ADOPTED - FEBRUARY 12, 2008

ADOPTED - FEBRUARY 12, 2008

Agenda Item No. 14

Introduced by the County Services and Finance Committees of the:

INGHAM COUNTY BOARD OF COMMISSIONERS

RESOLUTION APPROVING A REVISED BROWNFIELD PLAN FOR REDEVELOPMENT OF INGHAM COUNTY LAND BANK FAST TRACK AUTHORITY PROPERTIES IN ACCORDANCE WITH THE BROWNFIELD REDEVELOPMENT FINANCING ACT

RESOLUTION #08-022

WHEREAS, on November 13, 2001, pursuant to the Brownfield Redevelopment Financing Act, PA 381 of 1996, as amended (“the Act”), the Ingham County Board of Commissioners adopted Resolution #01-328 creating a Brownfield Redevelopment Authority, in order to promote the redevelopment of environmentally distressed, functionally obsolete, and/or blighted areas of the County; and

WHEREAS, after providing the public and all affected taxing jurisdictions notice and opportunities to express their views and recommendations, the Board of Commissioners approved on June 26, 2007 (#07-183) an amendment to the plan to restore the environmental and economic viability of tax foreclosed and underutilized properties that are held by the Ingham County Land Bank Fast Track Authority (“the Plan”), pursuant to and in accordance with Section 13 of the Act; and

WHEREAS, upon close review and use of the Plan, the Brownfield Redevelopment Authority has prepared and recommended for approval by the Ingham County Board of Commissioners a technical amendment to that Plan, item E, that clarifies and corrects the tax year for assessing properties in the Plan; and

WHEREAS, notice of this revised Plan approval has been published and sent to the public and affected taxing authorities per the requirements of the Act; and

WHEREAS, the Ingham County Board of Commissioners has made the following determinations and findings:

a. The Plan meets the requirements of a Brownfield Plan set forth in Section 13 of the Act;

b. The proposed method of financing the costs of the eligible activities is feasible;

c. The costs of eligible activities proposed are reasonable and necessary to carry out the

purposes of the Act;

d. The captured taxable value estimated to result from the Plan’s adoption is reasonable;

e. The Plan, in accordance with the Act, constitutes a public purpose.

THEREFORE BE IT RESOLVED, pursuant to the authority vested in the Ingham County Board of Commissioners by the Act, and pursuant to and in accordance with the provisions of Section 14 of the Act, the Plan is hereby approved in the form attached as Exhibit “A” to this Resolution.

ADOPTED - FEBRUARY 12, 2008

Agenda Item No. 14

RESOLUTION #08-022

BE IT FURTHER RESOLVED, should any section, clause or phrase of this Resolution be declared by the Courts to be invalid, the same shall not affect the validity of this Resolution as a whole nor any part thereof other than the part so declared to be invalid.

BE IT FURTHER RESOLVED, all resolutions or parts of resolutions in conflict with any of the provisions of this Resolution are hereby repealed.

COUNTY SERVICES: Yeas: Nolan, De Leon, Copedge, Soule, Severino

Nays: None Absent: Grebner Approved 2/05/08

FINANCE: Yeas: Grebner, Hertel, Weatherwax-Grant, Celentino, Dougan

Nays: None Absent: Schor Approved 2/11/08

Attachment A:

INGHAM COUNTY

BROWNFIELD REDEVELOPMENT AUTHORITY

BROWNFIELD PLAN AMENDMENT

FOR THE REDEVELOPMENT OF

INGHAM COUNTY

LAND BANK FAST TRACK AUTHORITY PARCELS

Prepared by:

INGHAM COUNTY LAND BANK FAST TRACK AUTHORITY

Courthouse

P.O. Box 215

Mason, Michigan 48854

Contact: Mary Ruttan

mruttan@ingham.org

Phone: (517) 676-7237

And:

INGHAM COUNTY BROWNFIELD AUTHORITY

121 S. Maple

Mason, MI 48854

Contact: Susan Pigg

spigg@ingham.org

Phone: (517) 676-7285

With assistance from:

AKT Peerless Environmental Services

115 W. Allegan St.
Lansing, Michigan 48933

Contact: James Linton

lintonj@aktpeerless.com

Phone: 517-482-9227

November 2, 2007

THE INGHAM COUNTY LAND BANK FAST TRACK AUTHORITY BROWNFIELD PROJECT

PROJECT DESCRIPTION

The Ingham County Land Bank Fast Track Authority project will involve redevelopment of numerous parcels of property throughout Ingham County. One or more of the existing properties will be transformed through one or more of the following: building demolition and/or renovation, site preparation activities, infrastructure improvements, lead-based paint and asbestos abatement, environmental investigation and remediation, and eligible Land Bank Fast Track Authority expenses.

ELIGIBLE PROPERTY

In January of 2004, the State of Michigan approved revisions to Public Act 381 of 1996, expanding the definition of “Eligible Property” to include: all parcels owned or under the control of a Land Bank Fast Track Authority.

The Eligible Property of this Brownfield project consists of all real and personal property parcels owned or under the control of the Ingham County Land Bank Fast Track Authority (“LBA”), including those parcels that are adjacent to or contiguous with the LBA parcels. Parcel Identification Numbers (ID#) are provided in Appendix A. Appendix B includes a Regional Location Map of the properties, as they currently exist. The properties are located in the communities of the City of Lansing; City of East Lansing, City of Mason, Charter Township of Lansing, Charter Township of Delhi; Meridian Charter Township, Aurelius Township; Locke Township, Vevay Township, and Wheatfield Township.

One of the properties included in the plan is a known site of contamination. The property located at 300 W. North, a former Action Auto property, has had serious gasoline losses and is an Open Leaking Underground Storage Tank Site on the Department of Environmental Quality (DEQ) list. The DEQ has taken some cleanup actions to date, but has been unable to complete cleanup at the property due to a lack of funds, and the property remains contaminated above applicable standards (a “facility”). This plan will assist in completing Baseline Environmental Assessment and Due Care activities.

All parcels identified in Appendix A or which are subsequently included in the description of Eligible Property under this Plan shall remain Eligible Property without regard to whether the LBA subsequently sells or otherwise divests itself of one or more parcels.

BROWNFIELD PLAN ELEMENTS

A. Description of Costs to Be Paid for With Tax Increment Revenues and Summary of Eligible Activities.

Redevelopment of Land Bank Parcels will generate new property tax revenue and provide for the reimbursement of Eligible Activities under this Plan. The Authority desires that each party incurring Eligible Activities on the Eligible Property enter into a Reimbursement Agreement with the Authority (the “Reimbursement Agreement”), setting forth the terms and conditions under which the party may be reimbursed for Eligible Activities with TIR. No Eligible Activities costs will be qualified for reimbursement except in accordance with the Reimbursement Agreement. Subject to the Reimbursement Agreement, it is anticipated that the Eligible Activities will be implemented in a phased approach including the Eligible Activities described below and listed in Appendix C/Tables 1 & 2.

DEMOLITION ACTIVITIES (See Appendix C – Table 1 for Estimated Costs)

Remove Structures: The LBA anticipates demolishing structures, in whole or in part, located on various parcels of eligible property included in the Plan. The structures to be demolished will be primarily residential.

Rehabilitate Structures: The LBA also anticipates rehabilitating a number of residential structures. This will entail interior demolition or “gutting” the structure.

LEAD AND ASBESTOS ABATEMENT – (See Appendix C – Table 1 for Estimated Costs)

Inspection: Those structures that contain lead-based paint and asbestos will require appropriate steps to evaluate the extent of the hazard. This includes both buildings that will be demolished in their entirety and buildings that will be “gutted” as part of rehabilitation.

Abatement: Structures that contain lead-based paint and asbestos will require appropriate steps to address the removal or encapsulation of the lead-based paint and asbestos impacted material. Operation and Maintenance Plans or Due Care plans will be completed as needed.

SITE PREPARATION – (See Appendix C – Table 1 for Estimated Costs)

On many properties it may be necessary to prepare the site for future utilization through relocation of utilities, clearing, grading, and land balancing.

INFRASTRUCTURE IMPROVEMENT ACTIVITIES - (See Appendix C – Table 1 for Estimated Costs)

The LBA anticipates that infrastructure improvements that directly benefit various parcels of eligible property included in this Plan may be necessary from time to time in order to achieve the purposes of this Plan.

ENVIRONMENTAL ACTIVITIES (See Appendix C – Table 1 for Estimated Costs)

Phase I Environmental Site Assessments:

Phase I ESAs will be performed as needed based on the American Society for Testing and Materials (ASTM) "Standard Practice For Environmental Site Assessments," E-1527, which outlines good commercial and customary practice for conducting an ESA and establishing "due-diligence" and according to the EPA All Appropriate Inquiry (AAI) standard.

Phase II Environmental Site Assessments and Baseline Environmental Assessments:

The Phase II Site Investigation will evaluate the recognized environmental conditions identified on the property. The Phase II investigation will be based on ASTM Designation E 1903. The laboratory analytical data is then compared to appropriate MDEQ “Cleanup Criteria” to evaluate what steps are necessary for the safe reuse of the property. The Phase II scope of work will be designed based on the future use of the property to meet the goal of safe property reuse.

If contamination is identified at a subject property during a Phase II ESA, a Baseline Environmental Assessment (BEA) can be prepared on behalf of the prospective owners/operators to allow for liability protection for the cleanup of environmental contamination associated with existing contamination under Part 201 of Michigan’s Natural Resources and Environmental Protection Act (NREPA), P.A. 451 of 1994, as amended.

Due Care Activities:

Should contamination be identified on the property, a Section 7a Compliance Analysis (commonly referred to as a Due Care Plan) can be prepared on behalf of the prospective owners/operators. The Due Care Plan outlines response activities that allow for the redevelopment and use of the subject property in a manner that will protect public health, safety or welfare, the environment or natural resources. Due care activities including additional investigations, contaminated soil removal and disposal, capping of contaminated areas, etc., will be performed as identified in the due care plan.

SITE WORK PLANS (See Appendix C – Table 1 for Estimated Costs)

Act 381 Work Plans:

MDEQ Eligible Activities: In order for school operating taxes to be captured, the appropriate state department must approve an Act 381 Work Plan that addresses the proposed activities involved in a Brownfield project. It is the intention of this Brownfield Plan to capture school operating TIR for all eligible environmental activities. Therefore, appropriate work plans will be submitted to the Michigan Department of Environmental Quality (MDEQ) for their review and approval.

One or more Act 381 Work Plans will be prepared to determine and implement all necessary procedures that will allow for Eligible Activities on the sites based on applicable State and Federal criteria. This will include the environmental investigation and remediation of those parcels that exceed the least restrictive applicable land-use based criterion.

MEGA Eligible Activities: Additional Eligible Activities, such as asbestos/lead-based paint abatement, demolition costs, infrastructure improvements, and site preparation, can be recovered through the capture of TIR attributable to school operating millages under an Amendment to P.A. 381 of 1996, approved by the State of Michigan in January of 2004. The Amendment expands the definition of “Eligible Property” and “Blighted” to include: all parcels owned or under the control of a Land Bank Fast Track Authority. Therefore, all of the parcels included in this Plan as Eligible Property may be treated, for the purpose of reimbursement of costs to conduct of Eligible Activities, as if they were located in a Qualified Local Unit of Government.

The appropriate work plan(s) and amendments to any existing work plans will be submitted to the Michigan Economic Growth Authority (MEGA) for their review and approval as well.

The work plans will include an estimate of the costs of implementing all above-mentioned activities, including project management.

State Work Plan Review: The Michigan Department of Environmental Quality and the Michigan Economic Development Corporation may charge a fee for the review of Work Plans. This review is detailed and evaluates the eligibility of the proposed activities, the financial impact of the proposed development on the community, and the utilization of captured “school” tax revenues to address the costs of these activities. The cost of such review by MDEQ and MEDC has not been projected.

TITLE CLEARANCE

The Authority anticipates that certain parcels that have been tax reverted to Ingham County will require Title Clearance. (See Appendix C Table 1 for Estimated Costs.)

INTEREST

The interest and other bond expenses incurred on bonds of the Authority shall be reimbursed from all sources of tax increment revenue captured under this Plan. See Appendix D for an estimate of these expenses.

BROWNFIELD AUTHORITY ADMINISTRATIVE COSTS

Reasonable and actual administrative and operating expenses of the Authority will be reimbursed to the extent permitted by Section 13(16) of Act 381, as amended, or otherwise. (Set at $35,000/year, but not to exceed $75,000.00 annually).

TOTAL ESTIMATED EXPENSES

All activities are intended to be “Eligible Activities” under Act 381, as amended. The total cost of Eligible Activities (including the payment of principal and interest on bonds of the Authority used to finance the cost of Eligible Activities) subject to payment or reimbursement from all tax increment revenues generated by any single parcel of Eligible Property or any combination of parcels of Eligible Property listed in Appendix A will not exceed the combined amounts listed in Appendix C Table 1 plus the interest and other bond expenses listed in Appendix D without an amendment of this Plan.

B. Estimate of Captured Taxable Value and Tax Increment Revenues.

See attached (Appendix C/Table 2). It is the intention of the Authority to capture and collect from any single parcel of Eligible Property or any combination of parcels of Eligible Property listed in Appendix A only so much TIR as required to pay all obligations of the Authority incurred and approved pursuant to this Plan.

C. Method of Financing Costs of the Plan and Description of Advances by the Municipality.

No advances have been or shall be made by the County or the Authority for the costs of Eligible Activities under this Plan. This Plan shall be financed, in part, by the issuance of bonds or notes of the Authority as authorized by Act 381.

D. Maximum Amount of Note or Bonded Indebtedness.

The Authority will incur bonded indebtedness with an estimated par amount of $2,065,000 for this project during 2007. The bond is estimated to fund $1,755,000 in eligible activities under the Plan.

Detailed information related to bonds of the Authority is attached in Appendix D.

E. Duration of Brownfield Plan.

Pursuant to Act 381, MCL 125.2663(f), tax increment financing shall commence on January 1, 2008, and shall not exceed the maximum term allowed by this same section. Pursuant to MCL 125.2652(t) the initial taxable value for the properties in the table below and for properties listed in the Property Location Key with a Foreclosure Year of 2007, located in Appendix B, Regional and Site Location Maps, will be set as of the assessment roll of 2008. The taxable value of all other properties listed in Appendix A will be set as of the assessment roll of 2007.

Property ID	Address	Municipality
33-21-01-07-405-004	2826 Timber	Lansing Township
33-01-01-28-335-241	323 Astor	City of Lansing

F. Estimated Impact of Tax Increment Financing on Revenues of Taxing Jurisdictions.

See attached (Appendix C/Table 2).

G. Legal Description, Property Map, Statement of Qualifying Characteristics and Personal Property.

A parcel ID# and property map for the project sites are attached in Appendix A. The characteristics that qualify the property as Eligible Property are included in “ELIGIBLE PROPERTY” above. Personal property that will be added to any parcel shall be included as part of the Eligible Property.

H. Estimates of Residents and Displacement of Families.

There are no persons residing on the project property, and therefore, there are no residen ts or families to be displaced.

I. Plan for Relocation of Displaced Persons

There are no persons displaced by this project and, therefore, no need for a relocation plan.

J. Provision for Relocation Costs

There are no persons residing on the project property and, therefore, no need for a report on the provision of relocation costs.

K. Strategy for Compliance with Michigan's Relocation Assistance Law.

There are no persons residing on the project property and, therefore, no need for compliance with 1972 PA 227, Michigan Relocation Assistance Act.

L. Description of Proposed Use of Local Site Remediation Revolving Fund.

The Authority is authorized to capture TIR to the extent permitted by Act 381 for deposit into a Local Site Remediation Revolving Fund. No funds from the Local Site Remediation Revolving Fund shall be used to finance the costs of Eligible Activities under this Plan.

M. Other Material that the Authority or Governing Body Considers Pertinent.

None.

APPENDIX B

Figures

Regional Location & Site Map

Number	Foreclosure Year	Parcel #	Address	Municipality
1	2005	33-01-01-27-428-256	E. Willard	Lansing
2	2005	33-01-01-10-176-012	New York Avenue	Lansing
3	2005	33-01-01-14-358-231	No. Street Frontage	Lansing
4	2005	33-01-01-14-358-191	No. Street Frontage	Lansing
5	2005	33-01-01-14-358-281	No. Street Frontage	Lansing
6	2005	33-01-01-14-358-211	No. Street Frontage	Lansing
7	2005	33-01-01-14-358-311	No. Street Frontage	Lansing
8	2005	33-01-01-14-358-171	S. Fairview	Lansing
9	2005	33-01-01-14-359-371	S Hayford	Lansing
10	2005	33-01-05-05-102-249	No. Street Frontage	Lansing
11	2005	33-01-05-05-102-239	No. Street Frontage	Lansing
12	2005	33-01-01-10-329-141	922 N. Pennsylvania	Lansing
13	2005	33-01-01-08-276-101	Ontario St.	Lansing
14	2005	33-01-01-21-378-022	Coleman	Lansing
15	2005	33-01-01-30-301-335	Inverary	Lansing
16	2005	33-01-01-21-431-100	Baker	Lansing
17	2005	33-01-01-21-478-055	Isbell	Lansing
18	2005	33-01-01-28-179-015	No. Street Frontage	Lansing
19	2005	33-01-01-08-332-101	Comfort St.	Lansing
20	2005	33-01-01-08-331-011	Cawood	Lansing
21	2005	33-01-01-08-477-103	Princeton Ave.	Lansing
22	2005	33-02-02-12-151-020	Green Road	Meridian Twp.
1	2006	33-01-01-06-401-039	Northwest Ave	Lansing
2	2006	33-01-01-08-483-111	Englewood Ct	Lansing
3	2006	33-01-01-09-127-021	300 W. North	Lansing
3	2006	33-01-01-09-127-011	1804 Seager	Lansing
4	2006	33-01-01-09-183-031	210 W Willow	Lansing
5	2006	33-01-01-09-253-021	1514 Turner	Lansing
6	2006	33-01-01-09-276-211	No Street Frontage	Lansing
7	2006	33-01-01-09-277-151	Pearl St.	Lansing
8	2006	33-01-01-09-278-086	Liberty	Lansing
9	2006	33-01-01-09-326-001	W. Willow	Lansing
10	2006	33-01-01-09-327-111	N. Capitol	Lansing
11	2006	33-01-01-09-328-141	N Washington	Lansing
12	2006	33-01-01-09-329-211	309 W Grand River	Lansing
14	2006	33-01-01-09-354-082	422 Oakland	Lansing
15	2006	33-01-01-09-382-231	727 N. Seymour	Lansing
16	2006	33-01-01-09-431-191	422 Adams	Lansing
17	2006	33-01-01-09-431-201	426 Adams	Lansing
18	2006	33-01-01-10-177-062	New York Avenue	Lansing
19	2006	33-01-01-10-205-231	Ohio	Lansing
20	2006	33-01-01-10-306-271	N Pennsylvania & Porter	Lansing
21	2006	33-01-01-13-151-023	3411 E Michigan	Lansing
21	2006	33-01-01-13-151-034	Friendship Circle	Lansing
22	2006	33-01-01-14-304-241	S Hayford	Lansing
23	2006	33-01-01-14-378-092	516 S. Francis	Lansing
24	2006	33-01-01-15-353-011	809 Bement	Lansing
25	2006	33-01-01-15-381-111	S. Holmes	Lansing
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