City hears Brownfield plan options for former DPI site; consultants urge quick EGLE application

Consultants and project partners presented city leaders on Monday with financing options for redeveloping the former DPI industrial site along the waterfront, highlighting Brownfield tax-increment financing and an EGLE brownfield loan/grant opportunity that could help cover millions in abatement and infrastructure costs.

The presentation, delivered by Marissa Ackerman (Brownfield consultant), Roman Wilson (project partner) and representatives of Thunder Bay Development/Melching and Fishbeck, laid out preliminary cost estimates for preparing the site: roughly $5–$6 million for demolition and abatement and about $1.5–$2.5 million for closing wastewater lagoons. Roman Wilson said his team had completed baseline environmental work and is pursuing EGLE permits for lagoon closure, with the North Lagoon permit expected imminently.

Why it matters: presenters said the costs for public infrastructure—water, sewer and roads—are substantial, and Brownfield TIF would capture tax increments on the eligible property to reimburse eligible activities, including environmental response and site preparation. Ackerman explained that Brownfield TIF captures taxes generated only on the redeveloped property and can include state education tax capture under an approved state work plan, which effectively brings additional state support to the project.

The EGLE brownfield program was described as a two-step process: a preproposal that asks EGLE to invite a full application, followed by a formal application and, if approved, a work plan and reimbursement agreement among the Brownfield Authority, the developer and the governing body. Presenters said EGLE may offer up to $1,000,000 in loan funds and up to $1,000,000 in grant funds in certain circumstances; the loan terms discussed included up to five years with deferred principal and low interest thereafter.

Council members pressed for timeline details and potential environmental impacts. When asked whether extracting and treating lagoon water would cause a smell, Roman Wilson replied that monitoring and treatment plans are in place and that the materials at the base of the lagoons had been characterized as inert; the team does not anticipate significant odor but said closure work would follow an approved EGLE plan. Wilson also said demolition of major structures was about 80% complete, with substantial work planned through the coming summer and a goal of completing lagoon closures by early 2027.

Next steps and council action: presenters asked the city to submit a preproposal to EGLE before the June 30 fiscal-year cutoff so the application could be evaluated and, if invited, return to council with necessary resolutions and authorizations. Mayor Johnson and staff said they would review draft application materials and aim to bring authorizing resolutions back to the council as part of the June meeting schedule if EGLE issues an invitation to apply.

The council voted to receive and file the presentation; no formal financing action was taken Monday.