HB 6404 Summary

• Amends the Brownfield Redevelopment Financing Act to expand the definition of "blighted" property to include property owned or controlled by land bank fast track authorities, making such property eligible for brownfield redevelopment financing.

• Modifies tax increment revenue capture provisions to allow authorities to capture taxes for up to 30 years (or until eligible costs are fully reimbursed, whichever is sooner) instead of previous restrictions, with the ability to extend capture for local brownfield revolving funds for up to 5 additional years.

• Establishes "transformational brownfield plans" for mixed-use development projects with significant capital investment thresholds ($15 million to $500 million depending on municipality population), allowing capture of construction period tax revenues, withholding tax revenues, and income tax capture revenues.

• Requires authorities to submit detailed annual financial reports to the governing body, department, and Michigan strategic fund covering tax increment revenues, expenditures, capital investment, residential units, job creation, and other performance metrics.

• Establishes an additional $30,000 cap on school operating tax revenues that can be used for plan development and implementation costs, and requires 50% of state education tax captured to be paid to the state brownfield redevelopment fund for plans adopted after January 1, 2013.