st. joseph county brownfield redevelopment authority ...this brownfield plan amendment (“plan...
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St. Joseph County Brownfield Redevelopment Authority Brownfield Plan Amendment Prepared for Midwest V, LLC
Approved by the St. Joseph County Brownfield Redevelopment Authority 9/24/2020
Approved by the St. Joseph County Board of Commissioners
Prepared with the assistance of: Fishbeck 1515 Arboretum Drive SE Grand Rapids, Michigan 49546 616-464-3876
Table of Contents Fishbeck | Page i
1.0 Introduction ...................................................................................................................................................1
1.1 Proposed Redevelopment and Future Use for Each Eligible Property ..............................................1
1.2 Eligible Property Information ............................................................................................................1
2.0 Information Required by Section 13(2) of the Statute ...................................................................................1
2.1 Description of Costs to Be Paid for With Tax Increment Revenues ..................................................1
2.2 Summary of Eligible Activities ...........................................................................................................2
2.3 Estimate of Captured Taxable Value and Tax Increment Revenues ..................................................3
2.4 Method of Financing and Description of Advances Made by the Municipality ................................3
2.5 Maximum Amount of Note or Bonded Indebtedness .......................................................................3
2.6 Duration of Brownfield Plan Amendment .........................................................................................3
2.7 Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdictions ........................3
2.8 Legal Description, Property Map, Statement of Qualifying Characteristics and Personal Property ..3
2.9 Estimates of Residents and Displacement of Individuals/Families ....................................................4
2.10 Plan for Relocation of Displaced Persons ..........................................................................................4
2.11 Provisions for Relocation Costs .........................................................................................................4
2.12 Strategy for Compliance with Michigan’s Relocation Assistance Law ...............................................4
2.13 Other Material that the Authority or Governing Body Considers Pertinent .....................................4
List of Figures
Figure 1 – Location Map
Figure 2 – Site Layout Map
List of Tables
Table 1 – Summary of Eligible Activities Costs and Schedule
Table 2 – Tax Increment Revenue Capture
Table 3 – Tax Increment Revenue Reimbursement Allocation
List of Attachments
Attachment A Conceptual Renderings
Attachment B Environmental Data Tables and Map
Attachment C Resolution’s Approving the Brownfield Plan Amendment (Burr Oak Township, St. Joseph County
BRA, St. Joseph County Board of Commissioners)
Attachment D Reimbursement Agreement
August 26, 2020 Fishbeck | Page 1
1.0 Introduction
The St. Joseph County Brownfield Redevelopment Authority (the “Authority” or SJCBRA) was established by St.
Joseph County pursuant to the Brownfield Redevelopment Financing Act, Michigan Public Act 381 of 1996, as
amended (“Act 381”). The primary purpose of Act 381 is to encourage the redevelopment of eligible property by
providing economic incentives through tax increment financing for certain eligible properties.
This Brownfield Plan Amendment (“Plan Amendment”) serves as an amendment to St. Joseph County ’s existing
Brownfield Plan, allowing inclusion of eligible property, as described in Sections 1.1 and 1.2 below. Incorporation
of eligible property into the County’s Brownfield Plan permits the use of tax increment financing to reimburse
Midwest V, LLC (“Developer”) for the cost of eligible activities required to redevelop the eligible property. Refer to
Attachment C for copies of the resolutions from the required municipal entities approving the Plan Amendment.
1.1 Proposed Redevelopment and Future Use for Each Eligible Property
The Developer proposes to redevelop a former commercial building located at 32469 US 12 and an adjacent
vacant parcel, Burr Oak Township, Michigan, parcels 75-001-035-005-02 and 75-001-035-005-03) (the
“Property”). Currently the property consists as two contiguous which will be combined into one parcel for the
purposes of the redevelopment. Redevelopment plans include demolition of an existing structure followed by
the construction of a new approximately 9,100 square foot commercial building (the “Project”). The building will
be used as a Dollar General store. Private investment into the Project is projected to be $1,200,000.
Approximately 7-10 new full-time equivalent jobs will be created, some part time seasonal jobs are anticipated.
Asbestos abatement, due care, and demolition activities are expected to commence in late summer 2020. Project
construction is anticipated to be complete by winter 2020.
1.2 Eligible Property Information
The Property consists of two parcels totaling approximately 3.27 acres at the southwest corner of US-12 (Chicago
Road) and Halfway Road in Burr Oak Township, St. Joseph County, Michigan. A vacant, blighted one story 3,600
sq. ft. former restaurant building constructed in the 1960s remains on the Property. The Property was used as
agricultural land prior to the 1960s. The business closed in 2014-2015 and has been used for storage since then.
Fishbeck conducted a Phase I Environmental Site Assessment (ESA) in June 2020. As part of the Phase I ESA, St.
Joseph County Health Department records were reviewed and identified the presence of nitrates in the site’s
drinking water well. The nitrate concentrations exceed Generic Residential Cleanup Criteria (GRCC) developed
pursuant to Part 201 of Public Act 451, 1994, as amended (“Part 201”). Based on the documented presence of
contaminants at concentrations exceeding EGLE Part 201 GRCC, the Property is a “facility” pursuant to Part 201.
As the Property is identified as a “facility”, the Property is considered an “eligible property” as defined by Act 381,
Section 2.
Maps depicting the location and layout of the Property are attached as Figures 1 and 2. Environmental data
tables and information related to the water well are provided in Attachment B.
2.0 Information Required by Section 13(2) of the Statute
2.1 Description of Costs to Be Paid for With Tax Increment Revenues
The Developer will seek tax increment financing from available local taxes for eligible activities at the Property
including Baseline Environmental Assessment (BEA) preparation (including a Phase I ESA), an asbestos survey,
Documentation of Due Care Compliance, asbestos abatement, demolition, additional due care requirements
August 26, 2020 Fishbeck | Page 2
(related to the water well), contingency, Plan Amendment preparation totaling $74,575. The table below
provides an eligible activity cost summary. Refer to the attached Table 1 for a detailed list of eligible activities and
associated costs.
Eligible Activity Estimated Cost
Pre-Approved Activities (Phase I ESA, Asbestos Survey,
Baseline Environmental Assessment (BEA), and Documentation
of Due Care Compliance) $7,450
Additional Due Care Activities (related to the water well) * $2,000
Asbestos Abatement* $2,000
Demolition* $50,000
Contingency (no more than 15%) * $8,625
Eligible Activities Sub-Total $70,075
Brownfield Plan Amendment Preparation $4,500
SJBRA Administrative Fees ($2,500 for the first 2 years then
$500 per year for the remainder of the Plan duration) $11,500
SJBRA LBRF $39,347
LOCAL ONLY ELIGIBLE ACTIVITIES TOTAL COST $125,422
*Eligible activities utilized for contingency calculation
2.2 Summary of Eligible Activities
Eligible activities included in this Plan Amendment as defined in MCL 125.2652 of Act 381 consist of the following:
Pre-Approved Activities: These activities are permitted to occur prior to Plan Amendment approval (MCL
125.2663b, Sec. 13b.). Preparation of a Baseline Environmental Assessment (BEA) and Documentation of Due Care
Compliance Report (DDCCR), including a Phase I ESA, is necessary to protect the new Property owner/Developer
from liability for environmental contamination. The BEA and DDCCR will be completed in accordance with Part 201.
An asbestos survey will be conducted prior to demolition, as required by applicable regulatory agencies.
Additional Due Care Activities (related to the water well): These activities represent the extra requirements and
incremental cost needed to install a new drinking water well on contaminated property.
Plan Amendment Preparation: To implement tax increment financing for this Project under Public Act 381 of 1996,
as amended, the preparation and development of this Plan Amendment is required.
Asbestos Abatement: Prior to building demolition, asbestos must be abated in accordance with applicable
regulatory guidelines.
Demolition: The Property contains a 3,600 sq. ft. dilapidated and blighted commercial structure. Demolition of the
structure will remove a potential safety hazard and facilitate Property redevelopment.
SJCBRA Administration: The SJCBRA will be responsible for the administration of this Plan Amendment.
Administrative fees have been included in this Plan Amendment to reimburse the SJCBRA for costs incurred.
August 26, 2020 Fishbeck | Page 3
2.3 Estimate of Captured Taxable Value and Tax Increment Revenues
For the purposes of this Plan Amendment, the base year is 2020. The 2020 taxable value of the eligible property
is $29,188. After completion of the development, the taxable value is estimated at $400,000. This Plan
Amendment assumes a 1% annual increase in the taxable value of the eligible property. Initial capture is
anticipated to begin in 2021.
The estimated captured taxable value for the redevelopment by year and in aggregate for each taxing jurisdiction
is depicted in tabular form (Table 2: Tax Increment Revenue Capture). Actual taxable values and tax increment
revenues may vary year to year based on economic and market conditions, tax incentives, building additions, and
property improvements, among other factors.
A summary of the estimated reimbursement schedule by year and in aggregate is presented as Table 3: Tax
Increment Revenue Reimbursement Allocation. This plan allows the BRA to capture up to 5-years of tax capture
beyond developer reimbursement for deposit into a Local Brownfield Revolving Fund (LBRF) once established.
2.4 Method of Financing and Description of Advances Made by the Municipality
The cost of the eligible activities included in this Plan Amendment will initially be paid for by the Developer. The
Developer will seek reimbursement for eligible activity costs through capture of available local tax increment
revenues as permitted under MCL 125.2663b of Act 381. Refer to Attachment for a copy of the Reimbursement
Agreement.
2.5 Maximum Amount of Note or Bonded Indebtedness
Bonds will not be issued for this Project.
2.6 Duration of Brownfield Plan
The duration of the Plan Amendment is estimated at a total of 15 years (including the LBRF capture), with
anticipated capture of tax increment revenues commencing in 2021 and ending in 2035.
2.7 Estimated Impact of Tax Increment Financing on Revenues of Taxing
Jurisdiction
The estimated amount of tax increment revenues to be captured for this redevelopment from each taxing
jurisdiction by year and in aggregate is presented in Tables 2 and 3.
2.8 Legal Description, Property Map, Statement of Qualifying Characteristics and
Personal Property
The Property in this Plan Amendment consists of two parcels described below and depicted on Figure 2.
The subject property is located in the Northeast ¼ of the Southwest ¼ of Section 35, Town 7 South, Range 9 West,
Burr Oak Township, St. Joseph County, Michigan. The larger of the two parcels is addressed as 32469 US-12. The
current parcel identification numbers are 75-001-035-005-02 (32469 US-12) and 75-001-035-005-03
(unaddressed parcel). These parcels will likely be combined into one parcel number once the redevelopment is
completed.
The legal descriptions are as follows:
Parcel # 001-035-005-02 COM CEN SEC 35 T7S R9W TH S 0D 41M W 303.75 FT TH N 89D 19M W 222.39 FT TH N
29D 17M 30S W 222.39 FT TO C/L US-12 TH N 60D 42M 30S E 99.02 FT ALG C/L TH NELY ALG CRV R 285.50 FT TO
N & S 1/4 LN TH S 0D 41M W 80.29 FT TO POB.
August 26, 2020 Fishbeck | Page 4
Parcel 001-035-005-03 COM CEN SEC 35 T7S R9W TH S 303.75 FT TO POB TH S 55.96 FT TH N 89D 19M W 400 FT
TH N 210.24 FT TO C/L US-12 TH N 60D 42 30 E ALG C/L 76.77 FT TH S 29D 17M 30S E 222.39 FT TH S 89D 19M E
222.39 FT TO POB. SUBJ TO HWY R/W.
The Property is considered an “eligible property” as defined by Act 381 because the Property is a facility pursuant
to Part 201.
2.9 Estimates of Residents and Displacement of Individuals/Families
No residents or families will be displaced because of the Project.
2.10 Plan for Relocation of Displaced Persons
Not applicable.
2.11 Provisions for Relocation Costs
Not applicable.
2.12 Strategy for Compliance with Michigan’s Relocation Assistance Law
Not applicable.
2.13 Other Material that the Authority or Governing Body Considers Pertinent
The Project will significantly improve the overall use of the Property by removing a vacant blighted structure,
mitigating environmental exposure risks, and improve the Property with a new commercial retail business.
Developer investment will result in significant economic benefit to the community, including a substantial
increase in tax base and the creation of new jobs.
Figure 1 Location Map
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©Copyright 2020 All Rights Reserved
Table 1 Summary of Eligible Activities Costs and Schedule
Table 1 - Summary of Eligibile Activities Costs
Midwest V, Redevelopment
32469 US-12, Burr Oak, St. Joseph County, Michigan
Total Reimbursable Tax
Capture
EGLE Act 381 Eligible
Activities
Pre-Approved Activities
Phase I ESA $2,100 $2,100 $2,100
Pre-Demolition Asbestos Survery $1,850 $1,850 $1,850
Baseline Environmental Assessment* $1,500 $1,500 $1,500
Documentation of Due Care Compliance* $2,000 $2,000 $2,000
Environmental Activities
Additional Due Care Activities (related to water well)* $2,000 $2,000 $2,000
Non-Environmental Activities
Asbestos Abatement* $2,000 $2,000 $2,000
Building Demoliton* $50,000 $50,000 $50,000
Brownfield Plan Preparation
Brownfield Plan Preparation $4,500 $4,500 $4,500
Eligible Activities Sub-Total $65,950 $65,950 $65,950
Contingency (15%)* $8,625 $8,625 $8,625
St. Joseph County BRA Administration $11,500
St. Joseph County LBRF $39,347
Total $74,575 $74,575 $125,422
* Eligible Activities for contingency calculation
Eligible Activities Total TIF CaptureDeveloper Incurred Costs
Table 2 Tax Increment Revenue Capture
Table 2 - Estimate of Total Incremental Taxes Available for Capture
Midwest V, LLC Redevelopment
32469 US-12, Burr Oak, St. Joseph County, Michigan
1 of 2
Estimated Taxable Value (TV) Increase Rate: 1%
Plan Year 1 2 3 4 5 6 7 8 9
Calendar Year 2020 2021 2022 2023 2024 2025 2026 2027 2028
Base Taxable Value 29,188$ 29,188$ 29,188$ 29,188$ 29,188$ 29,188$ 29,188$ 29,188$ 29,188$
Estimated New TV -$ -$ 400,000$ 404,000$ 412,080$ 420,322$ 428,728$ 437,303$ 446,049$ 454,970$
Incremental Difference (New TV - Base TV)1
-$ -$ 370,812$ 374,812$ 382,892$ 391,134$ 399,540$ 408,115$ 416,861$ 425,782$
School Capture Millage Rate
State Education Tax (SET) 6.00000 -$ -$ 2,225$ -$ -$ -$ -$ -$ -$ -$
School Operating Tax 18.00000 -$ -$ 6,675$ -$ -$ -$ -$ -$ -$ -$
School Total 24.0000 -$ -$ 8,899$ -$ -$ -$ -$ -$ -$ -$
Local Capture Millage Rate
Unit Operating 0.89550 -$ -$ 332$ 336$ 343$ 350$ 358$ 365$ 373$ 381$
County Council on Aging 0.75000 -$ -$ 278$ 281$ 287$ 293$ 300$ 306$ 313$ 319$
County 911 1.00000 -$ -$ 371$ 375$ 383$ 391$ 400$ 408$ 417$ 426$
County Road 1.00000 -$ -$ 371$ 375$ 383$ 391$ 400$ 408$ 417$ 426$
County Transportation 0.33000 -$ -$ 122$ 124$ 126$ 129$ 132$ 135$ 138$ 141$
County Parks 0.25000 -$ -$ 93$ 94$ 96$ 98$ 100$ 102$ 104$ 106$
St. Joseph ISD Operating 0.22830 -$ -$ 85$ 86$ 87$ 89$ 91$ 93$ 95$ 97$
St. Joseph ISD Special Education 2.45540 -$ -$ 910$ 920$ 940$ 960$ 981$ 1,002$ 1,024$ 1,045$
St. Joseph ISD Special Evaluation 0.29460 -$ -$ 109$ 110$ 113$ 115$ 118$ 120$ 123$ 125$
St. Joseph ISD CTE 1.00000 -$ -$ 371$ 375$ 383$ 391$ 400$ 408$ 417$ 426$
Glen Oaks Community College 2.72490 -$ -$ 1,010$ 1,021$ 1,043$ 1,066$ 1,089$ 1,112$ 1,136$ 1,160$
County Operating 4.54820 -$ -$ 1,687$ 1,705$ 1,741$ 1,779$ 1,817$ 1,856$ 1,896$ 1,937$
School Sinking Fund 1.75000 -$ -$ 649$ 656$ 670$ 684$ 699$ 714$ 730$ 745$
Local Total 17.2269 -$ -$ 6,388$ 6,457$ 6,596$ 6,738$ 6,883$ 7,031$ 7,181$ 7,335$
Non-Capturable Millages Millage Rate
Local School Debt 7.00000 -$ -$ 2,596$ 2,624$ 2,680$ 2,738$ 2,797$ 2,857$ 2,918$ 2,980$
Total Non-Capturable Taxes 7.0000 -$ 2,596$ 2,624$ 2,680$ 2,738$ 2,797$ 2,857$ 2,918$ 2,980$
1Assumes 1% annual increase for inflation
Total Tax Increment Revenue (TIR) Available for Capture -$ -$ 15,287$ 6,457$ 6,596$ 6,738$ 6,883$ 7,031$ 7,181$ 7,335$
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Table 2 - Estimate of Total Incremental Taxes Available for Capture
Midwest V, LLC Redevelopment
32469 US-12, Burr Oak, St. Joseph County, Michigan
2 of 2
Estimated Taxable Value (TV) Increase Rate:
Plan Year
Calendar Year
Base Taxable Value
Estimated New TV
Incremental Difference (New TV - Base TV)1
School Capture Millage Rate
State Education Tax (SET) 6.00000
School Operating Tax 18.00000
School Total 24.0000
Local Capture Millage Rate
Unit Operating 0.89550
County Council on Aging 0.75000
County 911 1.00000
County Road 1.00000
County Transportation 0.33000
County Parks 0.25000
St. Joseph ISD Operating 0.22830
St. Joseph ISD Special Education 2.45540
St. Joseph ISD Special Evaluation 0.29460
St. Joseph ISD CTE 1.00000
Glen Oaks Community College 2.72490
County Operating 4.54820
School Sinking Fund 1.75000
Local Total 17.2269
Non-Capturable Millages Millage Rate
Local School Debt 7.00000
Total Non-Capturable Taxes 7.0000
1Assumes 1% annual increase for inflation
Total Tax Increment Revenue (TIR) Available for Capture
10 11 12 13 14 15 16 TOTAL
2029 2030 2031 2032 2033 2034 2035
29,188$ 29,188$ 29,188$ 29,188$ 29,188$ 29,188$ 29,188$ -$
464,069$ 473,350$ 482,817$ 492,474$ 502,323$ 512,370$ 522,617$ -$
434,881$ 444,162$ 453,629$ 463,286$ 473,135$ 483,182$ 493,429$ -$
-$ -$ 2,722$ -$ -$ -$ -$ 4,947$
-$ -$ 8,165$ -$ -$ -$ -$ 14,840$
-$ -$ 10,887$ -$ -$ -$ -$ 19,787$
389$ 398$ 406$ 415$ 424$ 433$ 442$ 5,745$
326$ 333$ 340$ 347$ 355$ 362$ 370$ 4,812$
435$ 444$ 454$ 463$ 473$ 483$ 493$ 6,416$
435$ 444$ 454$ 463$ 473$ 483$ 493$ 6,416$
144$ 147$ 150$ 153$ 156$ 159$ 163$ 2,117$
109$ 111$ 113$ 116$ 118$ 121$ 123$ 1,604$
99$ 101$ 104$ 106$ 108$ 110$ 113$ 1,465$
1,068$ 1,091$ 1,114$ 1,138$ 1,162$ 1,186$ 1,212$ 15,753$
128$ 131$ 134$ 136$ 139$ 142$ 145$ 1,890$
435$ 444$ 454$ 463$ 473$ 483$ 493$ 6,416$
1,185$ 1,210$ 1,236$ 1,262$ 1,289$ 1,317$ 1,345$ 17,482$
1,978$ 2,020$ 2,063$ 2,107$ 2,152$ 2,198$ 2,244$ 29,180$
761$ 777$ 794$ 811$ 828$ 846$ 864$ 11,227$
7,492$ 7,652$ 7,815$ 7,981$ 8,151$ 8,324$ 8,500$ 110,522$
3,044$ 3,109$ 3,175$ 3,243$ 3,312$ 3,382$ 3,454$ 44,910$
3,044$ 3,109$ 3,175$ 3,243$ 3,312$ 3,382$ 3,454$ 44,910$
7,492$ 7,652$ 18,702$ 7,981$ 8,151$ 8,324$ 8,500$ 130,308$
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Table 3 Tax Increment Revenue Reimbursement Allocation
Table 3 - Estimate of Total Incremental Taxes Available for Reimbursement
Midwest V, LLC Redevelopment Project
32469 US-12, Burr Oak, St. Joseph County, Michigan
1 of 1
Developer
Maximum
Reimbursement
School &
Local Taxes Estimated Developer Capture 74,575$
State 7,450$ BRA Administrative Fee 11,500$
Local 67,125$ State Brownfield Redevelopment Fund 2,473$
TOTAL 74,575$ Local Brownfield Revolving Fund 39,347$
EGLE N/AMSF N/A
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 TOTAL
Total State Incremental Revenue -$ 8,899$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 10,887$ -$ -$ -$ -$ 19,787$
State Brownfield Redevelopment Fund (50% of SET) -$ 1,112$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,361$ -$ -$ -$ -$ 2,473$
State TIR Available for Reimbursement -$ 7,787$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 9,526$ -$ -$ -$ -$ 17,313$
Total Local Incremental Revenue -$ 6,388$ 6,457$ 6,596$ 6,738$ 6,883$ 7,031$ 7,181$ 7,335$ 7,492$ 7,652$ 7,815$ 7,981$ 8,151$ 8,324$ 8,500$ 110,522$
BRA Administrative Fee -$ 2,500$ 2,500$ 500$ 500$ 500$ 500$ 500$ 500$ 500$ 500$ 500$ 500$ 500$ 500$ 500$ 11,500$
Local TIR Available for Reimbursement -$ 3,888$ 3,957$ 6,096$ 6,238$ 6,383$ 6,531$ 6,681$ 6,835$ 6,992$ 7,152$ 7,315$ 7,481$ 7,651$ 7,824$ 8,000$ 95,134$
Total State & Local TIR Available -$ 11,675$ 3,957$ 6,096$ 6,238$ 6,383$ 6,531$ 6,681$ 6,835$ 6,992$ 7,152$ 16,841$ 7,481$ 7,651$ 7,824$ 8,000$ 100,511$
Developer Reimbursement Balance 74,575$ -$ 74,575$ 63,237$ 59,280$ 53,184$ 46,946$ 40,563$ 34,033$ 27,352$ 20,517$ 13,525$ 6,373$
Pre-Approved Environmental Costs 7,450$ -$ 7,450$
State Tax Reimbursement -$ 7,450$ 7,450$
Total EGLE Reimbursement Balance -$ -$ -$
Local Only Costs 67,125$ -$ 67,125$ 63,237$ 59,280$ 53,184$ 46,946$ 40,563$ 34,033$ 27,352$ 20,517$ 13,525$ 6,373$
Local Tax Reimbursement -$ 3,888$ 3,957$ 6,096$ 6,238$ 6,383$ 6,531$ 6,681$ 6,835$ 6,992$ 7,152$ 6,373$ 67,125$
Total Local Only Reimbursement Balance -$ 63,237$ 59,280$ 53,184$ 46,946$ 40,563$ 34,033$ 27,352$ 20,517$ 13,525$ 6,373$ 0$ -$
Total Annual Developer Reimbursement -$ 11,338$ 3,957$ 6,096$ 6,238$ 6,383$ 6,531$ 6,681$ 6,835$ 6,992$ 7,152$ 6,373$ 74,575$
LBRF Deposits *
State Tax Capture 7,450$ 7,450$ 7,450$
Local Tax Capture 31,897$ 942$ 7,481$ 7,651$ 7,824$ 8,000$ 31,897$
Total LBRF Capture 39,347$ 8,392$ 7,481$ 7,651$ 7,824$ 8,000$ 39,347$
* Up to five years of capture for LBRF Deposits after eligible activities are reimbursed. May be taken from EGLE & Local TIR only.
LOCAL BROWNFIELD REVOLVING FUND
15 total years (including LBRF capture)
Estimated
Years of Capture:
DEVELOPER Beginning
Balance
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Attachment A Conceptual Renderings
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Attachment B Environmental Data Tables and Map
Attachment C Resolutions Approving the Brownfield Plan
Amendment -Burr Oak Township
-St. Joseph County BRA
-St. Joseph County Board of Commissioners
Attachment D Reimbursement Agreement
BROWNFIELD REIMBURSEMENT AGREEMENT
THIS AGREEMENT, made this ___ day of _____, 2020 (the “Agreement”), between the ST.
JOSEPH COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY, an authority established pursuant
to Act 381 of the Public Acts of 1996, as amended (“Act 381”), with offices at 125 West Main
Street, Centreville, Michigan 49032 (the “Authority”) and Midwest V, LLC, a Michigan limited
liability company, with offices at 1435 Fulton Street, Grand Haven, Michigan 49417 (the
“Developer”).
RECITALS
A. Pursuant to Act 381, the Developer has prepared a Brownfield Plan Amendment
which was duly approved by the County (the “Brownfield Plan Amendment”).
B. The Developer intends to develop property located at 32469 US-12 and adjoining
vacant land in Burr Oak Township, which property is legally described on the attached Exhibit A
(“Property”). The Property is included in the Brownfield Plan Amendment as a “facility” and
“eligible property” due to the presence of certain hazardous substances as described in the
Brownfield Plan Amendment and is therefore commonly referred to as a “brownfield.”
C. The Developer plans to redevelop the contaminated commercial land, demolishing
the existing structure, and constructing a new 9,100 square foot commercial retail store
(Improvements). The estimated investment in the Improvements is expected to be approximately
$1,200,000. The Improvements are expected to improve the aesthetic conditions of the property,
create temporary construction jobs, add new jobs, and increase the tax base within the County
and Township. The Developer acknowledges that the County and the Authority have relied on the
2
investment of the Improvements as consideration for the benefits extended under this
Agreement.
D. Act 381 permits the use of the real tax revenues generated from the increase in
value to brownfield sites constituting “eligible property” under Act 381 resulting from their
redevelopment to pay or reimburse the payment of costs of conducting activities that meet the
requirements under Act 381 of “eligible activities”(hereinafter “Eligible Costs”) and permits the
reimbursement to the Property owner or Developer of such Eligible Costs incurred by the Property
owner or Developer. Act 381 also permits the reimbursement of the costs to prepare the
Brownfield Plan Amendment for “eligible property” (“Brownfield Plan Costs”).
E. In order to make the Improvements on the Property, the Developer will incur
Eligible Costs associated with eligible activities—including Michigan Department of Environment,
Great Lakes and Energy (EGLE) and Michigan Strategic Fund (MSF) eligible activities, all of which
will require the services of various contractors, engineers, environmental consultants, and other
professionals (the “Eligible Costs”). The estimated Developer Eligible Costs shall not exceed the
sum of $74,575. The Eligible Costs for the project are set forth on the attached Exhibit B.
F. The Authority has incurred and will incur certain expenses in the preparation and
administration of the Brownfield Plan Amendment (the “Administrative Costs”), for which it seeks
reimbursement from Tax Increment Revenues (as defined below). The Administrative Costs are
estimated to be approximately $11,500.
G. In accordance with Act 381 and the Brownfield Plan Amendment, the parties desire
to use the property tax revenues that are generated from an increase in the taxable value of the
3
Property resulting from its development (“Tax Increment Revenues”) to reimburse the Developer
for Eligible Costs, and the Authority for its Administrative Costs.
H. The parties are entering into this Agreement to establish the procedure for the
reimbursement from Tax Increment Revenues under Act 381.
NOW, THEREFORE, the parties agree with each other as follows:
1. Definitions
“Baseline Environmental Assessment Activities” is defined by Section 2(b) of Act 381;
“Brownfield Redevelopment Financing Act” means Act No. 381 of the Public Acts of 1996,
MCLA 125.2651 et seq.;
“Brownfield Plan or Plans” is defined by Section 2(e) of Act 381;
“Due Care Activities” is defined by Section 2(m) of Act 381;
“Eligible Activities” is defined by Section 2(o) of Act 381;
“Eligible Property or Property” is defined by Section 2(p) Act 381;
“Eligible Party” is defined by Section 2(l) of Act 381;
“Response Activities” are defined by Section 2(oo) of Act 381;
“Tax Increment Revenues” is defined by Section 2(ss) of Act 381.
2. The Plan
(a) Developer’s Brownfield Plan Amendment, which the Authority approved on
______, and the County Commission approved on ______, is attached hereto as Exhibit C and
incorporated herein. To the extent provisions of the Brownfield Plan Amendment conflict with
this Agreement, the terms and conditions of this Agreement control. To the extent provisions of
the Brownfield Plan Amendment or this Agreement conflicts with the Act, the Act controls.
4
(b) Unless the parties agree otherwise, the Developer shall complete the
Improvements by March 2021.
3. Term of Agreement
Per the Brownfield Plan Amendment, the Authority shall capture the Tax Increment
Revenues generated from local taxes imposed on the Property until the date on which Developer
receives full payment of the Eligible Costs under paragraph 8 (estimated at 2035) or 30 years after
approval of the Brownfield Plan Amendment, whichever is sooner. If this Agreement ends before
the payment of all Eligible Costs, the last tax payment by the Authority shall be the summer and
winter taxes distributed during the final year of this Agreement.
4. Eligible Activities
The Authority recognizes that before the date of this Agreement, Developer may have
initiated activities which may be submitted with a Request for Cost Reimbursement for Eligible
Activities. The Developer shall diligently pursue completion of the Eligible Activities set forth in
the Plan. The Developer will be reimbursed for Eligible Costs incurred before this Agreement only
if permitted under Act 381.
5. Reimbursement Source
During the term of this Agreement (unless limited by paragraph 2(b) and except as set forth
in Paragraph 7 below), the Developer shall be reimbursed for Eligible Costs from the Tax Increment
Revenues collected from local taxes imposed on the Property after the Authority’s Administrative
Costs have been deducted.
5
6. Excess Captured Taxes
The Authority may use any Tax Increment Revenues captured from the Property in excess
of the amount authorized for reimbursement under Paragraph 5 hereof for reimbursement of any
additional Eligible Activities included in the Brownfield Plan Amendment.
7. Transfer of Ownership
Notwithstanding the transfer of the Property, the Authority and the County will pay
reimbursements solely to the Developer unless (a) the Developer pledges or assigns the right to
reimbursement to a transferee and the County receives notice by or on behalf of the Developer
directing payment to a transferee prior to payment or (b) as otherwise required by law. All
administrative and out-of-pocket costs (including attorneys’ fees) incurred by the County in
connection with the sale or transfer of the Property during the term of the Agreement shall be
reimbursed to the County with Tax Increment Revenues as a condition of approval.
8. Reimbursement Process
(a) Subject to any limitation set forth in paragraph 2(b), within 1 calendar year of the
completion of the redevelopment, the Developer shall submit to the Authority Requests for Cost
Reimbursement for Eligible Activities paid by the Developer. This request shall be in the form
attached hereto as Exhibit D (“Petition”). The Petition shall identify whether the activities are
Eligible Activities permitted under Section 2(o) of the Act. The Petition shall describe each
individual activity claimed as an Eligible Activity and the associated costs of each individual activity.
Documentation of the costs incurred shall be included with the Petition including proof of payment
and detailed invoices for the costs incurred sufficient to determine whether the costs incurred
were for Eligible Activities. The Petition shall be signed by a duly authorized representative of
6
Developer and the representations, facts, and documentation included therein shall be sworn to
as accurate in the presence of a notary. In the event the Eligible Activities and Costs for which the
Developer seeks reimbursement have been rendered by a related party or entity, the Authority
and the County may request documentation to substantiate the reasonableness of such costs prior
to reimbursement.
(b) Petitions shall be reviewed by the Authority within 60 days after receipt of the
Petition by the County. The Developer shall cooperate in the review by the Authority by providing
information and documentation to supplement the Petition as deemed reasonable and necessary
by the Authority. The Authority shall identify in writing to Developer any costs deemed ineligible
for reimbursement and the basis for the determination. Developer shall be given 45 days in which
to provide supplemental information or documents in support of a request for cost
reimbursement deemed ineligible by the Authority. Thereafter, except as otherwise agreed to in
writing by Developer and Authority, the Authority shall make a final decision on the eligibility of
the disputed cost and inform the Developer of its determination, which decision shall be binding
upon Developer.
(c) Twice a year, after the summer and winter taxes are captured and collected on the
Property, the Authority shall pay approved costs for Eligible Activities to the Developer from the
taxes captured in accordance with the Plan and Paragraph 5 of this Agreement to the extent that
taxes have been captured and are available in that fiscal year (less Authority’s operating out-of-
pocket expenses to review the Petition) to reimburse approved costs of Eligible Activities. No
reimbursement shall be paid to Developer if the Developer is delinquent in the payment of real or
personal property taxes on the property. Payments to the Developer shall be suspended if
7
Developer files a property tax appeal with the Michigan Tax Tribunal regarding the valuation of
the real or personal property assessment on the Property during the term of the tax appeal.
Payments shall resume after a decision is issued by the Michigan Tax Tribunal. The Developer and
shall not be reimbursed for any Eligible Costs and Activities incurred after any deadline set forth
in paragraph 2(b) is missed.
(d) If there are no funds available from taxes captured from the sources identified in
Paragraph 5 herein for Developer, then there is no repayment obligation to Developer.
(e) Reimbursement of Costs of Eligible Activities shall be effectuated to Developer
with:
Checks shall be payable to: Midwest V, LLC
Delivered to the following address: 1435 Fulton Street, 2nd Floor
Grand Haven, MI 49417
By mail
9. Legislative Authorization
This Agreement is governed by and subject to the restrictions set forth in the Act. In the
event that there is legislation enacted in the future which alters or affects the amount of Tax
Increment Revenues subject to capture, Eligible Properties, or Eligible Activities, then the
Developer’s rights and the Authority’s obligations under this Agreement may be modified
accordingly by agreement of the parties.
10. Freedom of Information Act
Developer stipulates that all Petitions and documentation submitted by Developer shall be
open to the public under the Freedom of Information Act, Act No. 442 of the Public Acts of 1976,
8
being Sections 15.23 to 15.24 of the Michigan Compiled Laws and no claim of trade secrets or
other privilege or exception to the Freedom of Information Act will be claimed by Petitioners as it
relates to this Agreement, Petitions for Reimbursement and supporting documentation.
11. Plan Modification.
The Brownfield Plan Amendment and this Agreement may be modified to the extent
allowed under the Act by mutual agreement of the Parties affected by the modification.
12. Notices
All notices shall be given by registered or certified mail addressed to the parties at their
respective addresses as shown below their respective signatures to this Agreement. Either party
may change the address by written notice sent by registered or certified mail to the other party.
13. Assignment
The interest of any party under this Agreement shall not be assignable without the other
parties’ written consent, which shall not be unreasonably withheld. If the Developer seeks to
assign this Agreement for purposes of securing financing for the Project, the assignment of this
Agreement shall be subject to the terms and conditions reasonably required by the County and
the County shall be reimbursed with Tax Increment Revenues for its administrative and out-of-
pocket costs (including attorneys fees) incurred to process and approve such assignment.
14. Entire Agreement
This Agreement supersedes all agreements previously made between the parties relating
to the subject matter. There are no other understandings or agreements between them.
15. Non-waiver
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No delay or failure by either party to exercise any right under this Agreement, and no
partial or single exercise of that right, shall constitute a waiver of that or any other right, unless
otherwise expressly provided herein.
16. Headings
Headings in this Agreement are for convenience only and shall not be used to interpret or
construe its provisions.
17. Governing Law
This Agreement shall be construed in accordance with and governed by the laws of the
State of Michigan.
18. Counterparts
This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same instrument.
19. Binding Effect
The provisions of this Agreement shall be binding upon and inure to the benefit of each of
the parties and their respective heirs, legal representatives, successors, and assigns.
In witness whereof, the parties have executed this Agreement as of the day and date first
written above.
{Signatures on next page}
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Witnesses: St. Joseph County
________________________ By: __________________________________
________________________ By: __________________________________
Date: __________________________, 2020
APPROVED AS TO FORM:
St. Joseph County
By:
125 West Main Street
Centreville, MI 49032
Date: ________________, 2020
11
ST. JOSEPH COUNTY BROWNFIELD REDEVELOPMENT
AUTHORITY
Witnesses:
_____________________________ By:
Title
_____________________________
Address: 125 West Main Street
Centreville, MI 49032
Witnesses: Midwest V, LLC
______________________________ By:
______________________________ Title: ________________________________
Address: 1435 Fulton Street, 2nd Floor
Grand Haven, MI 49417
A-1
Exhibit A
Property Legal Description
Property Address: 32469 US-12, Burr Oak, St. Joseph County, Michigan 49030
Parcel:
001-035-005-02
Legal Description:
COM CEN SEC 35 T7S R9W TH S 0D 41M W 303.75 FT TH N 89D 19M W 222.39 FT TH N 29D 17M
30S W 222.39 FT TO C/L US-12 TH N 60D 42M 30S E 99.02 FT ALG
C/L TH NELY ALG CRV R 285.50 FT TO N & S 1/4 LN TH S 0D 41M W 80.29 FT TO POB.
Acreage:
2.17 acres
Property Address: US-12, Burr Oak, St. Joseph County, Michigan 49030
Parcel:
001-035-005-03
Legal Description:
COM CEN SEC 35 T7S R9W TH S 303.75 FT TO POB TH S 55.96 FT TH N 89D 19M W 400 FT TH N
210.24 FT TO C/L US-12 TH N 60D 42 30 E ALG C/L 76.77 FT TH S
29D 17M 30S E 222.39 FT TH S 89D 19M E 222.39 FT TO POB. SUBJ TO HWY R/W.
Acreage:
1.11 acres
B-1
Exhibit B
Eligible Costs
Department of Environment, Great Lakes, and Energy (EGLE) Eligible Activities
Eligible Activity Estimated Cost
Pre-Approved Activities (Phase I ESA, Asbestos Survey, Baseline
Environmental Assessment (BEA), and Documentation of Due
Care Compliance) $7,450
Additional Due Care Activities (related to the water well) * $2,000
Asbestos Abatement* $2,000
Demolition* $50,000
Contingency (no more than 15%) * $8,625
Eligible Activities Sub-Total $70,075
Brownfield Plan Amendment Preparation $4,500
SJBRA Administrative Fees ($2,500 for the first 2 years then
$500 per year for the remainder of the Plan duration) $11,500
SJBRA LBRF $39,347
LOCAL ONLY ELIGIBLE ACTIVITIES TOTAL COST $125,422
*Eligible activities utilized for contingency calculation