Featured photo: FCC Development Conceptual Site Plan
By Tanya Terry
Recently, the Flint City Council voted unanimously (with some council members abstaining from voting) to approve a brownfield redevelopment plan for the former Buick City site for an investment estimated at approximately $300M. The site has been vacant for more than 20 years.
Ashley Capital is under contract to purchase an additional 273 acres for the Flint Commerce Center. Over a 20-year period, the development will include up to ten buildings. Seven will be industrial/distribution buildings, with 3.5-million square feet of space for light industrial manufacturing or distribution.
Ashley Capital estimates the Flint Commerce Center project will bring 2,500 – 4,000 new jobs to north Flint (based on averages in other Ashley Capital facilities).
Ashley Capital, a commercial development firm, is to fund part of the roughly $300 million redevelopment project through tax increment financing (TIF). TIF captures the increase in property taxes, and sometimes other taxes, resulting from new development, and diverts that revenue to subsidize that development.
The development firm broke ground in June on the first building in the Commerce Center on 20 acres of Buick City that it purchased previously. This property is not included in the brownfield plan.
The plan’s estimated reimbursement-eligible activities are $72.5 million for the development’s next phase.
According to information provided by Ashley Capital, land (including buildings) can be designated a “brownfield” if it is environmentally contaminated, blighted or functionally obsolete. The Brownfield Redevelopment Financing Act 381 of 1996 was designed to encourage and financially support the redevelopment of brownfield sites. Tax Increment Financing (“TIF”) is the tool used to “level the playing field.”
Flint Commerce Center, LLD would capture 80% of incremental taxes on the remaining roughly 275 acres for the brownfield.
Some residents spoke during a public hearing saying Flint should have made GM clean up the mess that was left, and they said Flint residents could not afford raised taxes for the new development.
Some did not agree with 80% of the property taxes going back to Ashley Capital and 20% going to the city and other normal jurisdictions, though capturing 100% is allowed by statute.
“We’re not against the project,” said Flint Resident Arthur Woodson.
“We’re against the 80-20 split,” Woodson added. “We do we keep making millionaires?”
“I think we should just look at what we’re doing and get a better deal,” said George F. Grundy.
Other residents expressed nothing but excitement about the Flint Commerce Center and the proposed plan.
Flint Resident Doug Matthews said the benefit of the proposed investment was “enormous.”
“Flint Commerce Center is an opportunity not only for jobs, but much-needed tax revenue in the city,” said Nadia Rodriguez.
Rodriguez said she felt to move forward, we have to embrace change or face being left behind.
Two council members voted in favor of the brownfield redevelopment plan with a legal opinion on their side, despite other members of the council’s belief they should abstain from voting.
Councilwoman Ladel Lewis voted despite receiving $1,500 from Ashley Capital for a Halloween program in her ward.
Councilman Quincy Murphy cuts grass throughout the Dewey Park area. He was given a lawn mower by Genesee County Habitat for Humanity. Ashley Capital made a donation of $11,000 for the purchase.
“This project was important for our community,” stated Murphy. “It was important for the north side. It was important for impoverished neighborhood. It was important for minority neighborhoods. It was important for our community that has been sitting dormant for years. Maybe you (haven’t) had to live over there right down the street from a plant that’s been shuttered and shut down for the last 30 years. But I have. My mom lives a block away from-You could look at the fence and see nothing but concrete slabs. And to see Ashley Capital come here and bring development-we are excited. I am excited as a council person, and I’m glad to sit on this city council and be part of history, seeing a redevelopment take place in our community.”
Read more about this investment and the activities surrounding it at www.theflintcouriernews.com!
