The City of Howell’s Downtown Development Authority has approved an agreement that will allow for the capture of tax revenue to redevelop a historic building downtown.
Jeff Doyle, owner of “The Pearl” building at 309 East Grand River, is looking to redevelop it with help from Brownfield Tax Increment Financing, or TIF. It would be financially viable by using reimbursement of the State School tax dollars and Michigan Community Revitalization Program dollars to close the financing gap. The Howell Brownfield Redevelopment Authority (HBRA) reviewed updates to the project and approved of the developer’s request to use Brownfield Development funding support through the DDA.
Howell’s City Council met Monday night and approved a Brownfield Redevelopment Plan and a Brownfield Reimbursement Agreement, which would allow Doyle to capture any tax growth created by the project to reimburse and offset investment costs. The City’s Downtown Development Authority (DDA) then met Wednesday to review and discuss an inter-local agreement, which is required by the State to approve projects that use TIF for support.
The agreement allows HBRA to capture the increased tax revenue from the project instead of the DDA for the length of the plan. The agreement is required by the State to approve Brownfield projects in which two public agencies can both capture the same tax dollars. The DDA voted to approve the inter-local agreement language and to approve foregoing future additional tax funding capture at an amount not to exceed $210,669.
Schmitt tells WHMI the applicant will next have to receive approval from the State on two requests – one regarding the Brownfield program and another for the Michigan Conservation Reserve Program. The City of Howell has no involvement in the process for the latter. He says ultimately, the State just wants to see that there is substantial local input and interest in the project. (DK)