FAQs • Grand Traverse County, MI • CivicEngage

How is the Local Brownfield Revolving Fund (LBRF) created?: After the developer has been repaid for eligible activities, the Brownfield Redevelopment Authority (BRA) can collect the incremental increase in the property taxes for an additional 5 years. Collection of state property taxes can be 5 years or up to the amount approved by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) for eligible activities. Local tax can be captured for up to 5 years after repayment is complete. State-approved Michigan Economic Development Corporation (MEDC), Michigan Strategic Fund (MSF) activities cannot be captured into the LBRF, only EGLE activities.

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Brownfield Redevelopment

1. What does the Brownfield Redevelopment Authority do?: The Brownfield Redevelopment Authority (BRA) reviews proposals for the redevelopment of eligible property and determines what financial incentives are necessary and/or available to assist the redevelopment. The BRA recommends the appropriate Brownfield plans to the governing body of the municipality. The BRA enters into a development agreement with the developer. Brownfield Redevelopment Authority Page

2. What is an eligible property?: Property must meet 1 of these 4 criteria: a property is a "facility" as defined by part 201, Environmental Remediation of the Michigan Natural Resources and Environmental Protection, 1994 PA 451 as amended; a property is "blighted;" or a property is "functionally obsolete or a historic resource."

An eligible activity is:

4. What taxes are captured?: The Brownfield Redevelopment Authority (BRA) only captures the property taxes paid by the developer on the additional taxable value as assessed and created by the new investment made to the property. The increased portion of tax revenues, or the "tax increment," is temporarily "captured" by the BRA to reimburse the developer for eligible activities up to a maximum of 30 years.

5. How is the Local Brownfield Revolving Fund (LBRF) created?: After the developer has been repaid for eligible activities, the Brownfield Redevelopment Authority (BRA) can collect the incremental increase in the property taxes for an additional 5 years. Collection of state property taxes can be 5 years or up to the amount approved by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) for eligible activities. Local tax can be captured for up to 5 years after repayment is complete. State-approved Michigan Economic Development Corporation (MEDC), Michigan Strategic Fund (MSF) activities cannot be captured into the LBRF, only EGLE activities.

6. How can the LBRF be used?: Use of funds can only be used for eligible activities on eligible property. If state funds are used, Michigan Department of Environment, Great Lakes & Energy (EGLE) approval must be received.