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Redevelopment Process

BACKGROUND
The Grand Traverse County Brownfield Redevelopment Authority was established under the auspices of Act 381, PA 1996 by the Grand Traverse County Board of Commissioners by resolution at their September 24, 1997 meeting.

The County Board also appointed the nine member Brownfield Redevelopment Authority Board to oversee policy and implementation of the Redevelopment Authority.

The purpose of the County Brownfield Redevelopment Authority is to promote the revitalization of environmentally distressed areas through the implementation of the Brownfield Redevelopment Authority Act.

The Brownfield Redevelopment Authority Act provides for the ability to utilize tax increment financing to pay for certain eligible environmental activities. Tax increment financing captures the increase in taxes due to the new increased value from private investment in the redeveloped property.

DEVELOPMENT PROCESS
The Grand Traverse County Brownfield Redevelopment Authority has taken the following overall approach to Brownfield Redevelopment:

oDevelopers are ultimately responsible for the overall redevelopment and environmental activities and costs.

oThe Brownfield Authority will work to qualify eligible environmental activities for tax recapture.

oDevelopers contract with environmental consultants and others to prepare all information necessary for the Brownfield Redevelopment Plan, Act 381 Work Plan, and MDEQ approval and Brownfield Authority approvals.

oDevelopers and the Brownfield Authority hires a contract manager to review documents, invoices, and plans to ensure that the Brownfield and Act 381 Plans, and the Development Agreement is being followed.

There are six stages to the Brownfield Redevelopment Process:

1.Project Application

2.Application Review

3.Project Plan Development

4.Plan Approval

5.Financing

6.Development

PROJECT APPLICATION
The project application is the initial step for consideration of a Brownfield Redevelopment project. Project developers will be requested to submit an information package which will include:

oLocation: Overall site location and legal description

oDevelopment Principals: Owners, consultants, financial partners

oEnvironmental Plan: Approach to addressing environmental issues including facility listing, BEA, Due Care, Additional Response activities

oRedevelopment Plans: Site plan and proposed use

oFinancial Feasibility: Cost of environmental activities, investment and estimate value.

APPLICATION REVIEW
The project application will be initially reviewed by the Brownfield Redevelopment Authority to determine the project eligibility and efficacy. Once the Authority provides initial approval, a contract will be negotiated with the project developers to proceed and that the project developers agreed to pay for transaction costs if the project is not completed.

PROJECT PLAN DEVELOPMENT
If the results of the preliminary assessments are positive and the Authority approves to move forward, the next step is to develop a project plan. The requirements of the project plan are detailed in Act 381 and include:

oDescription of costs, including a summary of eligible activities.

oEstimate of the captured taxable value and tax increment revenues

oMethod of financing

oMaximum amount of bond or other indebtedness

oProject duration

oEstimate of impact of tax increment financing on all taxing jurisdictions

oLegal description of parcel

oResidential displacement and relocation analysis

Applicants must review and submit the work plan consistent with the most recent “Instructions for Preparing and Submitting Work Plans” as published by the DEQ and MEDC. All brownfield and work plans must be provided to the BRA Director a minimum of two weeks prior to the BRA meeting they wish to be heard at. The BRA generally meets the last Wednesday of the month.

PLAN APPROVAL
Consideration of project plan approval must be publicly noticed and approved at a public meeting of the GTCBRA and the County Board. All taxing units must be notified of the projected impact of the project and have the opportunity to comment.

FINANCING
There are three options for financing Brownfield Redevelopment Projects: GTCBRA assistance, State of Michigan assistance, and developer financing.

GTCBRA financing assistance includes the Local Site Remediation Fund and the Revolving Loan Fund, which both serve to provide gap financing to traditional lending markets. The GTCBRA is available to local units of government to help assist with obtaining other sources of funding for public and non-profit uses as well, such as the US EPA Cleanup Grant Program.

State assistance consists of Site Reclamation Grants or Loans to pay for certain eligible environmental activities. Grants or loan require preparation of an application by the developer and submittal by the Brownfield Authority, with approval by the Michigan Department of Environmental Quality.

Developer financing is the typical method to fund eligible activities. The developer arranges for the upfront costs and is repaid through tax increment capture. The terms and conditions of this arrangement are codified in the development agreement.

DEVELOPMENT
The eligible activities are conducted by the agents of the project developers. Close contact with the project developers will be necessary to ensure that the work is being appropriately conducted and payments are made in a timely fashion.

CONTACT
For more information contact Jean Derenzy at 231.922.6890.