The United States Environmental Protection Agency (U.S. EPA) defines a "Brownfield" as real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant.
The State of Michigan defines a "Brownfield" site as a "facility" as defined by Part 201 of Natural Resources and Environmental Protection Act (NREPA) (contaminated at levels above generic residential use criteria). Properties that are adjacent and contiguous to "Brownfields" may also be considered "Brownfields". The State of Michigan also identifies blighted and functionally obsolete sites as "Brownfields":
Examples of potential Brownfields are foundries; automobile repair service centers; machine shops; dry cleaners; unlicensed dumps; and other sites where the use and storage of chemicals may have resulted in environmental impact at the sites.
An interested party should contact the Otsego City Manager's office or the City of Otsego's Brownfield Redevelopment Authority (BRA) to see if information suggesting the site is a Brownfield is available. Information may also be available through the Michigan Department of Environmental Quality (MDEQ): www.michigan.gov/deq.
Brownfields may be created by: 1) closed or under utilized industrial and commercial facilities (e.g., economics, population changes or city development and planning changes); 2) unintended consequences of federal and state environmental regulations (e.g., status liability for contamination or stringent cleanup requirements); and 3) relative costs of development - old developed sites vs. new suburban land.
The Brownfield Redevelopment Financing Act (1996 PA 381, as amended by 2000 PA 145) allows a local unit of government to create a Brownfield Redevelopment Authority (BRA) to assist in redevelopment of Brownfields. BRAs develop and approve Brownfield plans, which identify eligible activities that will be conducted at the site, and determine if the community will support tax increment financing to capture state and local incremental property taxes.
Tax increment financing allows BRAs to capture property taxes from the increased taxable value observed after redevelopment. These captured taxes can then be used to reimburse the costs of eligible environmental and non-environmental activities.
The Brownfield redevelopment process begins with a discussion with the City of Otsego City Manager and/or the City of Otsego BRA. From there, the interested party prepares a Brownfield Plan, which describes the project in detail and includes the information on the eligible activities to be performed at the site. The Brownfield Plan describes the taxes that are to be captured at each property, and indicates how the eligible activities will initially be funded.
Once a Brownfield Plan is complete, the City of Otsego BRA votes on whether to recommend it to the Otsego City Council. The City Council then has the final vote on whether or not to approve the plan. If the interested party intends to capture state school taxes, an Act 381 Work Plan must also be prepared. If the interested party is seeking reimbursement of eligible environmental activities (e.g., contaminated soil removal, hazardous materials abatement), the Act 381 Work Plan must be submitted to and approved by the MDEQ. If the interested party is seeking reimbursement of eligible non-environmental activities (e.g., building demolition, infrastructure improvements) the Act 381 Work Plan must be submitted and approved by the Michigan Economic Development Corporation (MEDC)/Michigan Economic Growth Authority (MEGA). The City of Otsego BRA will work with the developer through every step of the process to help ensure the project is a success.
U.S. EPA Assessment Grant
The United States Environmental Protection Agency (U.S. EPA) awarded the Cities of Allegan, Otsego and Plainwell a $200,000 Brownfield Assessment Grant for Hazardous Substances in 2008. The grant was awarded to the communities to help identify, characterize and prepare Brownfields for redevelopment. The cities used the grant to develop an inventory of Brownfields within each community, and then performed environmental assessments on priority sites to identify issues of concern and help prepare them for sale and/or redevelopment. The grant money was available to assist with site assessments for environmental due diligence and reuse planning at properties where a committed developer and redevelopment plan had been identified. The activities conducted under the U.S. EPA Brownfields Assessment Grant helped identify environmental concerns at many area Brownfields. This grant was an instrumental tool in attracting developers to Brownfield sites and ultimately transforming them into viable businesses. An example of a successful Brownfield redevelopment spurred by the U.S. EPA Brownfields Assessment Grant is summarized below.
The site consists of approximately 2.7 acres of land developed with an approximately 42,400 square-foot, industrial building, storage shed, and associated paved parking areas. In 1949, the original portion of the existing building was constructed on the site and various building additions and a storage shed were constructed between 1951 and 1963. The building was occupied by Hammond Machine Builders/Hammond Machinery/Hammond Roto-Finish (Hammond) from 1949 until 2004. Hammond used the building for fabrication and assembly of parts finishing equipment, solvent degreasing, industrial detergent blending, parts painting, and urethane coating removal. By August 2004, Hammond was transferring their operations to their Kalamazoo, Michigan plant and was using the building to store equipment and molds.
This site was identified as a Brownfield site after housing a machine tool and die business for over 50 years. On its way to becoming another vacant building in the City of Otsego, the site was appealing to business entrepreneur Mr. Joseph Dendel of Prime America, LLC. Mr. Dendel was interested in potentially relocating his industrial dewatering pump/fan system business from the City of Allegan to 610 S. Platt Street in Otsego. However, before doing so, Mr. Dendel sought information about the site's current environmental conditions and potential for redevelopment. A Phase I Environmental Site Assessment (ESA), a Hazardous Materials Building Assessment, a Phase II ESA, a Baseline Environmental Assessment (BEA), and a Due Care Plan were completed. These activities conducted as part of the U.S. EPA Brownfields Assessment Grant for Hazardous Substances alleviated many of the unknowns associated with the site's environmental conditions. Mr. Dendel officially celebrated the opening of his business in Otsego in February 2011.
The Following Links Provide Information About Brownfield Redevelopment In Michigan