CITY OF PORT HURON BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN

Transcription

1 CITY OF PORT HURON BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN BLUE WATER AREA CONVENTION CENTER SITE 500 THOMAS EDISON PARKWAY AND SURROUNDING LANDS PORT HURON, MICHIGAN AUGUST 16, 2012 Brownfield Plan Funded by: St. Clair County Brownfield Redevelopment Authority Brownfields Coalition Assessment Grant Program Prepared with the assistance of: ENVIROLOGIC TECHNOLOGIES, INC Interstate Parkway Kalamazoo, Michigan (800)

2 TABLE OF CONTENTS I. GENERAL DEFINITIONS AS USED IN THIS PLAN... 1 II. ELIGIBLE PROPERTIES... 9 INTRODUCTION... 9 BASIS OF ELIGIBILITY THE PLAN Michigan Economic Development Corporation (MEDC) pre-approved eligible activities Additional Eligible Activities TABLES TABLE 1: Summary of Eligible Costs...19 TABLE 2: Estimate of Total Captured Incremental Taxes (Condominium property)...20 TABLE 2A: Estimate of Total Captured Incremental Taxes (Surrounding Lands)...21 TABLE 3: Estimate of Annual Captured Incremental Taxes for Each Affected Taxing Jurisdiction...29 TABLE 4: Captured Taxable Value and Tax Increment Revenue by Year and Aggregate for Each Taxing Jurisdiction...30 TABLE 5: Reimbursement Schedule...31 ATTACHMENTS ATTACHMENT A: ATTACHMENT B: ATTACHMENT C: ATTACHMENT D: Figure 1: Eligible properties Notice of Public Hearing Notice to Taxing Jurisdictions Resolution Approving a Brownfield Plan i

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4 BROWNFIELD PLAN BLUE WATER AREA CONVENTION CENTER SITE 500 THOMAS EDISON PARKWAY AND SURROUNDING LANDS PORT HURON, MICHIGAN I. GENERAL DEFINITIONS AS USED IN THIS PLAN 1996 PA 381 Sec. 2 (a) "Additional response activities" means response activities identified as part of a brownfield plan that are in addition to baseline environmental assessment activities and due care activities for an eligible property. (b) "Authority" means a brownfield redevelopment authority created under this act. (c) "Baseline environmental assessment" means that term as defined in Section of the Natural Resources and Environmental Protection Act (NREPA) 1994 PA 451, MCL (d) "Baseline environmental assessment activities" means those response activities identified as part of a brownfield plan that are necessary to complete a baseline environmental assessment for an eligible property in the brownfield plan. (e) "Blighted" means property that meets any of the following criteria as determined by the governing body: (i) Has been declared a public nuisance in accordance with a local housing, building, plumbing, fire, or other related code or ordinance. (ii) Is an attractive nuisance to children because of physical condition, use, or occupancy. (iii) Is a fire hazard or is otherwise dangerous to the safety of persons or property. (iv) Has had the utilities, plumbing, heating, or sewerage permanently disconnected, destroyed, removed, or rendered ineffective so that the property is unfit for its intended use. (v) Is tax-reverted property owned by a qualified local governmental unit, by a county, or by this state. The sale, lease, or transfer of tax reverted property by a qualified local governmental unit, county, or this state after the property's inclusion in a brownfield plan shall not result in the loss to the property of the status as blighted property for purposes of this act. 1

5 (vi) Is property owned or under the control of a Land Bank Fast Track authority under the Land Bank Fast Track Act, whether or not located within a qualified local governmental unit. Property included within a brownfield plan prior to the date it meets the requirements of this subdivision to be eligible property shall be considered to become eligible property as of the date the property is determined to have been or becomes qualified as, or is combined with, other eligible property. The sale, lease, or transfer of the property by a Land Bank Fast Track authority after the property's inclusion in a brownfield plan shall not result in the loss to the property of the status as blighted property for purposes of this act. (vii) Has substantial subsurface demolition debris buried on site so that the property is unfit for its intended use. (f) "Board" means the governing body of an authority. (g) "Brownfield plan" means a plan that meets the requirements of Section 13 and is adopted under Section 14. (h) "Captured taxable value" means the amount in one year by which the current taxable value of an eligible property subject to a brownfield plan, including the taxable value or assessed value, as appropriate, of the property for which specific taxes are paid in lieu of property taxes, exceeds the initial taxable value of that eligible property. The state tax commission shall prescribe the method for calculating captured taxable value. (i) "Chief executive officer" means the mayor of a city, the village manager of a village, the township supervisor of a township, or the county executive of a county or, if the county does not have an elected county executive, the chairperson of the county board of commissioners. (j) "Department" means the Department of Environmental Quality (DEQ). (k) "Due care activities" means those response activities identified as part of a brownfield plan that are necessary to allow the owner or operator of an eligible property in the plan to comply with the requirements of Section 20107a of the NREPA, 1994 PA 451, MCL a. (l) "Economic opportunity zone" means one or more parcels of property that meet all of the following: (i) That together are 40 or more acres in size. (ii) That contain a manufacturing facility that consists of 500,000 or more square feet. (iii) That are located in a municipality that has a population of 30,000 or less and that is contiguous to a qualified local governmental unit. (m) "Eligible activities" or "eligible activity" means one or more of the following: 2

6 (i) Baseline environmental assessment activities. (ii) Due care activities. (iii) Additional response activities. (iv) For eligible activities on eligible property that was used or is currently used for commercial, industrial, or residential purposes that is in a qualified local governmental unit, that is owned or under the control of a Land Bank Fast Track authority, or that is located in an economic opportunity zone, and is a facility, functionally obsolete, or blighted, and except for purposes of Section 38d of former 1975 PA 228, the following additional activities: (A) Infrastructure improvements that directly benefit eligible property. (B) Demolition of structures that is not response activity under Section of the NREPA, 1994 PA 451, MCL (C) Lead or asbestos abatement. (D) Site preparation that is not response activity under Section of the NREPA, 1994 PA 451, MCL (E) Assistance to a Land Bank Fast Track authority in clearing or quieting title to, or selling or otherwise conveying, property owned or under the control of a Land Bank Fast Track authority or the acquisition of property by the Land Bank Fast Track authority if the acquisition of the property is for economic development purposes. (F) Assistance to a qualified local governmental unit or authority in clearing or quieting title to, or selling or otherwise conveying, property owned or under the control of a qualified local governmental unit or authority or the acquisition of property by a qualified local governmental unit or authority if the acquisition of the property is for economic development purposes. (v) Relocation of public buildings or operations for economic development purposes. (vi) For eligible activities on eligible property that is a qualified facility that is not located in a qualified local governmental unit and that is a facility, functionally obsolete, or blighted, the following additional activities: (A) Infrastructure improvements that directly benefit eligible property. (B) Demolition of structures that is not response activity under Section of the NREPA, 1994 PA 451, MCL

7 (C) Lead or asbestos abatement. (D) Site preparation that is not response activity under Section of the NREPA, 1994 PA 451, MCL (vii) For eligible activities on eligible property that is not located in a qualified local governmental unit and that is a facility, functionally obsolete, or blighted, the following additional activities: (A) Demolition of structures that is not response activity under Section of the NREPA, 1994 PA 451, MCL (B) Lead or asbestos abatement. (viii) Reasonable costs of developing and preparing brownfield plans and work plans. (ix) For property that is not located in a qualified local governmental unit and that is a facility, functionally obsolete, or blighted, that is a former mill that has not been used for industrial purposes for the immediately preceding two years, that is located along a river that is a federal superfund site listed under the Comprehensive Environmental Response, Compensation, and Liability act (CERCLA) of 1980, 42 USC 9601 to 9675, and that is located in a city with a population of less than 10,000 persons, the following additional activities: (A) Infrastructure improvements that directly benefit the property. (B) Demolition of structures that is not response activity under Section of the NREPA, 1994 PA 451, MCL (C) Lead or asbestos abatement. (D) Site preparation that is not response activity under Section of the NREPA, 1994 PA 451, MCL (x) For eligible activities on eligible property that is located north of the 45th parallel, that is a facility, functionally obsolete, or blighted, and the owner or operator of which makes new capital investment of $250,000, or more in this state, the following additional activities: (A) Demolition of structures that is not response activity under Section of the NREPA, 1994 PA 451, MCL (B) Lead or asbestos abatement. (xi) Reasonable costs of environmental insurance. 4

8 (n) Except as otherwise provided in this subdivision, "eligible property" means property for which eligible activities are identified under a brownfield plan that was used or is currently used for commercial, industrial, public, or residential purposes, including personal property located on the property, to the extent included in the brownfield plan, and that is 1 or more of the following: (i) Is in a qualified local governmental unit and is a facility, functionally obsolete, or blighted and includes parcels that are adjacent or contiguous to that property if the development of the adjacent and contiguous parcels is estimated to increase the captured taxable value of that property. (ii) Is not in a qualified local governmental unit and is a facility, and includes parcels that are adjacent or contiguous to that property if the development of the adjacent and contiguous parcels is estimated to increase the captured taxable value of that property. (iii) Is tax reverted property owned or under the control of a Land Bank Fast Track authority. (iv) Is not in a qualified local governmental unit, is a qualified facility, and is a facility, functionally obsolete, or blighted, if the eligible activities on the property are limited to the eligible activities identified in subdivision (m)(vi). (v) Is not in a qualified local governmental unit and is a facility, functionally obsolete, or blighted, if the eligible activities on the property are limited to the eligible activities identified in subdivision (m)(vii). (vi) Is not in a qualified local governmental unit and is a facility, functionally obsolete, or blighted, if the eligible activities on the property are limited to the eligible activities identified in subdivision (m)(ix). (vii) Is located north of the 45th parallel, is a facility, functionally obsolete, or blighted, and the owner or operator makes new capital investment of $250,000, or more in this state. Eligible property does not include qualified agricultural property exempt under Section 7ee of the General Property Tax Act, 1893 PA 206, MCL 211.7ee, from the tax levied by a local school district for school operating purposes to the extent provided under Section 1211 of the Revised School Code, 1976 PA 451, MCL (viii) Is a transit-oriented development. (ix) Is a transit-oriented facility. (o) "Environmental insurance" means liability insurance for environmental contamination and cleanup that is not otherwise required by state or federal law. (p) "Facility" means that term as defined in Section of the NREPA, 1994 PA 451, MCL

9 (q) "Fiscal year" means the fiscal year of the authority. (r) "Functionally obsolete" means that the property is unable to be used to adequately perform the function for which it was intended due to a substantial loss in value resulting from factors such as overcapacity, changes in technology, deficiencies or superadequacies in design, or other similar factors that affect the property itself or the property's relationship with other surrounding property. (s) "Governing body" means the elected body having legislative powers of a municipality creating an authority under this act. (t) "Infrastructure improvements" means a street, road, sidewalk, parking facility, pedestrian mall, alley, bridge, sewer, sewage treatment plant, property designed to reduce, eliminate, or prevent the spread of identified soil or groundwater contamination, drainage system, waterway, waterline, water storage facility, rail line, utility line or pipeline, transit-oriented development, transit-oriented facility, or other similar or related structure or improvement, together with necessary easements for the structure or improvement, owned or used by a public agency or functionally connected to similar or supporting property owned or used by a public agency, or designed and dedicated to use by, for the benefit of, or for the protection of the health, welfare, or safety of the public generally, whether or not used by a single business entity, provided that any road, street, or bridge shall be continuously open to public access and that other property shall be located in public easements or rights-of-way and sized to accommodate reasonably foreseeable development of eligible property in adjoining areas. (u) "Initial taxable value" means the taxable value of an eligible property identified in and subject to a brownfield plan at the time the resolution adding that eligible property in the brownfield plan is adopted, as shown either by the most recent assessment roll for which equalization has been completed at the time the resolution is adopted or, if provided by the brownfield plan, by the next assessment roll for which equalization will be completed following the date the resolution adding that eligible property in the brownfield plan is adopted. Property exempt from taxation at the time the initial taxable value is determined shall be included with the initial taxable value of zero. Property for which a specific tax is paid in lieu of property tax shall not be considered exempt from taxation. The state tax commission shall prescribe the method for calculating the initial taxable value of property for which a specific tax was paid in lieu of property tax. (v) "Land Bank Fast Track Authority" means an authority created under the Land Bank Fast Track Act, 2003 PA 258, MCL to (w) "Local taxes" means all taxes levied other than taxes levied for school operating purposes. (x) "Municipality" means all of the following: (i) A city. 6

10 (ii) A village. (iii) A township in those areas of the township that are outside of a village. (iv) A township in those areas of the township that are in a village upon the concurrence by resolution of the village in which the zone would be located. (v) A county. (y) "Owned or under the control of" means that a Land Bank Fast Track authority has one or more of the following: (i) An ownership interest in the property. (ii) A tax lien on the property. (iii) A tax deed to the property. (iv) A contract with this state or a political subdivision of this state to enforce a lien on the property. (v) A right to collect delinquent taxes, penalties, or interest on the property. (vi) The ability to exercise its authority over the property. (z) "Qualified facility" means a landfill facility area of 140 or more contiguous acres that is located in a city and that contains a landfill, a material recycling facility, and an asphalt plant that are no longer in operation. (aa) "Qualified local governmental unit" means that term as defined in the Obsolete Property Rehabilitation Act, 2000 PA 146, MCL to (bb) "Qualified taxpayer" means that term as defined in Sections 38d and 38g of former 1975 PA 228, or Section 437 of the Michigan Business Tax Act, 2007 PA 36, MCL (cc) "Response activity" means that term as defined in Section of the NREPA, 1994 PA 451, MCL (dd) "Specific taxes" means a tax levied under 1974 PA 198, MCL to ; the Commercial Redevelopment Act, 1978 PA 255, MCL to ; the Enterprise Zone Act, 1985 PA 224, MCL to ; 1953 PA 189, MCL to ; the Technology Park Development Act, 1984 PA 385, MCL to ; the Obsolete Property Rehabilitation Act, 2000 PA 146, MCL to ; the Neighborhood Enterprise Zone Act, 1992 PA 147, MCL to ; the Commercial Rehabilitation Act, 2005 PA 210, MCL to ; or that portion of the tax levied under the Tax Reverted Clean Title Act,

11 PA 260, MCL to , that is not required to be distributed to a Land Bank Fast Track authority. (ee) "Tax increment revenues" means the amount of ad valorem property taxes and specific taxes attributable to the application of the levy of all taxing jurisdictions upon the captured taxable value of each parcel of eligible property subject to a brownfield plan and personal property located on that property. Tax increment revenues exclude ad valorem property taxes specifically levied for the payment of principal of and interest on either obligations approved by the electors or obligations pledging the unlimited taxing power of the local governmental unit, and specific taxes attributable to those ad valorem property taxes. Tax increment revenues attributable to eligible property also exclude the amount of ad valorem property taxes or specific taxes captured by a downtown development authority, tax increment finance authority, or local development finance authority if those taxes were captured by these other authorities on the date that eligible property became subject to a brownfield plan under this act. (ff) "Taxable value" means the value determined under Section 27a of the General Property Tax Act, 1893 PA 206, MCL a. (gg) "Taxes levied for school operating purposes" means all of the following: (i) The taxes levied by a local school district for operating purposes. (ii) The taxes levied under the State Education Tax Act, 1993 PA 331, MCL to (iii) That portion of specific taxes attributable to taxes described under subparagraphs (i) and (ii). (hh) "Transit-oriented development" means infrastructure improvements that are located within 1/2 mile of a transit station or transit-oriented facility that promotes transit ridership or passenger rail use as determined by the board and approved by the municipality in which it is located. (ii) "Transit-oriented facility" means a facility that houses a transit station in a manner that promotes transit ridership or passenger rail use. (jj) "Work plan" means a plan that describes each individual activity to be conducted to complete eligible activities and the associated costs of each individual activity. (kk) "Zone" means, for an authority established before June 6, 2000, a brownfield redevelopment zone designated under this act. 8

12 II. ELIGIBLE PROPERTIES BLUE WATER AREA CONVENTION CENTER SITE 500 THOMAS EDISON PARKWAY AND SURROUNDING LANDS PORT HURON, MICHIGAN Introduction The central focus of this Brownfield Plan is to support the construction of a new, publicly owned convention center, renovation of the Thomas Edison Inn, expansion of the existing attached restaurant, and development of a culinary school. These developments will occur on a collection of parcels currently occupied by the Thomas Edison Inn and a single parcel occupied by the Convention and Visitors Bureau (CVB). To support these developments, additional public infrastructure is needed including, but not limited to, a larger water supply to the site and improved road access. Thus, this Brownfield Plan also incorporates surrounding parcels of land upon which these improvements to public infrastructure will or may occur. A feasibility study by the City of Port Huron and St. Clair County in 2010 identified the need for approximately 40,000 square feet of mixed-use space to host a variety of functions such as concerts, shows, exhibits, conferences, and other large events. The Blue Water Area Convention Center project is intended to address this need. The current hotel and CVB property will be acquired by a developer, JB Development Company, which (or its successor or assignee) intends to extensively renovate the existing hotel building for continuing use as a hotel (Hilton Garden Inn) and a restaurant (Twisted Rooster). JB Development Company will transfer portions of the site to Baker College for development of a culinary institute, and another portion to St. Clair County, which will own and operate the Blue Water Area Conference Center. Parking areas and other exterior areas will be common areas for use by the public and patrons of the facilities. The development, as proposed, includes investment of more than $13,000,000 in private investment and another $9,000,000 in public investment. The catalyst for the project will be construction of an approximately 40,000-square-foot Convention Center. This facility will provide a 20,000-square-foot high-ceiling ballroom for concerts, shows, major exhibits and an additional 10,000 square feet in flexible meeting space. The facility will overlook the St. Clair River and be connected to the existing hotel, which will be extensively renovated. The Convention Center is expected to add four permanent full-time jobs 9

13 and generate revenues from exhibition and meeting space rentals, food service, and other services. Private developers will renovate, expand and re-brand the hotel and restaurant. Established 24 years ago as a 149-key hotel and currently dominating the view from the Blue Water Bridge, this landmark hotel will undergo a total interior and exterior renovation and upgrade to become a Hilton Garden Inn. The branding will include incorporation of Hilton Garden Inn standards and benefit of connection to the Hilton Garden Inn marketing and reservations services. The current community workout facility now enjoyed by both private members and hotel guests will be renovated to function as an asset to the hotel, but will retain its unique membership availability for members in the Port Huron community. The New Hilton Garden Inn will be owned by JB Development and managed by Hospitality Specialists Inc., a nationally known owner and operator of hotels under the Hilton and Marriott Franchises. (October 27, 2011 Blue Water Area Convention Center presentation, Orion Construction, et al.). According to A Report of the Economic Impact of the Thomas Edison Inn Mixed Use Project in City Of Port Huron, MI (Impact DataSource, October 27, 2011)...the hotel currently employs approximately 100 workers in the City of Port Huron. The improved hotel will require net staff additions of 66 workers. Extensive renovation to the existing restaurant will occur resulting in an improved, spacious restaurant with an outdoor lounge overlooking the St. Clair River. The floor plan will accommodate over 400 patrons, providing lunch and dinner service to the public and hotel guests. Baker College will acquire a portion of the property to construct a new culinary school. Baker College s Port Huron campus currently provides over 50 academic programs. Baker College operates a world-class culinary arts program in Muskegon and intends to duplicate that success in Port Huron. Baker College of Port Huron plans a 20,000-square-foot, two-story educational institute with dedicated parking to adjoin the hotel/restaurant/convention center property. The structure is designed to include instructional kitchens and all required support facilities including classrooms, a multi-purpose room, staff offices, and a student lounge. In addition, it will house a 50-seat educational restaurant that will function for three-quarters of the year, allowing students to practice their craft in a real-world restaurant, and giving the public the opportunity to sample creative offerings that represent the results of Baker s outstanding culinary program. (October 27, 2011 Blue Water Area Convention Center Presentation, Orion Construction, et. al.). The 10

14 culinary school is expected to employ 20 to 30 employees. The school expects to have enrollment of approximately 200 students and in the future, offer student housing to some students. The proposed redevelopment project area is comprised of 13 individual parcels of land totaling 15.5 acres in a more or less rectangular shape, bounded by the Blue Water Bridge (I-94) and State St. to the north, St. Clair St. to the west, Thomas Edison Dr. to the south, and Thomas Edison Parkway and the St. Clair River waterfront to the east. The majority of this property is currently occupied by the Thomas Edison Inn and associated buildings, parking and land. The redevelopment project area also includes adjoining lands upon which public infrastructure will be constructed to service the project. These areas include the Harker St. right of way from 10 th Ave. east to the project site; a portion of lands north of Harker St. and south of I-94 between 10 th Ave. and Stone St. currently owned by the Michigan Department of Transportation (MDOT) and/or the City of Port Huron; the State St. right of way east of Stone St. to the point where the I-94 overpass crosses State St.; the St. Clair St. right of way north of Scott Ave.; the Elk St. right of way north of Harker St.; and the City of Port Huron-owned Boardwalk parcel (parcel identification number ). The primary parcels of land upon which the development will occur has a long industrial history. As early as 1858 the property was a depot and rail yard for the Grand Trunk Railroad. Maps of the site from 1898 show underground oil storage tanks; storage of oils, varnishes, paints, etc., in a former roundhouse where engines were assembled; forge shops, assembly and machine shops, a tin shop, a brass foundry, boilers, coal storage, iron storage, and oil storage buildings. The buildings primarily were located in northern portions of the property near State St. The Grand Trunk continued such operations on the property until about Shortly thereafter, Peerless Cement Corporation acquired the property, using some of the former railroad buildings to support the cement and concrete manufacturing process. These operations continued through the 1960s. The buildings were demolished in the mid-1970s, and beginning in the early 1980s, development of the current Thomas Edison Inn began. The property has been occupied by the hotel and the Convention and Visitors Bureau since that time. Basis of Eligibility The main parcel (Tax Identification Number ) is an eligible property based on the on the presence of contamination remaining at the property as a result of the previous industrial uses at the property. Specifically, a Phase II Environmental Site Assessment completed 11

15 on this single parcel (Integrated Environmental, July 20, 2012) identified the following contaminant conditions: Benzene and arsenic in soil above residential drinking water protection criteria. Ethylbenzene, naphthalene, 1,2,4-trimethylbenzene, xylenes, chromium, mercury and selenium in soil above the groundwater surface water interface protection criteria. Arsenic in soil in excess of residential direct contact criteria. Mercury and selenium in groundwater in excess of the groundwater surface water interface criteria. These data demonstrate that the primary parcel (Tax Identification Number ) is a facility as defined by Part 201 of NREPA and thus an eligible property for this Brownfield Plan. The remaining parcels and lands included in this Brownfield Plan are deemed to be eligible property because they are adjacent or contiguous to that facility property and the development of the adjacent and contiguous parcels is estimated to increase the captured taxable value of that property. The Plan (a) A description of the costs of the plan intended to be paid for with tax increment revenues (Section 13(1)(a)) The redevelopment project will involve redevelopment of the existing hotel, new construction of a Convention Center, new construction of a Culinary Institute, renovation of the existing restaurant and expanded public parking. To serve the project, it will be necessary to construct and improve certain public infrastructure items, including but not limited to, placement of larger water and sewer mains to service the expanded facility. There will also be some building demolition costs incurred, and environmental costs associated with investigating and managing contaminant conditions on the property. This Plan has been developed to reimburse entities for the cost of constructing and improving public infrastructure, building demolition (both interior and exterior), site preparation costs, and certain eligible environmental costs. 12

16 Michigan Economic Development Corporation (MEDC) pre-approved eligible activities The MEDC has made a commitment to support the capture of the school tax increment for certain specific tasks including: Harker St. improvements which include curb and pavement removal, installation of curbing, gutter and drainage, installation of traffic signals, pavement of 1,300 linear feet of roadway, installation of a 12-inch water main to the hotel. ($1,825,000) Extension of a 10-inch water main onto public property ($50,000) Exterior demolition of the northern hotel wall to attach the convention center ($175,000) Costs associated with demolition of the existing Convention and Visitor Bureau building site, which can include pre-demolition surveys for hazardous building materials, foundation and basement removals, fill, compaction, and rough grading to balance the site where the former building was located ($25,000) These activities will be presented to MEDC in an Act 381 Work Plan for MEDC/MEGA approval prior to completion of the eligible activities. At the present, the estimated cost of these MEDC pre-approved eligible activities is greater than the expected tax increment revenues over the life of the Brownfield Plan. However, it is possible that unexpected additional tax increment revenues could be generated during the life of this Plan through additional investment or development, inflationary and/or market factors. Additional Eligible Activities Additional eligible activities will be completed during the redevelopment project. To the extent that there is tax increment available to pay for the following additional eligible activities, the activities described below would be considered reimbursable and would require an amended Act 381 Work Plan to allow for the school tax increment to be used to reimburse the following eligible activities and as necessary, an amendment to this Brownfield Plan. Public infrastructure costs eligible for reimbursement under this Plan include: Roads, curbs and gutters, storm sewers, water mains, sanitary sewer mains, sidewalks, bike paths, lighting, signage, landscaping, marinas, boardwalks, park/seating areas, public owned parking lots/decks, rail lines and bridges provided that such infrastructure is publicly owned and maintained, supports the project and serves the 13

17 public. Future public infrastructure support to the project may include expansion of State St. to provide improved access to the site and minimizing traffic through residential areas. Also possible would be construction at Thomas Edison Parkway to improve accessibility to the public boardwalk along the St. Clair River. Additional public infrastructure consistent with the description of eligible public infrastructure costs may be constructed over the life of this Brownfield Plan and would be considered an eligible activity. Estimated costs for public infrastructure improvements to State St. are $200,000. Estimated costs for public infrastructure to Thomas Edison Parkway are $200,000. Additional public infrastructure costs may be needed but cannot be estimated at this time. Contingencies (15%) Site preparation activities are necessary components to support the redevelopment of the site. Construction of public infrastructure and completion of the required demolition will require engineering and design costs which are included in this Plan as an eligible activity. Buried concrete, foundation, and building remnants associated with former uses of the property are known to exist in parts of the property. Geotechnical Engineering to investigate, evaluate, and design site conditions with respect to subsurface conditions is included in this Plan as an eligible activity. During the course of development planning and construction, additional eligible site preparation activities may be completed and would be considered eligible under this Brownfield Plan. Additional eligible site preparation activities could include staking, clearing and grubbing, temporary construction roads, temporary facilities, temporary traffic control, temporary erosion control, temporary site control, excavation of unstable material (urban or historic fill), foundation work to address special soil concerns, fill where the removal of unstable material has occurred, dewatering, land balancing, grading, relocation of existing utilities that are identified as a hindrance to the new development, compaction and sub-base preparation in areas where unstable material was removed, alternative green stormwater management practices, cut and fill operations as determined by a licensed Design Engineer, temporary sheeting/shoring, and soft costs directly related to site preparation activities. An estimate of these potential costs has not been developed at this time. Baseline Environmental Assessment and Due Care Activities will be needed to support the project. The County Brownfield Redevelopment Authority will undertake various environmental assessment activities to provide liability protection to new property owners and project planning 14

18 to ensure construction occurs in a manner that complies with due care provisions of 20107a of NREPA. Potential MDEQ-eligible costs in this Plan include the following: Costs of Environmental Assessment (i.e., Baseline Environmental Assessment) Activities ($75,000) Costs for Due Care Activities including soil management planning, evaluation of exposures to environmental contaminants, engineering and institutional controls ($25,000) Assessment of asbestos-containing building materials ($30,000) Contingencies (15%) Upon full reimbursement of all of the above identified actual eligible costs, should there be any remaining tax increment, it will be captured for placement in the City of Port Huron Local Site Remediation Revolving Fund (LSSRF) for five full years, though the total number of years of tax increment capture will not exceed 30 years. This Brownfield Plan anticipates the capture of personal property taxes, school, and certain local (RESA Vocational Ed, RESA ISD and RESA Special Ed only) taxes. The remaining local tax millages will be captured by an existing Tax Increment Financing Authority (TIFA) Plan and used to repay a bond for construction costs associated with the Convention Center. In addition, the Blue Water Area Convention and Visitors Bureau has pledged to remit 1.0% of the local 5.0% hotel tax to St. Clair County, also to assist in the repayment of the Convention Center bonds. This Plan does not intend to pay for interest expense. The City of Port Huron has applied for a transportation economic development grant in the amount of an estimated $875,000 to assist in partial funding of the eligible costs. If such grant is not approved, the City anticipates funding that portion of the project with other funds so that the eligible costs to be captured are not expected to exceed $1.755 million. Refer to Table 1. (b) A brief summary of the eligible activities that are proposed for each eligible property (Section 13(1)(b)) Eligible activities proposed to be completed include Harker St. improvements; curb and pavement removal, installation of curbing, gutter and drainage, installation of traffic signals, pavement of 15

19 1,300 linear feet of roadway, installation of a 12-inch water main to the hotel. These eligible activities will be completed within the eligible property consisting of the Harker St. right of way and a portion of the parcel with a tax identification number of The extension of a 10-inch water main onto public property will be within the Harker St. right of way, and parcels with tax identification numbers of and The exterior demolition of the northern hotel wall to attach the new convention center will be completed on the current hotel parcel (tax identification number ). The costs associated with demolition of the existing Convention and Visitor Bureau building site will be associated with the Convention and Visitors Bureau parcel (tax identification number ). The additional eligible activities described in this plan may be necessary on any or all of the eligible properties described in the Introduction Section of this Plan. (c) An estimate of the captured taxable value and tax increment revenues for each year of the plan from each parcel of eligible property. (Section 13(1)(c)) This Brownfield Plan anticipates acquisition of the property and redevelopment of the site as a convention center, hotel, restaurant and culinary institute. Two of the existing parcels of land ( and ) will be combined into a condominium. Unit 1 of the condominium will consist of the footprint of the hotel and some land on the east side of the hotel totaling 87,545 square feet of space. This unit will be fully taxable. Unit 2 (41,615 square feet total) of the condominium will be owned by St. Clair County and will be essentially the footprint of the new Convention Center and a small portion of the existing hotel. Because of the taxexempt status of the County, this unit will not generate tax revenue in the future. Remaining portions of the condominium property will be common elements. These common elements will be taxed based on the proportional amount of private ownership which is yet to be determined. The remaining eligible properties within the Brownfield Plan are either public right of ways or held by public tax exempt entities (MDOT, City of Port Huron, St. Clair County, Baker College). The taxable portion of the project will be the privately held unit for the hotel (Unit 1 of the Condominium) and associated land and improvements. The initial taxable value for this 16

20 Brownfield Plan will be the value established for the year 2013 (i.e., the value established on December 31, 2012). On this date, it is expected that the True Cash Value (TCV) of the hotel building will be approximately $3,170,000 based on an age of 31 years and 70% functional good. Land and improvements are expected to add $660,000 of True Cash Value based on 66% proportional ownership in the common elements. The total True Cash Value on December 31, 2012 is expected to be $3,830,000 generating an Initial Taxable Value (TV) of $1,915,000. The future investment in the hotel is expected to be $10.5 million. The $10.5 million figure, however, includes acquisition costs, soft costs, furnishings, and supplies that would not impact the taxable value of the property. The renovations and improvements are expected to result in a hotel building with True Cash Value of $5,920,000, not including the value of land and improvements, which would remain consistent at $660,000. The resulting captured taxable value would be: TCV TV Hotel Unit on $ 3,830,000 $ 1,915,000 Hotel Unit after Improvements $ 6,580,000 $ 3,290,000 Estimated Increment (Captured Taxable Value) $ 2,750,000 $ 1,375,000 No other properties within this Brownfield Plan are expected to generate a tax increment at this time. However, future unanticipated developments may occur during the life of this Brownfield Plan on eligible parcels and adjacent and contiguous lands which would create new taxable value that would be captured under this Brownfield Plan. Refer to Table 2 for further detail of the tax increment revenues generated in each year of the Brownfield Plan. (d) The method by which the costs of the plan will be financed, including a description of any advances made or anticipated to be made for the costs of the plan from the municipality. (Section 13(1)(d)) Costs of the eligible activities described as the MEDC pre-approved eligible activities will be financed through a cash expenditure by the City of Port Huron, and possibly, an MDOT Transportation Economic Development Grant in the estimated amount of $875,000. The potential additional eligible activities may be financed from general expenditures by private or public 17

21 entities, assistance provided from MDOT, or expenditures of the St. Clair County Brownfield Redevelopment Authority s U.S. EPA Brownfield Redevelopment Assessment Grant. St. Clair County has/will issue a Bond to finance construction costs for the Convention Center and some of those costs may be considered eligible activities (e.g., engineering, fill, removal of unstable material, etc.). The municipality (City of Port Huron) does not anticipate any advances for the costs of the Plan other than the potential MDOT grant described above. (e) The maximum amount of note or bonded indebtedness to be incurred, if any. (Section 13(1)(e)) The City of Port Huron and its Brownfield Redevelopment Authority have no plans to incur indebtedness at this time, though such plans could be made in the future, if appropriate to support development of this site. (f) The duration of the Brownfield Plan, which shall not exceed the lesser of the period authorized under subsections (4) and (5) or 30 years. (Section 13(1)(f)) This Plan anticipates that the investment in the property will begin in The initial taxable value will be the value of the taxable portion of the property established after the property is split. The property split is scheduled to occur in 2012 and the initial taxable value will be the taxable value established for the 2013 tax year. It is estimated that there will be tax increment created by the time taxable values are established for 2014 and this is anticipated to be the first year in which tax capture is initiated. This Plan will then remain in place until the eligible activities have been fully reimbursed or 30 years, whichever occurs sooner, including if appropriate, placement of the tax increment in the Local Site Remediation Revolving Loan Fund for up to five full years. 18

22 Table 1 Summary of Eligible Costs to be Reimbursed by Brownfield Plan 500 Thomas Edison Parkway and Surrounding Lands MDEQ Eligible Activities* Estimated Cost BEA Activities County BRA $ 105, Due Care Activities $ 25, Additional Response Activities Total MDEQ Eligible Activities $ 130, Contingencies (15%) $ 20, Financing Costs $ TOTAL MDEQ ELIGIBLE COSTS AND CONTINGENCIES $ 150, MEGA Eligible Activities Public Infrastructure (Harker Street Improvements and Water Main) City of Port Huron $ 1,875, Site and Building Demolition St. Clair County $ 200, Add'l Public Infrastructure (State St, Thomas Edison Parkway, etc.) City of Port Huron $ 400, Total MEGA Eligible Activity Costs $ 2,475, Contingencies (15%) $ Financing Costs TOTAL MEGA ELIGIBLE COSTS AND CONTINGENCIES $ 2,475, Authority Expense City of Port Huron BRA $ 5, Total Eligible Costs $ 2,630, Potential City Funding including Grant $ 875, Net Eligible Costs $ 1,755, TOTAL REIMBURSEMENT TO CITY/CITY BRA $ 1,405, TOTAL REIMBURSEMENT TO COUNTY /COUNTY BRA $ 350, TOTAL REIMBURSEMENT TO LSRRF $

23 Table 2 Estimate of Total Captured Incremental Taxes 500 Thomas Edison Parkway and Surrounding Land Parcel #s and after consolidation and condominium creation Annual Total Initial Taxable Value (Real Tax Revenues from Estimated Future Estimated Future Tax Year Millage and Personal Property) Initial Taxable Value Taxable Value Revenues Captured $ 1,915, $ 90, Incremental Tax Revenues Available for Capture $ $ 37, $ 37, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, $ 1,915, School Opera ng, SET, RESA millages only

24 Table 2A Estimate of Total Captured Incremental Taxes 500 Thomas Edison Parkway and Surrounding Land All Other Properties Combined Year Annual Total Millage Captured Initial Taxable Value (Real and Personal Property) Tax Revenues from Initial Taxable Value Estimated Future Taxable Value Estimated Future Tax Revenues Incremental Tax Revenues $292, $8, $0.00 $0.00 $0.00 Available for Capture $0.00

25 (g) An estimate of the impact of tax increment financing on the revenues of all taxing jurisdictions in which the eligible property is located. (Section 13(1)(g)) Refer to Tables 3, 4, and 5 for details. 22

26 (h) A legal description of each parcel of eligible property to which the plan applies, a map showing the location and dimensions of each eligible property, a statement of the characteristics that qualify the property as eligible property and a statement of whether personal property is included as part of the eligible property. (Section 13(1)(h)) Parcel ID Address Present Owner Legal Description from Tax Record Thomas Edison Pkwy 520 Thomas Edison Pkwy Vacant Lot Thomas Edison Pkwy 2200 vacant lot St. Clair Street Innkeepers Management LLC Blue Water Area Convention & Visitors Bureau Innkeepers Management LLC Innkeepers Management LLC BEG AT A POINT ON S R-O-W LINE OF STATE ST & E LINE OF A PUBLIC ALLEY ADJ TO BLK 11, PORT HURON AND NORTHWESTERN RAILWAY PLAT, SAID POINT BEARING N 85D 26M 46S E ' ALG EXT N LINE OF LOT 1, SAID BLK 11 FROM ITS NW COR; TH N 83D 10M 11S E ' ALG SAID S LINE OF STATE ST; TH S 72D 55M 17S E '; TH S 44D 32M 48S W 40.00'; TH S 46D 27M 08S E '; TH S 27D 28M 45S W 24.59'; TH S 62D 31M 15S E 88.80'; TH S 46D 39M 21S W 59.66' TO A POINT OF CURVATURE, CONCAVE TO THE E, SAID CURVE HAVING A RADIUS OF 810' & A LONG CHORD WHICH BEARS S 38D 02M 54S W '; TH SWLY ' ALG ARC OF SAID CURVE TO ITS PT OF TANGENCY; TH S 29D 26M 27S W ' TO A PT OF CURVATURE, CONCAVE TO THE E, SAID CURVE HAVING A RADIUS OF 2210' & A LONG CHORD BEARING S 26D 08M 51S W '; TH SLY ' ALG ARC OF SAID CURVE; TH N 73D 10M 00S W ' TO E LINE OF SAID 20' ALLEY; TH N 00D 02M 24S E ' TO BEG SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION CONTAINING 9.3 ACRES +- COMM AT A POINT ON S ROW LINE OF STATE ST & E LINE OF A PUBLIC ALLEY ADJ TO BLK 11, PORT HURON AND NORTHWESTERN RAILWAY PLAT, SAID POINT BEARING N 85D 26M 46S E ' ALG EXT N LINE OF LOT 1, SAID BLK 11 FROM ITS NW COR; TH N 83D 10M 11S E ' ALG SAID S LINE OF STATE ST; TH S 72D 55M 17S E ' TO POB OF THIS DESC; TH EXT S 72D 55M 17S E '; TH S 27D 28M 45S W 94.99'; TH N 46D 27M 08S W ; TH N 44D 32M 48S E 40.00' TO BEG SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION CONTAINING 7975 S.F. +- COMM AT A POINT ON THE S ROW LINE OF STATE ST (66' WIDE) AND THE E LINE OF A PUBLIC ALLEY (20' WIDE) ADJ TO BLK 11 P. H. & N. W. RY. PLAT SAID POINT BEARING N 85 DEG 26M 46S E ' ALONG THE EXTENDED N LINE OF LOT 1 SAID BLK 11 FROM ITS NW COR; TH S 00 DEG 02M 24S W ' ALONG SAID ALLEY TO THE POB OF THIS DESCRIPTION: TH S 73 DEG 10M 00S E ' TO POINT ON A CURVE CONCAVE TO THE E SAID CURVE HAVING A RADIUS OF 2210' AND A LONG CHORD WHICH BEARS S 20 DEG 23M 51S W ' TH SWLY ' ALONG THE ARC OF SAID CURVE TO ITS POINT OF TANGENCY TH S 17 DEG 56M 27S W 99.83' TH S 23 DEG 08M 27S W ' TH S 89 DEG 41M 33S W ' TH N 20 DEG 42M 08S E 86.14' TH N 00 DEG 02M 24S E ' TO POB SUBDIVISION OF FORT GRATIOT MILITARY RESERVATION PC NO. 1 & 2 LOTS 1, THROUGH 9 INCLUSIVE BLOCK 11, PORT HURON AND NW RAILWAY PLAT, TOGETHER WITH A 40' WIDE PARCEL OF LAND ADJ TO THE EAST. SAID PARCEL PARTICULARLY DESC AS: BEG AT SW COR OF SAID LOT 9, TH N 00D 15M 14S W '; TH N 85D 26M 46S E '; TH S 00D 02M 24S W '; TH S 89D 44 23S W ' TO BEG SUBD OF FORT GRATIOT MILITARY RESERVATION OWNED & OCCUPIED AS ONE PARCEL E PARCEL 23

27 2200 vacant lot St Clair Street vacant lot St. Clair Street St. Clair Street 2100 vacant lot St Clair Street 2000 vacant lot St Clair Street 2000 vacant lot St Clair Street vacant lot St. Clair Street 2000 vacant lot St Clair Street Innkeepers Management LLC Innkeepers Management LLC Innkeepers Management LLC Innkeepers Management LLC Innkeepers Management LLC Innkeepers Management LLC Innkeepers Management LLC Innkeepers Management LLC VERSION 2.0 LOT 10 BLK 11 P.H. & N.W. RY. PLAT OF A PORTION OF THE FORT GRATIOT MILITARY RESERVATION,ALSO THE W 40' OF THE N 25' OF THE S 855.8' OF LAND BOUNDED ON THE N BY STATE ST, W BY SAID BLK 11, & S BY THE N LINE OF SCOTT AVE, EXTENDING E AND BEING A PART OF THE FORTGRATIOT MILITARY RESERVATION LOTS 11 THROUGH 22 INCLUSIVE, TOGETHER WITH LOT 23 EX THE S 16' THEREOF BLOCK 11 P.H. & N.W. RY PLAT TOGETHER WITH A 40' WIDE PARCEL OF LAND ADJ TO THE EAST SAID PARCEL PARTICULARLY DESC AS: BEG AT A POINT ON THE WEST LINE OF SAID LOT 23 16' NORTH OF ITS SW COR; TH N 00D 15M 14S W '; TH N 89D 44M 23S E ' TH S 00D 02M 24S W ' TH S 89D 44M 23S W 99.43' TO THE BEG SUBDIVISION OF FORT GRATIOT MILITARY RESERVATION OWNED & OCCUPIED AS ONE PARCEL RCEL LOT 24 & S 16 FT LOT 23 BLK 11 P.H. & N.W. RY. PLAT OF A PORTION OF THE FORT GRATIOT MILITARY RESERVATION, ALSO W 40 FT OF N 41 FT OF S FT OF LAND BOUNDED N BY STATE ST, W BY SAID BLK 11, S BY N LINE OF SCOTT AVE EXTENDED E, PART OF MILITARY RESERVE, SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION OWNED & OCCUPIED AS ONE PARCEL LOT 25 & N 1/2 LOT 26 BLK 11 P.H. & N.W. RY. PLAT OF A PORTION OF THE FORT GRATIOT MILITARY RESERVATION, ALSO W 40 FT OF N 37.5 FT OF S FT OF LAND BOUNDED N BY STATE ST, W BY SAID BLK 11, S BY N LINE OF SCOTT AVE EXTENDED E, PART OF MILITARY RESERVE, SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION OWNED & OCCUPIED AS ONE PARCEL LOT 27 & LOT 26 EX N 12.5 THEREOF BLK 11 P.H. & N.W RY PLAT, TOGETHER WITH A 40' WIDE PARCEL OF LAND ADJ TO THE EAST, SAID PARCEL PARTICULARLY DESC AS: BEG AT SW COR OF SAID LOT 27; TH N 00D 15M 14S W 45.50'; TH N 89D 44M 23S E 99.03'; TH S 00D 02M 24S W 45.50'; TH S 89D 44M 23S W 98.80' TO BEG SUBDIVISION OF FORT GRATIOT MILITARY RESERVATION OWNED & OCCUPIED AS ONE PARCEL LOTS 28 & 29 BLK 11 P.H. & N.W. RY. PLAT OF A PORTION OF THE FORT GRATIOT MILITARY RESERVATION, ALSO W 40 FT OF N 57.4 FT OF S FT OF LAND BOUNDED N BY STATE ST, W BY BLK 11 P.H. & N.W. RY. PLAT OF A PORTION OF THE FORT GRATIOT MILITARY RESERVATION, S BY N LINE OF SCOTT AVE EXTENDED E, PART OF MILITARY RESERVE, SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION OWNED & OCCUPIED AS ONE PARCEL LOTS 30 & 31 BLK 11 P. H. & N. W. RY. PLAT OF A PORTION OF THE FORT GRATIOT MILITARY RESERVATION TOGETHER WITH A 40' WIDE PARCEL OF LAND ADJ TO THE E, SAID PARCEL DESC AS, BEG AT SW COR SAID LOT 31, TH N 00 DEG 15 MIN 14 SEC W 50 FT, TH N 89 DEG 44 MIN 23 SEC E FT, TH S 00 DEG 02 MIN 24 SEC W 50 FT, TH S 89 DEG 44 MIN 23 SEC W FT TO BEG SUBDIVISION OF FORT GRATIOT MILITARY MILITARY RESERVATION OWNED & OCCUPIED AS ONE PARCEL LOT 33 EX N 5 FT THEREOF TOGETHER WITH LOTS 34 THRU 42 INCL BLK 11 P. H. & N. W. RY. PLAT OF A PORTION OF THE FORT GRATIOT MILITARY RESERVATION TOGETHER WITH A 40 FT WIDE PARCEL OF LAND ADJ TO THE E & A 2 FT WIDE PARCEL OF LAND ADJ TO THE S OF SAID LOT 42, SAID PARCEL DESC AS BEG AT SW COR OF SAID LOT 42, TH N 00 DEG 15 MIN 14 SEC E 245 FT, TH N 89 DEG 44 MIN 23 SEC E FT, TH S 00 DEG 02 MIN 24 SEC W 245 FT, TH S 89 DEG 44 MIN 23 SEC W 40 FT TO SE COR SAID LOT 42 TH S 00 DEG 15 MIN 14 SEC E 2 FT, TH S 89 DEG 44 MIN 23 SEC W FT; THENCE NORTHERNLY TO THE SW COR OF SAID LOT 42 TO THE POINT OF BEG SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION OWNED & OCCUPIED AS ONE PARCEL 24

28 vacant lot State St. City of Port Huron VERSION 2.0 E 20 FT OF W 60 FT OF LAND BOUNDED N BY STATE ST, W BY BLK 11 P.H. & N.W. RY. PLAT, S BY N LINE OF SCOTT AVE EXTENDED E, PART OF MILITARY RESERVATION, SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION Stone Street City of Port Huron LOTS 1 & 2 EX S 82 FT BLK 71 SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION Harker Street R.O.W. N/A City of Port Huron N/A State Street R.O.W. N/A City of Port Huron N/A St. Clair Street R.O.W. N/A City of Port Huron N/A Elk Street R.O.W. N/A City of Port Huron N/A Vacant Lot Harker Street 1219 MDOT Vacant Lot MDOT Harker Street LOT 4 BLK 72 SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION AND E 1/2 VAC POPLAR ST ADJ LOT 3 BLK 72 SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION Harker Street MDOT S FT LOT 2 BLK 72 SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION Elk Street MDOT LOT 1 EX S 100 FT & LOT 2 EX S FT BLK 72 SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION Vacant Lot Harker Street 2201 MDOT S 50 FT LOT 1 BLK 72 SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION Elk Street MDOT N 50 FT OF S 100 FT LOT 1 BLK 72 SUBDIVISION OF THE FORT GRATIOT MILITARY RESERVATION Vacant Lot Stone MDOT Street 2223 LOTS 1-18 BLK 1 HARRINGTON'S SUBDIVISION OF LOTS 1 AND 2 OF THE MCNEIL SUBDIVISION OF PRIVATE CLAIM NO 357 AND NO

29 Thomas Edison Parkway City of Port Huron VERSION 2.0 COMM AT THE INTERSEC OF THE E LINE OF STONE ST & N LINE OF WHIPPLE ST, TH N 00D 15M 03S W ' ALG STONE ST, TH N 50D 52M 17S E ', TH N 43D 12M 32S E ', TH N 38D 10M 56S E ', TH S 87D 22M 56S E 30.00' TO PTE OF BEG OF THIS DESC, TH N 2D 37M 04S E 85.00', TH N 6D 29M 52S E 87.36', TH N 23D 8M 27S E ', TH N 17D 56M 27S E 99.83', TH ALG CURVE TO RIGHT DIST OF ', RADIUS ', CHORD BEARS N 23D 41M 27S E ', TH N 29D 26M 27S E 178.9', TH ALG CURVE TO RIGHT DIST OF ', RADIUS 810.0' CHORD BEARS N 38D 2M 54S E ', TH N 46D 39M 21S E 89.57', TH N 43D 49M 12S E 22.67', THN 27D 28M 45S E 88.85'; TH S 72D 55M 17S E ', TH S 28D 1M 42S W 11.16', TH S 32D 34M 42S W ', TH S 29D 12M 41S W ', TH S 29D 26M 27S W 13.86', TH ALG CURVE TO LEFT DIST OF ', RADIUS ', CHORD BEARS S 16D 1M 46SW ', TH S 2D 37M 04S W ', TH S 2D 37M 04S W 10.27', TH ALG CURVE TO LEFT A DIST OF ', RADIUS OF ', CHORD BEARS S 6D 39M 35S E ', TH S 15D 56M 49S E ', TH S 68D 2M 00S W ', TH S 25D 8M 30S E 21.13' TH ALG CURVE TO THE RIGHT A DIST OF ', RADIUS OF ', CHORD BEARING S 22D 21M 47S E 'TO N LINE OF PINE GROVE PARK, TH S 62D 51M 01S W 75.69' ALG SAID N LINE, TH ALG A CURVE TO THE RIGHT A DISTANCE OF ', A RADIUS OF ' & ALG CHORD BEARING N 22D 9M 24S W ', TH N 25D 8M 30S W 56.00' TO NE COR OF LOT 13, "WASHINGTON PLACE" SUBD (L.9 P.88) TH N 0D 00M W 66.00', TH S 89D 47M 31S W 3.74' ALG N LINE OF SEDGWICK ST TO THE SE COR OF "EDISON SHORES CONDOMINIUM", TH ALG A CURVE TO THE RIGHT A DIST ' A RADIUS OF ' & ALG CHORD BEARING N 9D 11M 52S W ', TH N 2D 37M 04S E ' TH N 87D 22M 56S W 10.00' TO THE PTE OF BEG. D 37M 04S E ', TH N 87D 22M 56S W 10.00' TO THE PTE OF BEG. 26

30 A map showing the location of the property is included in Attachment A. The main parcel (Tax Identification Number ) is an eligible property based on the on the presence of contamination remaining at the property as a result of the previous industrial uses at the property. Specifically, a Phase II Environmental Site Assessment completed on this single parcel (Integrated Environmental, July 20, 2012) identified the following contaminant conditions: Benzene and arsenic in soil above residential drinking water protection criteria. Ethylbenzene, naphthalene, 1,2,4-trimethylbenzene, xylenes, chromium, mercury and selenium in soil above the groundwater surface water interface protection criteria. Arsenic in soil in excess of residential direct contact criteria. Mercury and selenium in groundwater in excess of the groundwater surface water interface criteria. These data demonstrate that the primary parcel (Tax Identification Number ) is a facility as defined by Part 201 of NREPA and thus an eligible property for this Brownfield Plan. The remaining parcels and lands included in this Brownfield Plan are deemed to be eligible property because they are adjacent or contiguous to that facility property and the development of the adjacent and contiguous parcels is estimated to increase the captured taxable value of that property. Personal property will be included as part of the eligible property. (i) Estimates of the number of persons residing on each eligible property to which the plan applies and the number of families and individuals to be displaced. (Section 13(1)(i)) No persons reside on the eligible property to which the plan applies. (j) A plan for establishing priority for the relocation of persons displaced by implementation of the plan. (Section 13(1)(j)) Not applicable. 27

31 (k) Provision for the costs of relocating persons displaced by implementation of the plan. (Section 13(1)(k)) Not applicable. (l) A strategy for compliance with 1972 PA 227, MCL to (Section 13(1)(l)) Not applicable. (m) A description of proposed use of the local site remediation revolving fund. (Section 13(1)(m)) The Brownfield Redevelopment Authority s Local Site Remediation Revolving Fund (LSRRF) will capture five full years of the tax increment after the eligible activities have been reimbursed. No other use of the LSRRF is anticipated at this time. (n) Other material that the authority or governing body considers pertinent. (Section 13(1)(n)) Not applicable. H:\Projects\Projects_S\St. Clair County\Blue Water Area Convention Center Project\Brownfield Plan\ BROWNFIELD PLAN.docx 28

32 Table 3 Estimate of Annual Captured Incremental Taxes for Each Affected Taxing Jurisdiction (Real and Personal Property) 500 Thomas Edison Parkway and Surrounding Lands Parcel #s and after consolidation and condominium creation Taxing Jurisdiction Combined City of Port Huron DDA Local School School Local Debt School State Ed RESA Voc Ed RESA ISD RESA Spec Ed Combined County College BWATC Total Millage* Initial Taxable Value $ 1,915, $ 30, $ 3, $ 34, $ 4, $ 11, $ 1, $ $ 4, $ 14, $ 3, $ 1, $ 110, Future Taxable Value $ 3,290, $ 52, $ 6, $ 59, $ 8, $ 19, $ 3, $ $ 7, $ 24, $ 6, $ 2, $ 190, Captured Taxable Value $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, Plan includes capture of only School Operating, State Ed and RESA millages Total Millages *Based on 2011 tax rates Total Non School Millages Total School Millages Total Captured Millages Total Annual Tax Liability Total Annual Capturable Tax Increment Total School Tax Increment Capturable Total Non School Tax Increment Capturable $ 190, $ 37, $ 33, $ 4,

33

34 Table 4 Captured Taxable Value and Tax Increment Revenue by Year and Aggregate for Each Taxing Jurisdiction Parcel #s and after consolidation and condominium creation 500 Thomas Edison Parkway and Surrounding Lands Year Captured Taxable Value Combined City of Port Huron DDA Local School School Local Debt School State Ed RESA Voc Ed RESA ISD RESA Spec Ed Combined County College BWATC Total $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, $ 1,375, $ $ $ 24, $ $ 8, $ 1, $ $ 3, $ $ $ $ 37, TOTAL CAPTURED TAXES $ $ $ 742, $ $ 247, $ 38, $ 7, $ 95, $ $ $ $ 1,131,

35 Table 5 Reimbursement Schedule 500 Thomas Edison Parkway and Surrounding Lands and after consolidation and condominium creation Year Incremental Taxes Captured Reimbursement to City Reimbursement to County Annual Aggregate Annual Aggregate 2013 $ $ $ 2014 School Tax Increment $ 33, Total $ 37, $ 37, $ 37, School Tax Increment $ 33, Total $ 37, $ 37, $ 75, School Tax Increment $ 33, Total $ 37, $ 37, $ 113, School Tax Increment $ 33, Total $ 37, $ 37, $ 150, School Tax Increment $ 33, Total $ 37, $ 37, $ 188, School Tax Increment $ 33, Total $ 37, $ 37, $ 226, School Tax Increment $ 33, Total $ 37, $ 37, $ 264, School Tax Increment $ 33, Total $ 37, $ 37, $ 301, School Tax Increment $ 33, Total $ 37, $ 37, $ 339, School Tax Increment $ 33, Total $ 37, $ 37, $ 377, School Tax Increment $ 33, Total $ 37, $ 37, $ 414, School Tax Increment $ 33, Total $ 37, $ 37, $ 452, School Tax Increment $ 33, Total $ 37, $ 37, $ 490, School Tax Increment $ 33, Total $ 37, $ 37, $ 528, School Tax Increment $ 33, Total $ 37, $ 37, $ 565, School Tax Increment $ 33, Total $ 37, $ 37, $ 603, School Tax Increment $ 33, Total $ 37, $ 37, $ 641, School Tax Increment $ 33, Total $ 37, $ 37, $ 678, School Tax Increment $ 33, Total $ 37, $ 37, $ 716, School Tax Increment $ 33, Total $ 37, $ 37, $ 754, School Tax Increment $ 33, Total $ 37, $ 37, $ 792, School Tax Increment $ 33, Total $ 37, $ 37, $ 829, School Tax Increment $ 33, Total $ 37, $ 37, $ 867, School Tax Increment $ 33, Total $ 37, $ 37, $ 905, School Tax Increment $ 33, Total $ 37, $ 37, $ 942, School Tax Increment $ 33, Total $ 37, $ 37, $ 980, School Tax Increment $ 33, Total $ 37, $ 37, $ 1,018, School Tax Increment $ 33, Total $ 37, $ 37, $ 1,056, School Tax Increment $ 33, Total $ 37, $ 37, $ 1,093, School Tax Increment $ 33, Total $ 37, $ 37, $ 1,131, Local Site Remediation Revolving Fund Reimbursement to County and capture to deposit in LSRRF will occur if sufficient tax increment is created.

36 ATTACHMENT A FIGURES Figure 1: Eligible Properties

37