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Large-scale projects hermes replica belts , especially in urban areas, often become a financing morass with developers angling for tax breaks, low property acquisition costs, grants and any other funds they can find.Some people wonder: Don’t they make enough money?Oftentimes, for the really big, complex projects, they actually don’t.As Matt Cullen, principal of Rock Ventures, recently testified to a state Senate committee, there is an expensive gap between the cost of development in older cities compared with what developers can earn back in rent. These sites are often ridden with lead, asbestos or other contaminants. That means the cleanup, before construction or redevelopment even begins, is pricey.Many in the real estate and construction industries believe Gov. Rick Snyder’s tax overhaul in 2011 went too far in eliminating brownfield incentives. New legislation would fix the funding gap — at least for the biggest, most transformative projects.The Legislature should pass the package, which would capture a portion of state sales and income taxes , and in turn, reimburse developers for a portion of their costs.As Lindsay VanHulle and Kirk Pinho report on Page 3, a city would be limited to one so-called „transformational brownfield project” annually. The Michigan Strategic Fund could not sign off on more than five in the entire state in a single year. (Think the Pontiac Silverdome site or the redevelopment of the former Hudson’s store property in Detroit.)Few Detroit projects would reach the minimum $500 million threshold in private funding needed to qualify; smaller communities don’t often see projects with a price tag of $25 million or more. If this legislation is approved, and the proper checks and balances are baked in, the legislation could be a significant catalyst to more „big idea” projects. The effects on the state’s budget cannot be ignored — that’s how the state got in trouble a few years ago — but there should be a way to provide an important financial incentive for a few truly transformative projects. Related LinksSenate floats Gilbert-backed plan to let developers capture sales, income taxes for large-scale projectsSenate committee approves Gilbert-backed brownfield proposalBrownfield bills raise questions over 'new' revenueBrownfield incentive legislation would cap annual tax captures at $50 millionGilbert-backed brownfield bills die in lame-duck sessionBusiness incentives backers say they plan to keep tryingRemembering 2016: Economic development legislationTaking the 'Gilbert’ out of the 'Gilbert bills’

Opinion: Brownfield bill could be catalyst to more 'big

idea’ projects

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