LANSING, Mich. (Michigan News Source) – Michiganders seeking to restore corrupted land often called Brownfields, and those seeking more affordable housing options may have a common goal under new legislation put forth by lawmakers.
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A package of Senate Bills would amend the state’s brownfield development fund to also support housing developments. The bills which received support from Democrats and Republicans alike passed the Senate earlier this year, and the House yesterday.
“Affordable housing is a major concern in every senator’s district throughout our state, and this legislation will provide a tool and a first step to address that issue head-on,” said state Senator Sam Singh (D-East Lansing) during a speech earlier this year.
A report by the Senate clarifies that the bill package would “allow the State Brownfield Redevelopment Fund to be used to distribute revenue deposited into the Fund from a brownfield redevelopment plan that included housing development activities.” Furthermore, the reimbursement for housing activities would have to be approved by the Michigan State Development Authority (MSHDA).
According to the report, it would also have an “indeterminate negative fiscal impact” on the State and local government, as it would likely reduce revenue in other areas such as the School Aid Fund, via a decrease in the State Education Tax, and would likely increase the labor and costs associated with reviewing more projects for the Department of Environment, Great Lakes, and Energy (EGLE).
Still, some like Senate Majority Leader Winnie Brinks (D-Grand Rapids) believe that the benefits will outweigh the costs, including an increase of the base reasonable costs of a brownfield plan from $30,000 to $50,000.
“This legislation will create a transformational impact on local economic development and revitalize our communities,” Brinks said in a statement. “I am excited about the opportunities this will present to communities across the state, including my home city of Grand Rapids, where we are well-positioned to welcome the new jobs and commerce generated by this holistic, people-first economic program.”
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Pontiac Mayor Tim Greimel also weighed in on the potential for redevelopment.
“Transformational brownfields are critically important to facilitate much needed investment in older, central cities and in economically disadvantaged communities,” he said.
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