Brownfield Impact Report

Transcription

Grand Traverse County
Brownfield Redevelopment Authority
Brownfield
Impact Report
The Economical and Environmental Impact
of Brownfield Redevelopment in Grand Traverse County
FEBRUARY 1, 2011
Grand Traverse County Board of Commissioners
Larry Inman, Chair
Larry Fleis, Vice Chair
Jason Gillman
Rob Hentschel
Herb Lemcool
Christine Maxbauer
Ross Richardson
Dick Thomas
Sonny Wheelock Jr.
Grand Traverse County Brownfield Redevelopment Authority
Chuck Korn, Chair
Jason Piedmonte, Vice Chair
Dennis Aloia
Barbara Budros
Virginia Coulter
Doug Donaldson
Herb Lemcool
William Rokos
Peter Strom
Prepared by:
Jean Derenzy, Deputy Director
With assistance from Madeline Jaks, Planning Intern
Special acknowledgement to William J. Rokos, County Treasurer
Grand Traverse County
Planning & Development Department
400 Boardman Avenue
Traverse City, MI 49684
(231) 922-4676
www.grandtraverse.org/planning
February 1, 2011
TABLE OF CONTENTS
INTRODUCTION............................................................................................................. 4
HOW TAX INCREMENT FINANCING (TIF) WORKS ..................................................... 6
SUMMARY...................................................................................................................... 7
PROJECTS ..................................................................................................................... 8
VanWagoner/Goble LLC Redevelopment Project........................................................ 8
Melling Tool Redevelopment Project (Premier Place Condominiums)....................... 11
River’s Edge Redevelopment Project ........................................................................ 14
TC Cast Redevelopment Project (Clark Manufacturing) ............................................ 17
Copper Ridge Redevelopment Project ...................................................................... 21
Boardman Lake Redevelopment Project (Lake Ridge Condominiums and Boardman
West) ......................................................................................................................... 24
Kinney’s Redevelopment Project ............................................................................... 27
Harbour View Centre Redevelopment Project ........................................................... 30
Radio Centre/Park Street Redevelopment Project..................................................... 33
101 N. Park Street Redevelopment Project (Bridgestone/Firestone)......................... 36
Traverse House Scamehorn Redevelopment Project................................................ 39
The Village at Grand Traverse Commons Redevelopment Project ........................... 42
Traverse City Place ................................................................................................... 46
River West ................................................................................................................. 48
Kirby .......................................................................................................................... 50
Jimmy John’s ............................................................................................................. 52
Traverse City Bear Company .................................................................................... 54
Grand Traverse County Brownfield Impact Report
3
INTRODUCTION
Since the establishment of the Grand Traverse County Brownfield Redevelopment
Authority (GTCBRA) in 1997, it has been involved in numerous brownfield redevelopment
projects throughout the County. The GTCBRA operates under the Brownfield Redevelopment
Financing Act, PA 381 of 1996, which authorizes the GTCBRA to facilitate the implementation
of brownfield plans; create brownfield redevelopment zones; to promote revitalization, reuse,
and redevelopment of tax reverted, blighted, or functionally obsolete properties; to permit the
issuance of bonds and other evidences of indebtedness by an authority; authorize certain funds;
authorize the acquisition and disposal of certain property; and to authorize and permit the use of
certain tax increment financing. It is through these actions that the GTCBRA is able to facilitate
the conversion of challenging parcels of land into new tax base; create and retain jobs; promote
the redevelopment of the urban core; and, remediate contaminated land that thereby reducing
harmful impacts on residents and natural resources.
This report will highlight every GTCBRA project by identifying the projected date of
completion; the amount of private investment; the number of new jobs and the amount of new
taxes generated from each project. As the reader will identify within this report, brownfield
redevelopment has and continues to be a true economic development and environmental clean-up
tool that works for our community. The success of the GTCBRA lies with the community and
the elected bodies that continue to support these efforts. The unique collaborative nature of the
program is a testament to the community in which we live, which is a community that values the
environment and is committed to improving the environment and local economy resulting in
greater sustainability and prosperity.
Of the several ongoing redevelopment projects, two projects are completed as of June
2010. A completed project means a developer has been reimbursed for all eligible activities
allowed under the brownfield statute and approved by the GTCBRA. Although project
buildings may be built and occupied, reimbursement of activities continues through the capture
of taxes on the increased value of the property until reimbursement of activities are complete.
Both of the completed projects are in Garfield Township and have increased the tax base by
nearly $7 million.
4
There are thirteen other projects set to increase the tax base as they are completed at
varying times over the next 30 years. In addition, these projects create and retain jobs, including
construction jobs. Research shows that for roughly every $1 million in private investment, 12
construction workers can expect full-time work for over a year. Since many of these projects
encompass several millions of dollars in private investment, the addition to the workforce can be
considered substantial.
While the economic impact of these projects is considerable, a primary benefit of these
projects is the improved environmental conditions and rejuvenation of the overall area of a
project. These projects have the ability to convert blighted areas with new development that
results in positive community change and improvement to neighboring properties. These
projects also proactively reduce potential threats to our natural resources, particularly water
quality. The GTCBRA has done a tremendous job at revitalizing areas that once had significant
contamination impeding redevelopment and threatening natural resources.
It is with pride and enthusiasm that the GTCBRA can present this report knowing that
many historical environmental problems have been eliminated and prosperity has been brought
to the community. However, our work is not complete. The GTCBRA looks forward to
working for our community to remove all historical contamination and restore neglected areas
into vibrant neighborhoods and job centers.
From liability…
…to community asset!
5
HOW TAX INCREMENT FINANCING (TIF) WORKS
Under an approved Brownfield Plan and Work Plan, certain redevelopment costs are identified
for each project, including environmental clean-up, demolition, lead and asbestos abatement,
infrastructure improvements and site preparation. Tax increment financing (TIF) allows a local
governmental unit to use the increased tax revenue resulting from the project and share it with
the developer to help offset the costs of the eligible activities.
6
SUMMARY
The following summary table provides an overview of the impact of GTCBRA activities. Listed
by project is the private investment made for each project; the additional amount of anticipated
private investment; the number of real jobs created or anticipated to be created; the initial taxable
value of the land; the new taxable value of the land; the additional revenue to the tax rolls of the
taxing jurisdictions; and the projected brownfield end date.
Summary Table
Project
Private
Investment
101 N. Park Street
$17,800,000
Copper Ridge
$75,000,000
Harbour View Centre
Additional
Private
Investment
Anticipated
Jobs
Created
Initial
Taxable
Value
New
Taxable
Value
Additional
Revenue to
Tax Rolls
Projected
Brownfield
End Date
40
$296,649
$2,175,632
$1,878,983
2026
513
$111,920
$21,041,530
$20,929,610
2023
$13,000,000
100
$191,300
$5,486,798
$5,295,498
2012
VanWagoner/Goble
$2,500,000
25
$48,320
$1,441,600
$1,393,280
2010
Traverse House/
Schamehorn
River's Edge
$5,000,000
4
$254,338
$838,273
$583,935
$41,000,000
450
$434,621
$20,681,976
$20,247,355
2016
Park Street/Radio Centre
$10,000,000
70
$538,996
$6,476,936
$5,937,940
2026
Boardman Lake
$18,000,000
2
$77,733
$6,015,914
$5,938,181
2030
$0
0
$355,110
$514,640
$159,530
2024
2
$256,420
$6,032,840
$5,776,420
2010
40
$356,788
$3,625,061
$3,268,273
2021
Kirby
Melling Tool
T.C. Cast
$61,000,000
2024
$18,000,000
$25,000,000
$18,000,000
$1,500,000
Traverse City Place
$0
$43,000,000
40
$2,449,236
$4,132,141
$1,682,905
2031
River West
$0
$14,000,000
0
$543,520
$1,404,582
$861,062
2031
The Village
$42,000,000
$80,000,000
331
$156,462
$156,462
$0
2032
$6,000,000
30
$278,613
$2,156,553
$1,877,940
2023
$0
0
$78,983
$78,983
$0
2036
$800,000
3
$292,562
$569,001
$276,439
1,650
$6,721,571
$82,828,922
$76,107,351
Kinney’s
Jimmy John’s
Three Mile/Mitchell Creek /
T.C. Bear
TOTAL
2018
$249,800,000
$241,000,000
-----
Disclaimer: This report is an attempt to illustrate the impact of the activities of the GTCBRA and
does not constitute a formal financial report of the GTCBRA.
7
PROJECTS
VanWagoner/Goble LLC Redevelopment Project
5246 North Royal Drive, Garfield Township
Redevelopment started at 5246 North Royal Drive in Garfield Township by VanWagoner-Goble
LLC in 1999. The United States Environmental Protection Agency (EPA) performed an initial
assessment of the site and identified that a transformer and electrical equipment salvage
operations caused contamination of soil with polychlorinated biphenyls (PCBs). US EPA placed
the property on the national registry of contaminated sites. Subsequent studies by prospective
purchasers also identified stained soil, scrap transformers, and 55-gallon drums. Soil testing also
revealed contamination by various metals and chlorinated solvents. The brownfield
redevelopment plan supported proper disposal of wastes and evaluation of soil impacts upon
shallow groundwater quality.
This site is now home to a 9,000 square foot medical facility operated by the Traverse City
Medical Center. Two businesses operate within the complex: Excel Physical Therapy and MVP
Orthopedics. Since the cleanup and subsequent redevelopment, the taxable value of the property
has increased by nearly $1.35 million, 25 full-time jobs were created, and the County and local
taxing jurisdictions can expect to recognize a 27.8% increase in tax revenues in 2011 (see Figure
1).
This project is now complete with the new tax increases going to all taxing jurisdictions in 2011.
As an example, Garfield Township recognized $129.23 in yearly taxes in 1999. Now the
Township will recognize $3,726.19 in yearly taxes (see Table 1).
8
VanWagoner/Goble LLC
Table 1
Taxable
Value (1999)
$ collected if
no build-out
occurred
$48,320
2009 Rate
Taxing Jurisdiction
County
Garfield Township
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority
Commission on Aging
TOTAL LOCAL ONLY
New Taxable
Value 2009
(Tax Bill)
$1,393,280
$1,441,600
$240
$129
$141
$104
$46
$31
$17
$5
$23
$736
$6,943
$3,726
$4,083
$3,023
$1,330
$918
$676
$138
$676
$21,513
$7,185
$3,855
$4,226
$3,128
$1,376
$951
$472
$143
$700
$22,036
$869.76
$289.92
$1,159.68
$25,079
$8,359
$33,438
$25,949
$8,650
$34,599
Millage Rate
4.9838
2.6744
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
0.4858
15.3043
State School Operating
18.0000
State SET
6.0000
TOTAL STATE
24.0000
*Rec Authority not an approved millage in 1999
2009
Brownfield
Captured Tax
Base
Figure1
Taxable Value Increase ( VanWagoner/Goble )
$1,441,600
$1,400,000.00
$1,200,000.00
$48,320.00
$1,000,000.00
$800,000.00
$600,000.00
$400,000.00
$200,000.00
Time
$0.00
Current Taxable Value (2009)
Initial Taxable Value (1999)
Figure 1 depicts the increase in taxable value of the VanWagoner/Goble redevelopment project from 1999 to 2009.
The taxable value of this property (parcel no. 315-007-010) has increased by roughly $1.35 million in only ten years
time.
9
VanWagoner/Goble LLC Photos:
10
Melling Tool Redevelopment Project (Premier Place Condominiums)
Woodmere Avenue and Premier Street, Garfield Township
The Brownfield Plan for this development provided the financial resources for cleaning up
surface contamination of soil impacted by prior industrial/waste disposal uses. The property
was used as an auto salvage yard between 1940s and 1960s, with petroleum, lead, chromium,
cadmium, zinc, ethylene glycol and other toxins associated with automotive fluids and residuals
that caused additional costs to this residential redevelopment project.
The property consists of 24.21 acres and developed into 110 multi-family housing units operated
by Premier Place Condominiums, with all previous hazardous substances remediated to allow
this redevelopment to occur. The private investment for this project was $18 million and
increased the taxable value by nearly $5.5 million as of 2009 (see Table 2). This housing project
has created 2 full-time positions as well as over a hundred construction jobs. The County and
local taxing jurisdictions will recognize a 20.52% increase in tax revenues in 2011 (see Table 2).
Premier Place Condominiums also has plans for continued expansion over the next five years by
investing another $18 million into the property for the construction of over 200 units. A
projection for 2016 shows this additional $18 million investment will increase the taxable value
to roughly $23.7 million (see Figure 2). This anticipated investment would lead to even more
job creation and result in a 212% increase in taxes collected by local jurisdictions.
This project is now complete with the new tax increases going to all taxing jurisdictions in 2011.
As an example, Garfield Township recognized $685.77 in yearly taxes in 2001. Now the
Township will recognize $15,448.46 in yearly taxes (see Table 2).
11
Melling Tool (Premier Place Condominiums)
Table 2
2009 Rate
Taxing Jurisdiction
County
Garfield Township
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority*
Commission on Aging
TOTAL LOCAL ONLY
Millage
Rate
4.9838
2.6744
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
0.4858
15.3043
State SET
TOTAL STATE
18.0000
6.0000
24.0000
2001
Taxable Value
$ Collected if
no build-out
occurred
$256,420
2010
Brownfield
Tax Base
2010
Taxable Value
(Tax Bill)
2016
Projected New
Taxable Value†
$5,776,420
$6,032,840
$14,032,840
$1,277
$685
$751
$556
$244
$169
$88
$25
$124
$3,919
$28,788
$15,448
$16,931
$12,534
$5,515
$3,809
$2,806
$574
$2,806
$89,211
$30,066
$16,134
$17,683
$13,091
$5,760
$3,979
$2,084
$600
$2,931
$92,328
$69,937
$37,529
$41,133
$30,451
$13,399
$9,255
$4,847
$1,395
$6,817
$214,763
$4,615
$1,538
$6,154
$103,975
$34,658
$138,633
$108,591.12
$36,197.04
$144,788.16
$252,591
$84,197
$336,788
† Projected additional investment per owner
Figure 2
$14,032,840
Taxable Value Increase (Melling Tool)
$25,000,000.00
$6,032,840
$20,000,000.00
$15,000,000.00
$10,000,000.00
$256,420.
$5,000,000.00
$0.00
Time
Initial Taxable
Value (2001)
2010 Taxable
Value
2016 Projection
Figure 2 depicts the increase in taxable value of the Melling Tool property from 2001 to 2009. An additional
projection for the increase as of 2016 is included, anticipating a private investment of $18 million.
12
Premier Place Condominiums Photos:
Image retrieved from: http://www.premierplacecondos.com/images/5039.jpg
Image retrieved from: http://www.premierplacecondos.com/images/property_collage.jpg
13
River’s Edge Redevelopment Project
Cass Street and Lake Street, City of Traverse City
River’s Edge is located on the Boardman River in downtown Traverse City. Generations of
foundry operations on the property left behind a toxic environmental legacy, both on land and
beneath the Boardman River within its sediments. Arsenic, copper, lead and iron were all
present at unsafe levels at the site and within sediments. In addition, past fuel storage activities
resulted in soil contamination by hazardous fuel hydrocarbons, such as naphthalene and benzo-apyrene. The brownfield plan facilitated removal of the contamination and allowed for
installation of steel sheeting to separate slag waste from the river. The sheeting provided a
foundation for a river walk while holding back contaminants within the soil from entering the
river. Other engineered covers were also installed at the site as part of the brownfield plan to
stabilize the vast quantities of slag waste and prevent human exposures, rendering the site safe
for residential occupancy.
The outcome of this redevelopment effort was the completion of a landmark mixed-use urban
infill project. Over $41,000,000 in private investment has occurred and 450 new jobs have been
created. Development is comprised of retail shops, commercial space and residential units with
parking. The most highly recognized facet of the residential component was a partnership with
Homestretch, a local non-profit of affordable housing developer, which purchased eight
condominium units for low-income families. Providing eight affordable units among the 45-unit
development was a strategic goal to integrate mixed incomes. The result has worked seamlessly
into the project.
The commercial uses include Hagerty Insurance, the largest employer in downtown Traverse
City, as well Eagle Investment Company, Patisserie Amie/Chez Pere restaurant and Firefly
restaurant.
This site is also now home to the first publicly funded LEED certified parking structure within
the state of Michigan. LEED stands for Leadership in Energy and Environmental Design and
recognizes design, construction and operation of buildings that are environmentally friendly and
highly energy efficient. The four-story parking deck, located between East Eighth Street and
Lake Street, is powered, in part, by solar energy. The deck features roof gardens and five
electric car chargers.
The taxable value of the River’s Edge development in 1999 was $309,000. In 2009, the taxable
value was just over $19.4 million, representing an increase in the tax-base of over 6,178%
This project will be completed in 2017 at which time the taxing jurisdictions will begin receiving
the investment made. Investment of an additional $30 million is predicted to occur over the next
10 to 15 years. The projections for this project show that significant increases in taxes will be
received by all taxing jurisdictions (see Table 3). As an example of the economic impact to the
taxing jurisdictions, the City of Traverse City recognized $5,726.78 in yearly taxes in 1999. In
2017, the City is anticipated to recognize $651,013.23 in yearly taxes.
14
River’s Edge
Table 3
Initial Taxable
Value (1998)
$ collected if
no build-out
occurred
2010
Brownfield
Tax Base
2010
Taxable
Value
(Tax Bill)
2017
Taxable
Value
Projection †
2009 Rate
Taxing Jurisdiction
County
Traverse City
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority
Commission on
Aging
TOTAL LOCAL
ONLY
$434,621
$20,247,355
$20,681,976
$36,166,597
Millage Rate
4.9838
13.1765
2.9312
2.1700
0.9548
0.6595
0.3272
0.0994
$2,166
$5,727
$1,274
$943
$415
$287
$142
$43
$
$
$59,349
$
$
$
$
$
$103,075
$272,516
$60,623
$44,880
$19,747
$13,640
$16,166
$2,056
$180,247
$476,549
$106,012
$78,482
$34,532
$23,852
$11,834
$3,595
0.4858
$211
$
$10,047
$17,570
25.6987
$1,273
$59,349
$542,750
$932,671
18.0000
6.0000
24.0000
$7,823
$2,607
$10,430.
$182,059
$118,877
$300,936
$189,885
$121,484
$311,369
$455,699
$217,000
$672,699
State School
Operating
State SET
TOTAL STATE
† Based on additional $30 million in Private Investment
Figure 3
Taxable Value Increase (River’s Edge Redevelopment)
$36,166,597
$20,681,976
$50,000,000.00
$45,000,000.00
$40,000,000.00
$35,000,000.00
$30,000,000.00
$25,000,000.00
$20,000,000.00
$15,000,000.00
$10,000,000.00
$434,621.00
$5,000,000.00
$0.00
Time
2017 Projection
Initial Taxable
Value (1998)
2010 Taxable
Value
Figure 3 shows the appreciation in taxable revenues of the River’s Edge redevelopment project from 1999 to 2010.
The tax base increased by 4,534% over this 10 year period and with an additional $30 million in private investment
anticipated over the next seven years, the value will appreciate by more than 6,178%
15
River’s Edge Photos:
16
TC Cast Redevelopment Project (Clark Manufacturing)
2485 Aero Park Drive, City of Traverse City
The former Traverse City Gray Iron works was located near the entrance of the Traverse City
Industrial Park along Aero Park Drive. The sudden bankruptcy of the company resulted in
various wastes being left in an abandoned state as workers dispossessed from an employer, left
their work stations forever. In addition to numerous drums of unknown waste substances, the
historic use of the property included an underground storage tank (UST) release as well as the
widespread storage of used casting and mold sands. The suddenly abandoned and long idled
property became an attractive nuisance for vandals and as result, the property quickly became
blight upon the community.
The brownfield plan for this site provided a vehicle for redevelopment of the property as it
provided a funding source to address proper characterization and disposition of wastes
abandoned when the plant was shut down suddenly. The brownfield plan tax increment revenue
(TIR) stream also reimbursed redevelopment efforts to raze the large industrial plant. The
surface soil health risks resulting from casting/mold sand wastes has been abated.
This site is now the location of Clark Manufacturing, a 55,000 square foot machine shop which
employs between 30 and 50 workers. The company made the move to this facility in late 2008
and has allowed for private expansion within the City limits. Since this project began, the tax
base has increased by nearly 150% and the County and local taxing jurisdictions will see these
revenues as soon as 2021.
As an example of the economic impact to the taxing jurisdictions, the County recognized
$1,778.16 in yearly taxes in 2000. In 2021, the County is anticipated to recognize $6,210.65 in
yearly taxes (see Table 4).
17
TC Cast
Table 4
Initial
Taxable
Value (1999)
$356,788
2010
Brownfield Tax
Base
$1,159,278
2010 Taxable
Value (Tax
Bill)
$1,516,066
2021 Taxable
Value
Projection
$4,500,000
Millage
Rate
4.9838
13.1765
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
$1,778
$4,701
$1,046
$774
$341
$235
$123
$35
$5,778
$15,275
$3,398
$2,516
$1,107
$765
$400
$115
$7,555.77
$19,976.44
$4,443.89
$3,289.86
$1,447.54
$999.85
$523.65
$150.70
$22,427
$59,294
$13,190
$9,765
$4,297
$2,968
$1,554
$447
0.4858
$173
$563
$736.50
$2,186
TOTAL LOCAL
ONLY
25.8064
$9,207
$29,917
$39,124.21
$116,129
State School
Operating
State SET
TOTAL STATE
18.0000
6.0000
24.0000
$6,422
$2,141
$8,563
$20,867
$6,956
$27,823
$27,289.19
$9,096.40
$36,385.58
$81,000
$27,000
$108,000
2009 Rate
Taxing Jurisdiction
County
Traverse City
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority
Commission on
Aging
$2,108,995
IFT Tax Rate
Brownfield
Capture – (Tax
Bill)
$2,108,995
Millage
Rate
2.4919
6.7783
1.4656
1.0850
0.4774
0.3298
0.1727
0.0497
$5,255
$14,295
$3,091
$2,288
$1,007
$696
$364
$105
$5,255
$14,295
$3,091
$2,288
$1,007
$696
$364
$105
0.2429
$512
$512
TOTAL LOCAL
ONLY
13.0933
$27,614
$27,614
State School
Operating
State SET
TOTAL STATE
9.0000
6.0000
24.0000
$18,981
$12,654
$31,635
$18,981
$12,654
$31,635
IFT Tax Rate
Brownfield
Capture
2009 Rate
Taxing Jurisdiction
County
Traverse City
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority
Commission on
Aging
18
Figure 4
Taxable Value Increase (TC Cast )
$1,516,0661
$1,600,000
$1,400,000.
$1,000,000.00
$800,000.00
$356,788.00
$600,000.00
$400,000.00
$200,000.00
$0.00
Time
2010 Taxable Value
Figure 4 shows the appreciation in taxable revenues of the Traverse City Cast redevelopment project from 1999 to
2009. The tax base increased by nearly 150% over the 9 years, and the site is now home of Clark Manufacturing, a
machine shop located in Traverse City, MI.
19
TC Cast (Clark Manufacturing) Photo:
20
Copper Ridge Redevelopment Project
Silver Lake Road and Barnes Road, Garfield Township
This property is located along Silver Lake Road and Barnes Road, and includes 74 acres of
property formerly occupied by the Grand Traverse County Road Commission, property formerly
used as an orchard, and former residential properties. A portion of this property had been listed
on Michigan’s Part 201 list for chloride contamination from past Road Commission uses (road
salt storage). Other impacts to the property include soil contamination from underground storage
tanks and drainage systems associated with the former road commission buildings, as well as
arsenic from former orchard property use. Brownfield plans for this property supported the
investigation of the entire parcel for redevelopment as medical offices, an ambulatory surgery
center and mixed office building usage.
Redevelopment of the property began in early 2001. It has since given rise to one of the most
innovative mixed-use developments in Northern Michigan. The Copper Ridge development has
received several awards, including two consecutive Community Revitalization Awards from
both the Michigan Economic Development Corporation (MEDC) and the GTCBRA.
The project has resulted in over $75 million of private investment. Full build-out of the project
will include an ambulatory service and possibly a cancer center that will add an additional $61
million of private investment. Of that investment, Munson Medical Center will be contributing
$40 to $50 million for new ambulatory service and another $11.5 million private investment for
auxiliary services.
Since 2000, the taxable value has increased by over $22 million (see Figure 5) and 513 new jobs
have been created.
This project will be completed in 2024, at which time the taxing jurisdictions will recognize a
substantial increase in tax base. As an example, the County received $557.79 in yearly taxes in
2000. In 2024, it is anticipated that the yearly taxes to the County will be $113,791.82.
21
Copper Ridge
Table 5
Initial Taxable
Value (2000)
$ Collected If
No Build-Out
Occurred
$111,920
2010
Brownfield
Tax Base
2010
Taxable
Value
(Tax Bill)
2023
Taxable
Value
Projection †
$20,929,610
$21,041,530
$31,193,432
Millage Rate
4.9838
2.6744
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
$558
$299
$328
$243
$107
$74
$39
$1
$104,309
$55,974
$61,349
$45,417
$19,984
$13,803
$7,229
$208
$104,867
$56,273
$61,677
$45,660
$20,090
$13,877
$7,268
$209
$155,412
$83,397
$91,405
$67,668
$29,774
$20,565
$10,771
$310
0.4858
$54
$10,168
$10,224
$15,149
15.3043
$1,703
$318,441
$320,144
$474,451
18.0000
6.0000
24.0000
$2,014.56
$671.52
$2,686.08
$376,733
$125,578
$502,311
$378,748
$126,249
$504,997
$561,302
$187,101
$748,402
2009 Rate
Taxing Jurisdiction
County
Garfield Township
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority
Commission on
Aging
TOTAL LOCAL
ONLY
State School
Operating
State SET
TOTAL STATE
Figure 5
Ridge)
Taxable Value Increase Copper
(
$21,041,530
25,000,000.00
20,000,000.00
15,000,000.00
10,000,000.00
5,000,000.00
0.00
2010 Taxable Value
Time
$111,920.00
Figure 5 shows the dramatic increase of nearly $22 million in taxable value of the Copper Ridge project. Without
this environmental clean up and redevelopment, more than 60 acres of County land would remain contaminated with
Arsenic and other hazardous chemicals, and the County could not have seen this kind of growth and expansion.
22
Copper Ridge Photos:
Images retrieved from:
http://www.performanceeng.com/pictures/copper_ridge.jpg
http://club.anytimefitness.com/clubs/traversecity/images/building.jpg
http://www.copperridgeonline.com/images/landscaping/9-Entrance-Spring-Daffs.jpg
23
Boardman Lake Redevelopment Project (Lake Ridge Condominiums
and Boardman West)
City of Traverse City
This redevelopment project is located along the west shore of Boardman Lake between 12th and
16th Street and contains approximately 13.59 acres. This property is an irregular-shaped parcel
of land bounded by vacant land and a railroad (right of way) ROW to the north, Boardman Lake
to the east, additional vacant land and railroad ROW to the south, and to the west by industrial
concerns and railroad ROW owned by MDOT to the west.
Based on review of historical documents including historical atlas maps, this property had been
utilized for railroad purposes since at least 1904 through 1982. Additional occupants have
included an ice house, an asphalt batch plant, a vehicle fueling area and a bulk fuel storage area.
Contaminants present included industrial waste lagoon leachate emanating from the Cone Drive
facility, uphill from the subject property. The petroleum-based sludge presented itself in seeps
along the shoreline and was present in shallow excavations, such as those for building footings.
Surface contamination from stored petroleum and from asphalt plant operations was pervasive.
Railroad track ballast containing heavy metals contamination was present and copper arsenic and
creosote from railroad tie debris was also of concern throughout the property
Thanks to the brownfield plan for this property in 2000, residential redevelopment of the west
bank of Boardman Lake has commenced to displace the old, unsustainable industrial land uses.
The plan brought attention to the liability of Cone Drive for impacts which the State compelled
them to remedy. The plan also provided funding to address the due care obligations needed to
design a land reuse plan that adequately removed health risks resulting from petroleum and
heavy metals contamination. The residential reuse is significant and most recently the
brownfield plan helped foster improvements in connectivity by financially supporting the
extension of the Traverse Area Recreation and Transportation (TART) Trail along the west side
of Boardman Lake. This financial support also manifests itself in funding for the City of
Traverse City’s West Boardman Avenue project which will calm traffic through the historic Old
Town neighborhood.
24
Boardman Lake
Table 6
2009
Rate
Initial Taxable
Value (1999)
$ Collected if
No Build-out
Occurred
$77,733
2010
Brownfield
Tax Base
$5,938,181
2010 Taxable
Value (Tax Bill)
2030
Taxable
Value
Projection
$6,015,914
$11,356,390
Taxing Jurisdiction
County
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority
Commission on Aging
TOTAL LOCAL ONLY
Millage
Rate
4.9838
13.1765
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
0.4858
25.8064
$387
$1,024
$228
$169
$74
$51
$27
$8
$38
$2,006
$29,595
$78,244
$17,406
$12,886
$5,670
$3,916
$2,051
$590
$2,885
$153,243
$29,982
$79,269
$17,634
$13,055
$5,744
$3,967
$2,078
$598
$2,923
$155,249
$56,598
$149,637
$33,288
$24,643
$10,843
$7,490
$3,922
$1,129
$5,517
$293,068
State School
Operating
State SET
TOTAL STATE
18.0000
6.0000
24.0000
$1,399.19
$466.40
$1,865.59
$106,887
$35,629
$142,516
$108,286
$36,095
$144,382
$204,415
$68,138
$272,553
Figure 6
Taxable Value Increase (Boardman Lake Redevelopment)
$11,356,390
$6,015,914
$20,000,000
$15,000,000.00
$10,000,000.00
$5,000,000.00
$77,733.00
$0.00
Time
Initial Taxable
Value (1999)
2010
Taxable
Value
2030
Projection
Figure 6 shows the appreciation in Taxable Value of the Boardman Lake project. Since 1999, the tax base has
increased by roughly $6 million, and represents a success story of public and private sector developers working
together.
25
Boardman Lake Project Photos:
Lake Ridge Condominiums
View of Boardman Lake from Lake Ridge Condominiums
26
Kinney’s Redevelopment Project
South Union Street, City of Traverse City
The Kinney Building historically operated as a gasoline service station from at least 1918 to June
1986 at the northwest corner of Union Street at State Street. After 1986, it was used solely as an
automotive repair facility until purchased and redeveloped through the aid of Brownfield Plan
tools. The small, one-story, slab-on-grade service station was to become the Bank of Northern
Michigan with three stories and a full basement along with the neighboring “Mid-Block
Building”. The development of commercial space above and below grade required excavation of
the entire site from the curb of State Street to the curb of Union Street, and down nearly to the
water table.
Through baseline environmental assessment (BEA) and due care eligible activities,
specifications for site preparation work necessary to raze the Kinney Service building and
remove its associated underground storage tanks (USTs) were developed. Contaminants found
in the soil included gasoline compounds benzene, toluene, ethyl benzene, xylenes, 1,2,4Trimethylbenzene and 1,3,5-Trimethylbenzene at levels from approximately 3 to 50 times the
amount allowed by the Michigan Department of Environmental Quality for drinking water
protection. Eight USTs which had been closed in-place were removed from the site, along with
contaminated soil. Two abandoned and long forgotten USTs were discovered during
redevelopment and were removed to eliminate the hazard to groundwater. A vapor barrier was
installed beneath the basement floor slab to protect occupants from impacts too deep to remove
during construction.
The anticipated end date for this project is 2023. A conservative estimate would reveal that the
increase in tax revenues is substantial.
27
Kinney’s
Table 7
2009 Rate
Taxing Jurisdiction
County*
Traverse City*
TBAISD
College*
Library Operating*
Medical Care Fund*
BATA*
Rec Authority*
Commission on Aging*
TOTAL LOCAL ONLY
Millage Rate
4.9838
13.1765
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
0.4858
25.8064
State SET
TOTAL STATE
18.0000
6.0000
24.0000
Initial Taxable
Value (2005)
$ Collected if No
Build-out
Occurred
$278,613
2010
Brownfield
Tax Base
2010 Taxable
Value (Tax Bill)
2023
Projection†
$1,882,940
2,156,553
$4,452,000
$1,389
$3,671
$817
$605
$266
$184
$96
$28
$135
$7,190
$
$
$5,519
$
$
$
$
$
$
$5,519
$10,753
$28,429
$817
$4,680
$2,059
$1,422
$8745
$214
$1,048
$57,579
$22,188
$58,662
$13,050
$9,661
$4,251
$2,936
$1,538
$443
$2,163
$114,890
$5,015
$1,672
$6,687
$33,893
$11,298
$45,191
$38,836
$12,945
$51,781
$80,136
$26,712
$106,848
*Contained in DDA District
Figure 7
Taxable Value Increase (Kinney’s)
$2,156,553
$2,500,000.00
$2,000,000.00
$1,500,000.00
$1,000,000.00
$500,000.00
$278,613.00
$0.00
Time
Current Taxable
Value 2010
Initial Taxable Value
(2005)
Figure 7 shows the appreciation in Taxable Value of the Kinney project. Since 2005, the tax base has increased by
more than 674%, as well as attracted local financial institution to the downtown Traverse City, MI.
28
Kinney’s Photos:
Union Antiques
Kitchenware inside Union Antiques
29
Harbour View Centre Redevelopment Project
One of the first brownfield sites redeveloped in the County, the Harborview building rests upon
property once used for manufactured gas plant (MGP) coal gasification, a bulk petroleum
terminal, a railroad switching operation and a heavy truck repair facility. Contaminants such as
arsenic, cyanide, coal tar, benzo-a-pyrene, diesel fuel, gasoline and kerosene were all present at
this development site at one time or another. Some of the land uses (and contamination), such as
MGP and fuel terminal uses date back so far that they predate the community’s use of electricity.
The brownfield plan provided an incentive package sufficient for a developer to address this
ancient contamination. In addition to transactional incentives used to exempt the developer from
liability, the due care eligible activities pursued removed soil contamination from the surface
where the public was exposed to health risks on a daily basis. Removal and disposal of soil at a
licensed landfill was accomplished as well as the demolition of structures with lead and asbestos
impacts. The brownfield plan also provided an avenue to secure a Michigan Clean-up &
Redevelopment loan in the amount of $269,535.00 through the Michigan Department of
Environmental Quality with terms sufficient to entice the developer into early and effective
clean-up actions.
Nearly $13 million in private investment occurred and over 100 new jobs were created. Once
the site of a coal gasification facility, this property has been transformed into a beautiful fourstory mixed use building that overlooks Grand Traverse Bay. As of 2009, it has a taxable value
of more than $5.6 million (see Figure 8).
This project will be completed in 2027. The State and the Traverse Bay Intermediate School
District (TBISD) will recognize the increase in tax revenue at the end of the brownfield plan.
The TBISD received $1,243.42 in yearly taxes in 1999. In 2012, the yearly tax revenues for the
TBISD are projected to be $17,616 (see table 8).
30
Harbour View Centre
Table 8
2009 Rate
Initial Taxable
Value (1999)
$ Collected If
No Build-out
Occurred
$191,300
2010
Brownfield Tax
Base
2010 Taxable
Value (Tax Bill)
$5,256,821
$5,486,798
$7,150,000
2012
Projection
Taxing Jurisdiction
County*
Traverse City*
TBAISD
College*
Library Operating*
Medical Care Fund*
BATA*
Rec Authority*
TOTAL LOCAL ONLY
Millage
Rate
4.9838
13.1765
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
0.4858
25.8064
$953
$2,521
$561
$415
$183
$126
$66
$19
$93
$4,937
$
$
$15,409
$
$
$
$
$
$
$15,4009
$27,345
$72,297
$16,083
$11,906
$5,239
$3,619
$1,895
$545
$2,665
$141,595
$35,634
$94,212
$20,958
$15,516
$6,827
$4,715
$2,470
$711
$3,473
$184,516
State SET
TOTAL STATE
18.0000
6.0000
24.0000
$3,443
$1,148
$4,591
$94,623
$31,541
$126,163.70
$98,762
$32,921
$131,683.15
$128,700
$42,900
$171,600
Figure 8
Taxable Value Increase (Harbour View)
$5,486,798
$6,000,000.00
$5,000,000.00
$4,000,000.00
$3,000,000.00
$2,000,000.00
$1,000,000.00
$0.00
Time
2010 Taxable Value
$191,300
Figure 8 shows the appreciation in Taxable Value of the Harbour View Centre redevelopment project. Since 1999,
the tax base has increased by more than $5 million.
31
Harbour View Centre Photos:
32
Radio Centre/Park Street Redevelopment Project
East Front, Park and State Streets, City of Traverse City
Redevelopment of the property located on 314 East Front Street in Traverse City began in 2001
at the site of an abandoned gas station and former car dealership. The site was heavily
contaminated with polychlorinated biphenyls (PCBs) which are known carcinogens and can
cause an array of negative health effects to both humans and wildlife. The Michigan Department
of Environmental Quality granted the GTCBRA $661,800 for environmental cleanup and
approved $161,832 in tax increment financing.
Since then, the site has been safely and successfully cleaned due to the collaborative efforts of
the Traverse City Downtown Development Authority (DDA), local businessman Ross
Biederman and the GTCBRA. The site has been transformed into a four-story retail and office
building complete with a publicly owned and operated $8 million parking deck built by the
DDA. The taxable value has appreciated by 900% since 2001 (see Figure 9) and the entire
project has created more than 70 jobs.
The private investment for this project was $10 million, with the brownfield plan projected to be
completed in 2026. A conservative estimate would reveal that the increase in tax revenues is
substantial. As this project is located within the DDA TIF Plan, the state school tax and the
Traverse Bay Intermediate School District (TBISD) will recognize the increase in tax base at the
end of the brownfield financial plan. The direct benefit to the TBISD as identified in Table 10
shows that in 1999 the TBISD received $1,579.91 in yearly taxes. In 2026, the projected yearly
taxes for TBISD are $21,011.
33
Radio Centre/Park Street
Table 9
2009 Rate
Taxing Jurisdiction
County*
Traverse City*
TBAISD
College*
Library Operating*
Medical Care Fund*
BATA*
Rec Authority*
Commission on
Aging*
TOTAL LOCAL
ONLY
State School
Operating
State SET
TOTAL STATE
Initial Taxable
Value (1999)
$ Collected If
No Build-out
Occurred
$538,996
2010
Brownfield Tax
Base
2010 Taxable
Value (Tax Bill)
2026
Projection†
$5,944,040
$6,476,936
$8,219,138
$2,686
$7,102
$1,580
$1,170
$515
$355
$186
$54
$
$
$17,423
$
$
$
$
$
$32,280
$85,343
$18,985
$14,055
$6,184
$4,272
$2,237
$644
$40,514
$107,114
$23,828
$17,640
$7,762
$5,361
$2,808
$808
0.4858
$262
$
$3,146
$3,949
25.8064
$13,910
$17,423
$167,146
$209,784
18.0000
6.0000
24.0000
$9,702
$3,234
$12,936
$106,993
$35,664
$142,657
$116,585
$38,862
$155,446
$146,324
$48,775
$195,099
Millage
Rate
4.9838
13.1765
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
Figure 9
Taxable Value Increase ( Radio Centre )
$6,476,936
$6,000,000.00
$5,000,000.00
$4,000,000.00
$3,000,000.00
$538,996.00
$2,000,000.00
$1,000,000.00
$0.00
20210 Taxable Value
Time
Initial Taxable Value
(1999)
Figure 9 shows the appreciation in taxable value of the Radio Centre project from 1999 to 2010. Over $10 million
in private investment has gone into the redevelopment of this property and the tax base has seen marked increase
since that time.
34
Radio Centre Photos:
Artwork along the sidewalk into the parking deck
Crema, a small café on the corner of Radio Centre
35
101 N. Park Street Redevelopment Project (Bridgestone/Firestone)
101 N. Park Street, City of Traverse City
This property is located adjacent to the Boardman River in downtown Traverse City and had
been used as an automotive repair and gasoline retail site since the 1920s. Underground storage
tanks (USTs) were removed in 1995 and 2000, providing evidence of a waste motor oil release.
Automobile hoists, an oil/water separator, drums, and sumps all caused contamination of the site.
When the building was razed in 2001 a sheen of oil was observed just yards from the river’s edge
where motor oil was changed by draining it into the earth. Petroleum and heavy metal
contamination affected soil and groundwater at the site and had spread beyond the property
boundaries into the adjoining street and alley.
The brownfield plan supported the site’s reuse as a mixed-use commercial and residential
development. Eligible brownfield activities included baseline environmental assessments and
due care compliance activities aimed at investigating site conditions such that redevelopment
activities may occur on the property. Excavation for the basement and completion of Part 201
eligible assessment activities promoted the removal and proper disposal of contaminated soil
from the site. The leaking waste oil tank, which was abandoned in place, was removed at that
time and little of the decades old impacts to soil and groundwater remain at the site. Without the
brownfield plan, the site would remain contaminated, a threat to our region’s water quality and
an on-going source of blight that many remember it to be.
The private investment for this project has been $17.8 million with over 40 new jobs expected to
be created. When the project was put into the brownfield plan in 2000, the taxable value of the
property was $229,025. In ten years, the 2011 projected taxable value is anticipated to be over
$18 million (see Table 10).
This brownfield project is anticipated to be complete in 2016. The State and the TBISD will
recognize an increase in tax base at the end of the brownfield plan. As this project is contained
within the DDA, all other taxing jurisdictions will recognize the increase in the growth in 2027
which is the end of the DDA Plan.
As an example of the economic growth for our taxing jurisdictions, in 1999, the TBISD received
$671.32 in yearly taxes in 2000. In 2026, the TBISD will receive $39,007 in yearly taxes.
36
101 N. Park Street
Table 10
Initial Taxable
Value (2000)
$ Collected if No
build-out
Occurred
$296,649
2009 Rate
2010
Taxable
Value (Tax
Bill)
2010
Brownfield
Tax Base
$1,888,183
2026
Projected
New Taxable
Value
$2,175,632
$14,577,452
$10,842.91
$28,667.22
$6,377.21
$4,721.12
$2,077.29
$1,434.83
$751.46
$216.26
$1,056.92
$72,651.11
$192,079.80
$42,729.43
$31,633.07
$13,918.55
$9,613.83
$5,035.05
$1,449.00
$7,081.73
Taxing Jurisdiction
County*
Traverse City*
TBAISD
College*
Library Operating*
Medical Care Fund*
BATA*
Rec Authority*
Millage Rate
4.9838
13.1765
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
0.4858
$1,478
$3,909
$870
$644
$283
$196
$102
$29
$144
TOTAL LOCAL ONLY
25.8064
$7,655
$5,534.64
$56,145.23
$376,191.56
State School
Operating
State SET
TOTAL STATE
18.0000
6.0000
24.0000
$5,340
$1,780
$7,120
$33,987.29
$11,329.10
$45,316.39
$39,161.38
$13,053.79
$52,215.17
$262,394.14
$87,464.71
$349,858.85
$5,534.64
Figure 10
Taxable Value Increase (101 Park Street)
$14,577,452
$20,000,000.00
$2,175,632
$18,000,000.00
$16,000,000.00
$14,000,000.00
$12,000,000.00
$10,000,000.00
$8,000,000.00
$6,000,000.00
$4,000,000.00
$296,649
$2,000,000.00
$0.00
Time
Initial Taxable
Value (2000)
2010 Taxable
Value
Taxable Value
2026
Figure 10 shows the increase in taxable value of the Bridgestone/Firestone project over the last decade.
Construction on that property was completed in 2010 and the taxable value is projected to increase by $14.5
million by the end of the brownfield financial plan is complete.
37
101 N. Park Street Photos:
Interior architect Michael Fitzhugh & developer, Nick Darga
Images retrieved from:
ttp://nwmichigan.secondwavemedia.com/galleries/Features/Issue_03/1009_100622_2649_optimized.jpg
http://www.tcbusinessnews.com/articleimages/big_olives.jpg
38
Traverse House Scamehorn Redevelopment Project
W. Front Street and Division Street, City of Traverse City
These properties are located at the southwest corner of West Front Street and Division Street
(US-31) in Traverse City. The properties have been developed since at least 1913, when a
grocer occupied this corner. In the 1950s, a service station operation was developed on the
southwest corner, which mirrored the land uses of the remaining three corners of the intersection.
Three confirmed releases of gasoline and waste oil were recorded from this operation- mirroring
releases at the three adjacent corner service stations as well. All releases at these sites have
resulted in petroleum contamination so pervasive that gasoline floats atop the water tablepresent 15 feet below grade at the intersection.
SVN, a developer, submitted a baseline environmental assessment (BEA) to the MDEQ in early
2001 concurrent with its purchase of the property. The authority worked with the developer to
construct a brownfield plan that would facilitate redevelopment to its current use as medical
office space and health clinic. The principal obligation of a developer is to construct in a manner
that does not exacerbate contamination, nor cause adverse health effects to occupants due to the
gasoline contamination at the water table. Accordingly, the brownfield plan provided for
removal of soil impacted with petroleum and placement of a vapor barrier between the
contamination and any new construction.
Complications resulting from the State’s litigation with various liable parties at this intersection
resulted in non-approval of Act 381 work plans to address the contamination. The State
contended the due care obligations would constitute a “benefit” to a liable party. SVN
completed other business plans and sold the property to other medical business interests.
In 2009, with the assistance of the GTCBRA, the property has been effectively remediated
utilizing local tax increment financing. A unique aspect of this project was the ability of the
GTCBRA to effectively negotiate with the private developer to purchase a multi-phase extraction
system that will assist in the long-term goal of cleaning the entire four corner intersection. The
private developer will operate the multi-phase extraction system for one year, after which time,
the GTCBRA has the ability to utilize. The ability to utilize the extraction system allows the
community to have a mechanism to remediate contaminates that are within the public right-ofway of West Front Street and Division Street.
The redevelopment project has revitalized an under-used property, by creating a new medical
complex. Approximately $4 million in private investment has occurred in this project.
A conservative estimate places the end of tax capture in 2024 (see Table 11). However, this is
based on the assumption that no further private investment will go into that property during that
time.
39
Traverse House Scamehorn
Table 11
$254,338
$583,935
2010
Taxable
Value
(Tax Bill)
$838,273
Millage Rate
4.9838
13.1765
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
$1,268
$3,351
$746
$552
$243
$168
$88
$25
$2,910
$7,694
$1,712
$1,267
$558
$385
$202
$58
$4,178
$11,046
$2,457
$1,819
$800
$553
$290
$83
$21,066
$55,696
$12,390
$9,172
$4,036
$2,788
$1,460
$420
0.4858
$124
$284
$407
$2,053
25.8064
$6,564
$15,069
$21,633
$109,081
18.0000
6.0000
24.0000
$4,578
$1,526
$6,104
$10,511
$3,504
$14,014
$15,089
$5,030
$20,119
$76,084
$25,361
$101,446
Initial Taxable
Value (2001)
2009 Rate
Taxing Jurisdiction
County
Traverse City
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority*
Commission on
Aging
TOTAL LOCAL
ONLY
State School
Operating
State SET
TOTAL STATE
2010
Brownfield
Tax Base
2025
Projected
New Taxable
Value
$4,226,898
Figure 11
Taxable Value Increase (Scamehorn )
$4,226,898.00
$4,500,000.00
$4,000,000.00
$3,500,000.00
$3,000,000.00
$838,273
$2,500,000.00
$2,000,000.00
$1,500,000.00
$1,000,000.00
$500,000.00
$254,338.
$0.00
2025 New Projected Tax Base
Time
Initial Taxable
Value (2000)
2010 Taxable
Value
.
Figure 11 shows the increase in taxable value of the Scamehorn project over the last decade, as well as a
projection for the taxable value increase due to the construction at 701 Front Street
40
Traverse House Scamehorn Photos:
41
The Village at Grand Traverse Commons Redevelopment Project
City of Traverse City/Garfield Township
Redevelopment of the former Traverse City State Hospital located at 1200 West Eleventh Street
in Traverse City has been the largest brownfield project in northern Michigan and one of the
largest mixed-used developments in the entire state of Michigan. This project site is over 500
acres and consists of multiple historical buildings that are or will be remediated and redeveloped.
In addition to the monumental size of the project, it is also one of the more complicated.
The Minervini Group acquired the property in 2001 and has been working to redevelop the
property consistent with land use guidelines which require mixed-use and ecological sensitivity
as dictated by the City of Traverse City and Garfield Township within their District Plan. The
project is set to take place in several phases with an estimated $167 million in private investment
over 35 years. As of 2009, the developers have already invested more than $42 million and
created 331 new jobs. The Minervini Group has also used 4 Michigan Business Tax (MBT)
credits to date, and plans to acquire an additional 14 MBTs over the next five years.
Because the project has been designated as a Renaissance Zone, tenants and businesses are not
required to pay taxes until 2015. In 2015, they will pay 25% of their taxes and annually increase
by 25% until they are required to pay the full amount in 2018. The GTCBRA has been a critical
partner in this project by securing $2 million in DNRE grants and a $1 million loan. The
importance of the GTCBRA to obtain these grants and loans was critical to the Minervini Group
during the renaissance zone period.
Roughly 219,000 square feet of the property has been successfully cleaned for lead, arsenic and
asbestos to date, but more than one million square feet remains to be remediated. Because the
project boundary falls within both Garfield Township and the City of Traverse City, both
jurisdictions will expect to benefit tremendously from the project. By 2037, the projected
taxable value of the entire project will be more than $79 million (see Tables 12A and 12B).
The economic impact will be felt not just be the taxes in 2037. The project is preserving historic
buildings that could never be duplicated and revitalizing buildings and land that would otherwise
sit vacant or be demolished. The complex of buildings is one of two Kirkbride building
complexes remaining in the United States. Kirkbride refers to a system of mental asylum
designs advocated by Philadelphia psychiatrist Thomas Story Kirkbride in the mid-19th century.
Grand Traverse County is the ONLY community renovating a Kirkbride building site.
Part of this overall plan is the renovation of the historical barns, which are currently operated by
the City of Traverse City and Garfield Township Joint Recreational Authority. Often referred to
as the “Barns”, this area is a beautiful 56-acre park held for public use by the Authority.
Through an intensive public visioning process by the Authority, the public gave four consistent
themes: Agriculture, Arts, Recreation and Community. These four themes will guide the
current and future use of this property for years to come. However, substantial remediation
efforts need to be undertaken to realize its full potential which include a variety of community
supported agricultural endeavors and a botanical garden which could serve as a local and
regional attraction.
42
The Village at Grand Traverse Commons
Table 12 A (Garfield Township)
Ren Zone 2002
– 2017
2009 Brownfield
Base capture
tax
$
Brownfield
Tax Base
2018 After
Ren Zone
Expires
$14,770,305
Millage
Rate
4.9838
2.6744
2.9312
2.1700
0.9548
0.6595
0.3454
0.0995
0.4858
$
$
$
$
$
$
$
$
$
$73,612
$39,502
$43,295
$32,052
$14,103
$
$4,833
$1,468
$7,175
$102,876
$55,205
$60,506
$44,793
$19,709
$
$6,754
$2,052
$10,028
15.3043
$
$216,040
$301,924
18.0000
6.0000
24.0000
$
$
$
$132,933
$88,622
$221,555
$185,779
$123,853
$309,632
2009 Rate
Taxing Jurisdiction
County
Garfield Township
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority
Commission on Aging
TOTAL LOCAL
ONLY
State School
State Local
TOTAL STATE
2032
Projection
$20,642,108
Table 12 B (City of Traverse City)
$156,462
Brownfield Tax
Base 2018 After
Ren Zone
Expires
$17,012,548
Millage
Rate
4.9838
13.1765
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
0.4858
25.8064
$113
$299
$66
$49
$21
$15
$7
$
$11
$581
$84,787
$224,166
$49,867
$36,917
$16,244
$
$5,567
$1,691
$8,265
$377,637
$137,169
$362,656
$80,675
$59,725
$26,279
$
$9,006
$2,736
$13,371
$610,941
18.0000
6.0000
24.0000
$409
$136
$545
$153,113
$102,075
$255,188
$247,707
$165,138
$412,844
2002
Brownfield
Tax Base
Taxing Jurisdiction
County
Traverse City
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority
Commission on Aging
TOTAL LOCAL ONLY
State School
State Local
TOTAL STATE
43
2032
Projection
$27,522,965
Figure 12
Taxable Value Increase (Village @ the Commons)
Garfield Township & The City of Traverse City
$48,165,073
$80,000,000.00
$70,000,000.00
$60,000,000.00
$107,950
$50,000,000.00
$40,000,000.00
$30,000,000.00
$20,000,000.00
$10,000,000.00
$22,740.00
$0.00
Projected New Tax Base 2032
Time
Brownfield 2002
Initial Taxable Tax Base
Value (2002)
Figure 12 shows the increase in taxable value of the Village at Grand Traverse commons, and a projected increase
in taxable value of the property into 2032. There is an enormous potential for benefit to the local taxing
jurisdictions, as can be seen in Tables 12A and 12B.
44
The Village at Grand Traverse Commons Photos:
45
Traverse City Place
This property is comprised of 17 parcels located along Front Street, Garland Street, and West
Grandview Parkway in the City of Traverse City. Spatially, this is the largest and most diverse
brownfield projects ever forwarded by the GTCBRA. This area is historically one of the most
industrial development areas within the region. Several of the 17 properties have “facility”
status under the Michigan Natural Resources and Environmental Protection Act (NREPA).
Contamination from a former automobile service and truck repair business is prevalent. Heating
oil and waste motor oil releases are documented at various properties and groundwater
contamination from the old city Manufactured Gas Plant (MGP) site migrates through the heart
of the area. Benzene and cyanide toxins from MGP operations affect groundwater all the way to
West Grand Traverse Bay at the Open Space sea wall.
The brownfield plan supports clean-up of these past releases and includes a planned streetscape
with a river walk, a pedestrian tunnel beneath Grandview Parkway and underground parking
associated with a multi-story boutique hotel. Through the latter development, soil impacted by
petroleum products, chlorinated hydrocarbons from a dry cleaners, and cyanide from the former
coal gas plant will be addressed. In addition, former land uses related to heating oil tanks, paint
spray booth and a former bulk oil storage facility will be remediated.
It is anticipated that the redevelopment of the three parcels for the hotel will help spur
redevelopment on the surrounding properties contained in the brownfield plan. Table 13 is a
conservative tax revenue estimate of the area redeveloped with only the Hotel Indigo. As past
brownfield projects have shown, initial redevelopment on one parcel triggers other
redevelopment projects to occur creating a “spin-off” effect benefitting the economy.
This project is anticipated to be completed in 2031 and will be significant tax benefit to all taxing
jurisdictions.
46
Traverse City Place
Table 13
2001
Taxable
Value $
Collected if
No Build-out
Occurred
$2,449,236
Taxing Jurisdiction
County*
Traverse City*
TBAISD
College*
Library Operating*
Medical Care Fund*
BATA*
Rec Authority*
TOTAL LOCAL ONLY
State SET
TOTAL STATE
Millage
Rate
4.9838
13.1765
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
0.4858
25.8064
18.0000
6.0000
24.0000
2010
Brownfield
Tax Base
2031
Projected
Taxable
Value
2010 Taxable
Value
(Tax Bill)
$1,682,905
$4,132,141
$10,000,000
$12,207
$32,272
$7,179
$5,315
$2,339
$1,615
$846
$243
$1,190
$63,206
$
$
$4,933
$
$
$
$
$
$
$4,933
$20,594
$54,447
$12,112
$8,967
$3,945
$2,725
$1,427
$411
$2,007
$106,636
$49,838
$131,765
$29,312
$21,700
$9,548
$6,595
$3,454
$994
$4,858
$258,064
$44,086
$14,695
$58,782
$30,292
$10,097
$40,390
$74,379
$24,793
$99,171
$180,000
$60,000
$240,000
Figure 13
Taxable Value Increase (TC Place)
$10,000,000
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
$4,132,141
$2,449,236
$1,682,905
2001 Taxable Value $
Collected if No Build-out
Occurred
2010 Brownfield
Tax Base
2010 Taxable Value
47
2031 Projection
River West
305 W. Front Street, City of Traverse City
The property located at 305 West Front Street was originally developed in the late 1890’s and
held the Potato Implement Company, which manufactured potato tools and corn planters. Some
time between 1929 and 1946, ownership of the property was transferred to Acmeline
Manufacturing. Acmeline manufactured agricultural sprayers (pesticide, herbicides, etc.) and
planting equipment. In the 1960’s, the property was transferred to the Grand Traverse Auto
dealership and was used for automobile sales.
A 1997 sale led the purchaser to conduct an assessment of soil contamination. Areas targeted for
sampling included a railroad spur, the former manufacturing facility, a former varnish/paint
storage building, and former warehouses. Three soil samples indicated levels of lead, arsenic
and pentachlorophenol (PCP) in the soil at levels above the residential clean-up criteriarendering it a “facility”. This status led to the property’s inclusion into the brownfield plan for
Traverse City Place. Subsequently, a brownfield plan for this property by itself was created.
Soil and groundwater sampling activities at the site were undertaken in 2005 as part of
redevelopment planning pursuant to the brownfield plan. Some uncontrolled land filling was
identified at the margins of the Boardman River, with household refuse, metal and building
debris uncovered through exploratory excavation along the river bank.
It was also determined that groundwater at the site was contaminated by dry cleaning solvents.
The former One-Hour Martinizing (OHM) site is situated east of the property. With the
Boardman River situated west of the brownfield site, it is evident that impacts from the OHM
site migrate onto the River West Development.
The brownfield plan provides substantial incentive to redevelop this vacant property. The
intended redevelopment will be a collaborate effort between the private developer and the City of
Traverse City. The private developer will construct a movie theatre and a mixed-use building
and the City will build a public parking structure to accommodate the needs of the West End
business district.
Since 2008, the taxable value has appreciated slightly, however the future investment will
positively increase the tax base (see Table 14). As identified in previous brownfield projects,
with the redevelopment of 305 W. Front Street, there is a positive impact on the surrounding
properties and anticipated spin-off redevelopment of adjacent properties.
48
River West
Table 14
2009 Rate
Initial Taxable
Value (2001)
$ Collected If
no Build-Out
Occurred
2010
Brownfield
Tax Base
2010
Taxable
Value
(Tax Bill)
$543,520
$861,062
Taxing Jurisdiction
County*
Traverse City*
TBAISD*
College*
Library Operating*
Medical Care Fund*
BATA*
Rec Authority*
TOTAL LOCAL ONLY
Millage
Rate
4.9838
13.1765
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
0.4858
25.8064
$2,709
$7,162
$1,593
$1,179
$519
$358
$188
$54
$264
$14,026
$
$
$2,524
$
$
$
$
$
$
$2,524
$7,000
$18,507
$4,117
$3,048
$1,341
$926
$485
$140
$682
$36,247
$61,883
$163,609
$36,396
$26,944
$11,856
$8,189
$4,289
$1,234
$6,032
$320,431.82
State SET
TOTAL STATE
18.0000
6.0000
24.0000
$9,783
$3,261
$13,044
$15,499
$5,166
$20,665
$25,282
$8,427
$33,710
$223,502
$74,501
$298,002.19
49
$1,404,582
2031
Projected
New
Taxable
Value
$12,416,758
Kirby
3820 Cass Road, Garfield Township
The Kirby project exists on the site of the former Boot Lake Dump at 3820 Cass Road in
Garfield Township. Redevelopment activities were ineligible for tax DNRE tax capture
approval due to the potential liable parties associated with the contamination. The proposed
project for this site includes the construction of a 75,000 square foot warehouse with an auxiliary
office. The taxable value of the property has increased slightly since 2001; however future
investment will be of greater benefit to Garfield Township (see Table 15).
The GTCBRA contributed $46,000 through the Local Site Remediation Revolving Fund to assist
in the environmental studies to determine the width and depth of the environmental conditions on
this property. The benefit to address the environmental conditions on this property continue to
be considered through funding alternatives; as the traditional brownfield program of requiring
the developer pay for all upfront costs and be reimbursed through the capture of TIF does not
work on this project. The project does not capture enough TIF for the developer to be
reimbursed for the eligible environmental clean-up activities.
The Brownfield Authority will continue to investigate alternative funding and clean-up
mechanisms that will benefit the community.
50
Kirby
Table 15
Initial
Taxable
Value (2001)
$ Collected If
No Build-Out
Occurred
$355,110
2009
Rate
Taxing Jurisdiction
County
Garfield Township
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority*
Commission on Aging
TOTAL LOCAL ONLY
Millage
Rate
4.9838
2.6744
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
0.4858
15.3043
State Set
TOTAL STATE
18.0000
6.0000
24.0000
2010
Brownfield
Tax Base
2010
Taxable
Value
(Tax Bill)
2024
Taxable
Value
Projection
$91,530
$514,640
$534,790
$1,770
$950
$1,041
$771
$339
$234
$123
$35
$173
$5,435
$456
$245
$268
$199
$87
$60
$32
$9
$44
$1,401
$2,565
$1,376
$1,509
$1,117
$491
$339
$178
$51
$250
$7,876
$2,665
$1,430
$1,568
$1,160
$511
$353
$185
$53
$260
$8,184.59
$6,392
$2,131
$8,523
$1,648
$549
$2,197
$9,264
$3,088
$12,351
$9,626
$3,209
$12,834.96
51
Jimmy John’s
488 Munson, City of Traverse City
The Jimmy John’s Brownfield plan was intended to support redevelopment of a 1950’s vintage
service station into a small restaurant. The property’s redevelopment is challenged by the
exceedingly small size of the parcel and its irregular shape. It is bounded by the acute angled
intersection of Munson Avenue at Eighth Street and a City of Traverse City alley is present less
than 10 feet behind the existing building.
Despite its small size, 11 underground storage tanks (USTs) have been located here in the past.
Essentially, nearly every square foot of property has been occupied by a petroleum storage or
sales operation. At least two or three USTs remain at the site - two supplying hydraulic oil to the
auto hoists within the stations former service bays. An oil-water separator is also present
beneath the driveway or alley on the site.
This project was put into a brownfield plan in 2008. The proposed redevelopment of this corner
of Eighth and Munson provided for the protection of groundwater and the Grand Traverse Bay
watershed, removal of impacted soil wastes and improvement to the viewshed of this
transportation corridor which is an entry to the City.
Although the original intended commercial redevelopment has not occurred for this site, the
brownfield plan remains in place to help with the environmental clean-up when a funding source
has been identified. Further, the brownfield plan is in place to help market the property to other
potential developer’s to redevelop this site.
As identified on Table 16, the TIF capture will be seven times greater with the redevelopment of
this property; however the positive environmental impact will be felt for future generations.
52
Jimmy John’s
Table 16
Initial
Taxable
Value (2008)
$ Collected If
no build-out
Occurred
$78,983
2009
Rate
Taxing Jurisdiction
County
TBAISD
College
Library Operating**
Medical Care Fund**
BATA**
Rec Authority**
Commission on
Aging**
TOTAL LOCAL ONLY
State Set
TOTAL STATE
2010
Brownfield
Tax Base
2036
Taxable
Value
Projection
$78,983
$573,889
$394
$1,041
$232
$171
$75
$52
$27
$8
$394
$1,041
$232
$171
$75
$52
$27
$8
$2,860
$7,562
$1,682
$1,245
$548
$378
$198
$57
0.4858
15.3043
$38
$2,038
$38
$2,038
$279
$14,810
18.0000
6.0000
24.0000
$1,422
$474
$1,896
$1,422
$474
$1,896
$10,330
$3,443
$13,773
Millage
Rate
4.9838
2.6744
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
$0
2010
Taxable
Value
(Tax Bill)
53
Traverse City Bear Company
896 Munson Avenue, East Bay Township
This plan is located in and around the confluence of Mitchell Creek with the East Arm of the
Grand Traverse Bay and is centered at 896 Munson Avenue which is the site of a former Total
gas station that reported four confirmed gasoline releases in its 30 years of operation at the
corner of Munson Avenue and 3 Mile Road. This site is adjacent to (just north of) Mitchell
Creek and is surrounded by other former gas station sites.
The redevelopment of 896 Munson Avenue transformed this corner from a gas station to a new
commercial development. The brownfield plan supported responsible redevelopment of this
contaminated gas station site and presented an opportunity to the GTCBRA to use proceeds from
the Petroleum Site Assessment Grant (PSAG). PSAG funds were used to test soil and
groundwater at the TC Bear property which revealed on-going impacts from past petroleum
releases. The adjacent watershed was also characterized to determine the effects of petroleum
contaminants upon the Mitchell Creek Watershed.
The brownfield plan includes eligible activities for soil and groundwater sampling and analyses
throughout this corridor. The proper characterization and landfill disposal of soil impacted by
the various releases is also an eligible activity. Measures to treat (to drinking water standards)
any contaminated groundwater that is produced through dewatering activities prior to its
discharge to Mitchell Creek or the Grand Traverse Bay is another eligible activity. Dewatering
such as this is a reasonably anticipated necessity for the installation or maintenance of buried
utilities and foundation placement.
54
Traverse City Bear Company
Table 17
Initial
Taxable
Value (2008)
$ Collected If
no build-out
Occurred
$292,562
2009
Rate
Taxing Jurisdiction
County
Twp. Of East Bay
TBAISD
College
Library Operating
Medical Care Fund
BATA
Rec Authority
Commission on Aging
TOTAL LOCAL ONLY
Millage
Rate
4.9838
0.7348
2.9312
2.1700
0.9548
0.6595
0.3454
0.0994
0.4858
15.3043
State Set
TOTAL STATE
18.0000
6.0000
24.0000
2010
Brownfield
Tax Base
2010
Taxable
Value
(Tax Bill)
2018
Taxable
Value
Projection
$276,439
$569,001
$650,590
$1,458
$215
$858
$635
$279
$193
$101
$29
$142
$3,910
$1,378
$203
$810
$600
$264
$182
$95
$27
$134
$3,695
$2,836
$418
$1,668
$1,235
$543
$375
$197
$57
$276
$7,605
$3,242
$478
$1,907
$1,412
$621
$429
$225
$65
$316
$8,695
$5,266
$1,755
$7,021
$4,976
$1,659
$6,635
$10,242
$3,414
$13,656.02
$11,711
$3,904
$15,614
55

Brownfield Impact Report

Transcription

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