Large Brownfield Redevelopment Tax Incentive Bill Clears Senate

(Source: MIRS.news, Published 12/09/2025) The Senate Tuesday night passed a bill significantly expanding Michigan's brownfield redevelopment program, which would award developers with $3.5 billion in total tax capture off from payrolls and other costs. Folks around the Capitol see this as greasing the wheels on a massive redevelopment of Detroit's Renaissance Center, a planned aquarium in Kent County, a Macomb County mall, and other large projects in Traverse City and Muskegon.

SB 723 – a 71-page bill first introduced on Dec. 3 – by Senate Appropriations Chair Sarah Anthony (D-Lansing) passed 20-13 without debate.

Currently, the state's Transformational Brownfield Plan (TBP) program – which is overseen by the Michigan Strategic Fund (MSF) – awards developers with tax capture benefits to revitalize nuisance or hazardous properties that have been left behind.

Under the TBP program, participating developers can hang onto their income, withholding and sales, and use tax capture for up to 20 years. However, the MSF is capped at awarding no more than $1.6 billion total in post-construction tax capture benefits. To date, more than $1.24 million has already been approved for projects.

Under SB 723, the cap would be lifted to $3.5 billion. Additionally, the MSF could approve up to 25 percent in additional taxes captured.

But instead of that extension benefiting developers directly, 40% of taxes captured would go toward the Michigan Housing and Community Development Fund, 40% to affordable childcare programs and 20% to small business and placemaking programs in the community.

Although the MSF would be responsible for selecting which projects would benefit from this program expansion, there are a few prominent proposals seeking assistance from the state.

For example, General Motors Company announced in April 2024 that it was moving out of its then-headquarters, the Renaissance Center skyscrapers in Downtown Detroit.

Since then, General Motors has partnered with Bedrock – local billionaire Dan Gilbert's real estate firm – to propose a $1.6 billion redevelopment project. It includes knocking down two of its seven towers and offering more public spaces along the Detroit River, with easy pedestrian access and entertainment features similar to Chicago's Navy Pier and New York City's Chelsea Piers.

"While this legislation is critical for the revitalization of Detroit's riverfront, it's important to recognize that it's critical to all areas of the state," said Hassan Beydoun – the City of Detroit's group executive of economic development – in support of SB 723.

Beydoun pointed to Grand Rapids' riverfront; increasing housing supply in Lansing and Muskegon; transforming Macomb County's Lakeside Mall, which was permanently closed in June 2024; and continuing to re-purpose the Traverse City State Hospital. The former psychiatric hospital in northern Michigan has been evolving into a space for restaurants and shops.

"These are sites that have huge potential of transforming their surrounding areas, but would otherwise sit vacant for decades because prior uses make their redevelopment financially impossible," Beydoun said.

In western Michigan, the John Ball Zoo has been casting reels to develop a large aquarium in Walker – Sen. Mark Huizenga (R-Walker)'s district – on a 191-acre site along the Grand River that has the previous Fenske Landfill, which was contaminated by industrial and municipal waste.

"Just think about a lot of these sites that we have across the state, empty malls … my mom would drop me off and give me $20 to hang out at the mall on Friday nights, and that's just not what happens anymore," said Senate Economic and Community Development Chair Mallory McMorrow (D-Royal Oak), "These are massive spaces with huge parking lots that, for many developers, just go unused."

Although not the sponsor of SB 723, McMorrow explained that she successfully secured a ban on stock buyback participation among participating companies, meaning they could not capture Michiganders' income taxes and transfer them to shareholders.

SB 723 also allows industrial projects to seek tax capture benefits, as well as "cultural institutions" if they invest $400 million in a brownfield. Also, $100 million would be specifically set aside for sites that are bankrupt or foreclosed.

Awards under the bill will be canceled if the business is discovered to be reducing jobs elsewhere in the state outside the brownfield's location.

The bill was opposed by Sens. Thomas Albert (R-Lowell), Joseph Bellino Jr. (R-Monroe), Stephanie Chang (D-Detroit), Roger Hauck (R-Union Twp.), Michele Hoitenga (R-Manton), Jeff Irwin (D-Ann Arbor), Ruth Johnson (R-Holly), Dan Lauwers (R-Brockway), Jonathan Lindsey (R-Coldwater), Ed McBroom (R-Waucedah Twp.), Aric Nesbitt (R-Lawton), Rick Outman (R-Six Lakes) and Lana Theis (R-Brighton).