
Tax Increment Financing (TIF) Legislation Transformational Brownfield Plan
Legislation to assist "Transformational Projects" (those big projects that can change the vitality of an urban area) has been introduced in the Michigan Senate. We are competing nationally to retain and attract young people to the next generation of jobs.
Currently, Michigan ranks 46th in the nation in the percentage of 25-34 year olds in our population, despite having one of the greatest university systems in the nation. We know that we continue to lose far too many of our best and brightest college graduates that we must keep in order to win the race for talent, investment and growth.
However, urban areas; where young people gravitate for jobs and housing, are the most difficult to redevelop. Especially in a city like Saginaw, which used foundry sand to construct building and housing. The entire city is a Brownfield.
Federal EPA regulations on Brownfield clean-up is a major hindrance in redevelopment and is one of the biggest reasons developers run away from urban redevelopment projects.
This legislation will add a new category to the Brownfield TIF Act for large-scale, transformational projects. It allows for capture of part of the incremental sales tax and residential income tax generated from within the footprint of the project in order to make the development possible. If passed, the Transformational Legislation would apply to mixed-use projects (housing/retail/office in one complex) and there would be a strict minimum dollar investment threshold. In addition, the number of transformational projects allowed each year would be limited.
With the current redevelopment occurring in Saginaw (new Delta College Downtown campus, new Farmer's Market, CMU Medical School, FirstMerit Bank Event Park and the Bancroft and Eddy Buildings), a transformational project could be the catalyst to a vibrant downtown and city and help mitigate the risk/cost a developer faces.
The Saginaw County Chamber of Commerce fully supports the legislation as it moves from committee to the Senate Floor and on to the House of Representatives and is working with Saginaw Future to garner support for the legislation.
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Questions?
As you see, the Saginaw County Chamber of Commerce is at the forefront of all things legislative, policy and political. We strive to work for you, our members, to support legislation and candidates who will work to create an environment that will help your business grow and thrive!
As always, please feel free to contact Bob Van Deventer, President & CEO at 989-752-7161 or email him at Bob@SaginawChamber.org. |
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