MI New Economy
The Brownfield Bridge Fund awards will provide a benefit equivalent to a performance-based grant to the developer. However, subject to federal guidelines, there could be a tax increment repayment component on some projects that will result in a sustainable revolving source of funding for similar projects in the future. The program compliments the existing Brownfield Tax Increment Financing (TIF) Program and responds to stakeholder requests for more tools to support development of these highly-challenged sites, alleviating the need to privately finance costs associated with alleviating brownfield conditions.
Transformation of brownfield sites into new housings and employment will result in stronger and healthier neighborhoods and communities. The program will support developing affordable and attainable housing, and will also address industrial space shortages. The number of housing units created and square feet of industrial space added will be measured alongside total private investment. Research shows Michigan Strategic Fund (MSF)-supported community development projects results in increased property values for the subject property and surrounding properties, and that every dollar invested by the MSF results in $6.18 in increased property values. With the initial $200 million invested by the MSF, we would expect to see nearby property value increases of $1,236,000,000. By leveraging private investment, removing blight and being a catalyst for nearby investment, this program will result in new property tax revenue to the local communities, school districts and to the state that will support multiple public services. It is also anticipated the program will result in new residential units to support at least 3,700 households.