The Senate Commerce Committee today considered SB 1487 that will assist those with Brownfield Redevelopment Authorities. Currently, there are problems with the 30 year timeline for tax increment financing (TIF) capture and disbursements for Brownfield plans. Steve Black of the City of Bay City testified in committee that they have a situation where they approved a Brownfield plan for a project, but that project couldn't get the appropriate financing and no capture or disbursement was ever done. Another project is now feasible, but the 30 year clock has already started and the new project will lose the 2 or 3 years since the first project was approved. The legislation will allow for new projects to have the whole 30 years available. Other communities have also indicated interest in this bill because of the tough economic times and the many problems with financing.
The Michigan Economic Development Corporation (MEDC) testified in support in concept, but wants to be sure that projects using state dollars have approval of the new project and plan before state dollars can be captured. The Michigan Municipal League provided support for the bill in committee and will be involved in assuring that the substitute makes sense for our communities as they try to redevelop their infrastructure. The bill is expected to have a substitute and vote in committee next week.
Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email at aschor@mml.org.
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