[DetroitMan]

The developers of the Factory Yards project in Grand Rapids are seeking up to $103 million in Transformational Brownfield Tax Credits to develop their mixed-used project. This a relatively new tax credit in Michigan and so far, only the Dan Gilbert projects in Downtown Detroit and the District Detroit development have received them.

Metro Detroit developers to seek up to $103 million in state tax credits for Grand Rapids project

Developers behind Factory Yards, a 467-unit mixed-use redevelopment plan that was pitched to city officials earlier this year, plan to seek up to $103 million through the state's Transformational Brownfield Plans program.

Adopted in 2017 and amended in late 2021 to support more projects, TBPs have been approved for just two projects in Michigan: Dan Gilbert-backed developments in downtown Detroit and the redevelopment of a defunct paper mill in Vicksburg. State officials are considering a $616 million transformational brownfield incentives request for proposed District Detroit projects spearheaded by the Ilitch family and billionaire developer Stephen Ross.

Three metro Detroit-based developers — Ben Smith, Scott Magaluk and Dennis Griffin — are behind the Factory Yards project. The development team on Tuesday presented its tax incentives plan to the city's Economic Development Committee. The developers intend to apply for transformational brownfield credits, $20 million in traditional brownfield credits and Obsolete Property Rehabilitation Act incentives. The developers are communicating with city officials as well as the Michigan Economic Development Corp. as they compile a TBP application. They have not yet officially applied for the incentive plan.

In addition to the $20 million in traditional brownfield credits, the developers could qualify for up to $103 million more in transformational brownfield credits, which would reimburse eligible costs including building renovations, alterations, and other construction costs.

https://www.crainsdetroit.com/econom...tax-incentives