25LINKBUDGET(FULL) - Flipbook - Page 57
City of Plymouth 2024 / 2025 Budget
maintenance and further development of parking facilities to serve both the district and the
entire City.
Brownfield Re-Development Authority (BRA) Tax Capture
There are several incentives available to businesses to clean up contaminated sites. Tax
capture is one that impacts City finances.
In the summer of 2003, the first of six projects was approved under Act 381 of 1996, offering a
means for environmental cleanup of Brownfield sites. Five of these projects involved tax
capture, with two in FY 2005/06, one in FY 2006/07, and a fourth in FY 2007/08. However, the
fourth project was rescinded in 2014 due to inaction following the 2008 recession. The fifth
project, the Starkweather School project, was approved by the Brownfield Redevelopment
Authority and the City Commission in 2016. The most recent project is the Townes at Mill
Street by Pulte Homes, approved in 2019, which is redeveloping the former Bathey
Manufacturing site.
None of the projects has been authorized to capture any school taxes, as such authorization
can only be granted at the state level.
The effect on the City is a reduction in increases in the taxable value of the affected properties
for the period established in the approved plan, generally 5-15 years. Therefore, while the
City benefits in the long run from additional taxes due to the redevelopment of contaminated
sites, there is no financial benefit in the short term.
The tax capture mechanism for Brownfield projects differs from that for the DDA. Under Act
381, no capture of any debt millage for any jurisdiction is permitted. Additionally,
intermediate school taxes, now exempt from DDA tax capture, are considered a local tax levy
as part of a Brownfield project and are therefore subject to tax capture, except for any
separate millage for debt levied by the district. Presently, there is no separate debt levy for
intermediate schools. The statute also permits the capture of taxes for up to 5 years beyond
payment of all remediation costs to be used to supplement a local site remediation revolving
fund, providing advance funding for cleanup of other Brownfield locations. One of the
Brownfield sites remained in this status until early 2014 when the Brownfield Authority
abandoned further capture following the third of five years of additional capture permitted by
the statute.
The Daisy Square Condominiums completed remediation reimbursements in 2017. However,
in the spring of 2017, the Brownfield Board reviewed a proposal to accelerate the final
payment in the 2016-17 fiscal year to provide full tax funding back to the General Fund as a
means to address escalating legacy costs primarily impacting the General Fund. Approval of
the proposal required an amendment to the Daisy Square Brownfield Plan, which was
approved by both the Brownfield Board and the City Commission in early June of 2017.
Tax Abatements and Tax Capture for Fiscal Year 2024 / 2025
The City no longer has any personal property subject to abatement. Property valued as part
of the Industrial Facilities Tax (IFT) roll is taxed at 50% of the normal tax rates, except for the
State Education Tax, which is taxed at the full rate of 6 mills. The City has been very
conservative in granting tax abatements under Act 198. The total value of abatements granted
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