February 22, 2006

The Department of Environmental Quality has approved nearly $29 million dollars in tax increment financing for cleanup activities at the former McLouth Steel plant located on over a mile of Detroit riverfront in Trenton. The captured tax increment revenues can be used to clean up and ready 195 acres of the property for redevelopment.

The property was operated as a steel and iron production facility for decades until it was shut down permanently two years ago. Operations at the site involved the use, storage, and disposal of several hazardous substances, including hazardous wastes, which resulted in significant contamination on the property. Tax increment revenues will be used to address contaminated soil and groundwater at the site.

The approval was made under the Brownfield Redevelopment Financing Act, a program designed to provide a method of financing environmental response activities at contaminated properties. It allows municipalities to develop and implement brownfield redevelopment financing plans to capture local and school property taxes from development that occurs on a contaminated property to cover the costs associated with conducting environmental response activities on that property. DEQ approval is necessary when school taxes will be captured.

The proposed mixed-use redevelopment project is for residential units, commercial/retail space, and a public riverfront park and marina. The DEQ is working closely with the developer, the United States Environmental Protection Agency, and the city of Trenton to develop cleanup plans for the site that are protective of the public health and the environment, and will allow for the economic benefits of new business growth and new jobs for the community.

Editor’s note: DEQ news releases are available on the department’s Internet home page at www.michigan.gov/deq.

Protecting Michigan’s Environment, Ensuring Michigan’s Future”

Revised February 22, 2006 by Pat Watson