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MDEQ Brownfield Program Update

MDEQ Brownfield Program Update. Foreign Trade Zone Building – Sault Ste. Marie (before and after). Jeff Hukill Brownfield Redevelopment Program Coordinator Upper Peninsula and Mid-Michigan. Presentation Overview. Act 381 – Update on the recent amendments Brownfield grant/loan program update

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MDEQ Brownfield Program Update

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  1. MDEQ Brownfield Program Update Foreign Trade Zone Building – Sault Ste. Marie (before and after) Jeff Hukill Brownfield Redevelopment Program Coordinator Upper Peninsula and Mid-Michigan

  2. Presentation Overview Act 381 – Update on the recent amendments Brownfield grant/loan program update Brownfield Site Specific Assessments

  3. Brownfield Stakeholder Work Group • Eliminate Statutory Sunset Date

  4. 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

  5. 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 funding

  6. Clarifications • 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

  7. 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.

  8. 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

  9. 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.

  10. 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

  11. Michigan Brownfield Incentives Our Purpose: Level the Playing Field DEQ Brownfield Grants & Loans DEQ Brownfield Site Specific Assessments

  12. Part 196 Amendments • $12.5 Million Transfer • Full Faith and Credit • Remaining Grant and Loan Balances

  13. Brownfield Redevelopment Grants Cooley Law School Stadium, Lansing

  14. Brownfield Redevelopment Loans

  15. 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 Walczak 517-335-2151 walczakj@michigan.gov

  16. 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

  17. Local DEQ Contacts District Supervisor – Clif Clark 906-346-8515 Gogebic, Ontonagon (Part 213 Issues) Joan Park 906-346-8513 Alger, Baraga – Mark Petrie 906-346-8509 Chippewa, Luce, Mackinac – Scott Schaefer 906-293-5131 x 4301 (Newberry Office) Delta, Menominee – Lori Ostanek-Maki 906-346-8512 Dickinson, Iron – Chris Austin 906-875-2072 (Crystal Falls Office) Gogebic, Marquette, Schoolcraft – Steve Harrington 906-346-8507 Houghton, Keweenaw, Ontonagon – Amy Keranen 906-337-0389 (Calumet Office)

  18. 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/deqbrownfields Jeff Hukill 517-335-2960 hukillj@michigan.gov

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