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Developers request roughly $11.1 million in Brownfield TIF reimbursement for Kemmer Road project
Summary
Michigan Growth Advisors outlined a proposed Brownfield Tax Increment Financing package to reimburse about $11.1 million over the plan term, allocating 36% to workforce housing gap, 38% to infrastructure, and 26% to interest; plan duration was presented as 30 years with a five-year LBRF capture at the end.
At the March 12 meeting Jared Lutz of Michigan Growth Advisors presented the proposed Brownfield Tax Increment Financing (TIF) structure for the Kemmer Road development, saying the "total requested reimbursement is approximately $11.1 million" to be captured over the life of the Brownfield Plan.
Planning staff described the proposed allocation of those funds: 36% to address the financing gap associated with the income-restricted housing units, 38% toward infrastructure and other eligible hard costs, and 26% attributed to interest on reimbursable expenses. Consultant Susan Wenzlick told the Authority the developers used a 5% interest rate "following the max allowable rate through the Statute." The BRA did not take formal action on the request at the meeting.
Ms. Wenzlick also explained eligible reimbursable activities under the Brownfield TIF, including road construction, water and sewer utilities, site preparation, and utility connections and extensions. Under the current proposal the plan term would be 30 years: 25 years of reimbursement followed by five years of capture dedicated to the Local Brownfield Revolving Fund (LBRF), projected to generate about $1.7 million for the LBRF under the current model.
Members asked the development team to model alternatives for earlier access to LBRF funds and returned financial scenarios before a formal plan is submitted.
