships and village have rendered conflicting opinions on whether the statutory definition of economic development project contained in 1984 PA 425 includes development of land as a public park for recreational purposes.
The legislative definition of economic development project contained in section 1(a) of 1984 PA 425, as originally enacted, was as follows:
"Economic development project" means land and existing or planned improvements suitable for use by an industrial or commercial enterprise or housing development incidental to an industrial or commercial enterprise, including necessary buildings, improvements, or structures suitable for and intended for or incidental to use as an industrial or commercial enterprise, including industrial park or industrial site improvements and port improvements or housing development incidental to an industrial or commercial enterprise, and the machinery, furnishings, and equipment necessary, suitable, intended for, or incidental to a commercial, industrial, or residential use in connection with the buildings or structures.
(emphasis added).
Thus, as originally enacted, section 1(a) of 1984 PA 425 defined economic development project to include land and existing or planned improvements suitable for use by a commercial or industrial enterprise, or a housing development incidental to a commercial or industrial use of the land.
On March 6, 1990, section 1(a) of 1984 PA 425 was amended by 1990 PA 22 to expand the definition of economic development project as follows:
"Economic development project" means land and existing or planned improvements suitable for use by an industrial or commercial enterprise, or housing development, or the protection of the environment, including, but not limited to, groundwater or surface water.
(emphasis added).
This amendment expanded the definition of economic development project to include both housing development projects, whether incidental to an industrial or commercial enterprise, and projects for protecting the environment, including, but not limited to, groundwater or surface water.
A review of section 1(a) of 1984 PA 425 reveals that the Legislature has authorized the conditional transfer of property by contract between local units of government for industrial and commercial enterprises and housing developments. The Legislature has added environmental protection as a fourth purpose for which property may be conditionally transferred. However, the plain meaning of section 1(a) does not include the development of land as a public park for recreational purposes within the definition of economic development project. When statutory language is clear, no further interpretation is necessary. Owendale-Gagetown School Dist v State Bd of Ed, 413 Mich 1, 8; 317 NW2d 529 (1982).
The plain meaning of section 1(a) of 1984 PA 425 is confirmed by its legislative history. House Bill 5083 became 1990 PA 22, which amended section 1(a) of 1984 PA 425. The history of HB 5083 is most instructive:
Supporting Argument
Public Act 425 of 1984 currently does not recognize environmental protection as an activity qualifying under the definition of "economic development project." Yet commercial, industrial, and housing developments all present the possibility of environmental degradation, including threats to the preservation of limited water resources. The bill would recognize the importance of protecting the environment, even while encouraging economic development, by allowing local units of government to work together to protect and preserve the environment.
Senate Legislative Analysis, HB 5083, February 1, 1990.
Thus, neither the plain language of section 1(a) of 1984 PA 425 nor its legislative history evidences a legislative intent to include the development of land as a public park for recreational purposes within the meaning of the term "economic development project."
It is my opinion, therefore, that the development of a parcel of land as a public park for recreational purposes is not an economic development project under the provisions of 1984 PA 425.
FRANK J. KELLEY
Attorney General