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The Michigan Community Revitalization Program (MCRP) is an incentive program available from the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation (MEDC). The focus of the MCRP is to encourage and promote structural renovations and redevelopment of brownfield and historic preservation sites located in traditional downtowns and high-impact corridors. MCRP provides gap financing in the form of performancebased grants, loans, or other economic assistance for eligible investment projects in Michigan.
A person or multiple persons may apply to the MSF for approval of MCRP incentives associated with a project.
Any property meeting one or more of the following conditions (MCL 125.2090a[e]):
MSF support for a single project shall not exceed 25% of the eligible investment, and in no event shall the MSF support exceed a total of $10,000,000 for any project (including any combination of loan, grant or other economic assistance). However, in a city, village, or township with a population of 15,000 or less (based on the most recent federal decennial census), the amount of community revitalization incentives for a project shall not exceed 50% of a project's eligible investment up to $10,000,000. Additionally, the statute also allows that annually the MSF or its delegates may consider support for up to three single projects that shall not exceed 50% of the eligible investment for the specific purpose of historic preservation. Further, no part of the MSF support that is in the form of a grant shall exceed $1,500,000 for any project.
The MSF shall consider the following factors (as applicable) when considering a project for MSF support:
MSF support shall be memorialized by final written grant, loan or other economic assistance agreements, with terms and conditions in accordance with state law, these guidelines and otherwise satisfactory to the MSF, including, without limitation, requiring performancebased milestones which shall govern disbursements; and requiring periodic reporting of data, financial information, and any other information required to facilitate reporting to the MSF and the Michigan legislature, including periodic reporting after completion of a project.
The program may require applicants to pay reasonable application fees, and any other expenses incurred in administering the award.
All projects are subject to an application and due diligence process conducted by the MEDC. The following steps are examples of typical steps, timelines and responsibilities.
Step 1: Contact your local community for review and evaluation. If support is confirmed at local level, contact Community Assistance Team (CATeam) specialist for review and evaluation of the project. If the project evaluation is determined to meet the criteria of the MCRP, the applicant shall complete a pre-application and provide specific supporting documents.
Step 2: Following submissionofthe pre-application and supporting documents, the project will undergo a needs analysis and MEDC leadership will consider the project based on Community Development Guidance standards and financial need.
Step 3: If appropriate, the MEDC will provide a letter of interest (LOI) for the project. Along with the LOI, the applicant is provided with a list of the required financial due diligence and statutory requirements needed to move the project forward within a specified time period.
Step 4: Applicant provides a final application package with all supporting documents.
Step 5: MEDC completes statutory review, full financial review and provides proposed financial structure and term sheet.
Step 6: Michigan Strategic Fund Board considers the project.
Step 7: Upon approval the applicant pays any required pre-closing fees.
Step 8: The MEDC drafts appropriate legal agreements and agreements are executed at closing.
Step 9: Applicant completes milestones necessary for disbursement of funds by the MEDC.
Step 10: Applicant completes all required reporting.
Step 11: MEDC completes compliance verification and project closeout.
MEDC is Here and Ready to Help
When it comes to your business, we’re always open. Give us a call to learn more about the Michigan Community Revitilization Program.Contact MEDC