Departments/Organizations Attending the ERF
State and Local Programs
Michigan Economic Development Corporation (MEDC) Programs
MEDC Brownfield Program Overview
The Michigan Economic Development Corporation (MEDC) recognizes the importance of supporting the redevelopment of Brownfields across the great State of Michigan! As the non-environmental side of Michigan’s Brownfield Redevelopment program, the MEDC is aggressively involved in the promotion and redevelopment of Brownfield properties. The MEDC is a critical partner to communities in the redevelopment of these properties that were once considered unmarketable due to their perceived contamination or, in most cases, lightly contaminated condition. To that end, the MEDC has developed a formalized Brownfield Program that is designed to:
- Address existing Brownfield conditions on sites in order to make them competitive with comparable Greenfield sites;
- Address weak market conditions, lower the investment risk and alleviate other negative business factors that hinder the redevelopment of Brownfield property;
- Spur private development activity and investment on Brownfield sites, particularly in urban and downtown areas.
The MEDC is the State of Michigan’s economic development agency and through our team of technical and economic professionals, the MEDC offers personalized services to help guide local governmental officials, prospective developers and businesses through the Brownfield redevelopment process.
Brownfield Redevelopment Authority
Under the Brownfield Redevelopment Act PA 381 of 1996, as amended, a municipality may create a Brownfield Redevelopment Authority to develop and implement brownfield projects. The Brownfield Redevelopment Authority is a resource that may use Tax Increment Financing (TIF). Any city, village, township or county may create a Brownfield Redevelopment Authority. Once created, a Brownfield Redevelopment Authority reviews proposals for the redevelopment of eligible property and determines what financial incentives are necessary to assist the redevelopment.
Brownfield Tax Increment Financing (TIF) Plans
Under a locally approved Act 381 Work Plan and Brownfield Plan, the MEDC approves the non-environmental Eligible Activities and their costs including demolition, lead and asbestos abatement, infrastructure improvements and site preparation. TIF allows a local government to use the increased tax revenue resulting from the Brownfield project and share it with the developer to help offset the costs of the environmental and non-environmental Eligible Activities.
Obsolete Property Rehabilitation Act (OPRA)
The Obsolete Property Rehabilitation Act (OPRA), Public Act 146 of 2000 provides a tax incentive to encourage the redevelopment of obsolete buildings. The tax incentive is designed to assist in the redevelopment of older buildings where a facility is contaminated, blighted or functionally obsolete. The goal is to rehabilitate older buildings into vibrant commercial and mixed-use projects. A community essentially freezes the existing taxable value on a designated facility for up to 12 years. Additionally, the State Treasurer may approve reduction of half of the school operating and state education taxes for a period not to exceed six years. By freezing the taxable value, it provides an incentive for the developer to make significant improvements to a building without increasing the property taxes on the building.
Commercial Rehabilitation Act (PA 210)
Public Act 210 of 2005 encourages the rehabilitation of commercial property by abating the property taxes generated from new investment for a period of up to 10 years. As defined, commercial property is a building or group of contiguous buildings 15 years or older, of which the primary purpose is the operation of a commercial enterprise or multifamily housing. Types of commercial business enterprises include office, engineering, research and development, warehousing, parts distribution, retail sales, and other commercial activities. Multifamily residential is housing that consists of five or more units. Commercial properties allocated New Market Tax Credits are also considered a qualified facility.
Commercial Redevelopment Act (PA 255)
Public Act 255 of 1978 encourages the replacement, restoration and new construction of commercial property by abating the property taxes generated from new investment for a period up to 12 years. As defined, commercial property means land improvements, whether completed or in the process of construction, where the primary purpose is the operation of a commercial business enterprise, including office, engineering, research and development, warehousing parts distribution, retail sales, hotel or motel development, and other commercial facilities. Land and personal property are not eligible for abatement under this act.
Industrial Property Tax Abatement (PA 198)
Industrial property tax abatements provide incentives for various manufacturing entities to make new investment in Michigan. These abatements encourage Michigan manufacturers to build new plants, expand existing plants, renovate aging plants, or add new machinery and equipment. High-technology operations are also eligible for the abatement. ‘High-technology activity’ is defined as advanced computing, advanced materials, biotechnology, electronic device technology, engineering or laboratory testing related to product development, medical device technology, product research and development and advanced vehicles technology or technology that assists in the assessment or prevention of threats or damage to human health or the environment. Abatements under P.A. 198 can significantly reduce property taxes on new investment for eligible firms.
Geographic Renaissance Zones
Geographic Renaissance Zones are regions of the state designated as virtually tax free for any business or resident presently in or moving to a zone. The zones were designed to provide selected communities with a market-based incentive of no state or local taxes to encourage jobs and reinvestment. The zones are located in urban and rural areas across the state and also include three former military bases.
Agricultural Processing Renaissance Zones
Michigan has a vibrant food and agricultural industry and is second in our nation in the variety of commodities grown for market. Agricultural Processing Renaissance Zones (APRZ) were created to promote agricultural processing operation in the state of Michigan and to enhance the industry overall. The APRZs differ from Michigan’s original renaissance zones because they require them to contain a company’s agricultural processing facility, can be located anywhere in Michigan and the Michigan Department of Agriculture assists in their development.
Forest Products Processing Renaissance Zones
To assist in the development of a strong forest products industry in Michigan, Forest Products Processing Renaissance Zones (FPPRZ) were created to promote forest products operations in the state and to enhance the industry. These FPPRZs differ from Michigan’s original renaissance zones because they are required to contain a company’s forest products processing facility and can be anywhere in Michigan.
Renewable Energy Renaissance Zones
To assist in the development of a strong renewable energy industry in Michigan, Renewable Energy Renaissance Zones (RERZ) were created to promote renewable energy operations in the state. These RERZs differ from Michigan’s original renaissance zones because they require them to contain a company’s renewable energy facility and can be located anywhere in Michigan.
Michigan Department of Environmental Quality (MDEQ) Programs
MDEQ Brownfield Program Overview
Brownfields are abandoned, idle, or under-utilized industrial and commercial properties, where expansion or redevelopment is hindered or complicated by real or perceived environmental conditions. Decades of industry and manufacturing have left Michigan with a number of these environmentally degraded brownfield properties, both in the large urban centers as well as in small towns and villages throughout the state. Redevelopment of these brownfield properties presents many challenges, but is critically important to the revitalization of the communities that they are located in.
Michigan Department of Environmental Quality (MDEQ) has created many options to overcome the obstacles of brownfield redevelopment, including cost-effective cleanup options, causation-based liability, liability protection for new owners, and grant and loan programs. Innovative use of available federal, state, and local resources can be incorporated into redevelopment incentives to support expansion and to encourage new businesses to locate in Michigan. Reusing our brownfields makes sense economically and environmentally.
For more information - MI Brownfield Financial Incentives brochure 2011
Brownfield Redevelopment Grants and Loans
Contact: Susan Erickson (517) 241-8707, or Barb Westmoreland (517) 373-9540
The DEQ offers grants and loans for environmental assessments and response activities at properties with known or suspected contamination. Funds are targeted to projects that promote economic development and reuse of brownfield properties.
For more information - MDEQ Brownfield Redevelopment Grants and Loans Overview and When To Use What and Where 2011
Brownfield Tax Increment Financing (TIF)
Act 381 Work Plans for Environmental Activities
The Brownfield Redevelopment Financing Act authorizes a locally-established brownfield redevelopment authority to capture the increased tax revenue resulting from a brownfield redevelopment project and use it to reimburse the costs of eligible environmental activities.
The DEQ, under a locally approved Brownfield Plan and Act 381 Work Plan, must review and approve environmental activities and their costs, which may include activities needed to complete a baseline environmental assessment, comply with due care requirements, or other proposed environmental response activities.
For more information see Frequently Asked Questions
Nonpoint Source Pollution Control Grants
Grants are awarded to develop watershed-based plans to address nonpoint source pollution and to fund implementation of activities included in approved watershed management plans, including physical and vegetative best management practices.
For more information see Protecting and Improving Michigan’s Resources Utilizing Nonpoint Source Program Grants
Coastal Zone Management Program Grants
Grants are awarded to assist organizations in protecting and enhancing their coastal areas, fund studies related to coastal management, and to increase recreational opportunities in Michigan's Great Lakes coastal area. The DEQ's Office of the Great Lakes has issued a Request for Proposals (RFPs) for Coastal Zone Management projects that would begin January 1, 2012. Applications must be delivered or postmarked no later than May 16, 2011. These grants provide financial assistance to coastal communities to plan community land use and manage growth; protect, manage, and restore coastal habitats; restore historic maritime structures; revitalize urban waterfronts; and increase recreational opportunities along Michigan's Great Lakes coast.
For more information see Coastal Management Program Grants and Application
Additional Resources
A number of additional resources, both technical and financial, are available for brownfield redevelopment projects in the state of Michigan. For the full list- Related Resources- 2011
Property Listings
If you have a brownfield property from Michigan please add to the Brownfields 2011 interactive Google map. It's a free service! Click here to add your property(ies).
CLICK HERE to return to the Main State Resources page.
CLICK HERE to return to the Forum Overview page.