The change allows greater coordination of brownfield credits with other economic development efforts, Gov. Jennifer Granholm said. Previously, the MEDC had authority only in brownfield projects with more than $10 million in private investment.
"Because of the increased popularity of the brownfield program, we had to re-examine its administration and application requirements to make sure we get the best value for the state's investment," said Granholm, a first-term Democrat.
"In putting all of the Brownfield tax credits into one complete program we can better ensure that the state's economic goals of community revitalization and job creation remain top priorities."In the past, the Michigan Department of Treasury administered brownfield SBT credit requests involving projects with under $10 million in private investment. The requests were processed on a first-come-first-served basis. As the demand for the credits has begun to outstrip the limited number allowed by statute, the Governor recognized a need to prioritize projects to assure that those with the greatest impact on the community are approved.
The MEDC, through the Michigan Economic Growth Authority, will now decide on all brownfield SBT applications.
"Reusing the state's Brownfield sites is essential to the continued economic vitality of the entire state," said David Hollister, director of the Michigan Department of Labor and Economic Growth and chair of the MEGA board. "It is important that we use this valuable program efficiently to help bolster the manufacturing industry and curb urban sprawl."
Credits will be awarded to projects that best meet the following criteria:
* The host community must make a reasonable contribution to the project through local funding sources including tax increment financing (TIF) and property tax abatements;
* The project supports the development of "cool cities" promoting redevelopment in core communities and downtown areas;
*Reusing existing facilities and preserving and creating new jobs;
* The qualified project must also demonstrate the critical need for the SBT credit proving that all other forms of financing have been exhausted and that the project would not happen without the credit.
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