The Detroit Brownfield Redevelopment Authority (DBRA) has approved brownfield tax incentive plans for two projects, representing a potential investment of $6.9 million in Detroit. The projects include the restoration of three older residential buildings on W. Grand Blvd. and conversion of a dilapidated industrial complex into a warehouse operation. The brownfield plans for the projects include proposed Michigan Business Tax credits of $681,000, and $161,000 in tax increment financing benefits.

Brownfield tax incentives are tools to redevelop blighted, functionally obsolete or contaminated properties. Eligible brownfield properties can earn Michigan Business Tax credits, and may be reimbursed for costs such as remediation, demolition, infrastructure and site preparation activities from tax-increment revenues generated by the project.

West Grand Boulevard Redevelopment
S. Dot Development LLC plans to renovate three multi-family buildings on West Grand Boulevard as residential housing. The developer estimates it will invest $1.45 million to refurbish the three buildings, at 1660, 1900 and 1905 W. Grand Blvd. In all, the developer expects to create 13 new housing units.

S. Dot Development is applying for a 12.5% Michigan Business Tax (MBT) credit of $143,944 on $1.15 million of eligible expenses, and a $160,649 in reimbursements from tax increment financing.

Metro International Trade Services
Metro International Trade Services proposes to redevelop a large vacant industrial building and a companion office building as a warehouse operation on Mt. Elliott St. on the city’s near east side. The company expects to invest $5,474,161 to rebuild the complex, which has been an industrial site since 1925 or longer.

Metro International has been invited to apply for a 12.5% Michigan Business Tax (MBT) credit of $537,022 on an eligible investment of $4,296,177.

“These two projects show how broadly brownfield incentives can be applied to revitalize neighborhoods and encourage business investments,” said Art Papapanos, Detroit Economic Growth Corporation vice president, board administration. “One project will restore affordable housing to stabilize a neighborhood, the other will clean up and put to new use a site that has held a Packard Motor Company factory, an oil-storage facility and a steel processing plant, among others.”

Detroit Economic Growth Corporation is a non-profit organization that serves as the lead implementing agency for business retention, attraction and economic development initiatives in the city of Detroit. DEGC is led by a 60-member board comprised of business, civic, labor and community leaders. Its 35 professionals provide staff services for key public authorities that offer tax credits and other forms of financing for projects that bring new jobs or economic activity to the city. Among them: the Downtown Development Authority (DDA), Detroit Brownfield Redevelopment Authority (DBRA), Economic Development Corporation (EDC), Neighborhood Development Corporation (NDC), Local Development Finance Authority (LDFA), and Tax Increment Finance Authority (TIFA). The DEGC also provides planning, project management and other services under contract to the City of Detroit.