Tools to encourage redevelopment in your downtown
Collaboration between business and local government for a positive impact on your community.
Commercial redevelopment incentives are a tool that can encourage the transformation of blighted buildings and vacant spaces where commercial buildings once stood in your downtown area. Communities can take the initiative to create Commercial Redevelopment Districts or property owners can request a District be established in qualifying areas.
The Commercial Redevelopment and Rehabilitation Acts (PA 325 of 1978 and PA 210 of 2005) were created to encourage the replacement, restoration and rehabilitation of blighted properties in downtowns areas, which also creates jobs. The Acts provide an abatement of property taxes generated from new investment for a period up to 10-12 years. While there are many similarities between the two Acts, a review of the project specifics will help determine the best fit.
In addition to the many qualifications that projects must meet including location, property type, redevelopment activities, investment minimums, etc., there is a process property owners must work through with their local governments in order to take advantage of these incentives. Your local economic development organization such as Michigan State University Extension partner with Northern Lakes Economic Alliance (NLEA) - in Antrim, Charlevoix, Cheboygan and Emmet Counties- can help you review the project, determine the appropriate incentive and complete the application process.
NLEA is assisting a company through the PA 210 process along with another available tax abatement in Antrim County. The incentives allow this company to invest over $560,000 and create up to 100 new jobs, while rehabilitating an old pizza parlor into a state-of-the-art call center.
MSU Extension has had a unique relationship with the regional economic development organization NLEA for more than 20 years. Recognizing the strength of combining resources, this partnership focuses on economic development, entrepreneurship growth and community infrastructure throughout a four-county region in the northwest Lower Peninsula, specifically Antrim, Charlevoix, Cheboygan and Emmet counties. As a result, the NLEA utilizes resources offered through MSU Extension as it provides leadership to state-wide programs sponsored by MSU Extension.