Several communities have active Brownfield programs, but have found that they cannot use tax increment financing dollars to purchase and clear title for properties to be redeveloped. Land banks have this power, but Brownfield authorities (BRA’s) do not.
The House Commerce Committee yesterday passed a bill to fix this, allowing captured tax increment financing dollars for "eligible activities" to include assistance to local unit of government or BRA’s when purchasing (for economic development reasons), clearing title or selling property under its control. The bill was amended to only allow for local tax increment finance dollars to be used, and not state dollars.
The City of Kalamazoo attended and testified in support of the bill. The City of Lansing also worked on the compromise language. This bill will be helpful to communities trying to redevelop their properties. The League provided support for the legislation as well, and we expect this to move quickly through the House and Senate.
Andy Schor is the Assistant Director of State Affairs for the Michigan Municipal League. Contact him at (517) 908-0300 or by email.
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