New Allocation of Funds for Brownfield Redevelopment Grants

by David Stegink
Dec 19, 2017
0

MDEQ Redevelopment

As of January 24, 2018, the Michigan Department of Environmental Quality (MDEQ) will have access to a new allocation of funds for Brownfield Redevelopment Grants. These funds are an allocation from the Refined Petroleum Fund and can be accessed by a Local Unit of Government (LUG). Properties that would be eligible for the use of these funds are petroleum-contaminated sites with a redevelopment project and no liable party. Funds are committed to a project through a Grant Contract with the MDEQ and LUG. Funds are made available on a reimbursement basis, typically on a quarterly schedule. Grant funds can be used for a wide variety of activities including environmental assessments, cleanup activities, removal of underground storage tanks and other environmental activities. Although subject to certain limitations, asbestos abatement and demolition are also considered eligible activities. Asbestos abatement and demolition costs cannot be more than the total cost of environmental assessment and cleanup activities completed at the project.

The process of applying for the grant funds is identical to the long-standing Brownfield Redevelopment Grant and Loan application process. Typically, there is an initial conference with the MDEQ to scope the project and evaluate the eligibility of the site/project. If appropriate, the MDEQ will invite the LUG to submit a short Project Proposal. The Project Proposal is evaluated by the MDEQ, and if the project is eligible and viewed favorably for funding, the applicant will be asked to submit a formal Project Application with a greater level of detail about project outcomes. The Application will require a resolution by the governing body to accept the grant and a brief development agreement to describe the proposed redevelopment project. Once an application is accepted, a Contract is authored by the MDEQ and executed by both the MDEQ and LUG. Finally, a technical Grant Work Plan is developed detailing the specific uses of the funding. Once the work plan is approved by the MDEQ, the funding is available for use, and work activities may commence.

While the MDEQ has streamlined the application process as best as it can, this multi-step process will typically require four to five months to complete. As with most grant applications, patience is required, but the availability of funding to assist in economic development and the reuse of brownfield properties is well worth the investment in time. If you have questions regarding this funding opportunity, please contact Dave Stegink at dstegink@envirologic.com or (800) 272-7802.


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mdeq  brownfield redevelopment grant  refined petroleum fund  local unit of government  lug


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