(1) Upon receipt of a petition from a community board pursuant to section 5, the department shall designate, in whole or in part, not more than 10 vacant or nearly vacant buildings as business incubation centers for the purpose of encouraging and assisting, as described in this act, the establishment and expansion of small businesses within this state. A community board described in section 4, a local governmental unit, or an educational institution may hold title to the building or may lease the building from the title holder.
(2) In designating business incubation centers, priority shall be given to those proposals that the department determines conform with all of the following:
(a) Will generate a significant number of jobs.
(b) Are supported by 2 or more proximate local governmental units, or 1 local governmental unit and at least 1 educational unit, each of which agrees to contribute monetarily or in kind to the center.
(c) Are supported by local representatives of business, labor, and education.
(d) Have financial commitment of at least 50% of the projected unreimbursed costs of the establishment and maintenance of the center for a 3-year period. As used in this subdivision:
(i) "Costs of the establishment" includes the fair market rental value of the center.
(ii) "Unreimbursed costs" means total costs less rental receipts.