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Showing You The Money

State and federal grants and loans for brownfield redevelopment

November 10, 2005 |

Pat Owen/MLUI

Coastal communities can apply for specialized grants.

Brownfield redevelopment incentives come in three forms: Tax credits, tax increment financing, and direct financing through grants and loans. This chapter focuses on state and federal loan programs. Chapters four and five cover tax credits and tax increment financing.

Michigan Brownfield Grant and Loan Program
The Michigan Department of Environmental Quality offers grants and loans for environmental assessments and cleanups at properties with known or suspected contamination. Funds target projects that promote economic development and brownfield reuse. Grants are required to have a developer; loans are not.

Applicants may be Michigan local units of government or brownfield redevelopment authorities. Funding for other, formerly eligible entities, including state-funded schools and universities, is currently unavailable.
The loan terms are very attractive. The interest rate is 50% of the prime. Payback is 15 years and begins with a five-year grace period with no interest or payments. Loans may be repaid using tax increment financing through a brownfield redevelopment authority.

Contact for projects in Mason, Manistee, Benzie, Leelanau, and Grand Traverse Counties:
Susan Sandell
Michigan Department of Environmental Quality
Cadillac Office
Phone: 231-775-3960, ext. 6312
Email: sandells@michigan.gov

Contact for projects in Antrim, Charlevoix, and Emmet Counties and the Upper Peninsula:
Jeff Hukill
Michigan Department of Environmental Quality
Phone: 517-335-2960 
Email: hukillj@michigan.gov

Brownfield Assessments Grants
The DEQ Site Assessment Group has obtained a grant from the EPA Superfund Program to perform free environmental investigations and redevelopment evaluations for up to 12 Michigan brownfield sites per year for local units of government and developers. The assessments provide information for making remedial and due-care decisions before a party commits to purchase and/or redevelop a property.
Contact: Sunny Krajcovic
Michigan Department of Environmental Quality
Phone: 517-241-8857
Email: krajcovj@michigan.gov

Coastal Management Program

More Resources and Contact Information

For a DEQ fact sheet on brownfield grants and loans click here

For DEQ information on the Brownfield Cleanup Revolving Loan Fund click here

For DEQ information on the Coastal Management Program grants click here

The Michigan Economic Development Corporation summarizes available state brownfield redevelopment assistance and community economic development incentives, including links to program descriptions and opportunities. click here 
The Michigan Department of Treasury has fact sheets and answers to frequent questions on brownfield single business tax credits. Click here
The U.S. Environmental Protection Agency’s brownfields grants and loans page is here

The U.S. Environmental Protection Agency’s brownfields program home page is here

EPA Region 5 Brownfields Team
Phone: 312-886-7576

The Coastal Management Program, administered by the DEQ’s Environmental Science and Services Division, provides about 40 grants per year to coastal communities. The grants range up to $50,000 for planning and construction projects that better protect sensitive shorelines, identify coastal areas appropriate for development, designate areas hazardous for development, or improve public access to the coastline.

Contact: Cathie Cunningham Ballard
Michigan Department of Environmental Quality
Phone: 517-335-3168
Email: cunningc@michigan.gov

EPA Brownfield Program
EPA provides four different brownfield grant programs for public entities, which generally include state, local, and tribal governments; general-purpose units of local government; land clearance authorities or other quasi-governmental entities; and regional councils or redevelopment agencies.

1. Assessment Grants provide up to $200,000 to public entities for brownfield inventories, environmental assessments, planning, and community outreach for either petroleum or hazardous substance sites. Ranking criteria includes budget, community need, site-selection process, sustainable reuse of brownfields, creation of public spaces, community involvement, reduction of health and environmental threats, leveraging, and management ability.

2. Revolving Loan Fund Grants capitalize revolving loan funds for low-interest loans and subgrants to carry out brownfield cleanup activities. Criteria are similar to assessment grants and include a description of target markets and business plans for loans and subgrants. The state DEQ recently received $1 million from the EPA to establish the state Brownfield Cleanup Revolving Loan Fund.

3. Job Training Grants provide environmental training for residents in communities impacted by brownfields. Job training pilot programs award up to $200,000 over a two-year period. Colleges, universities, community job training organizations, and nonprofit training centers are also eligible.

4. Cleanup grants provide funding for cleanup activities at brownfield sites. A public entity may apply for up to $200,000 per site. Cleanup grants require a 20 percent cost share, which may be waived based on hardship. An applicant must own or demonstrate the ability to acquire title to the site at the time of application. Grant applications are typically due in November or late fall, with award announcement the next spring.

Contact: EPA Region 5 Brownfields Team
Phone: 312-886-7576
Website: http://www.epa.gov/region5/

Ron Smedley
Michigan Department of Environmental Quality
Phone: 517-373-4805
Email: smedleyr@michigan.gov 

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