ADVOCACY ISSUES
Brownfield Regulations

Brownfield Tax Credit Extension — We applaud the Michigan Legislature for extending the Brownfield Redevelopment Financing Act last December through 2008. This is the type of legislation that will spark urban development and curtail suburban sprawl. We encourage the state to invest more in brownfield development as future funding allows

In the waning days of 2002, we are very pleased to report that our first focused lobbying initiative for 2002 met with success! At the direction of our Government Affairs Committee, our lobbying firm of Skofes, Kindsvatter and Associates aggressively pursued the extension of the Brownfield Redevelopment Financing Act.

As most of you know, we have 75 lawmakers leaving office in the Michigan Legislature in addition to a Governor, Secretary of State and Attorney General. Given this major shift of players it was an unusual lame duck session where special interests and self-interest played significant roles.

The Brownfield Redevelopment finance package was given final approval by the legislature before adjourning for the year. Working on behalf of BOMA members, our lobbyists were able to stop harmful amendment language from becoming part of the bill. One such example was a group of legislators that called for local school board approval or Independent School District approval of eligible brownfield tax credits. If adopted, these amendments would have rendered the Brownfield Act useless as the state does not reimburse out-of-formula school districts.

Local school boards and ISDs have been waiting years for the chance to stop these type of business tax incentives which, they claim, take money away from schools by reducing the tax base. The extension of the Brownfield Redevelopment Financing Act pushes back the sunset on the law to December 31, 2008.

SK&A joined forces with the State Chamber of Commerce and were successful in including language assisting large multi-phase projects. The new language allows for multi-phase projects to begin collecting tax credits upon completion of each stage. Previously, projects had to be fully completed before tax credits could start. This arrangement put multi-phase projects at an economic disadvantage. The new language allows for up to three phases (3) of a brownfield project, which must be completed within a 10-year time span.

As you may know, the act, as originally signed into law in 1996, included a sunset provision for January 1, 2003. The Brownfield Redevelopment Financing Act is important to BOMA members because it allows for tax credits for not only environmentally tainted sites but for buildings that are “obsolete” where tax breaks can make all the difference in turning a building into a viable space and returning it to the tax roles or leaving it unused.