A blighted industrial building in Hamtramck will be demolished to make way for a new recycling and waste transfer station at 3300 Denton. The Hamtramck Brownfield Redevelopment Authority will use local and school tax capture valued at $470,933 provided by the
Michigan Economic Growth Authority
-- part of $73 million worth of statewide tax credits and reimbursements approved last week.
The project was also eligible for a Brownfield Redevelopment tax credit, says Dan Wells, who manages brownfield redevelopment projects for the MEDC. "If there was ever a poster boy for the Brownfield program, this it," he says. "The roof is caving in, the windows are broken out. This is an old industry building that’s been around for several decades and has been vacant for a number of years. It's thoroughly falling apart." Brownfield tax incentives will pay for lead and asbestos removal.
Since the value of the property will increase following the destruction and clean-up, MEGA will allow the developer to "capture" the current value of property until 2037. "It's really a win-win situation for both the developer and the jurisdiction," he says.
"The costs of taking care of the brownfield conditions would have probably prevented this site to be developed for quite a while, considering the depressed property values in that area. They really did need the TIP incentives to carry out the project -- they just would not be able to make the numbers work otherwise," Wells says.
The project, which is being developed by Hamtramck Recycling LLC, is expected to generate $6 million in new investment and create up to 43 permanent full-time jobs, in addition to dozens of temporary construction and site clean-up positions.
"The city is really excited about it because its one of the first non-auto related developments that they’ve had in a long time," Wells adds.
Demolition will begin by the end of 2012. Find out more at the MEDC website
Source: Dan Wells, director of brownfield redevelopment, Michigan Economic Development Corporation.