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MSF Brownfield Site Investment Program

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MSF Brownfield Site Investment Program

Please note: Additional program documents will be added in the future. If you have any questions, please reach out to Lori Mullins or Rob Garza. 

Program Guidelines

  1. The Brownfield Redevelopment Financing Act, Act 381 of 1996, as amended (“Brownfield Act”) created the state brownfield redevelopment fund into which certain monies captured from school taxes from brownfield work plans are deposited. The Brownfield Act directs the MSF to create and operate a loan program to fund eligible applicants to support certain eligible activities on eligible properties, each as defined by the Brownfield Act. The purpose of the Brownfield Site Investment Program is to provide a loan to local communities to prepare brownfield sites for redevelopment (“MSF Support”).

  2. Eligible applicants are brownfield redevelopment authorities (BRA) or any village, city, township, or county served by a local brownfield authority.

  3. Specific non-environmental eligible activities undertaken for a project must occur on eligible property. The following eligible activities may be considered:
    • Demolition of structures that is not a response activity;
    • Lead, asbestos, or mold abatement that is not one or more of department specific activities;
    • Infrastructure improvements that directly benefit eligible property;
    • and Site preparation that is not a response activity
       
  4. Preference will be given to projects that include one of more of the following:
    • Preparation of a priority Redevelopment Ready Site within a Redevelopment Ready Community (RRC) certified or engaged community.
    • Demolition or remediation activities permitted under the that allow out-of-use publicly owned buildings or sites to be repurposed, as long as the removal of said buildings or proposed changes in land use are part of a publicly approved Master Plan or other municipal development plan.

  5. Requests for MSF Support shall include submission by an applicant of:
    • An administratively complete application which completeness is as determined by the MEDC Brownfield Staff;
    • A complete description of work to be funded by the loan; and
    • A complete description with anticipated timeline of the proposed future use of the site as supported by a local master plan or other municipal development plan.
    • A Brownfield Plan that includes the proposed eligible property and eligible activities that has been approved by the local governing body where the project is located.

      The Brownfield Plan:
      • Must contemplate a future development of the site and include estimated taxable value and potential land uses that would be supported by the local master plan, zoning, and any locally supported redevelopment strategy.
      • Must include eligible activity costs that are proposed to be undertaken with proposed loan funds.
      • Must be amended once a project is identified to include the scope of the identified project, potential additional eligible activities to support the development, and Tax Increment Financing Table.

    • An explanation and relevant copies thereof, of the proposed charter or other governing authorit(ies) upon which the applicant relies empowering it to issue a note or other bond payable to the MSF, and the proposed charter or other governing authority and identified source(s) of funding, and relevant copies thereof, upon which the applicant relies for its repayment obligations to the MSF. 

  6. Approval of MSF Support does not infer that the MSF will approve a future Work Plan for the project; however, a Work Plan may be considered for MSF consideration once a project is identified.

  7. MSF Support for a single project will be limited to a maximum of $1,000,000, subject to MSF approval and available program funding. 

  8. MSF Support shall be performance based.  Loans may include flexible terms and conditions, and the loan recipient, under certain conditions, may request the loan be extended or converted to a grant.

  9. When considering a project for MSF Support, consideration shall include, but is not limited to, the following to the extent reasonably applicable to the type of proposed project, and any other considerations satisfactory to the MSF:
    • The overall benefit to the public;
    • The extent of reuse of vacant buildings and redevelopment of blighted property;
    • Whether the eligible property is in an area of high unemployment;
    • Whether the proposed activities and proposed future use align with local Master Plan or development plan;
    • Whether the proposed activities and proposed future use are competitive for funding based on the project considerations included in the MSF approved and amended Brownfield Tax Increment Financing MSF Program Guidelines; and
    • Any other criteria that the MSF considers appropriate for the determination of eligibility or for approval of the grant/loan application;

  10. The MEDC shall provide administrative services to the MSF for the program.

  11. All MSF Support shall be memorialized by a final written loan agreement, with terms and conditions in accordance with these guidelines and otherwise satisfactory to the MSF, including without limitation, requiring performance based milestones; and requiring periodic reporting of data, financial information, and any other information required to facilitate reporting to the MSF Board and the Michigan legislature, including periodic reporting after completion of a project.

  12. All decisions for MSF Support, including any exceptions to these guidelines, are subject to approval of the MSF Board, and all decisions for MSF support in an amount of $1,000,000 or less may be authorized by the MSF Chairperson or the MSF Fund Manager, with only one required to act. A summary of the MSF Support authorized by the delegates shall be reported to the MSF Board on a quarterly basis.

Appendix A – Definitions

  • Eligible Activities – As defined in section 2(o) of Michigan Public Act 381 of 1996
  • Eligible Property – As defined in section 2(p) of Michigan Public Act 381 of 1996
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