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City of Muskegon
Brownfield Redevelopment Authority
Application for Inclusion in the Muskegon Brownfield Plan
Introduction
The purpose of the City of Muskegon Brownfield Redevelopment Authority is to provide financial
incentives for economic development projects within the City of Muskegon where environmental
contamination, blight, or functional obsolescence create an impediment to redevelopment of
property. Inclusion of a project in the Muskegon Brownfield Plan can result in certain eligible
activities being financed through tax increment financing, or through providing the
developer/business (owner and/or lessee) with an opportunity to earn a Michigan Single Business
Tax credit based on the investment in the property. The statutory authorization for Brownfield
Authorities and Brownfield tax increment financing are found in Michigan's Public Act 381 of
1996, as amended, the Brownfield Redevelopment Financing Act. The statutory provisions
authorizing a Michigan Single Business Tax Credit for projects included in Brownfield Plans are
found in Section 38g (MCL 208.38g) of Public Act 228 of 1975, as amended.
What are the advantages of being included in the Muskegon Brownfield Plan ?
Single Business Tax Credit
Inclusion of a project in the Brownfield Plan will enable a developer/business to become eligible
to claim up to 10% of the cost of property improvements (demolition, construction, restoration,
alteration, renovation, or improvement of buildings, and the addition of machinery, equipment,
and fixtures) as a credit toward its Michigan Single Business Tax liability, up to a $1,000,000 tax
credit. This credit is subject to a pre-approval process conducted by the Michigan Economic
Development Corporation (MEDC). The credit is also transferable to lessees or a subsequent
owner, subject to the limitations provided in MCL 208.38g. The MEDC has instituted a "Notice
of Intent" process for projects that are interested in seeking a Brownfield Single Business
Tax Credit, or where tax increment financing through a Brownfield Plan is proposed to pay
for certain eligible activities, as noted below. It is important for an applicant to have
contacted MEDC through the NOI process before an amendment to the Brownfield Plan is
formally recommended to the Brownfield Authority. The NOI review process can occur
concurrently with the Brownfield Plan application process.
Tax Increment Financing
Inclusion in the Brownfield Plan also provides the City of Muskegon with the option of using tax
increment financing to reimburse a developer/business for "eligible activities". These may
include: 1) Environmental Response Activities, including Baseline Environmental Assessments,
Due Care Activities, and other response activities.
2) Demolition
3) Public Infrastructure Improvements
4) Site Preparation
5) Lead and Asbestos Abatement
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Do you want to be in the City of Muskegon Brownfield Plan?
First, you need to ask yourself the following questions:
1) Does any business involved in the development of the project (owners or lessees)
pay the Michigan Single Business Tax?
2) Is the property where the project proposed a "facility"? ("Facility" is defined by Part
201 of NREPA as property where the concentration of a hazardous substance in soil
or groundwater exceeds the applicable Michigan Generic Cleanup Criteria.)
3) Is a building on the property where the project is proposed considered "Blighted"?
Blighted is defined by P.A. 381 of 1996, as amended, as property that meets any of
the following criteria:
a) Has been declared a public nuisance in accordance with a local housing,
building, plumbing, fire, or other related code or ordinance;
b) Is an attractive nuisance to children because of physical condition, use, or
occupancy;
c) Is a fire hazard or is otherwise dangerous to the safety of persons or
property;
d) Has had the utilities, plumbing, heating, or sewerage permanently
disconnected, destroyed, removed, or rendered ineffective so that the
property is unfit for its intended use.
4) Is the property where the project is proposed considered "Functionally Obsolete"?
Functionally Obsolete is defined by P.A. 381 of 1996, as amended, as "unable to be
used to adequately perform the function for which it was intended due to a
substantial loss in value resulting from factors such as overcapacity, changes in
technology, deficiencies or super adequacies in design, or other similar factors that
affect the property itself or the property's relationship with other surrounding
property." The City would be involved in making this determination through a
qualified assessor.
If you answer yes to any of the questions above, the following steps should be taken.
1) Contact the City of Muskegon Planning & Economic Development Department (Cathy
Brubaker-Clarke, Director; 231-724-6702) to discuss your project. If the project is feasible
(appropriate development, proper zoning, eligible according to the applicable statute, etc),
you will be referred to our Brownfield Consultant.
2) Contact Muskegon's Brownfield Consultant to discuss project eligibility and to evaluate the
Brownfield incentives as they may apply to the proposed project (does it make sense for your
company to pursue this incentive, or are other avenues more appropriate?)
3) Once the decision is made to proceed to prepare an amendment to the Brownfield Plan, the
applicant then files an application to the City to be included in the Muskegon Brownfield Plan
(see Fees below). The City, its Brownfield Consultant, and the applicant will identify the
"eligible activities" that may be eligible for reimbursement through tax increment financing,
and/or the "eligible investment" that applies toward the Brownfield Single Business Tax (SBT)
Credit. Review and approval of eligible activities by the MEDC and/or the MDEQ will be
required if school operating taxes will be captured. The City (through its consultant) will then
prepare an amendment to the Muskegon Brownfield Plan. The proposed amendment to the
Brownfield Plan will be presented to the Brownfield Redevelopment Authority for approval,
then to the City Commission for a public hearing.
4) If approved by the Muskegon City Commission, the Brownfield Plan will be amended to
include the project.
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5) It will be the company's responsibility to work with the Michigan Economic Development
Corporation to take advantage of the SBT Credit authorized by the Brownfield Authority Plan.
6) If eligible activities are identified and approved for reimbursement through tax increment
financing, it will typically be necessary for the developer/business to pay the initial costs for
environmental clean up and other eligible activates, other than public infrastructure
improvements. The financing and reimbursement of "eligible activities" through the
Brownfield Plan will be addressed in a Development Agreement between the City and the
Developer/Business. The County Assessor will supervise the capture of taxes, which will be
used to reimburse the developer/business for the eligible costs incurred, in addition to any
negotiated interest.
Fees
There is an administrative fee for inclusion in the City of Muskegon Brownfield Plan. These costs
include mailings to taxing jurisdictions, two publications in the Muskegon Chronicle announcing
the public hearing and the consultant's expenses. The fee for inclusion in the Brownfield Plan
is $2,500 if the project is included in the plan only for the purpose of being eligible for a
Single Business Tax Credit. If tax increment financing for "eligible activities" is going to
be used, costs of the Brownfield Authority to prepare the Brownfield Plan and Work Plans
that exceed the $2,500 fee will be assessed to the Developer/Business after the Brownfield
Plan amendment is approved . Some of these costs may be reimbursed through tax increment
financing.
Process for Adoption of Brownfield Plan Amendment
I. Potential Brownfield Plan Amendment Applicant contacts the City of Muskegon
Department of Planning and Community Development regarding the City's interest in
helping to facilitate the proposed brownfield redevelopment project. If the project is
located in the City of Muskegon , and is a "facility" (as defined in Part 201 of the
Natural Resources and Environmental Protection Act, Act 451, Public Acts of Michigan,
1994, as amended), or is "functionally obsolete" or "blighted" , as defined by the
Brownfield Redevelopment Financing Act, Act 318 of 1996, as amended, and it appears
that the proposed project is consistent with the City's Master Land Use plan and any
associated plan, the company may be referred to the City's Brownfield Consultant.
II. The applicant contacts the City of Muskegon Brownfield Consultant and evaluates
whether inclusion in the Brownfield Plan is appropriate and beneficial to the proposed
development project. If it is, the applicant prepares and submits this Brownfield Plan
Application, (see Fees above). The Plan Amendment is then prepared by the Brownfield
Consultant. Time frame: 3-6 weeks, depending on what types of "eligible activities"
will be included in the Brownfield Plan .
III. The City schedules a Brownfield Redevelopment Authority Meeting. The Brownfield
Redevelopment Authority considers a resolution approving the Brownfield Plan
Amendment and, if approved, recommends approval to the City Commission. 2 weeks.
IV. The City Commission adopts a resolution providing notice to taxing jurisdictions and
setting a public hearing (the City Commission meets on the second and fourth Tuesday
of each month, agenda items must be prepared by the Tuesday prior to City Commission
meeting). 2 weeks.
V. The City publishes a notice of the public hearing twice in the Muskegon Chronicle (the
first publication of notice should be not less than 20 days nor more than 40 days prior to
the public hearing). The City sends notice of the public hearing to the legislative body of
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each taxing unit levying taxes subject to capture. The City Commission holds a public
hearing on the adoption of the resolution approving the Brownfield Plan (not less than 20
days after sending notice of the proposed Brownfield Plan Amendment to the taxing
jurisdictions). 4-6 weeks.
VI. If the City Commission approves the Brownfield Plan Amendment, the
Developer/Business will work with the Brownfield Consultant to develop an Act 381 work
plan for the "eligible activities". The Brownfield Authority submits the Act 381 to the
appropriate state agency (MDEQ for eligible environmental response activities, MEDC for
Demolition, Public Infrastructure Improvements, Site Preparation, Lead and Asbestos
Abatement) for review and approval.
VII. The City of Muskegon will notify the County Assessor of the Plan Amendment.
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City of Muskegon
Brownfield Redevelopment Authority
Application for Inclusion in the Muskegon Brownfield Plan
This application requests information that may be utilized to amend the "City of Muskegon
Brownfield Redevelopment Authority Brownfield Plan", as originally approved by the City
Commission of the City of Muskegon on April 14, 1998. Please complete the information
requested below and return to the Planning & Economic Development Department, City of
Muskegon. In order to process the application, a fee of $2,500 is required. If tax increment
financing to pay for "eligible activities" is requested, in addition to a Single-Business Tax Credit,
an additional fee may be assessed at the conclusion of the process (for costs that exceed
$2,500).
Applicant Information
Company Name (Developer/Business):
Contact Person and Title:
Contact Person Mailing Address:
Contact Person's Phone Number: Fax No.
Contact Person's E-Mail Address:
Project Information
Location of Eligible Property:
Legal Description/Parcel Number:
Property Ownership:
Current Use of Property:
Type of Brownfield Amendment Requesting: (Please check all that apply:)
Single-Business Tax (SBT) Credit ______
Tax Increment Financing for Eligible Activities
Is the proposed site a "facility" (as defined by Part 201)? (Please provide a copy
of the executive summary of any environmental reports available, such as a Phase I or II
Environmental Site Assessment, or Baseline Environmental Assessment.)
Is the applicant's property "blighted" (as defined by P.A. 381 of 1996)? (Please
provide supporting information.)
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Is the applicant's property "functionally obsolete" (as defined by P.A. 381 of 1996)?
(Please provide supporting information.)
Does the applicant's business pay the Michigan Singe Business Tax?
Proposed Development Project Description
Description of Proposed Project (Please include overall project description, including estimates of
capital investment and job creation/job retention. Also describe any elements of the project which
may entail sustainable development principles, such as site reuse, greenspace preservation,
smart growth, stormwater design, green roofs, etc.) Describe the public benefit that will result
from completion of this project. Provide a site plan or renderings of the development site and
improvements. Informational depictions and narratives relative to the size of buildings, acreage
and general site improvements like parking, landscaping, etc. are desired.
Project Timetable.
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Development Costs Estimates
Eligible Activities (for tax increment financing) Estimated Costs Start/End Date
Phase I & II Environmental Site Assessment
Baseline Environmental Assessment
Due Care Response Activities
Additional Response Activities
Demolition
Lead Abatement
Asbestos Abatement
Public Infrastructure Improvements (This estimate should be coordinated
(Infrastructure improvements that directly with the City)
benefit the project, such as public streets,
sidewalks, parking facilities, sewer and water)
Site Preparation
(Activities necessary to prepare site for construction
including relocation of utilities, addition/removal of soils,
clearing and grubbing, land balancing/grading; foundation
to address special soil concerns)
TOTAL ELIGIBLE ACTIVITY COSTS
Eligible Investments (for SBT Credit) Estimated Costs Start/End Date
Site Improvements
(Clearing land; adding sewer, water
lines, or other utilities; landscaping;
soil addition/removal; fencing; lighting;
walkways, driveways, or parking lots;
related site improvements.)
Construction, Restoration, Alteration,
Renovation, or Improvements of Buildings
Addition of Machinery, Equipment, and
Fixtures
TOTAL ELIGIBLE INVESTMENTS
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Project Financing
Describe Project Financing; Explain sources and amount of financing that will be used to support
the project. Why does the project need incentives? Are there increased costs related to the
project that would otherwise not be a part of this project if located in a greenfield? Are there
market conditions or site conditions that make investment at the project location difficult?
Additional Information
Describe any other factors that should be considered in evaluating this project.
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