Section 125.3509 - PDR program; financing sources; bonds or notes; special assessments(1) A PDR program may be financed through 1 or more of the following sources: (a) General appropriations by the local unit of government.(b) Proceeds from the sale of development rights by the local unit of government subject to section 508(3).(e) Bonds or notes issued under subsections (2) to (5).(f) General fund revenue.(g) Special assessments under subsection (6).(h) Other sources approved by the legislative body and permitted by law.(2) The legislative body may borrow money and issue bonds or notes under the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821, subject to the general debt limit applicable to the local unit of government. The bonds or notes may be revenue bonds or notes, general obligation limited tax bonds or notes, or, subject to section 6 of article IX of the state constitution of 1963, general obligation unlimited tax bonds or notes.(3) The legislative body may secure bonds or notes issued under this section by mortgage, assignment, or pledge of property, including, but not limited to, anticipated tax collections, revenue sharing payments, or special assessment revenues. A pledge made by the legislative body is valid and binding from the time the pledge is made. The pledge immediately shall be subject to the lien of the pledge without a filing or further act. The lien of the pledge shall be valid and binding as against parties having claims in tort, contract, or otherwise against the local unit of government, irrespective of whether the parties have notice of the lien. Filing of the resolution, the trust agreement, or another instrument by which a pledge is created is not required.(4) Bonds or notes issued under this section are exempt from all taxation in this state except inheritance and transfer taxes, and the interest on the bonds or notes is exempt from all taxation in this state.(5) The bonds and notes issued under this section may be invested in by the state treasurer and all other public officers, state agencies, and political subdivisions, insurance companies, financial institutions, investment companies, and fiduciaries and trustees and may be deposited with and received by the state treasurer and all other public officers and the agencies and political subdivisions of this state for all purposes for which the deposit of bonds or notes is authorized. The authority granted by this section is in addition to all other authority granted by law.(6) A development rights ordinance may authorize the legislative body to finance a PDR program by special assessments. In addition to meeting the requirements of section 508, the development rights ordinance shall include in the procedure to approve and establish a special assessment district both of the following: (a) The requirement that there be filed with the legislative body a petition containing all of the following: (i) A description of the development rights to be purchased, including a legal description of the land from which the purchase is to be made.(ii) A description of the proposed special assessment district.(iii) The signatures of the owners of at least 66% of the land area in the proposed special assessment district.(iv) The amount and duration of the proposed special assessments.(b) The requirement that the legislative body specify how the proposed purchase of development rights will specially benefit the land in the proposed special assessment district.Added by 2006, Act 110, s 38, eff. 7/1/2006.