REAL ESTATE

Retail, office, mixed use and commercial sites and buildings including redevelopment properties.

Target Market Analysis

Development Tools

Community Developent Block Grant Program (CDBG)
The U.S. Department of Housing and Urban Development (HUD) allocated CDBG funding to the State of Michigan, through the Michigan Strategic Fund (MSF) with assistance from the Michigan Economic Development Corporation (MEDC), for further distribution to eligible Units of General Local Government (UGLGs) to carry out MSF-approved activities. For a complete summary of approved program uses, refer to Michigan Consolidated Plan

CBDG program Funds are used to provide grants and loans to UGLGs, usually with populations under 50,000, in support of economic or community development projects. Project proposals are considered and evaluated continuously based upon MSF's approed Application Guide. Project activities supported by CDGB include:

-Façade Improvement
-Building Acquisition (vacant, partially vacant or substantially underused buildings in traditional down towns for mixed use redevelopment and job creation)
-Building Rehabilitation (priority given to buildings that are vacant, deteriorated, abandoned, and considered blighted and detrimental to public health and safety)
-Rental Rehabilitation (51% of units available for low and moderate income households during initial occupancy)
-Infrastructure
-Planning

Brownfield Redevelopment Authority Tax Increment Financing
Brownfields are defined as properties that are contaminated (facility, blighted functionally obsolete, or are historic properties. Regardless of their classification, all brownfield properties face economic impediments to reuse and redevelopment.

Through the Brownfield Redevelopment Financing Act, local units of government are able to establish Brownfield Redevelopment Authorities to utilize Brownfield Tax Increment Financing (TIF) to capture the incremental increase in tax revenue resulting from a redevelopment project. The incremental increase in tax revenue resulting from a redevelopment project. The incremental tax capture can be used to reimburse the project's developer to help offset the costs of environmental and/or non-environmental eligible activities. The reimbursement takes place over time, as the incremental taxes are realize. Under a MSF approved Work Plan or Combined Plan, projects can seek reimbursement from state and local property taxes for eligible non-environmental activities. Projects can also seek reimbursement from state and local property taxes for eligible environmental activities through submission of a Work Plan or Combines Plan to the Michigan Department of Environmental Quality (MDEQ).

Brownfield Redevelopment Authorities in KEDA Region
- Houghton County BRA (Has a local brownfield loan fund)
- Keweenaw County BRA
- Keweenaw County BRA
- Village of L'Anse BRA
- Village of Baraga BRA

Historic Redevelopment Tax Credits
A 20% income tax credit is available for the rehabilitation of historic, income-producing buildings that are determined by the Secretary of the Interior, through the National Park Service, to be "certified historic structures." The State Historic Preservation Offices and the National Park Service review the rehabilitation work to ensure that it complies with the Secretary's Standards for Rehabilitation. The Internal Revenue Service defines qualified rehabilitation expense on which the credit may be taken. Owner-occupied residential properties do not qualify for the federal rehabilitation tax credit. Learn more about this credit before you apply.

Each year, Technical Preservation Services approves approximately 1200 projects, leveraging nearly $6 billion annualy in private investment in the rehabilitation of historic buildings across the country.

Community Revitalization Program

The Michigan Community Revitalization Program (MCRP) is an incentive program available from the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation (MEDC), designed to promote community revitalization that will accelerate private investment in areas of historical disinvestment; contribute to Michigan's reinvention as a vital, job generating state; foster redevelopment of functionally obsolete or historic properties; reduce blight; and protect the natural resources of this state. The program is designed to provide grants, loans, or other economic assistance for eligible investment projects in Michigan.

The MSF's support will not exceed 25 percent of the total eligible investment for a single project, and in no event exceed a total of $10,000,000 for loan agreements or $1,500,000 for grant agreements, or $10,000,000 for a combination of support. Any grant or loan under the program will be performance based. Grants and loans will include flexible terms and conditions and may be assignable upon approval of the MSF. Loan terms and conditions may include below market interest rates, extended grace and repayment provisions, forgivable terms and no security or some security (which may be subordinated). As required by the act, all written agreements will include a repayment provision for failure to comply with the provisions outlined in the written agreement. Other economic assistance may include loan participation or equity investment with terms acceptable to the MSF.

The program is designed to support projects that are important to a community which are located in a downtown or traditional commercial center that primarily promote the revitalization of urban areas; will act as a catalyst for additional
revitalization of the community in which it is located; that has local community and financial support for the project; that demonstrates the applicant's financial need for the incentive; that focus on reuse of vacant buildings, reuse of historical
resources and redevelopment of blighted property including vacant publically owned buildings; that redevelop buildings with environmental contamination; that create jobs; that has significant private and other financing and is financially and economically sound; that promotes mixed use development and walkable communities; and increases the density of the area.

Commercial Rehabilitation Exemption

The Commercial Rehabilitation Act, PA 210 of 2005, as amended, affords a tax incentive for the rehabilitation of commercial property for the primary purpose and use of a commercial business or multi-family residential facility. The property must be located within an established Commercial Rehabilitation District. Exemptions are approved for a term of 1-10 years, as determined by the local unit of government. The property taxes are based upon the previous year's (prior to rehabilitation) taxable value. The taxable value is frozen for the duration of the certificate. Applications are filed, reviewed and approved by the local unit of government, but are also subject to review at the State level by the Property Services Division. The State Tax Commission (STC) is responsible for final approval and issuance of certificates. Exemptions are not effective until approved by the STC. More information can be found here.

Commercial Facilities Exemption

The Commercial Redevelopment Act, (known as the Commercial Facilities Exemption), PA 255 of 1978, as amended, affords a tax incentive for the redevelopment of commercial property for the primary purpose and use of a commercial business enterprise. The property must be located within an established Commercial Redevelopment District. Exemptions are approved for a term of 1-12 years as determined by the local unit of government and the taxable value is frozen for the duration of the certificate. For restored facilities, the property taxes are based upon the previous year's (prior to restoration) taxable value and 100% of the mills levied. For new or replacement facilities, the property taxes are based upon the current year's taxable value and 50% of the mills levied. Applications are filed, reviewed, approved, and certificates are issued, by the local unit of government. Certificates are also filed with the State Tax Commission. More information can be found at here.

Local Permitting Process

Zoning

Building Permits