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Brownfield Program
Under state law, a Brownfield Redevelopment Authority is the only way to adopt a Brownfield Redevelopment Plan, allowing access to certain financial incentives available to companies investing in blighted, functionally obsolete and/or environmentally contaminated properties. These incentives include a Michigan Business Tax Credit and/or tax increment financing to recover certain eligible costs associated with redevelopment.
Wayne County Brownfield Redevelopment Authority Board
SERVICES & INCENTIVES
EPA Site Assessment & Cleanup Funds
In 2007, The Wayne County Brownfield Redevelopment Authority was awarded a $400,000 Assessment Grant by the U.S. Environmental Protection Agency to be used to conduct Environmental Assessment activities for Brownfield properties located through out Wayne County. Two hundred thousand dollars ($200,000) is being used to conduct work on suspected Hazardous Substances sites and the other $200,000 is being used to conduct work on Petroleum sites. WCBRA awards funds from these grants to local communities, for-profit and non-profit developers to pay for portions of the environmental investigations needed for a specific site. These grant dollars help the developer supplement the costs of needed investigation activities. Awards are made based on specific criteria, including promoting job opportunities for Wayne County residents and the amount of anticipated private investment.
WCBRA currently manages over $2.5 million in Revolving Loan Fund Grants awarded by the Environmental Protection Agency. Using this funding, the WCBRA makes loans to developers for environmental cleanup needed before development can occur. Non-profit developers may be eligible for up to $200,000 to clean up environmental contamination at a site. Loan repayments can be repaid by tax increment capture generated through a brownfield plan.
EPA grants are awarded on a competitive bases, therefore funding is limited.
Brownfield Redevelopment Tax Credits
A Michigan Business Tax (MBT) credit is available for up to 12.5% of the eligible investment hard costs made on an eligible brownfield property by a qualified taxpayer. For projects designated as Urban Development Area Projects (UDAP), a project may be eligible to receive a higher percentage tax credit.
Eligible property for the MBT credit includes:
- Property in a Qualified Local Governmental Unit (QLGU) that is a facility, blighted or functionally obsolete, including adjacent or contiguous parcels.
- Property not in a Qualified Local Governmental Unit that is a facility, including adjacent or contiguous parcels.
- Tax reverted property owned or under the control of a Land Bank Fast Track Authority.
For more information on eligible properties, activities, and the application process, please see the Michigan Economic Development Corporation’s Brownfield program website.
Brownfield Redevelopment Tax Increment Financing
Tax Increment Financing (TIF) is the collection of the increase in local (and school) property tax revenues upon the completion of the hard cost investment on the eligible property. Tax increment occurs as a result of the hard cost investment increasing the taxable value of the property. The Brownfield Redevelopment Authority collects the TIF to reimburse the developer for costs of the following eligible activities:
- Environmental response, demolition, and lead or asbestos abatement statewide, plus
- Infrastructure improvements and site preparation in qualified local governmental units.
The eligible property must be approved in a brownfield plan.
As the property value increases, tax increment revenues are collected by the Brownfield Redevelopment Authority and are used to reimburse the developer for eligible costs. If the project involves environmental remediation and school taxes will be used to pay for response activities, prior approval of a work plan by the Michigan Department of Natural Resources and Environment is required. If the project involves non-environmental eligible activities, prior approval by the Michigan Economic Development Corporation is required.
ADDITIONAL RESOURCES
