August 8, 2006

Governor Jennifer M. Granholm and Department of Environmental Quality Director Steven E. Chester announced today that funding has been awarded to the Genesee County Land Bank Authority to facilitate the redevelopment of six brownfield sites in Genesee County. The funding includes a $164,000 Brownfield Redevelopment Grant and a $376,000 Brownfield Redevelopment Loan, and will support Governor Granholm’s Cities of Promise Initiative.

The funding announced today will be used to more thoroughly investigate suspected sources of contamination and to perform the necessary environmental activities required to enable reuse of the properties. The six sites have plans in place for new commercial redevelopment, including converting the Berridge Hotel into a mixed-use development that will include condominiums, lofts, commercial space, and an art studio and gallery. The redevelopment of these six sites will result in an estimated $6,480,000 in private investment and create as many as 70 new jobs in Genesee County.

"Returning abandoned and contaminated properties to a productive use is critical to Michigan's environmental and economic progress and is a key component of my economic plan," Governor Granholm said. "We want to provide Michigan's cities with as many tools as possible to make their communities places where people are eager to work, live, and raise families."

This project marks the first time Brownfield Redevelopment Grant and Loan funds have been awarded to the Genesee County Land Bank Authority. The land bank model transfers abandoned and tax delinquent properties from local governments to public land banks that can redevelop and sell the properties to nonprofit agencies, private homeowners, neighborhood associations, and others. Proceeds from those sales and collected tax penalties support the acquisition and redevelopment of additional vacant properties. The goal of a Land Bank Authority is to promote property renovation, enhance neighborhoods, and strengthen communities.

“The DEQ is pleased to partner with the Genesee County Land Bank as they undertake an aggressive plan to return properties throughout the region to productive use,” said Director Chester. "These innovative efforts will create a healthy environment and a stronger economy for the region."

The Brownfield Redevelopment Grant and Loan Program provides funding to local units of government for environmental response activities on brownfield properties where redevelopment is likely or proposed. Brownfield properties are vacant or abandoned properties with known or suspected environmental contamination. The Brownfield Grant and Loan Program was initiated in 1988 and has provided over $126 million for 300 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 August 8, 2006 by Pat Watson