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 Walczak517-335-2151walczakj@michigan.gov

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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

hukillj@michigan.gov

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