Michigan Department of Environmental Quality

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
• BRAs with gt 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
  doesnt 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
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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.
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_at_michigan.gov

16
Whats 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)
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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/deqbrown
fields
Jeff Hukill 517-335-2960 hukillj_at_michigan.gov