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Analysis As Passed by the House (7/22/2020)

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Analysis As Passed by the House (7/22/2020) FY 2019-20 SUPPLEMENTAL APPROPRIATIONS Capital Outlay - Michigan Natural Resources Trust Fund Summary: Senate Bill 145 (H-3) as Passed by the House HFA Director: Mary Ann Cleary Analyst: Austin Scott MNRTF Board* House Senate Budget Area Gross GF/GP Gross GF/GP Gross GF/GP Capital Outlay – MNRTF $28,699,800 $0 $28,699,800 $0 $0 $0 TOTAL $28,699,800 $0 $28,699,800 $0 $0 $0 *Reflects recommendations from the MNRTF Board adopted on February 19, 2020. OVERVIEW The Michigan Natural Resources Trust Fund (MNRTF) Board recommendations for MNRTF acquisition and development projects totals $28.7 million. These projects will be funded with state restricted revenue from the Michigan Natural Resources Trust Fund. Appropriation Items: Executive House Senate CAPITAL OUTLAY 1. Michigan Natural Resources Trust Fund Gross $28,699,800 $28,699,800 Includes $28.7 million GF/GP for 18 land acquisition projects ($17.2 million) Restricted 28,699,800 28,699,800 and 60 land development projects ($11.5 million) supported with revenues GF/GP $0 $0 from the MNRTF pursuant to Article IX, Section 35 of the Michigan Constitution and the Natural Resources and Environmental Protection Act. Matching funds total $20.7 million, resulting in total project costs of $49.4 million. The MNRTF provides financial assistance to local units of government or qualifying nonprofits and to the Department of Natural Resources for public acquisition of lands for resource protection and public outdoor recreation. Applications for assistance from the MNRTF are accepted annually, and recommendations are made by the MNRTF Board and submitted to the legislature for approval and appropriation of funds. Prior to reaching its constitutional cap of $500.0 million in 2011, the Michigan Constitution directed that the MNRTF receive revenues from bonuses, rentals, delayed rentals, and royalties collected or reserved by the state under provisions of leases for extraction of nonrenewable resources from state-owned lands, except revenues accruing under leases of state-owned lands acquired with money from the state or federal Game and Fish Protection Funds or revenues accruing from lands purchased with such revenues. Additionally, the Michigan Constitution directed annual expenditures from the MNRTF to consist of interest and earnings on the principal and up to 33 1/3% of fund revenue received in the previous fiscal year. Since reaching the $500.0 million cap in 2011, the MNRTF is no longer eligible to receive annual revenues from bonuses, rentals, delayed rentals, and royalties. These revenues are now deposited to the Michigan State Parks Endowment Fund until the fund balance reaches $800.0 million; it is currently at $282.7 million. Annual expenditures from the MNRTF are limited to interest and investment earnings of the principal, and funding carried forward from previous years. The Michigan Constitution requires that not less than 25% of the total amount made available for expenditure from annual MNRTF revenue be House Fiscal Agency 1 7/22/2020 expended for acquisition of land and rights in land, and not more than 25% of the total amount made available for expenditure from annual MNRTF revenue be expended for development of public recreation facilities. From FY 2018-19 MNRTF revenue, there is $46.0 million available for expenditure. Acquisition projects ($17.2 million) amount to 37.4% of available funds; development projects ($11.5 million) amount to 25.0% of available funds. Part of the remaining amount available from FY 2018-19 MNRTF revenue ($4.3 million) is dedicated to operating costs such as PILT payments and investment management fees. (SEE TABLE BELOW FOR DESCRIPTION OF INDIVIDUAL PROJECTS) Boilerplate Items: Executive House Senate 1. MNRTF Grant Agreements Included Sec. 301 Requires local units of government or qualifying nonprofits to enter into agreements with the department for the purpose of administering grant funding and specifies provisions that are required to be included in the agreements. (3/5/20 SBO letter) 2. MNRTF Funding Carry-Forward Included Sec. 302 Authorizes unexpended funding to be carried forward consistent with Section 248 of the Management and Budget Act. (3/5/20 SBO letter) 3. MNRTF Prior Appropriation Lapse Included Sec. 303 Authorizes unexpended appropriations made previously to lapse once projects have been completed or terminated. (3/5/20 SBO letter) House Fiscal Agency 2 7/22/2020 NATURAL RESOURCES TRUST FUND LAND ACQUISITION PROJECTS Proposed County Priority Project Owner Location Total Cost Match Trust Fund 1. Pipestone Creek/St. Joseph River Public Water DNR - Berrien $109,000 $15,000 $94,000 Access Site. Acquisition of 1.26 acres to provide a Fisheries public water access site at the confluence of Pipestone Division Creek and the St. Joseph River, filling a nine-mile access gap on the St. Joseph River. The property includes frontage on Pipestone Creek, St. Joseph River, and River Road. Acquisition of this parcel will provide carry-down watercraft access and assist with local plans of further developing the St. Joseph River water trail. The site also will provide fishing opportunities for gamefish species including steelhead, Chinook and Coho salmon, brown trout, and smallmouth bass. The public access site will be leased to Sodus Township, which will handle all maintenance. 2. Acquisition at the Swedetown Recreation Area. Calumet Houghton 89,400 23,400 66,000 Acquisition of a 20-acre and a 10-acre parcel at Charter Swedetown Recreation Area. One parcel is wooded Township with terrain for cross-country ski trails and the other provides a spectator and parking area for the Great Bear Chase ski marathon event. Swedetown is a used for year-round non-motorized recreation by residents and tourists. This acquisition will secure features and provide opportunities to enhance recreation at Swedetown. The wooded recreation area offers year- round trails for all ages and abilities. Swedetown Recreation Area has more than 25 miles of trails for hiking, running, and mountain biking. Calumet Charter Township grooms over 21 miles of cross-country ski trails. House Fiscal Agency 3 7/22/2020 NATURAL RESOURCES TRUST FUND LAND ACQUISITION PROJECTS Proposed County Priority Project Owner Location Total Cost Match Trust Fund 3. Southern Beltline Trail Acquisition Two. Acquisition of City of Gogebic 20,000 5,200 14,800 up to five acres of land and/or easement including Ironwood railroad grade for a trail route through the City of Ironwood. The project will connect Norrie Park with western neighborhoods on the Montreal River. This acquisition will complete the Beltline Trail route through Ironwood near the terminus of the Iron Belle Trail. 4. Paw Paw River County Park Expansion. Acquisition Berrien Berrien 110,000 30,000 80,000 of 63 acres of property as an addition to Paw Paw River County County Park. The land has 7,000 feet of wooded river frontage. The Berrien County Parks Commission plans to conserve the land as a natural area and offer fishing, wildlife viewing, hiking, cross-country skiing, and bike trails. Managed hunting opportunities are also being considered. 5. Cavanaugh Road Property. Acquisition of an acre of City of Ingham 100,000 25,000 75,000 land to improve the aesthetics of a blighted stretch of Lansing the Lansing River Trail. The parcel includes derelict structures, which will be removed once acquisition is complete. The land will be properly landscaped to enhance the scenery along this urban pathway. 6. East St. Joseph Street Property. Acquisition of an City of Ingham 100,000 25,000 75,000 improved lot to enhance park aesthetics and add park Lansing space to Lansing's Riverfront Park system. 7. River Street Property. Acquisition of an improved lot to City of Ingham 80,000 20,000 60,000 enhance park aesthetics and add park space to Lansing Lansing's Riverfront Park system. House Fiscal Agency 4 7/22/2020 NATURAL RESOURCES TRUST FUND LAND ACQUISITION PROJECTS Proposed County Priority Project Owner Location Total Cost Match Trust Fund 8. May Creek Greenway - Iron Belle Trail. Acquisition of DNR - Parks Wayne 2,700,000 0 2,700,000 a developed easement for the May Creek Greenway and that will be a pedestrian connector of the Ralph C. Recreation Wilson Jr. Centennial Park. The project will be a non- Division motorized greenway situated along a Detroit-Windsor rail tunnel line. This greenway will connect residential areas to the Detroit Riverwalk. The May Creek Greenway will also serve as the primary non-motorized connection from the north to Ralph C. Wilson Jr. Centennial Park. 9. Iron Belle Trail/ Border-to-Border Trail Property. DNR - Parks Washtenaw 200,000 0 200,000 Acquisition of a 7.84-acre parcel in the Pinckney and Recreation Area. The parcel will provide land for Recreation construction of Washtenaw County's Border-to-Border Division Trail, Iron Belle Trail, and bridge a gap between two disconnected public parcels in the Pinckney Recreation Area. The Huron-Waterloo Pathway Initiative will develop, operate, and maintain the multi-use regional trail on the parcel via lease from the state. 10. Lake Huron Access and Trailhead Acquisition. City of Huron 585,700 152,300 433,400 Acquisition of a 0.68-acre parcel in the City of Caseville Caseville to expand public access to the Pigeon River and Lake Huron. Future development of the site may include fishing areas, motorized boat and kayak launches, multi-purpose courts, an ice rink, and picnic seating area. House Fiscal Agency 5 7/22/2020 NATURAL RESOURCES TRUST FUND LAND ACQUISITION PROJECTS Proposed County Priority Project Owner Location Total Cost Match Trust Fund 11. Pilgrim Haven Natural Area - Royle Addition. South Haven Van Buren 3,016,100 754,100 2,262,000 Acquisition of a 47-acre property adjacent to Pilgrim Area Haven Natural Area with approximately 1,000 feet of Recreation frontage on Lake Michigan, critical dune, imperiled back Authority dune forest, and a stream, which flows out of Van Buren State Park into Lake Michigan.
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