Wyoming council approves brownfield plan, tax capture for Home Flats phase 3

The Wyoming City Council on March 3 approved a brownfield plan, reimbursement agreement and a tax-increment transfer agreement with the Downtown Development Authority for Home Flats at 28 West Place, phase 3, a multi-building housing development on 20 Eighth Street.

City Manager John (last name not specified) told the council the phase 3 development is roughly a $80,000,000 project consisting of about 225 units in four buildings, and that the brownfield plan would reimburse about $3,200,000 in eligible costs such as asbestos abatement, demolition and site preparation. "There's a parking structure with a green roof element to it as well," John said, and the plan would capture 50% of the pilot (payment in lieu of taxes) and 50% of municipal services agreement revenues during the life of the plan.

The council approved the measure by roll call after a short discussion. The vote was recorded as: Council Member Brethauer — yes; Council Member Posler — yes; Council Member Arnois — yes; Council Member De Krieger — yes; Council Member Hill — no; Mayor Pro Tem — yes.

Why it matters: the brownfield tax capture redirects a portion of tax-equivalent payments from the developer to reimburse site remediation and public improvements, rather than putting that full revenue immediately into the city's general receipts. City staff estimated the city would still receive approximately $1,300,000 over the life of the plan even with the 50% capture.

Council members asked how the capture compared with earlier phases. John said phases 1 and 2 did not have tax capture, although they did include a pilot and a municipal services agreement; the city asked phase 3 to contribute to certain public plaza improvements and to help reimburse part of a parking deck to avoid large surface parking. John also said the brownfield statute was changed about two years ago to allow tax capture for housing developments, and that the plan's capture focuses mainly on the commercial portion and PILOT/MSA revenues because taxable value on some residential portions is limited by program requirements.

No formal amendments were offered during the discussion. The council approved the brownfield plan, the reimbursement agreement and a tax-increment transfer agreement with the Downtown Development Authority that will implement the 50% capture described by staff.

The project remains subject to the terms of the agreements approved and any future administrative approvals needed for implementation, including those required by the Michigan State Housing Development Authority payments-in-lieu-of-taxes process that staff referenced.