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Commission approves brownfield plan, tax-capture sharing for 1 North River Road
Summary
The commission adopted a brownfield plan and tax-capture sharing agreement for Manchester Mount Clemens LLC’s redevelopment of 1 North River Road, authorizing a multi-decade reimbursement structure tied to tax increment capture.
The Mount Clemens City Commission on June 3 approved a brownfield redevelopment plan and a tax-capture sharing agreement for 1 North River Road and adjacent parcels, a project proposed by Manchester Mount Clemens LLC.
City administration and representatives from AKT Peerless explained that under the Brownfield Redevelopment Financing Act the developer will pay eligible site-rehabilitation and eligible-activity costs upfront and be reimbursed from incremental property-tax revenue generated by the project. The plan presented anticipates a developer reimbursement term of roughly 26 years with an additional five years of capture for brownfield-revolving funds. Staff said if the taxable value for the developed property rises faster than projected, the repayment could finish sooner.
The DDA previously approved a sharing agreement giving the developer the necessary tax-increment access within the DDA footprint; administration said the DDA would not lose revenue it was already not capturing on the parcel. Commissioners asked about the mechanics of reimbursement and were told taxes reimburse eligible costs and, on expiration of the plan, taxes would return to the city and other taxing jurisdictions.
Why it matters: The project is expected to add residential units downtown (the commission noted the city currently has fewer than 100 downtown residents and the project was described as roughly 100 units) and to increase taxable value and downtown activity over time.
Next steps: The resolution approving the brownfield plan and the tax-capture sharing agreement was adopted by roll-call vote; administration will follow the reimbursement schedule outlined in the plan and report progress to the commission as required by the Brownfield Redevelopment Financing Act.
