MDEQ Brownfield Program Update
Jeff HukillBrownfield Redevelopment Program Coordinator
Upper Peninsula and Mid-Michigan
Foreign Trade Zone Building – Sault Ste. Marie (before and after)
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Presentation Overview
Act 381 – Update on the recent amendments
Brownfield grant/loan program update
Brownfield Site Specific Assessments
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•Brownfield Stakeholder Work Group
•Eliminate Statutory Sunset Date
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Brownfield Redevelopment Fund• New Fund Designed to Create Greater
Sustainability for Brownfield Funding
• Funded by 3-Mills of State Education Tax Capture
• Uses:- Grants/Loans for Brownfield Projects- Administration for MEDC/DEQ
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Increased Flexibility
• Eliminates the public notice in newspaper for BF Plan approval
• “Unanticipated” Environmental expenses
• Local taxes prior to a BF Plan
• BRA’s with > 31 active plans get an increased administration funding cap with local taxes
• BRA Regionalization: 10% extra administrative funding5
• Can terminate a brownfield plan within 5 years of the resolution approving the plan if the project doesn’t go forward
• Can add new projects to a previously terminated plan and capture taxes for full 30 years
• Even Newly Created ad valorem Taxes are Captured
Clarifications
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•Baseline Environmental Assessment Activities
•Due Care*
•Additional Response Activities*
•Reasonable Costs of Environmental Insurance*
*Indicates activities that require DEQ approval. Any activity that requests interest costs needs DEQ approval as well.
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Reporting
• Developer– Annually submit to BRA
• Capital Investment• Residential Units Constructed• Square Footage of new or rehabilitated space• New Jobs
• Brownfield Redevelopment Authority– Report to MDEQ, MSF and Governing Body
Grand Traverse Commons, Traverse City
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Reporting
• Brownfield Redevelopment Authority– TIF Revenue– TIF Expenditures– Outstanding Indebtedness– Taxable Value– Tax Capture– Capital Investment, Residential Units, Jobs…– Square Footage Zephyr Refinery, Muskegon Co.
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Reporting• MDEQ and MSF Report to Legislature
– Annual Combined Report to Legislature– Local and School Taxes– No Longer Reporting to Treasury
• Quarterly on Internet for MDEQ and MSF
— Name, location and amount of funding approved
Bridgewater Place, Grand Rapids
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Our Purpose: Level the Playing Field
Michigan Brownfield Incentives
DEQ Brownfield Grants & Loans
DEQ Brownfield Site Specific Assessments
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• $12.5 Million Transfer
• Full Faith and Credit
• Remaining Grant and Loan Balances
Part 196 Amendments
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Brownfield Redevelopment Grants
Cooley Law School Stadium, Lansing13
Brownfield Redevelopment Loans
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BROWNFIELD SITE SPECIFIC ASSESSMENTS
• Conducted by DEQ at no charge to municipality.
• Local units of government, local development authorities, and not-for-profit community development agencies are eligible applicants.
• Properties with a high chance for redevelopment are a higher priority.
• Requests for assessments are made by submitting a request letter and application to the MDEQ Brownfield Assessment Program Manager.
• Reports are similar to Phase I/II ESA and can be used to develop Baseline Environmental Assessments or All Appropriate Inquiry determination.
• Submit Application to: Joseph [email protected]
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What’s to come?
• DEQ and MEDC are currently creating a template TIF table, format and guidance for the “Combined” Work Plan, and updating the Act 381 FAQ.
• Re-evaluate some brownfield policies
• Preferences for projects that are “placemaking”
• Seek legislative change to allow CMI to be used for Site Assessment Activities
• Allow for renegotiation of loan terms for CMI loans
Local DEQ Contacts
District Supervisor – Clif Clark 906-346-8515 Gogebic, Ontonagon (Part 213 Issues) Joan Park 906-346-8513Alger, Baraga – Mark Petrie 906-346-8509Chippewa, Luce, Mackinac – Scott Schaefer 906-293-5131 x 4301 (Newberry Office)Delta, Menominee – Lori Ostanek-Maki 906-346-8512Dickinson, Iron – Chris Austin 906-875-2072 (Crystal Falls Office)Gogebic, Marquette, Schoolcraft – Steve Harrington 906-346-8507Houghton, Keweenaw, Ontonagon – Amy Keranen 906-337-0389 (Calumet Office)
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Questions?
For more information on DEQ Brownfield Grants/Loans, Act 381 Tax Capture or information about establishing a Brownfield Redevelopment Authority, please visit:
www.michigan.gov/deqbrownfieldsJeff Hukill 517-335-2960
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