Capital Conference

Session Resources

Evaluation

2008 Capital Conference Session Summary

Brownfields: How To Use Them,
How They Have Changed, and How They Affect You

The Brownfield session was packed both with people and information.  The session was divided into three sections:  DEQ Remediation and Redevelopment, MEDC Redevelopment Program Changes, and the Brownfield 2008 Conference to be held May 5-7 in the Cobo Center in Detroit.

Remediation and Redevelopment (RRD) – Let’s start by saying this division of the DEQ is funded by two bonds, which will shortly be exhausted. Director Steve Chester addressed the MML Board of Trustees on Tuesday, April 1 asking for MML’s support of a bond proposal to be placed on the November ballot.  The Board voted in support of the concept (as no formal language for the proposal yet exists).  This proposal must first pass both houses of the Legislature by at least a two-thirds vote, prior to their expected adjournment in June in order to qualify for placement on the November ballot.

Michigan has the dubious distinction of having tens of thousands of contaminated sites with hundreds more discovered each year, due to our over 100 years of industrial legacy.  There are currently 230 RRD staff which is down 30 due to budget constraints.  The RRD handles all types of contaminated sites, a large portion of the work being from Leaking Underground Storage Tanks (LUST sites).  Accomplishments of the RRD during the past 20 years include oversight/assistance on more than 10,000 cleanup projects of liable parties and $927million committed to nearly 1,800 orphan sites.  With regard to LUST sites, Michigan has the third highest number of sites in the nation, exceeded only by Florida and California.  The phenomenal part of the remediation program is that $1 state investment yields private investment of $17.  The Brownfield Grants and Loan Program has awarded $95 million to 228 projects, generating $3.1 billion in private investment and creating 1,800 jobs—as reported to RRD by local units of government.  Without a bond proposal passing in November, the RRD program would be severely crippled, and Michigan would be unable to provide matching dollars for the federal SuperFund program, for which only a 10 percent match is required.  Currently, no stakeholders are identified as opposing the bond proposal, which would keep the campaign costs low, an estimated $300,000.  For more information, contact marolfl@michigan.gov or Lynelle Marolf at 517-373-9893.

MEDC Brownfield Redevelopment Changes – Significant changes have been enacted by the Legislature as the economic benefit of redevelopment sites is now widely recognized and encouraged.  One significant change includes extension of the school tax capture to December 31, 2012.  Act 381 TIF amendments allow for three new reimbursable activities simplified here, but including demolition and lead and asbestos abatement, reasonable costs of brownfield plans, and reasonable costs of environmental liability insurance.  Other changes are all aimed at making the program more flexible; for example, maximum duration of brownfield TIF capture is extended from 30 to 35 years (allowing for Ren Zones and construction periods when little tax was available to be captured).  Also, refundable Michigan Business Tax (MBT) credits may be considered by banks as equity, helping ease investment.  In a nutshell, positive changes have been enacted—all with the goal of quickly stimulating redevelopment to benefit Michigan’s economy.  For more information, contact: Peter Anastor anastorp1@michigan.org--517-373-9014 or Joe Martin martinj11@michigan.org (517) 241-8378.

Brownfields 2008 Conference – This conference, provided by ASTI Environmental, features a unique Brownfield Transaction Forum on May 5, from 10:30 a.m. – 1 p.m.  There will be 1,000 developers with $40 billion net worth that will participate--with 1,000 properties for sale in 20 states and 3 countries.  Attendance is free, and you can list a brown or green site for sale, lease, or development on the website for free, as well as provide a free link from the web listing to your property.  Go to www.brownfields2008.org/btf.  MML staff contact is Arnold Weinfeld aweinfeld@mml.org or 517-485-1314.