Michigan’s Brownfield Plan Receives Significant Changes
The State of Michigan’s Transformational Brownfield Plan has received some much-needed changes. The changes, which were approved by the Michigan Senate and House and signed by the governor in December 2021, provide developers with increased opportunities to capture the tax credits and incentives associated with brownfield redevelopment sites.
Originally enacted in 2017, it was set to expire after five years. The Transformational Brownfield Plan has now been extended for another five years through 2027 through the state’s adoption of Senate Bill 671. A few of the highlighted changes made to the Transformational Brownfield Plan include:
Allowing the Michigan Strategic Fund (MSF) to waive the previous requirement that a project must only be mixed-use development. Other developments are now eligible, providing the project plan meets location, population, and minimum investment requirements.
Waiving the requirement to demonstrate a substantial fiscal positive impact to the State of Michigan;
Allowing the MSF to approve a plan that proposes to use up to 100% of the income tax capture revenues;
Allowing additional incentives to be used along with the Transformational Brownfield Program incentives.
Changes to the Transformational Brownfield Program had been sought by local municipalities, developers, and legislators based upon the small number of properties that used this program, which target large-scale redevelopment projects. Since its enactment in 2017, only two properties have utilized the program. The first project in the state was in 2018 for a property in Detroit, redeveloped by Bedrock Management Services on the site of the former JL Hudson building, receiving a total of $386 million in tax incentives. The second project was in Vicksburg to redevelop a property with a closed paper mill, receiving an authorization for $30 million in incentives in 2019. With these changes to the Transformational Brownfield Program, the state is hopeful the potential number of large-scale properties utilizing the program will grow.
Point Blue, LLC works with local Brownfield Redevelopment Authorities and developers to drive redevelopment opportunities to cleanup and reinvest in brownfield sites, helping to reduce blight while protecting the environment. Point Blue, LLC provides brownfield site expertise for the expansion, redevelopment, or reuse of properties that are challenged for potential development by the presence or potential presence of hazardous substances and contaminants.