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HB 5857

Economic development: brownfield redevelopment authority; HOPE zone exemption; provide for. Amends sec. 13c of 1996 PA 381 (MCL 125.2663c). TIE BAR WITH: HB 5852'26

2025-2026 Regular Session Introduced by Tyrone Carter and 10 co-sponsors

Expands to allow transformational brownfield plans that can cover multiple related developments, with flexible revenue capture and MSF oversight, plus HOPE/RE zones considerations.

bill electronically reproduced 04/22/2026
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Bill Summary · HB 5857

Summary of Bill HB 5857 (2025-2026) – Michigan

Jurisdiction: Michigan
Title: Economic development: brownfield redevelopment authority; HOPE zone exemption; provide for
Session: 2025-2026
TIE BAR: HB 5852

Note: This summary focuses on the substantive provisions and potential impact of the bill as introduced.

Purpose and intent

  • Amend the Brownfield Redevelopment Financing Act (1996 PA 381) to expand and clarify the use of funds and processes for a special type of brownfield redevelopment plan termed a “transformational brownfield plan.”
  • Allow for an integrated approach that may cover a single development or a series of related developments, potentially across noncontiguous parcels, within a broader program of investment.
  • Incorporate provisions related to HOPE zones and Renaissance zones by adjusting how exemptions or reimbursements interact with a transformational brownfield plan.

Key provisions and changes

1) Transformational brownfield plan

  • The board, with approvals from the governing body and the Michigan Strategic Fund (MSF) under section 14a, may implement a transformational brownfield plan.
  • A plan can address a single development or multiple developments as part of a related program of investment, including noncontiguous parcels.
  • Amendments to the plan require approvals from the local governing body and MSF and must align with plan requirements.

2) Revenue capture and use

  • The plan may authorize use of:
    • Construction period tax capture revenues
    • Withholding tax capture revenues
    • Income tax capture revenues
    • Tax increment revenues (TIF)
    • Sales and use tax capture revenues
  • Revenues must be used for eligible activities described in section 2(o)(v) and funding must follow the revenues to costs attributable to the plan (including debt service).
  • Revenue use can vary over time, but the portion allocated to eligible activities must be clearly stated.

3) Plan requirements

  • A transformational brownfield plan is subject to general brownfield requirements (sections 13, 13a, 13b, 14, 15) with added specifics:
    • Basis for designation as transformational under section 2(hhh)
    • Description of costs to be funded with various capture revenues
    • Year-by-year estimates of captured revenues
    • Beginning date and duration of revenue capture for each property

4) Flexibility in revenue allocation

  • The plan may designate all or part of the various capture revenues, with amounts to be used for eligible activities, possibly changing over time.
  • The plan must clearly state the portion of revenues to be used.

5) Approval, notices, and public process

  • Approvals follow notice, approval, and public hearing requirements of sections 14 and 14a.
  • The governing body must notify MSF at least 30 days before a transformational brownfield plan hearing.

6) Work plans and combined plans

  • If using certain capture revenues, MSF approval of a written development or reimbursement agreement is required.
  • Work plans or combined plans tied to transformation must be consolidated with related plans under section 13b(4) and aligned with MSF-approved activities.

7) Reimbursement and timing

  • The authorities may reimburse advances (with or without interest) for costs funded by the plan using capture revenues, subject to MSF approval and a development or reimbursement agreement.
  • Reimbursement agreements are not subject to certain other state finance acts.

8) Pre-approval reimbursements

  • Eligible activities conducted before plan approval may be reimbursed if included later in an approved transformational plan, with reimbursable costs limited to expenses incurred within 90 days prior to plan approval.

9) Duration of capture

  • The duration for withholding tax, income tax, and sales/use tax capture for a given property cannot exceed the lesser of the plan’s authorized term under subsection (8) or 20 years.
  • The starting date for capture generally must be no later than 5 years after MSF approval to include the property, with possible extensions for good-faith progress in a related program of investment.

10) Related program of investment

  • Defines when a series of developments (noncontiguous) qualifies as a “related program of investment”:
    • Concurrent or reasonably sequential developments
    • For affiliated ownership: reasonably contiguous and part of a defined geography (e.g., downtown districts, principal shopping districts)
    • For unrelated ownership: must be part of a master development plan approved by the governing body
    • Must be consistent with the purposes of the act and not merely a mix of unrelated projects to meet minimum investment

11) HOPE/Renaissance zone provisions (subsection 13)

  • If eligible property in a transformational plan has been designated as a Renaissance zone or HOPE zone, MSF and the local unit may terminate certain exemptions or credits and reimburse the authority or property owner.
  • Revenue impacts:
    • Amounts anticipated from this termination are included in the plan’s income tax capture revenues.
    • The state treasurer and city tax authorities have defined processes for calculating and depositing/allocating these revenues.
    • Cities with local income tax must enter binding reimbursement agreements for applicable revenues.
    • The department of treasury may require information for revenue calculation.

12) County authorities

  • A county-established authority may pursue transformational plan approvals, including cross-jurisdictional plans, with investment minimums calculated across relevant municipalities.

Effective date

  • Enacting section specifies this act takes effect only if Senate Bill S01123'25 or House Bill H01123'25 (HB 5852) is enacted into law.

Who is affected

  • Municipalities and their governing bodies
  • Michigan Strategic Fund
  • Brownfield authorities and related land banks
  • Property owners/developers of eligible brownfield properties
  • Taxing jurisdictions (property tax, income tax, sales/use tax, and city income taxes)
  • Renaissance zone and HOPE zone properties and zones

Procedural and timeline considerations

  • Transformational plan development requires phased approvals (governing bodies and MSF) and public hearings.
  • Amendments to plans may be necessary as related programs evolve.
  • Revenue capture timelines have set caps (not exceeding 20 years for certain taxes) and may start no later than five years post-MSDF approval, with potential extensions based on progress.
  • Pre-approval reimbursements are allowed under strict timing limits (within 90 days prior to approval).

This bill broadens the framework for transformative, multi-property brownfield redevelopment, linking growth to state-level oversight and cooperative funding mechanisms, and it adds HOPE/renaissance zone considerations into the financing structure.

Compiled from official sources — confirm details with the bill’s official record.

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