The Michigan Economic Development
Corporation (MEDC) released this month an updated and extensively revised
guidance document regarding “non-environmental eligible activities” on
Brownfield redevelopment sites. The
guidance is used to determine whether capture of state school taxes will be
allowed for certain activities not related to environmental conditions,
lead and asbestos abatement, or (only available in qualified local units of
government also referred to as “Core Communities”) certain infrastructure
improvements such as roads, landscaping, sidewalks, lighting, sanitary and
storm water management. Such
“non-environmental” activities include partial and complete demolition of a
building’s interior or exterior. Also
included are “site demolitions” such as the removal of abandoned utilities,
underground storage tanks, parking lots, roads, or other similar structures.
While the new MEDC guidance is specific
to school tax capture eligibility, it can also be used as a roadmap for local
governments regarding the eligibility for these activities for local tax
capture via a Brownfield Plan, which
they control. This guidance document
expands the definition of infrastructure and site improvements eligible under a
Brownfield plan beyond all prior guidance.
If you are a local unit government or a
private sector developer interested in learning more about the applicability of
this expanded guidance to your Brownfield projects, please contact Paul Bohn at
248.380.9988 or pbohn@fb-firm.com.
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