CADILLAC — City council will hold a public hearing Monday on revisions to the Cadillac Lofts brownfield plan.
The amendment to the plan would provide another funding tool for the project.
"The overall purpose of the Amendment to the Brownfield Plan is to ensure that the City can be reimbursed for public infrastructure expenses for publicly owned and maintained assets, such as streets and sidewalks, that are immediately adjacent to the property (Cadillac Lofts) that is being developed and improved," said City Manager Marcus Peccia in an email to the Cadillac News. "The use of a Brownfield Plan actually leverages outside sources of funding, and creates a special public, private partnership between the City, developer and state. In this specific instance, funds from the increased property value created by the Cadillac Lofts project and paid to the City from the property owner is used to reimburse the cost of the public infrastructure components along with the ability to capture State taxes for reimbursement that otherwise would not go to the City."
Typically a project of this size would mean increased revenue for the city's Downtown Development Authority.
But because of the brownfield plan, the money will go to the city's general fund.
"If the Brownfield project didn’t exist, the same tax capture would be directed to the Downtown Development Authority (DDA), not the General Fund, because the project is located within the DDA’s tax increment financing area," Peccia noted. "One of the DDA’s primary roles is to fund public infrastructure projects within their area, and subsequently they would likely utilize the capture of the tax increment in the same manner. However, because this project is covered by a Brownfield Plan, it also enables the City to use State taxes to reimburse the project, something not possible if it instead went through the DDA."
Peccia noted that brownfield projects in the city's commercial areas have included "the Dollar General, Chemical Bank and The Willow all located along south Mitchell Street. More recent commercial area brownfields would include Ace, Raven and 412 Cadillac."
The public hearing on the proposed amendment to the Cadillac Lofts plan is scheduled for Monday, May 18 at 6 p.m. City council is meeting virtually. Member of the public can weigh in during the public hearing by visiting https://global.gotomeeting.com/join/679802717 or dialing 1 (872) 240-3212 and entering the code 679-802-717.