Brownfield Bond Project Financing
What – The Lansing Brownfield Redevelopment Authority (LBRA) has the ability to sell revenue bonds and use the funds raised to pay for brownfield costs related to development projects. By taking on these costs the LBRA can lower the overall total project costs to businesses and developers. Examples of brownfield costs eligible for LBRA financing include: soil contamination clean-up, fuel tank removal, asbestos and lead abatement, dirt and excavation work, demolition, installation and relocation of utilities and other similar costs.
Who – Brownfield Bond Project Financing is available on properties that are qualified as brownfields.To qualify as a brownfield a property must be one or more of the following: 1. Contaminated as defined by state law. 2. Blighted which is typically a abandoned building that is a public nuisance or safety threat or 3. Functionally obsolete such that the building is no longer suitable for is original or intended use. A property’s eligibility based upon one or more of these criteria are determined by professionals in the environmental and property fields. The EDC can help you work with a professional to determine if a property qualifies as a Brownfield.
Why – The Brownfield program is designed to offset the extra costs of developing a property that has undergone prior use. These costs are typically not found in undeveloped property and are an obstacle in the course of development. With local government approval the LBRA can use Brownfield Bond Project Financing to reduce these extra costs and remove them as a barrier to redevelopment.
