MARQUETTE — After years of deliberating, a motion has passed toward the Founders Landing parking lot.
The key change of the amendment was to relieve the city of Marquette of the responsibility to developing and financing the parking deck. That responsibility will now go to the private developers. Changes made in Act 381 allow for private parking decks to be financed through Brownfield tax increment financing. With the change in the law and working through the details, the conditions that the bank needs to finance are met and all systems are a go.
“I think there are some great advantages for the city and to the Brownfield Authority for this,” said Brownfield Redevelopment Manager Mac McClelland, “it really removes their risk and responsibility for that. It puts that risk onto the private development as it should be and allows the project to move forward. They have to finance it up front, the bank has to be sure there’s those revenues. Those revenues are generated by the ten million dollars that’s going to be invested in the property, and then those are paid back over time by those increased taxes that are captured.”
Although it is a large sum of money, the parking garage will be funded completely by the future tax increment revenues, so the projects themselves generate their own revenues.
“The costs to pay off these eligible activities are generated by the projects themselves,” continued McClelland, “there’s no general fund dollars allocated from the city or any other public entities. They’re generated by the increased taxes based on the increased private investments. So over time those increased taxes pay that off, after those obligations are paid off, there’s a substantial increase in the tax base.”
Mayor Michael Coyne concluded by saying he was uncertain prior to the meeting, but was very satisfied with how the compromise worked out and is grateful for all of the consideration and cooperation from all parties involved.