Community Assistance

Brownfields

Web page content last revised: June 28, 2010

Michigan's brownfield redevelopment efforts are considered the premier model for the country. Properties in the not-so-distant past that were considered lost forever are now being actively pursued for revitalization. In Michigan, brownfields are considered properties that are either contaminated, blighted or functionally obsolete. Brownfield sites can be found in cities with long histories of heavy industry, large-scale manufacturing activity and also in small towns and rural areas in Michigan. Revitalization of brownfields is critically important to communities throughout Michigan.

Additional MEDC Brownfield Documents Coming Soon:

Brownfield MBT Credit - Eligible Investment Guidance (projects approved after April 8, 2008)

Brownfield Program Overview

The Michigan Economic Development Corporation (MEDC) recognizes the importance of supporting the redevelopment of Brownfield’s across this great state of Michigan! As the non-environmental side of Michigan’s Brownfield redevelopment program, the MEDC is aggressively involved in the promotion and redevelopment of Brownfield properties. The MEDC is a critical partner to communities in the redevelopment of these once forgotten properties that were considered unmarketable due to their perceived contamination or, in most cases, lightly contaminated condition. To that end, the MEDC has developed a formalized Brownfield Program which is designed to:

Address existing Brownfield conditions on sites in order to make them competitive with comparable Greenfield sites.
Address weak market conditions, high risk and other negative business factors that prevent the redevelopment of Brownfield property.
Spur private development activity and investment on Brownfield sites, particularly in urban areas.

The MEDC is the State of Michigan’s economic development agency and through our team of technical and economic professionals, the MEDC offers personalized services to help guide local governmental officials, prospective developers and businesses through the Brownfield redevelopment process. In addition, the Brownfield Program at the MEDC is responsible for administering two primary incentive programs under the direction of the Michigan Economic Growth Authority (MEGA) Board:

Brownfield Tax Increment Financing (TIF) Plans – Under a locally approved Act 381 Work Plan and Brownfield Plan, we review and approve of the non-environmental Eligible Activities and their costs including demolition, lead and asbestos abatement, infrastructure improvements, and site preparation. TIF allows a local governmental unit to use the increased tax revenue resulting from the Brownfield project and share it with the developer to help offset the costs of the environmental and possibly non-environmental Eligible Activities.
Brownfield MBT Credits - Developers and companies that invest and redevelop eligible Brownfield properties are eligible for up to a 12.5% credit (20% for Urban Development Area Projects) against their Michigan Business Tax liability on Eligible Investment created in Michigan. Many developers do not have enough MBT liability to use a credit and in those situations they may either assign the credit to a third party with the MEDC’s approval, sell the credits in the open market or apply for a refunded at the rate of 85%.

In most cases, Brownfield properties are eligible for one or both of these economic development incentive tools. The incentives administered by the MEDC have lead to higher private investment, job creation and the cleanup/improvement of the Brownfield conditions at these sites. These activities are completed throughout the state and in coordination with the Community Assistance Team, the Michigan Department of Natural Resources and Environment (DNRE) and the Michigan State Housing Development Authority (MSHDA) Brownfield and redevelopment programs.