ADOPTED - FEBRUARY 12, 2008
Agenda Item No. 15
Introduced by the County Services and Finance Committees of the:
INGHAM COUNTY BOARD OF COMMISSIONERS
RESOLUTION APPROVING AN AMENDMENT
TO THE INGHAM COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY
BROWNFIELD PLAN FOR SHAW’S ON NEWTON LLC AND INGHAM COUNTY LAND BANK FAST TRACK AUTHORITY
RESOLUTION #08-023
WHEREAS, the Ingham County Brownfield Redevelopment Authority recommends approval of an amendment to the Ingham County Brownfield Authority Brownfield Redevelopment Plan for the redevelopment of five parcels of property in Meridian Charter Township, Michigan, tax ID numbers 33-02-02-04-201-002, 33-02-02-04-201-003, 33-02-02-04-201-004, 33-02-02-04-251-002 and 33-02-02-04-251-001 (the “Property”) containing 13.7 acres, into a combination retail, commercial and multi-unit residential development and provides the following resolution to the Ingham County Commissioners; and
WHEREAS, Ingham County created the Ingham County Brownfield Redevelopment Authority (ICBRA) by resolution #01-279 in September 2001 pursuant to PA 381 of 1996, as amended (the Act) in order to promote the redevelopment of environmentally distressed, functionally obsolete, and/or blighted areas of the County; and
WHEREAS, the ICBRA has met and recommended approval of a Brownfield Plan amendment named the Shaw’s on Newton LLC and Ingham County Land Bank Fast Track Authority Plan to restore the environmental and economic viability of contaminated and blighted properties in Meridian Township in Ingham County; and
WHEREAS, the ICBRA reviewed the Plan Amendment in accordance with the Act and finds that the Plan: meets the requirements of Section 13 of the Act, and the proposed method of financing the costs of the eligible activities is feasible, and the costs of eligible activities proposed are reasonable and necessary to carry out the purposes of the Act, and the captured taxable value amount estimated to result from the Plan’s adoption is reasonable and the Plan, in accordance with the Act, constitutes a public purpose; and
WHEREAS, on January 22, 2008 the County of Ingham Commissioners set a public hearing at least twenty days before the meeting at which this resolution is being considered and provided notice to and fully informed all taxing jurisdictions which are affected by the Plan Amendment about the fiscal and economic implications of the proposed Financing Plan and provided them a reasonable opportunity to express their views and recommendations on the Financing Plan and in accordance with Sections 13(10) and 14(1) of the Act; and
WHEREAS, the Ingham County Board of Commissioners desire to proceed with approval of the Plan.
THEREFORE BE IT RESOLVED, pursuant to the authority vested in the Ingham County Board of Commissioners by the Act, and pursuant to and in accordance with the provisions of Section 14 of the Act, the Plan is hereby approved in the form attached as Exhibit A to this Resolution.
ADOPTED - FEBRUARY 12, 2008
Agenda Item No. 15
RESOLUTION #08-023
BE IT FURTHER RESOLVED, should any section clause or phrase of this resolution be declared by the Courts to be invalid, the same shall not affect the validity of this Resolution as a whole nor any part thereof other than the part so declared to be invalid.
COUNTY SERVICES: Yeas: Nolan, De Leon, Copedge, Soule, Severino
Nays: Grebner Absent: None Approved 2/05/08
FINANCE: Yeas: Hertel, Weatherwax-Grant, Celentino, Schor, Dougan
Nays: Grebner Absent: None Approved 2/11/08
ATTACHMENT A:
AMENDMENT TO THE COUNTY OF INGHAM BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN
Shaw’s on Newton, LLC
and Ingham County Land Bank Fast Track Authority
Project Summary
Shaw’s on Newton, LLC and the Ingham County Land Bank Fast Track Authority (collectively “Developers”), plan to redevelop five parcels of property in Meridian Charter Township, Michigan, tax ID numbers 33-02-02-04-201-002, 33-02-02-04-201-003, 33-02-02-04-201-004, 33-02-02-04-251-002 and 33-02-02-04-251-001 (the “Property”) containing 13.7 acres, into a combination retail, commercial and multi-unit residential development. The project will require demolition of existing buildings, site preparation, due care, environmental response activities and public infrastructure improvements. The project will create both temporary construction jobs and new permanent jobs. It will reuse a contaminated site and will provide a significant increase to the Township’s tax base.
Basis of Eligibility
The Property is contaminated with 1,2,4-trimethylbenzene in the soil and lead in the groundwater exceeding the generic residential cleanup criteria of Part 201 of the Natural Resources and Environmental Protection Act (“NREPA”). Therefore, the Property is “eligible property” as defined by the Act because it has been determined to be a “facility” as defined in Part 201 of the NREPA as a result of the described contamination.
Required Elements of Brownfield Plan
33 A description of costs intended to be paid for with the tax increment revenues. (MCLA 125.2663(1)(a))
Developers will seek tax increment financing from local taxes (all taxes other than school operating and state education taxes) for eligible activities at the Property including Baseline Environmental Assessment (BEA), due care activities, additional response activities and Michigan Public Act 381 work plan preparation totaling $7,262,378, which includes interest at the annual rate of 7% percent.
Table 1 below presents estimated costs of the eligible activities for this project which qualify for reimbursement from tax increment financing.
|
Table 1 – Eligible Activities |
|
|
Task |
Cost Estimate |
|
|
1. Site preparation |
$ 1,046,000 |
|
|
2. Public infrastructure |
$ 1,930,000 |
|
|
3. Demolition |
$ 108,000 |
|
|
4. Due care activities |
$ 75,000 |
|
|
5. Contingencies (15%) |
$ 474,000 |
|
|
6. Interest |
$ 3,629,378 |
|
|
7. Administrative fees (including County BRA’s incurred costs for BEA activities including Phase I, Phase II, Environmental Site Assessments, and a BEA ) |
$ 422,333 |
|
|
Total |
$7,684,711 |
|
33 A brief summary of the eligible activities that are proposed for each eligible property. (MCLA 125.2663(1)(b))
“Eligible activities” are defined in the Act as meaning one or more of the following: (i) baseline environmental assessment activities; (ii) due care activities; and (iii) additional response activities. In addition, for eligible property owned or under the control of a land bank fast track authority, the Act includes the following additional activities under the definition of “eligible activities”: (A) infrastructure improvements that directly benefit eligible property; (B) demolition of structures that is not response activity under Part 201 of NREPA; (C) lead or asbestos abatement; and (D) site preparation that is not response activity under Part 201 of NREPA.
The cost of eligible activities are estimated in Table 1 above and include the following:
1. Site Preparation. Site preparation activities will include excavation, clearing and grubbing, mass grading, cut and fill, engineering and design fees, etc.
2. Public Infrastructure Improvements. Public infrastructure improvements are required including road construction, sidewalks, extension of water and sewer to building pads, access/public use roads, pedestrian mall, public park areas, lighting landscaping, park benches, etc.
3. Demolition. Demolition of the existing buildings will be required to prepare the site for its new use.
4. Due Care Activities. Because the property is contaminated the Developer will be required to undertake appropriate due care activities to prevent utility workers, residents and the using public from coming into contact with the contamination.
5. Contingency. A 15% contingency factor is included to accommodate unexpected conditions during the course of the Project.
3. An estimate of the captured taxable value and tax increment revenues for each year of the Plan from each parcel of eligible property and in the aggregate. (MCLA 125.2663(1)I)
An estimate of real property tax capture for tax increment financing is attached as Exhibit B.
4. The method by which the costs of the Plan will be financed, including a description of any advances made or anticipated to be made for the costs of the Plan from the County. (MCLA 125.2663(1)(d))
The costs of the Plan will be financed by the Developer’s. No advance from the County is contemplated.
5. The maximum amount of the note or bonded indebtedness to be incurred, if any. (MCLA 125.2663(1)(3))
None.
6. The duration of the Plan, which shall not exceed the lesser of (1) the period required to pay for the eligible activities from tax increment revenues plus the period of capture authorized for the local site remediation revolving fund or (2) 30 years. (MCLA 125.2663(1)(f)).
The estimated duration of the Brownfield plan for this Project is 21 years. It is estimated that redevelopment of the Property will be completed in 5 years and that it could take up to 16 years to recapture eligible costs through tax increment revenues. In addition, funds will be captured after the recapture of eligible costs to a maximum of $3,100,000 or for up to an additional five years, whichever comes first, to fund the local county site remediation revolving fund.
7. An estimate of the impact of tax increment financing on the revenues of all taxing jurisdictions in which the Property is located. (MCLA 125.2663(1)(g))
An estimate of real property tax capture is attached as Exhibit B.
8. A legal description of each parcel of eligible property to which the Plan applies, a map showing the location and dimensions of each eligible property, a statement of the characteristics that qualify the property as eligible property, and a statement of whether personal property is included as a part of the eligible property. (MCLA 125.2663(1)(h))
a. See legal description at Exhibit A.
b. See location and site map at Exhibit C.
c. Characteristics of Property: The “eligible property” has been either vacant or used for residential purposes. A pole barn on one parcel was used for the repair and maintenance of racing cars and other vehicles.
d. Personal property: Personal property will be included as part of the eligible property.
9. An estimate of the number of persons residing on each eligible property to which the Plan applies and the number of families or individuals to be displaced, if any. (MCL 125.2663(1)(i))
There are no persons residing on this Property and, therefore, no families or individuals will be displaced.
10. A plan for establishing priority for the relocation of persons displaced by implementation of the Plan, if applicable. (MCLA 125.2663(1)(j))
This section is inapplicable to this site as there are no persons residing on this Property.
11. Provision for the costs of relocating persons displaced by implementation of the Plan, and financial assistance and reimbursement of expenses, if any. (MCLA 125.2663(1)(k))
This section is inapplicable to this site as there are no persons residing on this Property
12. A strategy for compliance with the Michigan Relocation Assistance Act, if applicable. (MCLA 125.2663(1)(l))
This section is inapplicable to this site as there are no persons residing on this Property.
13. A description of the proposed use of the local site remediation revolving fund. (MCLA 125.2663(l)(m))
The Ingham County Brownfield Redevelopment Authority local site remediation revolving fund will be used to support and assist in the assessment and remediation of Brownfield sites in the areas of Ingham County served by the Ingham County Brownfield Redevelopment Authority. The fund is used for “eligible activities” as defined in the Act including baseline environmental assessments, due care activities, and additional response activities allowed under the Act. On properties owned or under the control of the Ingham County Land Bank Fast Track Authority this may include site preparation, demolition, infrastructure improvements, or lead and asbestos abatement also as allowed under the Act.
33 Other material that the Authority or the Township Board considers pertinent. (MCLA 125.2663(1)(n))
The project involves the redevelopment of a contaminated parcel. The reuse will provide approximately 122,000 square feet of retail/commercial space and will provide approximately 100 residential condominium units and associated parking. The project will significantly increase the Township’s tax base, will provide additional retail/commercial space as well as housing, and will provide new jobs both during construction and at the conclusion of the project.
Michigan Business Tax Credit
It is the intention of the Michigan Legislature to encourage redevelopment of brownfields using the 10% Michigan Business Tax credit incentive permitted under MI Public Act 36, Public Acts of 2007, as amended. The Michigan Business Tax credit can be applied against any “eligible investment” at the Property. The Michigan Business Tax credit will be applied against any eligible investment or part thereof made by a qualified taxpayer after approval of this Brownfield Redevelopment Plan by the County and receipt of a preapproval letter from the State of Michigan.
“Eligible investment” means demolition, construction, restoration, alteration, renovation, or improvement of buildings on eligible property and the addition of machinery, equipment, and fixtures to the Property after the date of the pre-approval letter.
Developers may apply for a Michigan business tax (“MBT”) credit at the eligible property pursuant to Act 36 of the Public Acts of Michigan of 2007.
Exhibit A
Property Description
Property Addresses: 2246 Towner Road
2224 Towner Road
6322 Newton
East Lansing, Michigan
Tax Parcel Nos. : 33-02-02-04-201-002
33-02-02-04-201-003
33-02-02-04-201-004
33-02-02-04-251-002
33-02-02-04-251-001
Legal Description :
A parcel of land in the
Northeast fractional 1/4 of Section 4, T4N, R1W, Meridian Township, Ingham
County, Michigan, the surveyed boundary of said parcel described as:
Commencing at the North 1/4 corner of said Section 4; thence S01°57’22”W along
the North-South 1/4 line of said Section 4, a distance of 962.62 feet to the
North line of the South 10 acres of the Northwest 1/4 of the Northeast
fractional 1/4 as occupied and the point of beginning of this description;
thence S87°39’13”E along said North line 227.76 feet; thence S02°24’21”W 11.03
feet; thence S88°26’35”E parallel with the centerline of Towner Road 565.00
feet; thence S02°24’21”W 297.00 feet to the North right of way line of Towner
Road; thence S88°26’35”E along said North right of way line 282.56 feet to the
Northerly right of way line of M-78; thence S59°42’16”W along said Northerly
line 1268.61 feet to the North-South 1/4 line of said Section 4; thence N01°57’22”E
along said North-South 1/4 line 980.64 feet to the point of beginning; said
parcel containing 13.70 acres more or less, including 0.73 acres more or less
presently in use as public right of way; said parcel subject to all easements
and restrictions if any.