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HomeMy WebLinkAboutResolutions - 2026.05.21 - 42937 AGENDA ITEM: Abolish the Brownfield Redevelopment Plan for 1200 Auburn Road located in the City of Pontiac DEPARTMENT: Economic Development - Business Development MEETING: Board of Commissioners DATE: Thursday, May 21, 2026 9:30 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2026-6461 Motion to abolish the Brownfield Redevelopment Plan for the 1200 Auburn Road project that was completed in the City of Pontiac. ITEM CATEGORY SPONSORED BY Brownfield/TIF Yolanda Smith Charles INTRODUCTION AND BACKGROUND The resolution approving the provisions of a brownfield redevelopment plan for the 1200 Auburn Road project in the City of Pontiac was approved February 7th, 2019 through Miscellaneous Resolution #19023. The redevelopment was the renovation and rehabilitation of the existing warehouse/distribution building to expand the operations of Peninsula Plastics within the City of Pontiac. The building is being used for engineering and design office space, manufacturing of molded plastic products, tooling, and warehousing. The rehabilitation included the removal of the underground storage tanks and the demolition of the pump island canopy, as well as improvements to the exterior paved surface. In addition, the warehouse/distribution building underwent significant renovations, including the relocation and upgrade of existing electrical utilities to meet modern demands, removal of obsolete fire suppression equipment and installation of special equipment and piping to meet the demands of the production floor, and upgrades and installation of new lighting, flooring, and other fixtures throughout the remainder of the building. The TIF payback period was shorter (7 years) than originally outlined (11 years) in the approved Brownfield plan. The TIF collection will be stopped and all property taxes moving forward will be sent to the proper taxing jurisdictions. FISCAL IMPACT: No Budget Amendment Needed Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at 248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional information. CONTACT Bradley Hansen, Business Development Representative Senior Kristen Wiltfang, Administrator Trails, Transportation & Environment ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 5/21/2026 AGENDA DEADLINE: 05/07/2026 4:30 PM ATTACHMENTS 1. Signed 2026.003 RES 1200 Auburn Abolish 2. OCBRAPortfolio1200Aub.149E14 COMMITTEE TRACKING 2026-05-13 Economic Development & Infrastructure - Forward to Finance 2026-05-13 Finance - Recommend to Board 2026-05-21 Full Board - Adopt Motioned by: Commissioner Michael Gingell Seconded by: Commissioner Penny Luebs Yes: Ann Erickson Gault, Michael Gingell, Marcia Gershenson, Robert Hoffman, Karen Joliat, Christine Long, Penny Luebs, Gwen Markham, William Miller III, Kristen Nelson, Angela Powell, Robert Smiley, Yolanda Smith Charles, Michael Spisz, Linnie Taylor, Philip Weipert, David Woodward (17) No: Charles Cavell (1) Abstain: None (0) Absent: Brendan Johnson (1) Passed BrownfieldRedevelopment Authority PROJECT PORTFOLIO UPDATE2023 M1 Concourse, Pontiac 11 projectprofiles $650 million+ in new investment 3,000 projected new jobs $145 million in increased taxable value of property +450 acres of contaminated property remediated and repurposed for productive use through private investment VIACE Place FORMER DRY CLEANER DATING TO CA. 1970 RESIDENTIAL AND COMMERCIAL USE (1.68 ACRES) 149 E. 14 MILE ROAD, CLAWSON BROWNFIELD CONDITIONS • Property previously had a dry cleaning business that operated since at least 1970. Occupants stored and used tetrachloroethylene (PCE) on site and generated hazardous waste • Based on laboratory analytical results collected during a May 2015 Phase II subsurface investigation, PCE has impacted subsurface soils and soil gas at the property • The subject property meets the definition of a “facility,” as defined in Act 451 of 1994, Part 201, NREPA, as amended REDEVELOPMENT PLAN Three-story, mixed-use redevelopment with retail and commercial space (24,502 sq. ft.) on the first floor and 31 residential units (32,033 sq. ft.) on floors two and three YEAR APPROVED BY OCBRA: 2020 STATUS IN 2023: Cleanup and construction complete. TIF collection has begun 18 Investment $9 million Size 56,535 sq. ft. new mixed-use commercial and residential space Jobs Created 32 full-time Tax Base Before $901,650 New Tax Base $2,850,000 Eligible Activity $293,668 - TIF $1,388,951 - PA 210 tax abatement Site conditions June 2023 #FFFFFF 19 Peninsula Plastics VII BROWNFIELD CONDITIONS • The property was determined to be “functionally obsolete” by a Michigan Master Assessing Officer (MMAO). It has suffered a substantial loss in value because it cannot adequately perform its intended function as a commercial building • Substantial improvements to the property were required for it to adequately perform its intended function, including but not limited to: EGLE Specific Activities include industrial cleaning and oversight, sampling, and reporting by an environmental professional Demolition Activities includes building demolition activities, disposal of non-reusable and non-recyclable building elements, removal of abandoned utilities, removal of the underground storage tanks and canopy, and fill, compaction, and rough grading where improvements are located Asbestos Activities includes asbestos containing materials (ACM) abatement, oversight, air monitoring and associated reporting DISTRIBUTION WAREHOUSE 1980-2017 (13.31 ACRES) 1200 AUBURN ROAD, PONTIAC 20 Investment $14.45 million Size 105,000 sq. ft. Jobs Created 40 full-time Tax Base Before $1,276,080 New Tax Base $1,453,080 Eligible Activity $349,157 REDEVELOPMENT PLAN • The proposed redevelopment entails the renovation and rehabilitation of the existing warehouse/distribution building to expand the operations of Peninsula Plastics within the City of Pontiac • The building will be used for engineering and design office space, manufacturing of molded plastic products, tooling, and warehouse space YEAR APPROVED BY OCBRA: 2018 STATUS IN 2023: Demolition and construction complete. TIF collection has begun Site conditions June 2023 21