LANSING, MI – March 19, 2009 – (RealEstateRama) — Legislation expanding the Brownfield act to assist major redevelopment projects such as The Pavilions of Troy was approved by the Senate Thursday, said sponsor Sen. John Pappageorge, R-Troy.
“My bill adds an important tool to the economic redevelopment toolbox that will allow a major project like the Troy Pavilions to proceed,” Pappageorge said. “The first step to getting Michigan’s economy back on track is to encourage economic growth and create jobs for our hard-working residents.”
Long term, The Pavilions of Troy project will create at least 300 permanent jobs and provide improved quality of life for area residents, while in the short term it will create 350 construction jobs immediately.
The Pavilions of Troy, to be located at the old Kmart headquarters, is expected to create more than 1,500 jobs and result in a total investment of about $380 million when completed.
Senate Bill 323 would allow The Pavilions of Troy to qualify as a “major redevelopment project” and therefore be eligible for Brownfield Tax Increment Financing. The city of Troy and the local downtown development authority have already committed $8.8 million in TIF revenues for the project.
In order to qualify, projects must be approved by the Michigan Economic Growth Authority and meet the following criteria:
• Include $50 million in new construction investment;
• Feature at least one multilevel parking facility;
• Create at least 300 permanent jobs; and
• Benefit the state and region.
Located on the corner of Big Beaver Road and Coolidge Highway, plans for the 40-acre site include a community town square surrounded by retail shopping, a theater, restaurants, fitness center, hotel and residential units.
“The entire region and state will benefit from this project,” Pappageorge said. “The state’s economy and growing jobs is a top priority. I am committed to working with my colleagues and the governor to get this bill signed into law.”
SB 323 now goes to the House of Representatives for further consideration