Peter Anastor: Brownfield Redevelopment Discussion

2,045 views

Published on

Track 3- Influence the Policy

Now & Again: Michigan's Evolving Brownfields Program

Peter Anastor, Manager of Urban Planning and Brownfields at the MEDC

Published in: Business, Technology
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,045
On SlideShare
0
From Embeds
0
Number of Embeds
24
Actions
Shares
0
Downloads
11
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Peter Anastor: Brownfield Redevelopment Discussion

  1. 1. Brownfield Redevelopment Discussion Peter Anastor Michigan Economic Development Corporation www.themedc.org www.michiganadvantage.org
  2. 2. Brownfield TIF Changes <ul><li>Use of School Tax Capture extended to December 31, 2012 </li></ul><ul><li>Demolition and Lead & Asbestos Abatement Available Statewide </li></ul><ul><li>Funds Available for Local Administration Increased from $75,000. </li></ul>
  3. 3. <ul><li>Large Credits </li></ul><ul><ul><li>11 projects, $1.3 billion investment </li></ul></ul><ul><li>Small Credits </li></ul><ul><ul><li>27 projects, $156 million investment </li></ul></ul><ul><li>Mini Credits </li></ul><ul><ul><li>12 projects, $15 million investment </li></ul></ul>Brownfield MBT 2007 Review
  4. 4. <ul><li>Brownfield Redevelopment Tax Credits included in new Michigan Business Tax </li></ul><ul><li>Section 437 of Michigan Business Tax </li></ul><ul><li>PA 36 of 2007, Senate Bill 94 </li></ul>Brownfield MBT
  5. 5. <ul><li>These changes are not signed into law. </li></ul><ul><li>Included in HB 5511, which has passed the House. </li></ul><ul><li>Currently in Senate Economic Development and Regulatory Reform Committee </li></ul>PROPOSED CHANGES Brownfield MBT
  6. 6. <ul><li>Refundable Brownfield Tax Credit </li></ul><ul><ul><li>Credits that exceed a qualified taxpayers liability would be refunded at 75% of the amount that exceeds the liability </li></ul></ul>Brownfield MBT
  7. 7. <ul><li>Increase Tax Credit Percentage </li></ul><ul><ul><li>Increase Tax Credit to 12.5% of the Eligible Investment </li></ul></ul><ul><li>Increase Program Efficiency </li></ul><ul><ul><li>Limit eligible investment to project hard costs </li></ul></ul>Brownfield MBT
  8. 8. Brownfield MBT <ul><li>Original 10% </li></ul><ul><li>$50,000 investment </li></ul><ul><ul><li>$20,000 exterior </li></ul></ul><ul><ul><li>$10,000 interior </li></ul></ul><ul><ul><li>$10,000 machinery </li></ul></ul><ul><ul><li>$10,000 soft costs </li></ul></ul><ul><li>$50,000 Eligible Inv. </li></ul><ul><li>Total credit = $5,000 </li></ul><ul><li>New 12.5% </li></ul><ul><li>$50,000 investment </li></ul><ul><ul><li>$20,000 exterior </li></ul></ul><ul><ul><li>$10,000 interior </li></ul></ul><ul><ul><li>$10,000 machinery </li></ul></ul><ul><ul><li>$10,000 soft costs (not eligible) </li></ul></ul><ul><li>$40,000 Eligible Inv. </li></ul><ul><li>Total credit = $5,000 </li></ul>
  9. 9. <ul><li>Urban Redevelopment </li></ul><ul><ul><li>Up to 15% Tax Credit for Urban Development Area Projects </li></ul></ul><ul><ul><li>Urban Development Area Projects include Downtowns or traditional historic commerce centers of Qualified Local Units of Government </li></ul></ul>Brownfield MBT
  10. 10. <ul><li>Urban Development Area Projects </li></ul><ul><ul><li>Increases Density </li></ul></ul><ul><ul><li>Promotes Mixed-Use Development </li></ul></ul><ul><ul><li>Promotes Sustainable Development </li></ul></ul><ul><ul><li>Addresses Area Wide Redevelopment </li></ul></ul><ul><ul><li>Addresses Underserved Markets of Commerce </li></ul></ul>Brownfield MBT
  11. 11. <ul><li>Additional Changes </li></ul><ul><ul><li>Increases Number of Large Credits to 20 </li></ul></ul><ul><ul><li>Combines “Small” and “Mini” Allocation into one $40 million allocation </li></ul></ul><ul><ul><li>Allows for Assignments of Tax Credits for Projects Approved under MBT </li></ul></ul><ul><ul><li>??? </li></ul></ul>Brownfield MBT
  12. 12. Brownfield Redevelopment Challenges <ul><li>What Challenges Remain? </li></ul><ul><li>What Else Can We Do to Stimulate Brownfield Reinvestment? </li></ul>
  13. 13. <ul><li>National Brownfield Conference </li></ul><ul><li>May 5-7, Cobo Center, Detroit </li></ul><ul><li>www.brownfields2008.org </li></ul>Brownfield Training
  14. 14. <ul><li>Peter Anastor </li></ul><ul><li>517-373-9014 [email_address] Joe Martin 517-241-8378 [email_address] </li></ul>Contact

×