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November 18, 2005Front Street project gets $4.3 million boostTRAVERSE CITY - A project that would transform a chunk of West Front Street won a $4.3 million boost by way of a state tax credit.Federated Properties LLC wants to build a 100-foot-tall multi-use project with public parking on the south side of West Front. Developer Michael Uzelac said he "always counted" on a brownfield single business tax credit from the Michigan Economic Development Corp. "as a necessary component to make the project work." "We are thrilled with it." he said. To receive the tax credits, work on the project must begin in one year and finish in five years, said Jean Derenzy, who runs the county brownfield program. Uzelac, however, does not have the required permit for the project yet. He and the city also have to work out an agreement for public parking costs. The permit request will be ready for a Dec. 7 planning commission meeting, Uzelac said. A developer's agreement detailing the city's financial commitment to the project could appear before the Downtown Development Authority in weeks, said DDA executive director Bryan Crough. The $43.9 million project would feature a mix of retail, residential and office space plus public parking. A three-story building he proposed for the north side of the street won the necessary city approval in September. The total cost of public parking for projects on both sides of the street is estimated to cost the city between $10 million and $12 million. The tax credit is the largest of its kind received for a Grand Traverse County development, said Derenzy. A developer who is considering a brownfield project applies to the MEDC and must demonstrate that the project can rehabilitate a contaminated, blighted or functionally obsolete property, said Paul Krepps, MEDC communications director. The MEDC reviews the application and if it determines the project meets the criteria, it puts it before the Michigan Economic Growth Authority Board for approval. The local government also must approve the redevelopment plan, Krepps said. Krepps said 15 single business tax credits for projects more than $10 million can be approved each year. "We do have to be choosy about which projects will bring the most benefit to the state," Krepps said. The project is expected to create 150 full-time jobs, and the additional parking created by the project is expected to reduce office vacancy rates in buildings in the area and boost neighboring retailers, according to the MEDC. This is the second brownfield tax credit Uzelac received in less than a month. In late October, the MEDC said Uzelac won a credit worth around $300,000 for redevelopment of a vacant industrial site in Rogers City to build 26 two-bedroom residential units. Susan Novakoski, MEDC spokeswoman, said there is no limit on the number of brownfield credits a developer can receive. [an error occurred while processing this directive] |