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 firstname.lastname@example.org.