June 29, 2006

Governor Jennifer M. Granholm and Department of Environmental Quality Director Steven E. Chester today announced funds awarded to launch a brownfield redevelopment project in Grand Traverse County. The project will utilize a $1,000,000 Brownfield Redevelopment Grant and a $1,000,000 Brownfield Redevelopment Loan to address environmental concerns and facilitate the development of five properties in downtown Traverse City.

The funding was awarded as a part of Governor Granholm’s Jobs Today Initiative that will put thousands of Michigan residents to work through acceleration of construction and development projects. The project announced today is anticipated to create as many as 600 new permanent jobs in Traverse City.

"The brownfield redevelopment program is critical to Michigan's environmental progress and is an essential part of our economic plan," Granholm said. "We are providing Michigan’s cities with the tools needed to make their communities places where people are eager to work, live, and raise families."

The Traverse City Place Redevelopment Project will return three contaminated and abandoned properties to productive use along with two other properties now used for a small office building and a surface parking lot. The funding announced today will be used to investigate and dispose of contaminated soil and groundwater excavated during construction of three new mixed-use buildings, and to demolish the former Grand Traverse Auto building.

Following this work, private investment of over $76.7 million is anticipated for acquisition of the property, and construction of new commercial, retail, and residential buildings. The Downtown Development Authority will also invest $12 million in construction of a public parking deck at the west end of downtown Traverse City.

“We are pleased to help remove the barriers that stand in the way of redevelopment,” said Director Chester. “This project certainly demonstrates our commitment to protecting the environment while growing the economy throughout Michigan.”

The Brownfield Redevelopment Program provides funding to local governments for environmental response activities on brownfield properties where redevelopment is proposed. Brownfield properties are vacant or abandoned properties with known or suspected environmental contamination. The Brownfield Redevelopment Grant and Loan Program was initiated in 1988, and has provided over $125 million for 299 projects statewide.

Editor’s note: DEQ news releases are available on the department’s Internet home page at www.michigan.gov/deq.

“Protecting Michigan’s Environment, Ensuring Michigan’s Future”

Revised June 29, 2006 by Pat Watson