Today, brownfields not only include former industrial and manufacturing facilities, but can also include properties that are functionally obsolete or blighted. It is common for these properties to face financial as well as environmental challenges to development. Tax incentives can make such projects feasible, whereas without them, a project may never happen. Even smaller projects with as little as $200,000 in eligible investment have found local units of government receptive to granting tax incentives.

Case Study: City of Wyoming

In Fall 2008, a project in the City of Wyoming was presented to the brownfield authority and MEDC. This project entails demolition, site preparation and public infrastructure improvements. Tax Increment Financing (TIF) has been approved and the Michigan Business Tax credit is in process.

SUMMARY OF PROJECT PLAN

• Type of Property: Blighted
• Eligible Activities: Demolition, Site Preparation, Infrastructure
• Eligible Activity Costs: $113,307
• Years to Complete Payback: 20 years
• Estimated Eligible Investment: $200,000
• Annual Tax Revenue before Project: $3,511
• Estimated Annual Tax Revenue in First Year: $10,368

Details can be discussed of the property at contact with BLDI. Contact Joe Berlin at BLDI at 616-459-3737.