Michigan Economic Development Corporation

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Michigan Economic Development Corporation

• Kara Wood
• Community Assistance Team Specialist

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CDBG Funding Programs

• Economic Development Infrastructure
• Downtowns and Gateways
• Economic Development Planning
• Public Works

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CDBG Funding Programs

• Grow Michigan Business Fund
• Discretionary Economic Development Grants
• Michigan State Housing Development Authority
  (MSHDA)
• Broadband Telecommunications Development

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Economic Development Infrastructure

• Infrastructure improvements for the location,
  expansion or retention of a for-profit business
• 21 private to public ratio
• 10,000/job, 51 low/mod individuals
• 10 or more local contribution

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Downtown and Gateways

• Grants to provide public infrastructure
  improvements necessary for the location,
  expansion or retention of a for-profit business
  located in the downtown or gateway of the
  community
• 21 private to public ratio
• 20,000/job or less, 51 low/mod
• 10 or more local participation

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Economic Development Planning

• Planning grants to help communities accomplish
  project specific, public planning and design work
  which will lead to an eligible economic
  development project of which are 51 low/mod
• 50/50 match

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Public Works

• Grants for public infrastructure improvements
  that upgrade existing infrastructure systems by
  replacing deteriorating or obsolete systems or by
  adding needed capacity.
• Benefit Low/Moderate Income Residents
• Local Matching Funds
• Project Timing
• Maximum Grant Amount 1million

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Brownfield Redevelopment

• Brownfield Incentives can be used assist
  communities with redeveloping problematic site
  and make sites more competitive with greenfields.
• MEDC Account Manager-industrial/manufacturing
• MEDC CATeam-downtown/commercial

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Eligible Property

• Non-Core Communities
• Contaminated Property
• Core Communities
• Contaminated Property
• Blighted Property
• Functionally Obsolete Property

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Brownfield Program Incentives

• Tax Increment Financing
• Local
• State
• Single Business Tax Credits

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Tax Increment Financing

• Eligible Activities
• Non-Core Communities
• ?Baseline Environmental Assessment, Due Care,
• Additional Response Activities.
• Core Communities
• ?Baseline Environmental Assessment, Due Care,
• Additional Response Activities.
• ?Public Infrastructure
• ?Demolition
• ?Site Preparation
• ?Lead and Asbestos Abatement

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Small SBT Credits

• MEGA Chair Approved Credits
• - Credits equal to 10 of eligible investment
• - Credit cannot exceed 1 million
• - MEGA Chair can approve 30 million credits per
  calendar year
• Remaining Credits 2005 18 million

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Large SBT Credits

• MEGA Board Approved Credits
• - Credits exceeding 1 million (up to 10 of
  eligible investment
• - 15 credits per year, 3 of 15 credits can
  exceed 10 million, but less than 30 million
• - 3 of 15 can be in non-core community (site
  must be a facility)
• Remaining Credits 2005 All Credits have been
  committed

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Program Criteria
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Brownfield Program

• MEDC is administering the program on behalf of
  the MEGA Chair, who has approval authority for
  small credits
• NOI process
• Demand for credits exceed supply so projects will
  no longer be approved on a first come, first
  served basis, but rather using evaluation
  criteria
• Projects will be reviewed on a case-by-case basis
• Any other criteria that the Michigan Economic
  Growth Authority considers appropriate for the
  determination of eligibility PA 381 of 1996

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Brownfield Program Criteria

• Significant local financial contribution (i.e.
  local TIF)
• Project supports Cool Cities initiative,
  redevelopment of downtown/near-downtown areas and
  revitalization of Core Communities
• Projects requiring additional incentive after TIF
  mitigation of Brownfield conditions in order to
  accomplish re-use of building or property

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Brownfield Program Criteria

• Lowest priority projects
• Lack substantial improvement to real property or
  existing environmental conditions
• Are not consistent with community master planning
  and zoning
• Dont spur other non-subsidized growth in the
  community

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Brownfield Program Criteria

• Project plans must address conditions that
  qualify the project as a Brownfield
• Project supports Manufacturing Matters
  initiative and re-uses existing facilities

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Brownfield Program Results(Since June 2000)

• 52 SBT credits have been authorized by MEGA
• Total eligible investment of 3.7 billion
• Total credit SBT awards of 281.2 million
• 61 Brownfield Work Plans have been approved by
  MEGA
• Total approved amount of TIF capture (State
  Local) of 194.2 million

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Muskegon Brownfield Project

• Mixed use project involving the rehabilitation of
  a former manufacturing facility on a seven acre
  parcel
• Approximately 300 units of residential housing
  and over 100,000sf of retail and commercial space
• Facility in a Renaissance Zone
• 7,990,429 Total Eligible Investment
• 799,043 SBT Credit

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Before
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Before
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After
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After
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Urban Land Assembly

• Loan Program Fund created to assist eligible
  cities and villages with financing land
  acquisition in support of economic development
  projects
• Current balance 2.1M, of which 50 is available
• Preference is given to proposals that identify an
  immediate user, leverage non-state financial
  contributions, stimulates job creation and
  private investment

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Urban Land Assembly

• Eligible Communities
• Must meet one of the following
• Local Unemployment Rate gt70 of State
  Unemployment Rate
• Local Population lt75 of States Population
  Growth
• Local SEV Growth lt50 of States Growth

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Urban Land Assembly

• Eligible Fund Uses
• Property acquisition
• Demolition
• Relocation and site improvements
• Pre-application costs are not eligible project
  costs

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Urban Land Assembly

• Eligible Projects
• Industrial Projects
• Land acquired must be at least 10 acres in size,
  unless a community can document the critical
  nature of a smaller land purchase
• Commercial Projects
• Land must be located in a Downtown Development
  Authority District
• Projects must meet size and economic impact
  guidelines

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Cool Cities Update

• NOIs Received
• 50 Neighborhoods in Progress
• 18 Blueprints for Michigans Downtowns
• 3 Blueprints for Michigans Neighborhoods
• 10 Michigan Main Street

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Cool Cities Review Process

• Invited applications due April 29th
• Site visits and review of projects May-June
• Awards in late June

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CDBG Workshops

• Workshop discussions will include
• Use of funds and MEDC policies on uses
• Qualifying projects
• Public Works program
• Downtown and Gateways program
• Economic Development Infrastructure and Planning
  programs
• Local Revolving Loan Fund (RLF) issues and
  guidance
• Linking CDBG with other MEDC programs

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Locations

• April 13, 2005 Ramada Inn
• 8 AM-1 PM Marquette
• April 14, 2005 Holiday Inn
• 8 AM-1 PM Grayling
• April 20, 2005 Sheraton Inn
• 9 AM- 230PM Lansing