Brownfield Redevlopment

Legislation Arthur H. Siegal, Esq.

Jaffe Raitt Heuer & Weiss, PC November 2014

© Jaffe 2014

Committee Members

Arthur Siegal – Michigan Chamber Jim Enright – Michigan Bar Association Andy Such - MMA Kara Wood - Grand Rapids BRA – local gov’t Sara Rainero - MEDC Anne Jamieson - AKT – Development community

Ron Smedley/Carrie Geyer - MDEQ

Where we have been MCL 324.20108a/b –

Revitalization Revolving Loan Fund

MCL 324.19501 -Env’tl Bond Implementation -1995

MCL 324.19601 – Clean MI Implementation -1998

MCL 125.2651 – Act 381 Brownfield Redevelopment Financing (TIF) Act - 1996

Goals Streamline the Statutes to make the

process easier to understand, easier to implement and faster

Harmonize to the extent possible the different statutes so that applicants did not have to meet different standards when seeking support

Focus on the twin goals of fostering remediation and redevelopment

Implement recommendations from the other committees

Part 201 Revitalization Revolving Loan Program – Will

Apply the Standards of Part 196 – eliminates the duplicative but not identical standards and process.

Part 195

Beginning with the effective date of the proposed amendments, projects proposed or considered for grant or loan funding under the Environmental Bond Program will also be subject to the Part 196 standards

The Part 195 Rules found at R299.5051 – 299.5061 will only apply to previous loans and grants.

Part 196 Applies Act 381 definitions Allows liable LUGS grants if they provide 50% match Permits funding of municipal or commercial marinas Allows grants for site assessment – must show development

potential and project costs Incorporate grant language from site reclamation rules Allows more than 1 grant/loan per project or per community

in exceptional circumstances Clarify rules for liable parties involved with development –

balancing rewarding liable party vs cleanup/redevelopment Allows negotiated financial assurance securing loans other

than by “liening” revenue sharing – allows completed properties to “peel off” when project is successful

Act 381

Beyond Reorganizing Eligible activities broadened; simplified Allowing “technically” liable parties to

participate LUG capture of school taxes for local

revolving funds Other recommended changes

Act 381 – Eligible Activities Three categories of eligible activities:

facility/obsolete/facility adjacent Core communities, economic opportunity

zones, or former mills Land owned by a land bank fast track

authority or a core community or BRA Eliminates two categories – 140 acre extinct

landfills/MRFs/asphalt plants and Northern Michigan properties with new capital investments of $25 Million

Act 381 – new eligible activities UST closure and remediation Due care Solid waste disposal Mold abatement and lead/mold/asbestos assessments Removal and disposal of many contaminated sediments Industrial cleaning/dust control Sheeting/shoring to remove contamination at MDEQ

permitted projects Legal and consulting fees to develop brownfield plans Brownfield and work plan implementation including data

tracking and reporting Limits found MCL 125.2663b(7)

Act 381 Other changes of note One time reset of initial taxable value – Section 2(y) Local Brownfield Revolving Fund – strengthened by

addition of MSF (non response activity) school taxes Clarifying limits on capture and that 3 mill capture

applies to these funds Ensuring that $ captured for LBRF < site utilized $ Tying plan initiation to completion of redevelopment

or 5 years from BRA resolution Requiring notice to developer of intended plan

termination

Thank You

Arthur Siegal Jaffe, Raitt, Heuer & Weiss, PC

248-727-1452 asiegal@jaffelaw.com