Projects Will Spur More Than $100 million in Private Investment
Redevelopment plans for five contaminated, functionally obsolete or blighted areas are now underway thanks to assistance from the Michigan Economic Development Corporation.The new development projects will take place in the Cities of East Lansing, Kalamazoo, Traverse City and Monroe.
These projects were made possible because of recent changes to the Brownfield Redevelopment Financing Act that expanded the brownfield definition to functionally obsolete or blighted properties in 88 core communities.The change also allowed the use of tax increment financing for infrastructure improvements, demolition, site preparation and lead and asbestos removal on eligible property.
“These projects clearly demonstrate the positive impact of the brownfield act changes,” said Doug Rothwell, president & CEO of the Michigan Economic Development Corporation.“These five areas, which probably would not have been considered for large investments before, are now on the road to redevelopment.”
The projects that received approval today for a Single Business Tax credit or tax capture include:
·City of East Lansing:City Center Partners, LLC plans to invest about $14.5 million in a downtown East Lansing redevelopment project.The project involves redeveloping the former Jacobson building, a functionally obsolete building.The second and third floor of the building will be renovated for high-tech office users, in conjunction with the SmartZone designation.The first floor of the building will be used for retail development.City Center Partners, LLC also will demolish the buildings to the east and west of Jacobson to construct high-end condominiums.It is estimated that about 600 jobs will be created as a result of this project. City Center Partners, LLC has received approval today for a brownfield Single Business Tax credit of 10 percent of the eligible investment in the project or up to $1,445,000.This project will diversify downtown East Lansing, especially through the addition of the downtown’s first higher-end housing, attracting adults and families to this urban center.
·City of Kalamazoo: A blighted site on the Willard/Wallbridge Block, within the City of Kalamazoo, will soon be home to a new facility for One Way Products, Inc., a manufacturer of water-based cleaning compounds.The company plans to construct a 20,000 square foot production facility.In order to make this project a reality, public infrastructure improvements are required.These improvements including sanitary sewer, water, storm sewer and sidewalk additions will cost $12,265.The Kalamazoo Brownfield Redevelopment Authority received approval today to capture up to $12,265 in state and local property taxes to fund the infrastructure improvements.This project is anticipated to retain 20 jobs, create 12 news jobs and result in a private investment of about $800,000.
·Traverse City: The Grand Traverse County Brownfield Redevelopment Authority is planning two projects in Traverse City.
oThe first project involves the redevelopment of several lots and buildings in downtown Traverse City considered contaminated sites.The project involves the construction of a new four level parking deck as well as new retail and office space expected to house about 200 workers.This project is seen as a major catalyst for the continued redevelopment of downtown Traverse City.The total cost of the redevelopment project is about $24 million.The Grand Traverse County Brownfield Redevelopment Authority received approval today to capture up to $3,014,059 in state and local property taxes for infrastructure work involved in this project.
oThe second project is a private development of several contaminated vacant lots along the Boardman River in Traverse City.This project is a mixed-use development comprised of several new buildings.The project also includes an expanded riverwalk, streetscapes, sidewalks and pedestrian pathways.This attractive redevelopment will better utilize the expanded riverside area.The total cost of this redevelopment is about $60 million.The Grand Traverse County Brownfield Redevelopment Authority received approval to capture up to $3,515,013 in state and local property taxes to fund infrastructure work involved in this project.
·City of Monroe: The Monroe Brownfield Redevelopment Authority is planning a retail development on eight contaminated parcels on the corner of Telegraph Road and West Front St.The project involves the construction of a 97,000 square foot neighborhood shopping mall.The developer will invest about $8.4 million in this shopping mall.The Monroe Brownfield Redevelopment Authority received approval for the work plan to capture up to $610,110 in state and local taxes to help fund this project.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.