The Grand Traverse County Brownfield Redevelopment Authority was established under the auspices of Public Act 381 of 1996, as amended, by the Grand Traverse County Board of Commissioners by resolution at their September 24, 1997 meeting.
The County Board also appointed the Brownfield Redevelopment Authority Board to oversee policy and implementation of the Redevelopment Authority.
The purpose of the County Brownfield Redevelopment Authority is to promote the revitalization of environmentally distressed areas through the implementation of the Brownfield Redevelopment Financing Act.
The Brownfield Redevelopment Financing Act provides for the ability to utilize property tax increment revenue financing to pay for certain eligible environmental and on-environmental activities. Tax increment financing captures the increase in property taxes due to the new increased property tax value from private investment on the redeveloped property.
The Grand Traverse County Brownfield Redevelopment Authority has taken the following overall approach to Brownfield Redevelopment:
Developers are ultimately responsible for the overall redevelopment, environmental and non-environmental eligible activities and costs.
The Brownfield Redevelopment Authority will work to qualify eligible environmental and non-environmental activities for property tax capture.
Developers contract with environmental consultants and others to prepare all information necessary to prepare the Brownfield Redevelopment Plan and Act 381 Work Plan.
The Grand Traverse County Brownfield Redevelopment Authority reviews all documents and plans related to the Brownfield and Act 381 Work Plans to ensure that the developer's consultants are appropriately following proper documentation for reimbursement as defined in the Development and Reimbursement Agreement.
There are 7 stages to the Brownfield Redevelopment Process:
The Part 1 project application will be initially reviewed by the Brownfield Redevelopment Authority staff to determine the project eligibility and efficacy. If the BRA approves the Part 2 application, a Brownfield plan will be developed.
If the results of the preliminary assessments are positive and the Authority approves to move forward, the next step is to develop a Brownfield Plan. The requirements of the plan are detailed in Act 381 and include:
Description of costs, including a summary of eligible activities.
Estimate of the captured taxable value and tax increment revenues
Method of financing
Maximum amount of bond or other indebtedness
Estimate of impact of tax increment financing on all taxing jurisdictions
Legal description of parcel
Residential displacement and relocation analysis
Once a Brownfield Plan is approved, the next step is the creation of a "Work Plan."
Applicants must review and submit the work plan consistent with the most recent Instructions for Preparing and Submitting Work Plans (PDF) as published by EGLE and the MDEC. All Brownfield and work plans must be provided to the BRA Director a minimum of 2 weeks prior to the BRA meeting they wish to be heard at. The BRA generally meets the last Wednesday of the month.
Consideration of Brownfield Plan approval must be publicly noticed and approved at a public meeting of the GTCBRA and the County Board. All taxing units must be notified of the projected impact of the project and have the opportunity to comment.
Typically, eligible activity costs are paid upfront by the developer and reimbursed through the use of tax increment financing. The BRA does offer financing to developers for eligible activities through our Local Site Remediation Fund or our U.S. EPA Revolving Loan Fund, and may assist developers in seeking out EGLE and MEDC assistance through their grant and loan programs.
State assistance consists of site reclamation grants or loans to pay for certain eligible environmental activities. Grants or loan require preparation of an application by the developer and submittal by the Brownfield Authority, with approval by the Michigan Department of Environment, Great Lakes, and Energy.
Developer financing is the typical method to fund eligible activities. The developer arranges for the upfront costs and is repaid through tax increment capture. The terms and conditions of this arrangement are codified in the development agreement.
The eligible activities are conducted by the agents of the project developers. Close contact with the project developers will be necessary to ensure that the work is being appropriately conducted and payments are made in a timely fashion.