BRONSON, MI (WTVB) – The City of Bronson is collaborating with Allen-Edwin Homes to develop 12 new building lots on the city’s east side, a project made financially feasible through the use of an expanded Brownfield Redevelopment law.
This initiative aims to address the local and statewide need for more housing options, particularly for middle-income families.
The Bronson City Council approved the partnership this week, which utilizes Tax Increment Financing (TIF) to help reimburse the developer for initial infrastructure and road work costs. This mechanism, which was amended by the state legislature in 2023 to include general housing projects, allows a portion of the new property tax revenue generated by the development to cover eligible upfront expenses over a set period.
City Manager Brandon Mersman says the long-term benefits of the project, “Would be really great for the community and our tax base, once the tax infrastructure financing is paid.”
The homes are expected to be priced in the range of upper $200,000 to $400,000.
The use of Brownfield financing has become a crucial tool for communities looking to stimulate residential construction without a significant immediate impact on the city’s general fund, as the TIF model uses future property tax gains to finance current development needs.
Comments