New Law Will Simplify Approval Process for Brownfield Funding
A group of six bills – Senate Bill 908 through 913 (SB 908-913) – were signed by Governor Rick Snyder on Jan. 5. They will take effect on April 4, 2017.
The new bills will improve and streamline the current brownfield redevelopment tax increment financing (TIF), grant, and loan process while allowing for additional eligible activities.
The bills will:
Clarify Definitions & Added Eligible Activities
- Update the overall language to clearly be inclusive of Part 201 and 213.
- Include and clarify for the inclusion of legal/consulting fees for reimbursement associated with brownfield plan development.
- Allow costs for brownfield plan/work plan implementation, tracking, and reporting up to $30,000.
- MDEQ eligible activities, now referred to as “Department Specific Activities”, have been expanded to include, but not limited to:
- Removal and closure of USTs pursuant to Part 211 and 213
- Disposal of solid waste
- Dust control related to construction activities
- Industrial cleaning activities
- Mold abatement, when risk is posed to human health
Provide Updates to Local Site Funds
- Change “Local Site Remediation Revolving Fund” to Local Brownfield Revolving Fund (LBRF)
- State Brownfield Redevelopment Fund capture of 3 mills remains during LBRF capture
- Excess capture for LBRF cannot exceed total cost of eligible activities approved in Brownfield Plan.
- If the plan fails to generate revenue for 3 years, there is now a mechanism to lower the base value.
- Technically liable parties that did not file a BEA, may now be eligible, as long as they’re not responsible for causing a release.
- Michigan Strategic Fund (MSF) approval or denial decreases from 90 days to 60 days.
- MSF Board approval only required now for projects requesting more than $1 million in eligible activities.
- Overall, these changes are a win for brownfield redevelopment in Michigan and will assist in the legislation’s goal of remediation and redevelopment.
If you have any questions about the new legislation or want to talk to our experienced team to see how your projects will be affected, please feel free to contact our Brownfield and Economic Incentive Team at (800) 313-2966.
Further Reading: Michigan developers can expect faster processing and expanded coverage for Brownfield funds thanks to Senate Bills 908-913
March 31, 2017