Northville Development with Brownfield Assistance
The former Northville Psychiatric Hospital property may soon be seeing some changes.
The Township Board of Trustees has unanimously voted to create a Brownfield Redevelopment Authority to redevelop the property. The Brownfield Authority, or Tax Increment Financing, captures taxes from the property after development takes place and the property increases in value. These captured taxes pay for the improvements made on the property.
According to Paul Bohn, Northville’s environmental attorney, the authority could raise more than $80 million over 30 years. The cost for cleaning up the property, including demolishing all the vacant buildings on the property, is estimated to be roughly $29 million.
The property is currently owned by developer REIS. The redevelopment plan includes building a new University of Michigan hospital on the site as well as other commercial and retail development. Construction on the hospital will begin in 2013 and it should open the following year.
According to the consent agreement, REIS will get half of the revenue produced by the Brownfield authority to be used to improve the property.
This agreement will allow the township to begin improving the long-vacant property and making it useable to Northville residents.
Paul Bohn, who advises the township on environmental matters, is an attorney with Fausone Bohn, LLP in Northville. If you have questions on brownfield, development or environmental matters, contact Mr. Bohn by phone at (248) 380-0000 or online at FB-Firm.com.