Frequently Asked Questions
Below you will find information that might help you understand how to find things or learn about information you might need to know about your city or town.
Brownfield Redevelopment
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The Brownfield Redevelopment Authority (BRA) reviews proposals for the redevelopment of eligible property and determines what financial incentives are necessary and/or available to assist the redevelopment. The BRA recommends the appropriate Brownfield plans to the governing body of the municipality. The BRA enters into a development agreement with the developer.Brownfield Redevelopment
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Brownfield Redevelopment
Property must meet 1 of these 4 criteria: a property is a "facility" as defined by part 201, Environmental Remediation of the Michigan Natural Resources and Environmental Protection, 1994 PA 451 as amended; a property is "blighted;" or a property is "functionally obsolete or a historic resource."
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Brownfield Redevelopment
An eligible activity is:
- Baseline Environmental Activities (BEA) "Phase I ESA" and "Phase II ESA"
- Due Care Activities
- Response Activities
- Hazardous Material Surveys and Abatement
- Demolition
- Site Preparation
- Infrastructure Improvements
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Brownfield Redevelopment
The Brownfield Redevelopment Authority (BRA) only captures the property taxes paid by the developer on the additional taxable value as assessed and created by the new investment made to the property. The increased portion of tax revenues, or the "tax increment," is temporarily "captured" by the BRA to reimburse the developer for eligible activities up to a maximum of 30 years.
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Brownfield Redevelopment
After the developer has been repaid for eligible activities, the Brownfield Redevelopment Authority (BRA) can collect the incremental increase in the property taxes for an additional 5 years. Collection of state property taxes can be 5 years or up to the amount approved by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) for eligible activities. Local tax can be captured for up to 5 years after repayment is complete. State-approved Michigan Economic Development Corporation (MEDC), Michigan Strategic Fund (MSF) activities cannot be captured into the LBRF, only EGLE activities.
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Brownfield Redevelopment
Use of funds can only be used for eligible activities on eligible property. If state funds are used, Michigan Department of Environment, Great Lakes & Energy (EGLE) approval must be received.