Brownfield Redevelopment Discussion Peter Anastor Michigan Economic Development Corporation www.themedc.org www.michiganadvantage.org

Brownfield TIF Changes Use of School Tax Capture extended to December 31, 2012 Demolition and Lead & Asbestos Abatement Available Statewide Funds Available for Local Administration Increased from $75,000.

Use of School Tax Capture extended to December 31, 2012

Demolition and Lead & Asbestos Abatement Available Statewide

Funds Available for Local Administration Increased from $75,000.

Large Credits 11 projects, $1.3 billion investment Small Credits 27 projects, $156 million investment Mini Credits 12 projects, $15 million investment Brownfield MBT 2007 Review

Large Credits

11 projects, $1.3 billion investment

Small Credits

27 projects, $156 million investment

Mini Credits

12 projects, $15 million investment

Brownfield Redevelopment Tax Credits included in new Michigan Business Tax Section 437 of Michigan Business Tax PA 36 of 2007, Senate Bill 94 Brownfield MBT

Brownfield Redevelopment Tax Credits included in new Michigan Business Tax

Section 437 of Michigan Business Tax

PA 36 of 2007, Senate Bill 94

These changes are not signed into law. Included in HB 5511, which has passed the House. Currently in Senate Economic Development and Regulatory Reform Committee PROPOSED CHANGES Brownfield MBT

These changes are not signed into law.

Included in HB 5511, which has passed the House.

Currently in Senate Economic Development and Regulatory Reform Committee

Refundable Brownfield Tax Credit Credits that exceed a qualified taxpayers liability would be refunded at 75% of the amount that exceeds the liability Brownfield MBT

Refundable Brownfield Tax Credit

Credits that exceed a qualified taxpayers liability would be refunded at 75% of the amount that exceeds the liability

Increase Tax Credit Percentage Increase Tax Credit to 12.5% of the Eligible Investment Increase Program Efficiency Limit eligible investment to project hard costs Brownfield MBT

Increase Tax Credit Percentage

Increase Tax Credit to 12.5% of the Eligible Investment

Increase Program Efficiency

Limit eligible investment to project hard costs

Brownfield MBT Original 10% $50,000 investment $20,000 exterior $10,000 interior $10,000 machinery $10,000 soft costs $50,000 Eligible Inv. Total credit = $5,000 New 12.5% $50,000 investment $20,000 exterior $10,000 interior $10,000 machinery $10,000 soft costs (not eligible) $40,000 Eligible Inv. Total credit = $5,000

Original 10%

$50,000 investment

$20,000 exterior

$10,000 interior

$10,000 machinery

$10,000 soft costs

$50,000 Eligible Inv.

Total credit = $5,000

New 12.5%

$50,000 investment

$20,000 exterior

$10,000 interior

$10,000 machinery

$10,000 soft costs (not eligible)

$40,000 Eligible Inv.

Total credit = $5,000

Urban Redevelopment Up to 15% Tax Credit for Urban Development Area Projects Urban Development Area Projects include Downtowns or traditional historic commerce centers of Qualified Local Units of Government Brownfield MBT

Urban Redevelopment

Up to 15% Tax Credit for Urban Development Area Projects

Urban Development Area Projects include Downtowns or traditional historic commerce centers of Qualified Local Units of Government

Urban Development Area Projects Increases Density Promotes Mixed-Use Development Promotes Sustainable Development Addresses Area Wide Redevelopment Addresses Underserved Markets of Commerce Brownfield MBT

Urban Development Area Projects

Increases Density

Promotes Mixed-Use Development

Promotes Sustainable Development

Addresses Area Wide Redevelopment

Addresses Underserved Markets of Commerce

Additional Changes Increases Number of Large Credits to 20 Combines “Small” and “Mini” Allocation into one $40 million allocation Allows for Assignments of Tax Credits for Projects Approved under MBT ??? Brownfield MBT

Additional Changes

Increases Number of Large Credits to 20

Combines “Small” and “Mini” Allocation into one $40 million allocation

Allows for Assignments of Tax Credits for Projects Approved under MBT

???

Brownfield Redevelopment Challenges What Challenges Remain? What Else Can We Do to Stimulate Brownfield Reinvestment?

What Challenges Remain?

What Else Can We Do to Stimulate Brownfield Reinvestment?

National Brownfield Conference May 5-7, Cobo Center, Detroit www.brownfields2008.org Brownfield Training

National Brownfield Conference

May 5-7, Cobo Center, Detroit

www.brownfields2008.org

Peter Anastor 517-373-9014 [email_address] Joe Martin 517-241-8378 [email_address] Contact

Peter Anastor

517-373-9014 [email_address] Joe Martin 517-241-8378 [email_address]