Funding Strategies and Incentives
Envirologic can assist your development team or community with obtaining and leveraging financial support for brownfield redevelopment projects. We have broad experience working with grant and incentive programs at both the state and federal levels.
Michigan’s brownfield toolbox is a powerful resource that communities and economic developers have come to rely on. Brownfield tax increment financing, being one of the most used tools, continues to help close financial gaps on redevelopment projects. Tax increment financing through a Brownfield Plan is unique in that it relies solely on the investment and performance of the individual project. Unlike other “TIF Districts,” it does not pull tax revenues from other properties within the district. If the project fails to perform (i.e., the project is delayed or there is limited investment with no improved taxable value), the community/Brownfield Plan has no obligation to reimburse the developer for their eligible brownfield costs unless the project produces the tax revenue.
The Brownfield Redevelopment Financing Act has been modified over the years to allow for greater flexibility and applicability, which has allowed greater opportunity to take on those brownfield projects that may otherwise not be considered by developers. Tax increment financing through a Brownfield Plan can also be layered with many other incentives or authorities including tax abatements, Obsolete Property Rehabilitation Act (OPRA) tax exemptions, Commercial Rehabilitation and/or Redevelopment Districts, Downtown Development Authorities, etc. Although many communities have created Brownfield Redevelopment Authorities (over 200 statewide), a large number of these authorities have become inactive either due to the lack of incoming projects or failure to educate developers of this economic development tool. Having this tool in place and ready can be a great resource when trying to attract opportunities on sites within a community.
At the federal level, the U.S. EPA Brownfields Program provides grants (through a competitive application process) which communities can use to assess the environmental condition of sites suspected of contamination. In addition, there are grants that provide funding for eligible entities to carry out cleanup activities at brownfield sites. Often, the assessment activities required to understand the level of contamination are the roadblock to the site’s development.
Available funding incentives include:
- Tax increment financing tools
- Brownfield Redevelopment Plans (Brownfield Plans)
- Local Brownfield Revolving Funds (LBRFs)
- Transformational Brownfield Plans
- EGLE/MSF Act 381 Work Plans
- EGLE Brownfield Redevelopment Grants and Loans
- EGLE Brownfield Redevelopment Assessments (Section 128a funds)
- MSHDA/HUD programs
- EPA Brownfield Assessment Grants, Cleanup Grants, Multipurpose Grants, and Revolving Loan Funds
- MSF Community Revitalization Programs
- Other federal, state, and local funding programs