In Michigan, Brownfield sites can be found in cities with long histories of heavy industry, large-scale manufacturing activity and also in small towns and rural areas. Brownfields are defined as properties that are contaminated, blighted, functionally obsolete, and can include historic properties. Regardless of their classification, all brownfield properties face economic impediments to reuse and redevelopment.
The MEDC is the State of Michigan’s economic development agency and through the Community Development Programs offers guidance for local-government officials, prospective developers and businesses as they navigate through the Brownfield redevelopment process.
The Community Development staff at the MEDC provides administrative support for redevelopment incentives awarded by the Michigan Strategic Fund (MSF) under the Brownfield Tax Increment Financing Program (Act 381 of 1996). Brownfield TIF allows a local governmental unit to continue to receive the existing taxes on the property, capture the increased tax revenue resulting from a redevelopment project, and use that incremental tax capture to reimburse the developer to help offset the costs of environmental and non-environmental eligible activities. Under a MSF approved Work Plan or Combination Plan, projects can seek reimbursement from state and local property taxes for the non-environmental eligible activities and their costs including demolition, lead and asbestos abatement, infrastructure improvements, and site preparation.
Other funding sources for these types of projects include the Michigan Community Revitalization Program and potentially existing Michigan Business Tax (MBT) Brownfield credits that have been previously awarded to the property. Please note that previously approved MBT Brownfield credits will be honored; however, no new credits will be allocated.
The incentives administered by the MEDC have led to increased private investment, job creation and the cleanup/improvement of the Brownfield conditions at these sites. These activities are completed throughout the state and in coordination with the
Community Assistance Team, the Michigan Department of Environmental Quality (
MDEQ) and the Michigan State Housing Development Authority (
MSHDA) Brownfield and redevelopment programs, and the United States Environmental Protection Agency (
USEPA) Region 5 Brownfield Program.
