Washtenaw County Brownfield Redevelopment Authority MEETING AGENDA

Transcription

1 Washtenaw County Brownfield Redevelopment Authority MEETING AGENDA Thursday, March 12, 2009, 9:00a.m. Washtenaw County Annex Building Annex Large Conference Room, 1 st Floor 110 N. 4th Avenue, Ann Arbor, MI 1. Call to Order & Public Comment* 9:00a.m. -- 9:10a.m. Review and Approval of 2/12/09 Minutes 2. Announcements 9:10a.m. 9:20a.m. EPA Grants Officially Closed!!! 3. Active Brownfield Projects 9:25a.m. 9:45a.m. 1. Maple Shoppes Reimbursement Agreement Amendment (ACTION) 2. Maple Shoppes TIF Assignment (ACTION) Forest, City of Ann Arbor (update) 4. Federal Screw Works (update) 4. WCBRA Policy Review 9:45a.m. 10:55a.m. 1. Final WCBRA Policy and Procedures (update) 2. Guidance Packet (ACTION) a. Guidance Packet Checklist b. Project Application c. Eligible Table d. Brownfield Plan Elements e. Reimbursement Eligible Tracking Table 3. Public Outreach (discussion) 5. Public Comment* 10:55a.m. 11:00a.m Adjourn Enclosures: 1. February 12, 2009 WCBRA Board Meeting Minutes 2. WCBRA Agenda Packet a. Agenda Summary b. Action Item attachments c. Guidance Packet Next Meeting: April 9 th, 2009 *All Public Comment will be limited to three (3) minutes per person

2 Washtenaw County Brownfield Redevelopment Authority (WCBRA) Annex Large Conference Room 110 N. Fourth Avenue, Ann Arbor MEETING MINUTES February 12, 2009 Present: Board Members: Todd Campbell, James Harless, Suzie Heiney, Douglas McClure, Victoria Pebbles and Anna Sandhu Staff: Patricia Denig and Jeremy McCallion of the Office of Strategic Planning, Mary Kowalski of Support Services Consultants: None Public/Guests: Jim Wait, John Bozich Absent: Mark Heusel (excused), Jeff Irwin, April McGrath (excused) Handouts: Agenda, Agenda Summary, November 13, 2008 Meeting Minutes, 2009 WCBRA Draft Meeting Calendar, WCBRA Policy Packet, Project Fact Sheets for 5 Approved Plans 1. Call to Order & Public Comment Heiney called the meeting to order at 9:14 a.m. There was no public comment. The Oath of Office was administered to Rodd Campbell, Douglas McClure and Anna Sandhu by Mary Kowalski. Harless moved that the minutes of the December 8, 2008 meeting be approved as presented and Pebbles seconded; the motion carried. 2. Announcements Selection of Officers McCallion noted that the bylaws state that officers will be selected at the 1 st meeting of the 2 nd calendar quarter members agreed that an ad-hoc floor nomination style would be preferable to creating a nomination subcommittee. 3. Active Brownfield Projects Schoolpictures.com Reimbursement Agreement Amendment McCallion noted that this is the first amendment of two that will go through the WCBRA board for approval this amendment adds David 1, LLC as an additional owner of the property/recipient of reimbursement. There is a one-page amendment and reimbursement will be received by the entity that funds the eligible activities. The sole shareholder for both companies is the same man, and they will also be amending the Michigan Business tax (MBT) application. Harless moved that the amendment be accepted as presented, Campbell seconded and the motion carried. Completed Brownfield Projects Spreadsheet McCallion presented two spreadsheets to the Board members so that they (especially the new members) can see what the BRA has accomplished and that which is underway. Active Brownfield Projects McCallion noted that some of the projects currently listed as active on the spreadsheet may be cancelled due to financing difficulties. They will remain on the sheet as long as they are not officially cancelled. 4. WCBRA Policy Review 1. Policy and Procedures 2. Guidance Packet 3. WCBRA Brownfield Project Review Checklist 4. New Initiatives 5. Brownfield Program Guide Meeting Minutes Page 1 of 2 December 11, 2008 WCBRA

3 6. Public Outreach McCallion pointed out some of the recent amendments to the Policy document, notably the change that allows funds to be captured during the reimbursement period, rather than after. The document also clarifies that the administrative fees will be used to fund the program, which is currently funded by the County. There was discussion from the WCBRA members. Harless moved that the policy segment be approved with the changes proposed by the WCBRA Board (change the Admin fees from a flat 5% to a minimum of 10%, up to the amount allowed by law, adding that if the total amount for the year is greater than the maximum amount allowed by law, the amount for each project will be prorated based on the amount of admin capture). Campbell seconded and the motion carried. The Board went over the Brownfield Project Review Checklist, and McCallion noted that some items that were formerly included have now been removed. There was discussion over whether and how the subcommittee should ask for proof that a developer requires the funds for the project to go forward. The discussion will be picked up again at the next WCBRA board meeting. 5. Public Comment Jim Wait asked how involved Economic Development groups are in the brownfield program, and the Board and staff noted that outreach to these types of groups is something that the Board has set as a goal. There is some regular interaction with staff, but this should increase in the future. Adjourn Pebbles made a motion to adjourn the meeting at 11:16 a.m. I certify that the minutes are accurate and approved by the Washtenaw County Brownfield Redevelopment Authority Board on March 12, S. Heiney, Treasurer Date Meeting Minutes Page 2 of 2 December 11, 2008 WCBRA

4 3. Active Brownfield Projects Washtenaw County Brownfield Redevelopment Authority Agenda Summary March 12, 2009 Board Meeting 1. Maple Shoppes Reimbursement Agreement (RA) Amendment (ACTION) The Current RA specifies that interest will be reimbursed with only local taxes. The Michigan Department of Environmental Quality (MDEQ) approved the Work Plan and the use of school operating and local taxes for reimbursement of interest. The amendment specifies that interest will be reimbursed with school operating and local taxes. 2. Maple Shoppes TIF Assignment (ACTION) The RA included two owners, ALDI Inc. and Chelsea Land Company Maple, LLC. ALDI will be funding the eligible activities and the Assignment states only ALDI will be reimbursed for the completed eligible activities. This Assignment was expected and makes the reimbursement process simpler Forest, City of Ann Arbor (update) Details about the MDEQ Work Plan status will be provided at the meeting. 4. Federal Screw Works (update) The Michigan Economic Growth Authority (MEGA) Work Plan and Michigan Business Tax (MBT) credit will be at the MEGA Board meeting on March 17, We were able to qualify potentially contaminated wood block and concrete as a demolition activity under MEGA. Demolition of existing structures will enable more adequate environmental assessment, necessary to complete a MDEQ Work Plan for the disposal of contaminated soil. 4. WCBRA Policy Review 1. Final WCBRA Policy and Procedures (update) This is the final version of the Policy and Procedures approved by the WCBRA Board on February 12, 2009, with the modifications to Section 4.b. Administrative costs reimbursement. 2. Guidance Packet (ACTION) This packet includes all the information listed on the Guidance Packet Checklist. The information will be provided to the applicant in stages. This checklist is a one page quick reference guide for the applicant. The following describes each piece of the Guidance Packet. Brownfield Redevelopment Program Guide i. This is not complete. I have to re-organize the document and include the City of Ann Arbor s Brownfield Process. I am currently reviewing the City of Ann Arbor s process. I will provide the Draft Program Guide at the Board meeting. Project Concept Application and Eligible Table i. Minor modifications to the Application, but completely revised the Eligible Table. Application is provided for information purposes only, please review Table. Brownfield Plan Elements i. Information provided in this document was developed from experience with recent brownfield plans and recommendations from the WCBRA Policy Subcommittee to provide consistency and ease of review for all brownfield plans. This gives the applicant guidance, while allowing flexibility. Reimbursement Agreement (RA) i. I have provided an Eligible Tracking table and if approved, language will be inserted into the agreement. This attachment will be used by the applicant to organize all actual expenses for submittal to the WCBRA for review and approval. Act 381 Work Plan i. This section ensures the Work Plans meet the requirements of the Act and firmly states all Work Plans must be reviewed by the Brownfield Redevelopment Program Staff before they are submitted to the appropriate State agency. Hopefully, this will avert submittal of Work Plans to agencies before Staff has reviewed them. Reimbursement Process i. Clarify timing and form of actual expense documentation and proof of payment submittal. 3. Public Outreach (discussion) Discuss the best method to provide this information to Municipal Members and stakeholders.

5 WASHTENAW COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY REIMBURSEMENT AGREEMENT AMENDMENT This Reimbursement Agreement Amendment ( Amendment ) is made on, 2009 between ALDI Inc., (Michigan), a Michigan corporation whose address is 2625 North Stockbridge Road, Webberville, Michigan ( Aldi ), Chelsea Land Company Maple, LLC, a Michigan Limited Liability Company whose address is 206 S. Fifth Avenue #175, Ann Arbor, MI, ( Chelsea, and together with Aldi, the Owner ), and the WASHTENAW COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY (the "WCBRA"), a Michigan public body corporate, having the address at 110 N. Fourth Avenue, P.O. Box 8645, Ann Arbor, MI NOW THEREFORE, in consideration of Article 10, Section 10.5 of the Reimbursement Agreement ( Agreement ) executed on December 10, 2008, and the mutual covenants hereinafter set forth, the parties agree to amend the Agreement as follows: 1. Replace Section 1.1(m) Interest with the following definition: Interest is a reimbursable activity pursuant to the conditions outlined by Sec. 13 (17) of Act 381, MCL Interest for the purposes of this Plan means an annual calculation applied against the unpaid balance of the reimbursable Eligible Activities approved by the MDEQ in the approved Work Plan. The Interest rate applied against the unpaid balance of the reimbursable MDEQ approved Eligible Activities will be 3%. TIF Revenue from school operating and local taxes will be used to reimburse Interest. TIF Revenue will be used first for the payment of administration fees (refer to Section 2.3 of this Agreement), second MDEQ approved Eligible Activities and lastly Interest. Once all approved MDEQ eligible activities have been reimbursed, Interest will no longer be reimbursed. 2. Replace Section 5.2(r) with the following: Interest will be calculated annually on the unpaid balance of the reimbursable Eligible Activities approved by the MDEQ included in the approved Work Plan. The Interest rate applied against the unpaid balance of the reimbursable MDEQ approved Eligible Activities will be 3%. TIF Revenue from school operating and local taxes will be used to reimburse Interest. TIF Revenue will be used first for the payment of administration fees (refer to Section 2.3 of this Agreement), second MDEQ approved Eligible Activities and lastly Interest. Once all approved MDEQ eligible activities have been reimbursed, Interest will no longer be reimbursed. 3. In all other respects, the Reimbursement Agreement remains valid as originally executed. IN WITNESS WHEREOF, the WCBRA and the Developers have caused this Amendment to be duly executed and delivered as of the date first written above. Approved As To Form: Owner Curtis Hedger Corporation Counsel Date: ALDI INC. (MICHIGAN), a Michigan corporation By: Its: Date: 1

6 CHELSEA LAND COMPANY MAPLE LLC, A Michigan limited liability company By: Its: Date: Attested To: WASHTENAW COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY By: Lawrence Kestenbaum Jeff Irwin County Clerk/Register Its: Vice Chair Date: Date: 2

7 Washtenaw County Office of Strategic Planning Brownfield Redevelopment Program Washtenaw County Brownfield Redevelopment Authority Program Policies and Procedures Approved by the WCBRA Board on February 12, 2009 Section 1: Background On May 19, 1999, the Washtenaw County Board of Commissioners (BOC) voted unanimously to establish a County-wide Brownfield Redevelopment Authority (WCBRA) and Brownfield Redevelopment Zone (Zone) in accordance with the Brownfield Redevelopment Financing Act, Act 381 of the Public Acts of the State of Michigan of 1996, as amended (PA 381). The Brownfield Redevelopment Zone was defined as the jurisdictional boundary of each municipality within Washtenaw County that passed a resolution to join. Subsequently, the BOC appointed members to serve on the Board of Directors of the new WCBRA. The purpose of the Brownfield Redevelopment Program (Program) is to facilitate the redevelopment of previously developed sites classified as a facility, functionally obsolete or blighted as defined by Public Acts 381 of 1996 and 451 of 1994 (Natural Resources and Environmental Protection Act-NREPA), as amended. Note, that PA 381 has a provision allowing for a Michigan Business Tax Credit (MBT) for eligible properties. The Program also allows the use of Tax Increment Financing (TIF) revenues to pay for or reimburse public or private costs of eligible activities. These activities include: All Communities: Baseline Environmental Assessments (BEAs) Due care activities (which limit exacerbation of, or exposure to, contamination on a site) Additional response activities Reasonable costs of preparing a brownfield plan, work plan and actual cost of work plan review Demolition Lead and Asbestos Assessment and Abatement Administrative fees Capture for the local site remediation revolving fund Qualified Local Units of Government (LUG) (a.k.a core communities ), Activities eligible in "All Communities" Infrastructure improvements that benefit the public Site preparation Section 2: Policies 2.a. To qualify for brownfield incentives: 1. The proposed project site meets the definition of an eligible property as defined in Public Act 381 of 1996, as amended, MCL Definitions. 2. The project is located in the Brownfield Redevelopment Zone, which is defined as the jurisdictional boundary of each municipality within Washtenaw County that passed a resolution requesting to join the WCBRA. 1

8 3. The LUG supports inclusion of the eligible property in the Brownfield Plan and use of TIF to support the proposed brownfield project. 4. The proposed redevelopment for the eligible property is consistent with the master plans, zoning ordinances and community/economic development goals of the local municipality where the proposed project is located, as determined by the LUG. 5. The existing character of the eligible property is such that redevelopment activities would be limited or prohibited without brownfield redevelopment assistance provided by PA 381 and/or other brownfield redevelopment programs. In addition, the project developer commits to explore all other available private and public funding sources, as determined in consultation with the WCBRA. 6. An analysis demonstrates that the required eligible activities can be satisfactorily completed within the available resources under this program, or if not, that supplemental funding sources, such as private equity or financing, tax credits, grants or loans, will be utilized to complement the financial resources available under PA 381 for proposed projects. 7. The developer has provided evidence of a firm commitment to the project and a demonstration of sufficient experience, financial resources, and development capabilities to successfully implement the proposed redevelopment project. 8. The proposed project site has adequate access to the necessary public infrastructure and utilities needed to serve the proposed redevelopment project, as determined in consultation with the affected community. 9. The developer identifies how and to what extent the project meets the sustainability goals of the WCBRA. 10. The WCBRA reserves the right to consider other factors applicable to a specific project or participating municipality. 2.b. To qualify for reimbursement of interest on costs of eligible activities: The reimbursement of interest will be determined on a case-by-case basis, but only where a clear financial gap must be demonstrated. The following criteria must be met: 1. All costs for which interest is being requested must be eligible environmental or non-environmental activities 2. Reimbursement of interest, and the interest rate, must be approved by the LUG 3. Reimbursement of interest must be included in an approved brownfield plan 2.c. To qualify for local-only reimbursement: The WCBRA encourages costs of all eligible activities be reimbursed with both incremental local and state school taxes to the extent practicable; however, there are circumstances when reimbursement only with local tax increments will be approved. Each such project and eligible activity, for which reimbursement with only local tax increments (local-only) is proposed, will be considered on a case-by-case basis and must meet the following criteria: 1. Reimbursement of the costs of eligible activities and interest using only local taxes will be considered only if all of the following conditions are met: a. All activities must be eligible under the Act b. The activity is preparation of a Brownfield Plan/Amendment c. The cumulative local-only capture period for all activities can be no longer than five years, unless otherwise approved by the LUG 2

9 d. Need and rationale for the local-only capture, based on project economics and/or schedule demands, must be demonstrated e. Eligible activities, interest and local-only capture must be approved by the LUG f. Descriptions and costs of activities and interest must be included in an approved brownfield plan g. Reimbursement using local-only tax increments is authorized or not prohibited by the Act 2. Eligible activities completed on an eligible property prior to the approval of the brownfield plan will be considered for local-only reimbursement if all of the following criteria are met: a. Activities were eligible environmental activities i. Site investigation activities for due diligence and due care ii. BEAs and reports iii. Due care activities b. Activities were conducted no earlier than 12/1/2007 c. All criteria described in 1. above are met 3. Eligible activities on eligible property that are conducted after brownfield plan approval and are included in a Work Plan submitted to the MDEQ or MEGA for approval, but are not approved by the MDEQ or MEGA, or such Work Plan approval is not sought, will be considered if all of the following criteria are met: a. Must be an eligible environmental or non-environmental activity i. Baseline Environmental Assessments (BEAs) ii. Due care activities iii. Additional response activities iv. Demolition v. Lead and Asbestos Assessment and Abatement vi. Site preparation and public infrastructure (core communities only) b. All criteria described in 1. above are met 4. Interest on costs of eligible activities will be reimbursed with local-only taxes if one of the following criteria are met: a. Costs for eligible activities, for which local-only interest is requested, are not eligible or were not approved for reimbursement with state school taxes and were approved for local-only reimbursement as described above b. Capture of state school taxes for reimbursement of interest costs for eligible activities was denied by the MDEQ or MEGA c. Reimbursement is approved by both the LUG and WCBRA in response to exceptional project circumstances Section 3: Procedures: The BRA recognizes the importance of development project schedules and will expedite brownfield plan review and approval process to the extent possible. The following steps detail the process for accessing available brownfield redevelopment incentives in Washtenaw County. 3.a. Project Concept Application 1. The developer or other project sponsor shall provide the following project information to the WCBRA and LUG to support evaluation of the appropriateness of project for participation in this program. a. Basic applicant and site information (includes parcel ID number and legal description) b. General scope of project c. Project description d. Basis and evidence for property eligibility e. Anticipated brownfield redevelopment eligible activities and costs, if known f. Intended site use g. Detailed proforma showing financing gap (see attachment A) h. Detailed spreadsheet identifying eligible activities and anticipated cost, including a reliable 3

10 basis for cost estimate (see attachment B) i. Detailed table showing breakdown of TIF reimbursement by taxing jurisdiction (see attachment C) j. Anticipated development schedule k. Preliminary site plan or concept sketch l. Location on map (as described on the application form) m. Current title commitment, purchase agreement or ownership n. Status of development permits/permit applications o. Additional information as requested by WCBRA 2. The required information shall be submitted by the developer to the WCBRA on a Project Concept Application form to be provided by the Brownfield Program Staff (Staff). 3. Staff will review the application and work with the developer if revisions are necessary. 4. Staff will take the completed application to the LUG in which the project is located and request approval, through a process developed at the discretion of the LUG, to move forward with the brownfield process and the development of the Brownfield Plan 5. Once the LUG has given approval to move forward with the brownfield process and the development of a brownfield plan, the developer will be assessed the application processing fee (see Section 4: Associated Costs). Upon approval of the Project Concept Application, the BRA and/or staff will provide a timeline for each project, in consultation with the affected member municipality and the developer(s). 3.b. Brownfield Plan 1. Once the application is approved, and if the developer is seeking Brownfield incentives (TIF and/or MBT credit) to help fill the financial gap created by the additional costs associated with redeveloping a brownfield site, the developer will have to create a brownfield plan. The brownfield plan must include all sections identified in PA 381, Section 13 (1) (MCL Brownfield plan; provisions). In summary the brownfield plan includes the following: a. Plan for redevelopment b. Nature and condition of property c. Plan to address environmental and non-environmental activities d. Costs to be reimbursed including the eligible activities (see Section 1), the administrative fee and the local site remediation revolving fund capture (see Section 4: Associated Costs). e. Method by which the costs of the plan will be financed. f. An estimate of the impact of tax increment financing on the revenues of all tax jurisdictions in which the eligible property is located. 2. Staff will review the brownfield plan and work with the developer if revisions are necessary. 3.c. Brownfield Plan Approval Process The draft brownfield plan will be brought through the approval process. The brownfield plan must be approved by the LUG, WCBRA and WCBOC. The site must be an eligible property and all activities must be eligible activities as defined in PA 381, as amended. The plan must also be consistent with the WCBRA policies outlined in Section 2: Policies above. 1. The brownfield plan approval process consists of the following activities: a. The WCBRA will create a project-specific Brownfield Plan Subcommittee to review and consider the brownfield plan (produced as described in Section 3.b.2 above) for approval. The subcommittee will then pass its recommendations for approval or revision of the brownfield plan to the LUG and WCBRA for their consideration. i. It is the intention of the WCBRA that all Subcommittee meetings be conducted as open meetings. However, at times, subcommittees may have reason to conduct closed meetings due to matters of confidentiality. ii. The Subcommittee will use the project selection guidelines checklist (Attachment D) as the basis for the review. Once the review is completed, the subcommittee will present its recommendations at the next BRA Board meeting. iii. The Subcommittee will consist of three WCBRA Board members and a representative 4

11 from the LUG in which the eligible property is located. b. After final approval of the brownfield plan by the subcommittee, the LUG, in which the project is located, reviews, considers and approves the brownfield plan through a process developed at the discretion of the LUG. Note: Some LUGs require that a public hearing be held by their governing body in addition to Washtenaw County (see 1.d. below). If that is required, the LUG coordinates this process, and the Staff provides available resources and/or templates. c. After approval by the LUG, the WCBRA reviews and considers the brownfield plan for approval. d. A public hearing will be held by the governing jurisdiction (Washtenaw County Board of Commissioners; BOC). i. Two public notices, satisfying the public hearing announcement requirements of Act 381, must be placed in the local paper(s) no less than 10 days and no more than 40 days before the public hearing. e. The Washtenaw County BOC reviews and considers the brownfield plan for approval. 2. Once the brownfield plan is approved, a reimbursement agreement must be signed. If capture of state school taxes for reimbursement of eligible non-environmental costs is contemplated, the reimbursement agreement must be completed and signed before submission of an Act 381 Work Plan for those activities. 3. If the TIF includes the capture of school operating taxes for eligible activities, an Act 381 Work Plan must be completed in accordance with the requirements of Act 381 and guidance published by the MDEQ/MEDC and submitted to Staff. Staff will review the Work Plan and work with the developer and/or developer s representative (consultant) to finalize it. Staff then will coordinate with the appropriate agency(s) for the submission and review of the brownfield plan, Act 381 Work Plan, and other necessary documents as follows: a. If the TIF includes the capture of school operating Taxes for environmental activities, Staff will submit a completed Work Plan to the MDEQ. The Work Plan must include the approved brownfield plan, which will be evaluated during the Work Plan review. b. If the TIF includes the capture of school operating taxes for non-environmental activities (in both core and non-core communities), Staff will submit a completed Work Plan to the Michigan Economic Development Corporation (MEDC) to review on behalf of Michigan Economic Growth Authority (MEGA). The Work Plan submission must include the approved brownfield plan, a signed development agreement or reimbursement agreement, and other documents and information required by the MEDC. Please note, the following exempt eligible activities included in an approved brownfield plan may be reimbursed with school operating taxes without being included in an MDEQ-approved Work Plan: a. Site investigation activities required to conduct a BEA and to evaluate due care issues and obligations required under NREPA Part 201; b. Preparing a BEA report; and c. Preparing a compliance analysis or due care plan(s) to comply with NREPA Part 20107a. These activities must not begin before the brownfield plan is approved. However, if state school taxes are to be captured to reimburse interest costs for these exempt activities, descriptions and costs for the activities must be included in an Act 381 Work Plan approved by the appropriate agency. 4. Generally, conducting eligible activities and redevelopment can begin once the relevant elements of the approval process are complete. However, as described above, certain activities conducted prior to Brownfield Plan approval may be reimbursed. Also, different reimbursement schemes may be applicable at specific points in this process: 1) after a brownfield plan is approved and before an Act 381 Work Plan is approved; 2) after both the brownfield plan and an Act 381 Work Plan are approved and/or 3) after a brownfield plan is approved and an Act 381 Work Plan is not required. Please refer to Section 2: Policies for more information about different reimbursement eligibilities and approaches for certain eligible activities. 3.d. Reimbursement Process 1. The WCBRA will begin the reimbursement process after the following have been completed: 5

12 a. The brownfield plan has been approved b. The Reimbursement Agreement has been executed. c. The Act 381 Work Plan has been approved by the MDEQ and/or MEGA, as appropriate d. The approved eligible activities have been completed and/or initiated e. All the appropriate invoices and documentation for actual costs incurred to conduct the approved eligible activities have been submitted to the WCBRA f. TIF capture has begun subject to the following: i. Property owner must pay taxes ii. The tax year is within TIF capture period specified in the brownfield plan and Act The WCBRA will only reimburse the actual costs to conduct approved eligible activities. The WCBRA uses only the incremental taxes generated by the redevelopment project to reimburse approved eligible activities, and the yearly reimbursement amount is based on the actual yearly incremental taxes collected. 3. Invoices, eligible activity documentation and proof of payment must be submitted to the WCBRA within one year the invoice, documentation or proof of payment was issued. The actual eligible activity costs should be summarized in a form similar to the Eligible Tracking Table, provided with the Reimbursement Agreement. 4. The actual amount of TIF reimbursement in any year may be reduced by the amount of TIF allocated for reimbursement of WCBRA administrative expenses (see Section 4.b. below) and funding the local site remediation revolving fund, as provided in the approved brownfield plan, reimbursement agreement, and Act 381. Section 4: Associated Costs 4.a. Project Application Fee 1. The WCBRA will assess an application fee for a brownfield project once the LUG approves the project application. 2. The developer is responsible for paying the project application fee to WC Brownfield Program after the project application has been approved by the LUG and the brownfield plan process begins. 3. The fee is based on total project investment: $0- $5Million = $3,000 $5M - $10M = $4,000, and $10 M and over = $5, Exceptions to this policy due to extraordinary circumstances will be considered on a case by case basis. 4.b. Administrative costs reimbursement 1. Annual reimbursement of reasonable and actual WCBRA administrative and operating costs from local taxes is a permitted activity under PA 381 of 1996, as amended. The maximum allowable annual WCBRA administrative costs that can be reimbursed under PA 381 is presented below: Up to five active projects - $100,000 Greater than five and up to ten active projects - $125,000 Greater than 10 and up to 15 active projects - $150,000 An active project is one in which the WCBRA is currently capturing taxes under the PA These costs are allocated per project and used to cover the actual administrative expenses. Administrative expenses include the following: Assistance provided to communities and developers to prepare and approve brownfield plans and work plans; Review and approval of brownfield plans and work plans; Preparation, review and approval of reimbursement and/or development agreements; Review and approval of actual eligible activities; Managing and accounting tax increment capture and disbursement; Managing and accounting eligible activity reimbursement; Managing and disbursing funds from the LSRRF; and Community education and outreach 6

13 3. For reimbursement of actual administrative expenses, the WCBRA will transfer to its Administrative Fund ten percent (10%) of the total incremental local taxes captured annually under each approved brownfield plan for the duration of the plan or as otherwise allowed by statute. 4. If total incremental taxes transferred in any year to the Administrative Fund from all active brownfield plans exceed the actual WCBRA administrative costs in that year or the maximum allowed by PA 381 (see above), the excess will be used for reimbursement of eligible activities or returned to the taxing jurisdictions. The excess administrative capture will be allocated to each brownfield plan/project on a prorated basis defined by the ratio of the administrative capture from that plan/project divided by the total administrative capture for that year. If eligible costs in an individual plan remain to be reimbursed, the prorated excess will be applied to cost reimbursement. If all eligible costs have been reimbursed, the excess will be distributed to the local taxing jurisdictions on a prorated basis according to the ratio of that jurisdiction s millage to the total millage captured. 4.c. Local Site Remediation Revolving Fund Capture It is the intent of the WCBRA to capitalize the Local Site Remediation Revolving Fund (LSRRF) immediately. The WCBRA intends to include provisions to capture revenues for deposit into the LSRRF in the approved brownfield plan for each property/project located in the Brownfield Redevelopment Zone (as defined in Section 1: Background). The WCBRA intends to capture all or a portion of the LSRRF funds during the reimbursement period for eligible activities; however, each plan will be considered on a case-bycase basis to determine the most appropriate method for capturing LSRRF funds. LSRRF funds will be used to further the purpose of the Program, which is to facilitate the redevelopment of previously developed sites classified as a facility, functionally obsolete or blighted as defined by Public Acts 381 of 1996 and 451 of 1994 (Natural Resources and Environmental Protection Act-NREPA), as amended. LSRRF funds can only be used to fund eligible activities, as defined by PA 381. LSRRF funds are eligible for use by all eligible properties located within the Brownfield Redevelopment Zone to assist with the completion of eligible activities. The LSRRF funds typically will be distributed as revolving loans, which allows these funds to continually revolve throughout the Brownfield Redevelopment Zone. LSRRF funds may be distributed as grants in response to exceptional circumstances solely at the discretion of the WCBRA. The use of the funds will be determined on a case-by-case basis. The following criteria must be met: 1. The WCBRA will capture incremental local and state school taxes, to the extent allowed by law, to fund the LSRRF until funds in the following amount have been placed in the LSRRF: a minimum of fifteen percent (15%) of the total eligible activities to a maximum amount equivalent of five years capture after eligible activities costs have been reimbursed. 2. The rate and schedule of incremental tax capture for the LSRRF will be determined on a case-bycase basis. Considerations will include, but not be limited to the following; input from the municipal member (e.g. total capture amount), total capture duration, total annual capture, project economic factors, level of existing LSRRF funding, and projected need for LSRRF funds. 3. School operating taxes for MDEQ eligible activities can be captured for LSRRF deposit, but school operating taxes for MEGA eligible activities cannot be captured for LSRRF deposit. The amount of school operating taxes deposited into the LSRRF for MDEQ activities cannot exceed the total amount of school operating taxes used to reimburse eligible activities. 4. If an approved brownfield plan does not provide for the capture of incremental state school taxes, or provides for reimbursement of only MEGA eligible activities, LSRRF capture will derive solely from incremental local taxes. In these circumstances, the impact of LSRRF funding on the duration of local tax capture will be considered in determining the amount and schedule for LSRRF capture. 5. Exceptions to this policy due to extraordinary circumstances will be considered on a case by case basis. Section 6: Contact Information Persons interested in Washtenaw County Brownfield Redevelopment Authority are encouraged to contact Jeremy McCallion, Associate Brownfield Planner, Department of Planning and Environment, Post Office Box 8645, Ann Arbor, Michigan is mccallionp@ewashtenaw.org, telephone number , and fax

14 Washtenaw County Office of Strategic Planning Brownfield Redevelopment Program Brownfield Redevelopment Project Guidance Packet Checklist (March 2009) The Washtenaw County Brownfield Redevelopment Authority (WCBRA) has developed the following Brownfield Redevelopment Project Guidance Packet and Guidance Packet Checklist to provide a reference tool for the brownfield project process and required information. The Guidance Packet is provided in stages by the Brownfield Redevelopment Program Staff (Staff) and includes the following documents: Brownfield Redevelopment Project Guidance Packet Checklist Washtenaw County Brownfield Redevelopment Program Guide Project Concept Application and Eligible Table Brownfield Plan Elements Reimbursement Agreement Template and Eligible Tracking Table 1. Washtenaw County Brownfield Redevelopment Program Guide (Guide) a. Detailed overview of Brownfield Redevelopment Financing Act, Public Act 381 of 1996 (PA 381), as amended, and the Washtenaw County Brownfield Redevelopment Program b. Available from Staff or at 2. Project Concept Application (Application) and associated table a. The Application is the first step for all brownfield redevelopment projects coming through the WCBRA. The Project Application is part of our commitment to partner with each Municipal Member throughout the brownfield redevelopment process. b. In order to move forward to the Brownfield Plan stage the Application must be approved by the Municipal Member. Approval of the Application by the local municipality is NOT approval of the Plan. Please refer to the Guide for process details and project application fee rates. c. Contact Staff to discuss the project and receive the Application and Eligible Table. 3. Brownfield Plan Elements a. A Municipal Member must provide its approval during the Application process in order to proceed with the Brownfield Plan (Plan) process. Please refer to the Guide for detailed information on Plan process. b. Contact Staff for the Brownfield Plan Elements document, which includes critical information the WCBRA requires to be included in the Plan, in addition to the requirements of PA 381. c. Staff will also provide a projected timeline for the Plan process. 4. Reimbursement Agreement (RA) a. Please refer to the Guide for more detailed information b. Contact Staff for the RA Template and Eligible Tracking Table 5. Public Act 381 Work Plan (Work Plan) a. All Work Plans must meet the requirements of Act 381 Sec. 15 (MCL ). b. All Work Plans must be reviewed by the Staff before being submitted to the appropriate State agency (Michigan Department of Environmental Quality (MDEQ) and/or Michigan Economic Growth Authority (MEGA)). c. Please arrange with Staff for appropriate review times and submittal times, which correspond with project timelines, State agency submittal processes and monthly meetings (MEGA Board). 6. Timeline and Reimbursement Submittal a. Once all approvals have been completed please meet with Staff to discuss eligible activity completion and construction timeline. b. All actual eligible activity expense documentation and proof of payment must be submitted to the WCBRA for review and approval within one year after completion. The actual eligible activity expense documentation and proof of payment should be summarized in a form similar to the Eligible Tracking Table, provided with the RA. Washtenaw County (734) N. Fourth Avenue, P.O. Box 8645 Fax (734) Ann Arbor, Michigan

15 Washtenaw County Brownfield Redevelopment Authority Project Application Form This application form must be completed by the applicant to initiate the brownfield process by the Washtenaw County Brownfield Redevelopment Authority (WCBRA). The completed application will then be submitted to the appropriate representative of the local municipality within which the proposed project is located. There are no deadlines for the submittal of applications -- applications will be accepted on an ongoing basis. NOTE: The Project Concept Application (Application) is the first step for all brownfield redevelopment projects coming through the WCBRA. The Project Application is part of our commitment to partner with each Municipal Member throughout the brownfield redevelopment process. Approval of the Application by the local municipality is NOT approval of the brownfield project/plan and the requested Tax Increment Financing (TIF) and/or Michigan Business Tax Credits (MBT). Approval gives Staff permission to assist the developer in creating a Brownfield Plan. If a local municipality initially approves a project application, it is not obligated to approve the brownfield plan. Once processed and approved by the local municipality, an application fee will be assessed to the developer. The fee is based on total project investment: $0- $5Million = $3,000; $5M - $10M = $4,000; and $10 M and over = $5,000 Two (2) sets of the completed application forms and any supplemental materials must be submitted to the Washtenaw County Office of Strategic Planning, Brownfield Program, P. O. Box 8645, Ann Arbor, MI For assistance in completing this application form, please contact the Brownfield Planner with the Washtenaw County Office of Strategic Planning at or fax. In addition, please refer to the WCBRA Brownfield Redevelopment Program Guide to learn the process. The Guide and information on the application process is also available on the WCBRA website at Before submitting a project application, please make sure all items on the attached checklist are included. Project Application will not be reviewed until items are completed. Page 1 of 6 Last Updated 3/06/2009

16 PROJECT APPLICANT INFORMATION Date: Project Applicant Name: Mailing Address: Contact Person for Applicant: Telephone/Fax Numbers: Address: Property Owner Name: Mailing Address: Contact Person for Property Owner: Telephone/Fax Numbers: Address: PROJECT INFORMATION Project Address: Parcel ID Number(s): Legal Description: Located within WCBRA Member Municipality: YES NO Is the project located within a Downtown Development Authority (DDA)? Page 2 of 6 Last Updated 3/06/2009

17 If yes, has the DDA been contacted? Do they support the project? If so, what level of support has been identified? Proposed Project Description: Attach copies of proposed preliminary site development or concept plans to illustrate how the proposed redevelopment and land uses will be situated on the subject property, and documenting access to all necessary utilities and infrastructure. Proposed Redevelopment Use(s): Anticipated Project Schedule/Critical Dates: Proforma Information: Attach a copy of proforma information for project and supporting documentation or reports if available. Page 3 of 6 Last Updated 3/06/2009

18 Status of Development Permits and Applications: Description of Known or Suspected Environmental Contamination Concerns List all environmental activities and reports completed to date. Report/ Date Attached (y/n) Attach additional pages if needed and supporting documentation or reports if available. Summary of Needed Eligible Activities and Projected Costs (if known): Page 4 of 6 Last Updated 3/06/2009

19 Attach additional pages if needed and supporting documentation or reports if available. Projected Private Investment in Redevelopment: Attach detailed project budget illustrating all related project expenses, sources of financing, and project financing needs. Anticipated Job Creation or Retention Impacts: Other Significant Project Information: Page 5 of 6 Last Updated 3/06/2009

20 PROJECT APPLICATION CHECKLIST Before submitting the project application, please make sure all items on the checklist are included. Project Application will not be reviewed until items are completed. Ownership Documentation If the property owner is not the project applicant, please attach a signed and notarized letter from the property owner authorizing the applicant to submit this application form for consideration by the WCBRA. Attach copy of current title commitment and proof of ownership. Site Plan Attach copies of proposed preliminary site development or concept plans to illustrate how the proposed redevelopment and land uses will be situated on the subject property, and documenting access to all necessary utilities and infrastructure. Financial Information and Eligible Activities Attach a copy of eligible activity costs broken down by taxing jurisdiction for project and supporting documentation or reports if available. (Attachment 1: TIF template by taxing jurisdiction) Attach detailed project budget illustrating all related project expenses, sources of financing, and project financing needs. (Attachment 2: Eligible Expenses) Environmental Work Completed Attach all environmental reports that have been completed for this site. (i.e. Phase I, Phase II, BEA, RCRA, Closure, Due Care, etc) Page 6 of 6 Last Updated 3/06/2009

21 Eligible Table NOTE: This is a TEMPLATE and should be tailored to your individual project and the associated activities. Not all activities listed may be appropriate for your project. This is not an exhaustive list of activities. Project Name: Project Address: Parcel Number(s): Item/ Developer Property Sale Price Appraisal/Closing Fees Consulting Attorney Fees Property Acquisition $0.00 $0.00 WCBRA (Local Only)* MDEQ--No Work Plan Approval (Local/State) ** MDEQ (Local/State) MEGA (Local/State) Brownfield Plan Act 381 Work Plan Review Fee Plan Activities $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Assessment / Plan Activities $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Remediation Activities (Contaminated Soil Removal, etc.) Remediation Activities Environmental Eligible Activities Total $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Demolition Demolition $0.00 $0.00 $0.00 $0.00 $0.00 Asbestos/Lead Abatement Asbestos/Lead Abatement $0.00 $0.00 $0.00 $0.00 $0.00 Public Infrastructure Improvements $0.00 $0.00 $0.00 $0.00 $0.00 Public Infrastructure Site Preparation Site Preparation $0.00 $0.00 $0.00 $0.00 $0.00 Non-Environmental Eligible Activities Total $0.00 $0.00 $0.00 $0.00 $0.00 Consulting Services $0.00 $0.00 $0.00 $0.00 $0.00 Eligible Activities Total Total Cost Property Acquisition Cost Breakdown by Funding Source Brownfield Plan, Work Plan and Review Fees Environmental Eligible Activities Assessment / Plan Activities (Phase I, Phase II, Supplemental Phase II, BEA, due care plan etc.) Non-Environmental Eligible Activities Contingency/Interest/Project Management $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 * Certain activities can be reimbursed with Local Only taxes, but those activities must adhere to Act 381 and WCBRA Program Policies and Procedures. ** Activities that do not require MDEQ Work Plan approval for Local/State tax reimbursement must occur after a brownfield plan is approved and include the following: Site investigation activites required to conduct a baseline environmental assessment (BEA) and to evaluate Due Care requirements Completing a BEA Completing a Due Care Plan

22 Washtenaw County Office of Strategic Planning Brownfield Redevelopment Program Brownfield Plan Elements (March 2009) In order to begin development of a Brownfield Plan (Plan) the Municipal Member (MM), which the project is located, must provide approval of the Project Concept Application (Application) to move forward to Plan development. Approval of the Application by the local municipality is NOT approval of the Plan. The Washtenaw County Brownfield Redevelopment Authority (WCBRA) requires the following elements to be included in a Brownfield Plan 1 : 1. The Plan must meet all the requirements of the Brownfield Redevelopment Financing Act, Public Act 381 of 1996 (PA 381). 2. The following information must be included for certain sections of the Brownfield Plan to meet PA 381 Sec. 13(1) (MCL ) and WCBRA s requirements. a. Sec. 13. (1)(a)(b) Eligible activities and costs Please use the Eligible Table described in 4.a. below and include a summary table in the text. b. Sec. 13. (1)(c) An estimate of the captured taxable value and tax increment revenues... Please refer to 2.d and 4.b. below for the elements to be included in the tax increment financing (TIF) Table. c. Sec. 13. (1)(f) The duration of the brownfield plan for eligible activities on eligible... Please include the following language in this section of the Plan: The duration of the Brownfield Plan for eligible activities on eligible property shall not exceed 35 years following the date of the governing body resolution approving the Plan amendment. The date of tax capture shall commence during the year construction begins or the immediate following year, but the beginning date of tax capture shall not exceed five years beyond the date of the governing body resolution approving the Plan amendment. Tax increment revenue capture shall not exceed 30 years. d. Sec. 13. (1)(g) Estimate of the impact of tax increment financing on the revenues of all taxing jurisdictions in which the eligible property is located. The TIF table must include a complete breakdown of every taxing jurisdiction and millage rate. This includes millages that are not captured in the brownfield plan (gray-out in table). If it is preferable to group taxing jurisdictions, please provide a small table with the entire breakout. A table showing the total impact to each taxing jurisdiction must also be included in the text. e. Sec. 13. (1)(h) A legal description of the eligible property to which the plan applies, a map... Adhere to the requirements of this section and include a Land Title Survey (ATLA Survey) for the legal description and property map. This Survey can also be used for the Act 381 Work Plan, if school operating taxes are proposed for capture. 3. Additional Requirements of the WCBRA a. Include a one page summary with critical elements (property location, eligibility, eligible activity total, projected payback period, project investment and project description). 1 Please note the organization of the plan can be determined by the applicant as long as the Plan includes the information itemized in the Brownfield Plan Elements document. Washtenaw County (734) P.O. Box 8645, 110 N. Fourth Avenue Fax (734) Ann Arbor, Michigan