Brownfield Redevelopment
A brownfield is an environmentally contaminated property. Through the Brownfield Redevelopment Financing Act, a developer of contaminated property can be reimbursed for eligible environmental activities that they paid for as well as a 10% single business tax credit for the investment in building demolition, renovation or improvements, machinery and equipment. In addition, cleanup costs are now 50% lower for Industrial and commercial properties.
Berrien County is a Brownfield Redevelopment Authority. This means that the county is able to implement brownfield plans for properties on behalf of a municipality. Also, properties that are blighted or obsolete may also qualify for capture of these same taxes under the Core Communities Initiative.
Contact BCCDD at (269) 983-7111, ext. 8617 for more information.
Obsolete Property Rehabilitation
Developers of commercial property and commercial housing property now have the ability to be exempt from ad valorem property taxes under the Obsolete Property Rehabilitation Act. This act allows commercial properties to receive property rehabilitation exemption certificates if they reside within qualified local governmental units.
Commercial rehabilitation projects must show an increase in the likelihood of commercial activity, creating employment or reducing its loss, or increasing residence within the building's community.
To receive an exemption certificate, a developer must first apply to a qualified local governmental unit (QLGU). The QLGU's in Berrien County are Benton Harbor and Benton Charter Township.
Industrial Facilities Tax Abatement
Industrial facilities (including high-technology facilities), machinery and equipment are eligible to receive an exemption of real and personal property taxes for up to 12 years. This tax savings is realized when the company pays its Industrial Facilities Tax (IFT). Berrien County Economic Development administers tax abatements to industrial facilities in the county at no charge.
For obsolete machinery or plants, a 100% property tax exemption is granted on the value of the improvement. For new plant an/or machinery and equipment, the tax is half the local property tax millage rate, plus the 6-mill statewide education tax, reducing the property tax by almost 50%. For a speculative building, the local government must declare a manufacturing facility it as such. Then, costs are eligible for a property tax reduction by almost 50%.
Since tax abatements are time-sensitive and procedure-oriented, it is best to contact BCCDD at (269) 983-7111, ext. 8617 prior to any commencement.
Renaissance Zones
Berrien County has renaissance zones in Benton Harbor, Benton Charter Township, Buchanan and Watervliet. There are also 10 adjacent subzones. Renaissance zones are areas that are virtually tax-free for any business or resident located in one of the zones.
Businesses and/or residents of renaissance zones do not pay the following taxes:
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Single Business Tax
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State Personal Income Tax
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6-mill State Education Tax
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Local Personal Property Tax
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Local Real Property Tax
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Local Income Tax
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Utility Users Tax
Call BCCDD at (269) 983-7111, ext. 8617 for more information on renaissance zones.
Revolving Loan Fund
Berrien County Community Development has a revolving loan fund that is used to promote the growth of small, entrepreneurial companies that have no other avenue of financial assistance. Although they are typically loans, funds can take the form of a grant. These are administered through the Loan Administration Board.
The size of these loans and the interest rate are determined on a case-by-case basis. The interest rate is no less than prime rate and usually no higher that 2 points over prime. Companies that complete the application and are eligible to receive a loan can anticipate a turnaround time on the receipt of the loan monies of 30 days or more.
Contact BCCDD at (269) 983-7111 ext. 8617 for more information, or click here for our brochure: "Revolving Loan Fund"
North Berrien Community Development
North Berrien Community Development is a non-profit community-based corporation that represents the townships and cities of Coloma and Watervliet along with the townships of Bainbridge and Hagar in their efforts to influence the development and changes within the Paw-Paw Lake area.
North Berrien Community Development is the resource that the community looks to for the coordination of programs that are grant or loan eligible.
It also serves as an information center for the area on projects and players that are influential in the changes within the community. Projects that are sponsored by North Berrien Community Development are varied, but do emphasize the job creation and job maintenance aspects of the community.
For more information on North Berrien Community Development and its programs, please call Chana Kniebes at (269) 468-4430.
Cornerstone Alliance
Cornerstone Alliance is a non-profit, investor driven community and economic development organization focusing on tax and job base creation, with an emphasis on socially and economically distressed areas, facilitating change through partnerships within the communities comprised of Benton Harbor, St. Joseph, Benton Charter Township, St. Joseph Charter Township, Lincoln Charter Township, and Royalton Township.
To support its mission, Cornerstone Alliance offers economic development tools, public relations services, business and education partnerships, employee recruitment and assimilation, and small business services.
For more information, call Cornerstone Alliance at (269) 925-6100.
Southwestern Michigan Economic Growth Alliance
Southwestern Michigan Economic Growth Alliance (SMEGA), Inc. is a nonprofit economic development corporation promoting industrial retention and the creation of jobs in the City of Niles, Niles Township, Bertrand Township, Milton Township, Howard Township, City of Buchanan, and Buchanan Township, with its primary emphasis on the Greater Niles area.
SMEGA is committed to being the primary economic development organization to ensure the retention and creation of jobs and tax base within the Greater Niles and Buchanan area.
For information on incentives offered by SMEGA, contact Shelley Klug at (269) 683-1833.
