Building Authority

Authorizing Statute:
Building Authorities Act, Public Act 31 of 1948, MCL 123.951, et seq.

Authorities and Responsibilities:
To acquire, furnish, equip, own, improve, enlarge, operate and maintain a building or buildings, automobile parking lots or structures, recreational facilities, stadiums and any other properties and facilities used for any legitimate public purpose.

The authority is a corporate body with power to sue and be sued and possesses all powers necessary to carry out its purposes. It can enter into contracts to acquire property, improve it with buildings and structures and lease it to the incorporating unit for a period of up to 50 years. It may issue revenue bonds funded by rental monies. After all bonds have been retired, the authority must convey the property to the township that incorporated the authority.

Established By:
The township board adopts articles of incorporation to create the authority. The articles must be adopted by a majority vote of the township board membership, executed (signed) by the supervisor and clerk, and then certified by the clerk.

The articles of incorporation determine:

the number, terms and manner of selection of the officers of the authority, including its governing body, which is known as the “commission;”

the powers and duties of the authority and its officers;

the date the authority becomes effective;

the officer required to publish the articles of incorporation and the name of the newspaper in which the articles must be published;

the county clerk’s office where the articles will be filed;

and any other matters considered expedient.

Membership:
The articles of incorporation establish the number, terms and manner of selection of the members and officers.

Members of the township board are not eligible for membership on the authority board.

Compensation to Members:
Members of the building authority commission may be paid compensation, and per diem and mileage for attending meetings, as provided by the commission with the approval of the incorporating unit or units.

OMA/FOIA Status:
Public body subject to Open Meetings Act and Freedom of Information Act.