Brownfield Plan Former Sawmill Redevelopment Grayling, Crawford County, Michigan. November Approved by Crawford County. Concurrence by Grayling

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1 Grayling, Crawford County, Michigan November 2017 Approved by Crawford County Brownfield Redevelopment Authority:_ Concurrence by Grayling City Council: November 21, 2017 _ (proposed) December 11, 2017 _ (proposed) Public Hearing:_ Approved by Crawford County Board of Commissioners:_ December 21, 2017 _ (proposed) December 21, 2017 _ (proposed) Prepared by: Mac McClelland, Manager Brownfield Redevelopment Otwell Mawby, P.C. 309 E. Front Street Traverse City, Michigan mac@otwellmawby.com

2 City of Grayling, Crawford County, Michigan Table of Contents Introduction...3 Public Purpose...3 Description of Project and Plan Costs...4 Summary of Eligible Activities...6 Environmental Eligible Activities...6 Non-Environmental Eligible Activities...9 Estimate of Captured Taxable Value and Tax Increment Revenues...10 Method of Financing Plan Costs...12 Maximum Amount of Indebtedness...12 Duration of Brownfield Plan...12 Estimate of Impact of Tax Increment Financing on Taxing Jurisdictions...12 Legal Description, Location, and Determination of Eligibility...13 Estimate of Number of Persons Residing on Eligible Property...13 Plan for Residential Relocation...13 Provision of Costs of Relocation...13 Strategy to Comply with Relocation Assistance Act...13 Description of Proposed Use of the Local Site Remediation Revolving Fund...13 Other Material Required by the Authority or Governing Body...13 TABLES Table 1.1 Table 1.2 Table 2.1 Table 2.2 Table 3 FIGURES Figure 1 Figure 2 Figure 3 Environmental Eligible Activities Non-Environmental Eligible Activities Annual Revenue and Brownfield Capture Estimates Tax Increment Revenue Reimbursement Allocation Table Impact on Tax Jurisdictions Eligible Property Location Map Eligible Property Downtown Location Map Eligible Property Boundary Map

3 November 2017 Project Summary Thomas H. Steffen, LLC has acquired the property at 104 Michigan Avenue known as the Sawmill and is considering redevelopment for mixed use commercial and residential development. The proposed project includes a four story 25,000 square foot building with the first floor for retail and five apartments on each of the three remaining floors for a total of fifteen apartments. A Phase I and Phase II Environmental Site Assessment conducted for 104 Michigan Avenue in May 2017 identified the presence of tetrachloroethene (PCE) in soils and groundwater in concentrations above MDEQ Generic Cleanup Criteria (GCC) for Drinking Water Protection and Vapor Intrusion Screening Levels (VISL), xylene and naphthalene in soils above VISL, and mercury in soils above Groundwater Surfacewater Interface Protection (GSIP). As a result, 104 Michigan Avenue is a Part 201 Facility, as defined in Part 201, Act 451, PA 1994 as amended. The property status as a Part 201 Facility qualifies as Eligible Property, as defined in Act 381 and requires Brownfield Eligible Activities to address the environmental due care obligations for the development. The former Sawmill buildings and associated site structures must be removed to allow for construction of the new building. In addition, the project will include an extension of the Iron Bell Trail, water, sewer, and stormwater upgrades, parking improvements, site preparation activities, and relocation of utilities. An application has been submitted for a Michigan Department of Environmental Quality (MDEQ) Brownfield Grant and Loan to finance Eligible Activities under this Brownfield Plan. This Brownfield Plan assumes the full Eligible Activity amount will be expensed and reimbursed. If the MDEQ Brownfield Grant is received, the reimbursement period would be reduced by 50% or 7 years. The redevelopment is consistent with the City of Grayling Master Plan and zoning ordinance. Initial work is anticipated to begin in Spring 2018, with tax increment capture beginning in The overall estimated investment is approximately $6.1 million and is anticipated to create 30 jobs. Project Name: Project Location: Type of Eligible Property: Eligible Activities: The eligible property is located at within the City of Grayling, Crawford County, Michigan and has the following addresses and parcel identification numbers: Address Parcel Qualifying Status 104 Michigan Avenue Part 201 Facility Part 201 Facility Environmental Due Diligence, Environmental Due Care, Additional Response Activities, Lead/Asbestos Abatement, Demolition, Site Preparation, Infrastructure. Eligible Activity Costs: $1,151,128 (excluding interest) Years to Complete Eligible Activities Payback: 15 years Local and 16 years State capture Estimated Eligible

4 February 2017 Investment: $6,100,000 Annual Tax Revenue Before Project: $980 Estimated Annual Tax Revenue in First Year After Payback: $186,408 2

5 February 2017 BROWNFIELD PLAN FORMER SAWMILL REDEVELOPMENT CITY OF GRAYLING, CRAWFORD COUNTY, MICHIGAN CRAWFORD COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY Introduction Act 381, P.A. 1996, as amended, was enacted to promote the revitalization, redevelopment and reuse of contaminated, tax reverted, blighted, functionally obsolete, or historic property through incentives adopted as part of a Brownfield Plan. The Brownfield Plan must be approved by the county brownfield redevelopment authority established under Act 381 and the county board of commissioners, with the concurrence of the local government in which the project is located in order to take effect. The Michigan Department of Environmental Quality (MDEQ) must approve the Environmental Eligible Activities, with the exception of Baseline Environmental Assessment activities and Due Care Investigation and Planning, and the Michigan Strategic Fund (MSF) must approve Non- Environmental Eligible Activities if state taxes are to be captured. The Crawford County Board of Commissioners established the Crawford County Brownfield Redevelopment Authority under the procedures required under Act 381 on February 21, 2001 and filed with the Secretary of State. This Brownfield Plan is for the redevelopment of the former Sawmill property in downtown Grayling. The Brownfield Plan describes the public purpose and qualifying factors for determining the site as an Eligible Property, the Eligible Activities and estimated costs, the impacts of tax increment financing on taxing jurisdictions, and other project factors. Public Purpose (MCL (1)) The redevelopment of the former Sawmill property is anticipated to include over $6,100,000 of investment on property that is contaminated, with an underutilized building which generates little tax revenue. The project will increase tax base, stimulate additional private and public investment, provide downtown housing and improve local infrastructure. 3

6 February 2017 The project will significantly add to the local and state tax base. When completed, property taxes are estimated at $195,000 per year (following the retirement of Brownfield obligations) with over 42% of these revenues going to the State of Michigan and 58% to local taxing jurisdictions. Currently the project area generates $980 per year in property taxes. Description of Project and Plan Costs (MCL (2)(a)) Thomas H. Steffen, LLC has acquired the property at 104 Michigan Avenue in the City of Grayling, Crawford County, known as the Sawmill and is redeveloping for mixed use commercial and residential development. The existing building on the property will be removed, the site cleared, and environmental due care activiites conducted, infrastructure upgraded, and a four story 25,000 square foot building will be constructed with the first floor for retail and five apartments on each of the three remaining floors for a total of fifteen apartments. The eligible property consists of one parcel with a commercial building, as shown in the Eligible Property map. Eligible Activities include environmental due diligence, due care, and additional response activities, lead and asbestos abatement, site and building demolition, site preparation, infrastructure, interest, work plans development and approval, and administrative and operating costs. Environmental Eligible Activities include: Baseline Environmental Assessment (Phase I, Phase II, and BEA) Due Care Investigation Due Care Plan Preparation Due Care Eligible Activities including removal of contaminated soil during development and protective cover over contaminated soil, as necessary Additional Response Activities, including tank removal, investigation, and monitoring; Non-Environmental Eligible Activities include: Lead and Asbestos Abatement prior to demolition of the buildings; Demolition, including site and building demolition. Site Preparation Infrastructure 4

7 February 2017 Other Eligible Activities include: Interest Brownfield Plan and Act 381 Work Plan development, approval, and implementation Administrative and Operating Costs for the Brownfield Redevelopment Authority Local Brownfield Revolving Fund State Brownfield Fund SUMMARY OF MAXIMUM ELIGIBLE COSTS FORMER SAMWILL REDEVELOPMENT Environmental Eligible Activities Costs MDEQ Environmental Eligible Activities Baseline Environmental Activities $14,500 Due Care Activities $165,500 Additional Response Activity $15,000 Contingency $29,250 Interest (2.5% at 17 years) $99,821 Brownfield Plan Work Plan Development, Approval, Implementation $20,000 ENVIRONMENTAL ELIGIBLE ACTIVITY TOTAL $344,071 Non-Environmental Eligible Activity Cost Maximum Lead/Asbestos Abatement, Demolition $220,000 Site Preparation $320,981 Infrastructure Bike Path $50,000 Sewer and Water $40,000 Vortex Stormwater System $75,000 Parking Improvements $100,000 Contingency $120,897 Interest (5.0% at 15 years) $412,585 Brownfield Plan Work Plan Development, Approval, Implementation $50,000 ENVIRONMENTAL ELIGIBLE ACTIVITY TOTAL $1,389,464 ELIGIBLE ACTIVITY TOTAL $1,733,535 ADMINISTRATIVE AND OPERATING COST $45,000 LOCAL SITE REMEDIATION REVOLVING FUND $ 643,388 TOTAL CAPTURE - SAWMILL REDEVELOPMENT $2,421,923 STATE BROWNFIELD FUND $ 141,034 5

8 February 2017 Summary of Eligible Activities (MCL (2)(b): Act 381 provides for the costs of certain eligible to be reimbursed through tax increment financing. The following is a summary of Environmental and Non-Environmental Activities. Environmental Eligible Activities 1. Baseline Environmental Assessment: The work scope is to conduct a Phase I Environmental Site Assessment (ESA), Phase II ESA, and prepare a Baseline Environmental Assessment to provide an exemption for Thomas J. Steffen, LLC and assigns from environmental liability for pre-existing contamination. The Baseline Environmental Assessment activities have been conducted and are eligible for reimbursement as long as included in the Brownfield Plan, in accordance with Section 13(6)(b). A. Phase I ESA: A Phase I ESA has been conducted for both acquired parcels, consistent with ASTM Standard E The Phase I ESA included a review of historical and current information, including regulatory agency files, historical maps, and past uses to evaluate the potential for contamination, a site inspection of both the grounds and the exterior and interior of buildings on the property, and interviews with individuals knowledgeable about the past use of the property to identify any Recognized Environmental Conditions (RECs). A Phase I report identified the following RECs: (i) was prepared and There are several pipes of unknown origin located that may be related to an abandoned heating oil underground storage tank (UST). (ii) Coal was stored in the basement in areas where holes in the concrete floor were present providing a migration pathway for the coal to impact the exposed soils beneath the building. (iii) An adjacent property immediately to the east (106 E Michigan Avenue) formerly operated as a paint shop. (iv) Historical use of nearby upgradient properties located along Ottawa Street included a former garage/auto station, a former auto station/laundry, and a former filling station. B. Phase II ESA: A Phase I and Phase II Environmental Site Assessment conducted for 104 Michigan Avenue in May 2017 identified the presence of tetrachloroethene (PCE) in soils and groundwater in concentrations above MDEQ Generic Cleanup Criteria (GCC) for Drinking Water Protection and Vapor 6

9 February 2017 Intrusion Screening Levels (VISL), xylene and naphthalene in soils above VISL, and mercury in soils above Groundwater Surfacewater Interface Protection (GSIP). As a result, the property is considered a Facility under Part 201 of Act 451, P.A as amended and qualifies as Brownfield Eligible Property. C. Baseline Environmental Assessment: To provide an exemption from environmental liability for preexisting contamination, a Baseline Environmental Assessment was prepared on behalf of Thomas H. Steffen, LLC. and filed with the MDEQ. 2. Due Care Activities: While the BEA provides an exemption from environmental liability for pre-existing contamination, owners still have due care obligations to prevent exposure to or exacerbation of that preexisting contamination. Due care activities include supplemental environmental investigation to determine the extent of contamination that must be addressed during redevelopment; the development of a Due Care Plan to outline due care measures, due care activities including soil removal and engineering controls, and Documentation of Due Care Plan Compliance. A. Due Care Investigation: As part of the redevelopment planning and design activities, the degree and extent of impact will need to be further delineated (laterally and vertically) to determine appropriate due care considerations. The supplemental assessment activities will also identify the limits of potential excavation of source area impacted soils and delineating between areas of potentially hazardous soil impacts versus non-hazardous. In addition, identified impacts may need to be further characterized to determine appropriate disposal requirements and meet waste profiling requirements. B. Due Care Plan: In order to meet Due Care obligations, a Due Care Plan must be prepared that includes an explanation of how and demonstration of why the proposed use will not exacerbate existing environmental impacts; an explanation and demonstration why unacceptable exposures will not exist, or will be prevented or mitigated; an explanation and demonstration of how and why the proposed use will not increase response costs; and an explanation of what precautions will be taken against the reasonably foreseeable acts or omissions of a third party. C. Due Care Measures: There are three primary components for due care measures to be conducted on the site to ensure compliance with due care requirements to prevent exposure to or exacerbation of pre-existing contamination 7

10 February Soil Disposal, Transport and Removal Dependent upon the further assessment and characterization results for the soils, it may be appropriate for due care considerations to abate source area impacted soils. Portions of the soils may be characteristically hazardous and require disposal in a hazardous waste disposal/treatment facility. Other impacted soils are likely non-hazardous and could be disposed in a Type II landfill. In estimating, assumptions on the amounts needed for excavation, transportation and disposal of hazardous soils (150 tons-$280/ton) and non-honhazardous soils (600 tons -$44/ton) and compacted backfill (750 $30/ton were inferred. Estimated costs include excavation, transport, disposal and compacted backfilling of source area soils, as may be needed for redevelopment and reuse of the Subject Property. 2. Vapor Mitigation System Considering the presence of volatile organic compounds (VOCs) present in the soils, due care considerations warrant assessment of soil gas and potential for vapor intrusion in the new structure(s). An assessment will be conducted for the most environmentally and economically effective vapor mitigation system, if necessary. 3. Engineering Controls As part of the redevelopment activities, additional provisions may be necessary for management of storm-water drainage/discharge in relation to the area(s) of impact/remaining contaminated areas. Additional redevelopment costs needed for directing storm-water via sealed/lined catch basins and re-directing to appropriate infiltration basins (e.g., outside impacted areas) may be needed. D. Due Care Compliance: Documentation of Due Care Compliance will be conducted to ensure and document compliance with due care requirements. 3. Additional Response Activities: The Phase I ESA identified the potential for a presence of at least one (1) underground storage tank from the prior uses of the Subject Property will need to be properly addressed to progress with redevelopment. During redevelopment, other subsurface structures may be discovered that warrant appropriate removal/disposal/closure. Activities include underground storage tank removal and site restoration, removal of other underground structures and potential soil excavation, transportation and disposal, and Verification of Soil Remediation, including sampling, laboratory analysis, and reporting. 8

11 February 2017 Other Activities Brownfield Plan and Work Plan: The preparation, approval, and implementation of the Brownfield Plan and Act 381 Work Plans are included as Eligible Activities. Administrative and Operating Costs: An estimate of reasonable and actual administrative and operating costs of the (CCBRA) is included as Eligible Activities. Interest: Environmental Eligible Activities will be privately financed. For the purposes of the Brownfield Plan financial analysis, interest on the private financing portion is estimated at 5% for 15 years. The following tables estimate the costs for Environmental Eligible Activities to be funded by tax increment revenues. Estimated Cost of Environmental Eligible Activities MDEQ Environmental Eligible Activities Estimated Cost Baseline Environmental Assessment Activities $14,500 Due Care Activities $165,500 Additional Response Activities $15,000 Contingencies (15%) $29,250 Eligible Activities Subtotal $224,250 Interest (5% for 15 years) $99,821 Work Plan Development, Approval and Implementation $20,000 Brownfield Authority Administrative and Operating Cost $15,000 MDEQ Environmental Eligible Activities Total $359,071 Non-Environmental Eligible Activities 1. Lead and Asbestos Abatement: NESHAP regulations require a lead and asbestos survey prior to demolition of commercial buildings to demonstrate Potential Asbestos Containing Materials (PACMs) do not contain asbestos by properly testing materials in accordance with OSHA standards. Demolition or remodeling buildings that contain lead, cadmium and/or asbestos is subject to regulations to protect the health of the persons that may be affected. The scope of work includes lead and asbestos surveys, abatement, contract administration, and air monitoring to prevent a potential exposure to site workers or adjacent residents. 9

12 February Demolition: In preparation for site redevelopment, the existing building and associated infrastructure will be demolished and removed from the Eligible Property. The scope of work includes engineering specifications, contractor procurement and demolition of buildings, foundations and unusable asphalt and infrastructure. 3. Site Preparation: Site preparation will consist of geotechnical engineering, temporary site and erosion control, sheeting and shoring to protect adjacent property, relocation of active utilities, land balancing and grading. 4. Infrastructure: Infrastructure will include an extension to the Iron Bell trail, water, sewer, and stormwater upgrades, parking improvements. Estimated Cost of Non-Environmental Activities Eligible Activities Estimated Cost Lead and Asbestos Abatement $60,000 Demolition $160,000 Site Preparation $320,980 Infrastructure $265,000 Contingencies $120,895 Non-Environmental Eligible Activities Subtotal $926,875 Interest (5.0% for 15 years) $412,585 Work Plan Development, Approval and Implementation $50,000 Brownfield Authority Administrative and Operating Cost $30,000 Non-Environmental Eligible Activities Total $1,419,460 Estimate of Captured Taxable Value and Tax Increment Revenues (MCL (2)(c)) The initial taxable value for the eligible property will be set at the taxable value as December 31, 2016, as provided in Act 381 and is $16,128. The total eligible activity cost is $1,151,125, plus an estimated $512,405 in interest, $70,000 in Brownfield Plan and Act 381 Work Plan development, approval, and implementation, and $45,000 in CCBRA administrative and operating costs, for a total of $1,778,530. The Brownfield Plan also includes capture of 3 mils of the State Education Tax for the period of capture, estimated at $141,034 and deposits into the Local Brownfield Revolving Fund for a period of up to five years after the Eligible Activity 10

13 February 2017 obligation is met and is estimated at $643,393. The redevelopment investment for the entire eligible property is estimated at $6,100,000. Table 2 identifies taxable values for real and personal property, including tax increment revenues for the eligible property. The cash flow analysis for the project indicates payoff of the Eligible Activity obligation in fifteen (15) years for local capture and sixteen (16) years for State capture, with an additional five years for the Local Brownfield Revolving Fund. Redevelopment of the property is anticipated to be initiated in Spring 2018 and completed in Spring 2019, with tax increment capture beginning in The actual tax increment captured will be based on taxable value set through the property assessment process by the local unit of government and equalized by the County and the millage rates set each year by the taxing jurisdictions. An application has been submitted for a Michigan Department of Environmental Quality (MDEQ) Brownfield Grant and Loan in an amount of $396,000 to finance Environmental Eligible Activities, lead and asbsto abatement and demolition under this Brownfiield Plan. The Brownfield Plan assumes the full Eligible Activity amount will be expensed and reimbursed. If the MDEQ Brownfield Grant is received, the reimbursement period would be reduced by 50% or 7 years. summarized in the table below and detailed in Table 2. The estimated tax increment captured by the Authority is Estimated Tax Increment Capture by the Authority Year Total Tax Revenues Captured Taxes Year Total Tax Revenues Captured Taxes 2018 $980 $ $176,850 $ 168, $980 $ 119, $181,247 $ 173, $128,560 $ 122, $185,754 $ 133, $131,749 $ 125, $190,373 $ 114, $135,019 $ 128, $195,108 $ $138,370 $ 131, $199,961 $ $141,804 $ 135, $204,936 $ $145,325 $ 138, $210,035 $ $148,934 $ 142, $215,261 $ $152,632 $ 145, $220,618 $ $156,424 $ 147, $226,109 $ $160,310 $ 152, $231,737 $ $164,293 $ 156, $237,506 $ $168,376 $ 160, $243,419 $ $172,561 $ 164,754 (1) 2047 $249,480 $ - (1) Local Capture Ends Total $5,114,709 $ 2,562,957 (2) State Capture Ends Local Brownfield Fund $ (643,393) (3) LBRF Capture Ends State Brownfield Fund ($141,034) Admin and Operating ($45,000) Balance $ 1,733,531 11

14 February 2017 Method of Financing Plan Costs (MCL (2)(d)) The costs for the eligible activities will be paid for by the developer using private financing, with revenues for reimbursement from brownfield tax increment capture. Financing costs are provided in this plan in addition to the eligible activity costs with an estimated 15-year term at 5.0%. Total financing costs are estimated at $512,405. Maximum Amount of Indebtedness (MCL (2)(e)) The maximum amount of indebtedness will be $1,221,125, plus an estimated $512,405 in interest. Duration of Brownfield Plan (MCL (2)(f)) The duration of the Plan will be the time to capture taxes in an amount equal to the Eligible Activity obligation and thirty (30) years from the original adoption date, whichever is sooner. As shown on Table 2, total costs of all Eligible Activities on the Eligible Property are expected to be repaid through tax increment financing within 15 years for Local tax capture and 16 years for State capture, and an addition five years for Local Brownfield Revolving fund. If the MDEQ Brownfield Grant is received, the capture period is estimated to be reduced by 50% to 8 years. Estimate of Impact of Tax Increment Financing on Taxing Jurisdictions (MCL (2)(g)) Table 2 identifies annual and total tax revenues projected for capture from the increase in property tax valuations. Individual tax levies within each taxing jurisdiction are also presented on Table 2. Table 3 presents the allocation of tax capture and the total tax increment for the maximum duration of the plan, 30 years. Taxing jurisdictions will continue to receive their attendant tax allocation for the project beyond the duration of the plan. The total tax capture, with principal and interest, administrative costs, the State Brownfield Fund and for the local site remediation fund, is estimated at $2,562,957. Over 30 years, local taxing jurisdictions will realize over $1,703,050 and the state will realize over $1,245,420 in estimated additional tax revenues. These additional revenues will continue to be accrued by the taxing jurisdictions after the plan expires in an amount estimated at over $186,400 per year on into the future. 12

15 February 2017 Legal Description, Location, and Determination of Eligibility (MCL (2)(h)) Legal Description: The legal descriptions of the eligible property is as follows: Parcel ID # Address Legal Description Michigan W 58 FT OF LOT 5, BLOCK 17, ORIGINAL PLAT Avenue OF THE VILLAGE, NOW CITY, OF GRAYLING. Location: Figure 1 depicts the location and Figure 2 depicts the boundaries of the Eligible Property. Eligibility Determination: The former Sawmill property meets the definition of a Part 201 as defined in Act 381, P.A as amended and Act 451, P.A as amended, as documented by a Phase II Environmental Site Assessment in June Estimate of Number of Persons Residing on Eligible Property (MCL (2)(i)) There are currently no residential dwellings or residences that occupy the Eligible Property. Plan for Residential Relocation (MCL (2)(j)) The Eligible Property does not currently contain any residential dwellings; therefore, a plan for residential relocation is not applicable. Provision of Costs of Relocation (MCL (2)(k)) The Eligible Property does not currently contain any occupied residential dwellings, thus relocation is not necessary. Strategy to Comply with Relocation Assistance Act There is no relocation anticipated under this Brownfield Plan. (MCL (2)(l)) Description of Proposed Use of the Local Brownfield Revolving Fund (MCL (2)(m)) Use of the Local Brownfield Revolving Fund will be consistent with the requirements of Act 381. Other Material Required by the Authority or Governing Body Not Applicable (MCL (2)(n)) 13

16 November 2017 Tables Table 1.1 Table 1.2 Table 2.1 Table 2.2 Table 3 Environmental Eligible Activities Non-Environmental Eligible Activities Annual Revenue and Brownfield Capture Estimates Tax Increment Revenue Reimbursement Allocation Table Impact on Tax Jurisdictions Figures Figure 1. Eligible Property Location Map Figure 2. Eligible Property Downtown Location Map Figure 3. Eligible Property Boundary Map

17 TABLE 1.1 ENVIRONMENTAL ELIGIBLE ACTIVITIES COSTS FORMER SAMWILL REDEVELOPMENT CRAWFORD COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY GRAYLING, MICHIGAN Eligible Activity Description TOTAL ELIGIBLE ACTIVITIES Sawmill Baseline Environmental Assessment Activities Phase I ESA $2,500 Phase II ESA $10,000 Baseline Environmental Assessment $2,000 Due Care (7a) ObligationCompliance Activities Subtotal $14,500 Due Care Investigation $38,500 Section 7A Compliance Analyses (Due Care Plans) $2,500 Due Care Measures Soil Removal, Transport and Disposal $50,000 Vapor Mitigation $24,500 Engineering Controls $10,000 Dewatering Effluent Treatment $40,000 Additional Response Activities Subtotal $165,500 Supplemental Investigation $5,000 Other Response Activities $10,000 Subtotal $15,000 Subtotal Totals $195,000 Contingencies (15%) $29,250 ELIGIBLE ACTIVITIES SUBTOTAL $224,250 INTEREST (15 5%) $99,820 BROWNFIELD PLAN/WORK PLAN DEVELOPMENT AND APPROVAL $10,000 BROWNFIELD PLAN/WORK PLAN IMPLEMENTATION $10,000 ELIGIBLE ACTIVITIES SUBTOTAL $344,070 ADMINISTRATIVE AND OPERATING COSTS* $15,000 MSF ELIGIBLE ACTIVITIES TOTAL $359,070 *Local Tax Capture Only

18 TABLE 1.2 MSF ELIGIBLE ACTIVITIES COSTS FORMER SAMWILL REDEVELOPMENT CRAWFORD COUNTY BROWNFIELD REDEVELOPMENT AUTHORITY GRAYLING, MICHIGAN TOTAL ELIGIBLE Eligible Activity Description ACTIVITIES Sawmill Lead and Asbestos Abatement Survey $4,000 Monitoring $6,000 Abatement $50,000 Subtotal $60,000 Demolition Site Demolition $30,000 Building Demolition $130,000 Subtotal $160,000 Site Preparation Staking $3,000 Geotechnical Engineering $7,500 Termporary Facilities $38,800 Excavation for Unstable Soils $2,400 Fill $2,000 Relocation of Active Utilities $30,000 Dewatering $60,000 Grading and Land Balance $2,000 Retaining Walls $70,000 Temporary Sheeting and Shoring $87,500 Soft Costs $17,780 Subtotal $320,980 Infrastructure Bike Path $50,000 Infrastructure Sewer and Water $40,000 Vortex Stormwater System $75,000 Parking Improvements $100,000 Subtotal $265,000 Subtotal Totals $805,980 Contingencies (15%) $120,895 MSF ELIGIBLE ACTIVITIES SUBTOTAL $926,875 INTEREST (5% for 10 years) $412,585 BROWNFIELD PLAN/WORK PLAN DEVELOPMENT AND APPROVAL $25,000 BROWNFIELD PLAN/WORK PLAN IMPLEMENTATION $25,000 MSF ELIGIBLE ACTIVITIES SUBTOTAL $1,389,460 ADMINISTRATIVE AND OPERATING COSTS $30,000 MSF ELIGIBLE ACTIVITIES TOTAL $1,419,460

19 Table Annual Revenue and Brownfield Capture Estimates Estimated Taxable Value (TV) Increase Rate: Plan Year Revenue Year *Base Taxable Value 2.50% $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 Annual Value Additions $ 4,200,000 Cumulative Value Additions $ - $ 4,200,000 $ 4,305,000 $ 4,412,625 $ 4,522,941 $ 4,636,014 $ 4,751,914 $ 4,870,712 $ 4,992,480 $ 5,117,292 $ 5,245,224 $ 5,376,355 $ 5,510,764 $ 5,648,533 $ 5,789,746 Estimated New TV Incremental Difference (New TV - Base TV) $ 16,128 $ 16,128 $ 2,116,128 $ 2,168,628 $ 2,222,441 $ 2,277,598 $ 2,334,135 $ 2,392,085 $ 2,451,484 $ 2,512,368 $ 2,574,774 $ 2,638,740 $ 2,704,306 $ 2,771,510 $ 2,840,395 $ 2,911,001 $ 2,100,000 $ 2,152,500 $ 2,206,313 $ 2,261,470 $ 2,318,007 $ 2,375,957 $ 2,435,356 $ 2,496,240 $ 2,558,646 $ 2,622,612 $ 2,688,178 $ 2,755,382 $ 2,824,267 $ 2,894,873 Total School Revenue Total Local Revenue Total Revenue Millage Rate 39.50% $ 387 $ 387 $ 50,787 $ 52,047 $ 53,339 $ 54,662 $ 56,019 $ 57,410 $ 58,836 $ 60,297 $ 61,795 $ 63,330 $ 64,903 $ 66,516 $ 68,169 $ 69,864 Millage Rate 60.50% $ 593 $ 593 $ 77,773 $ 79,702 $ 81,680 $ 83,707 $ 85,785 $ 87,915 $ 90,098 $ 92,336 $ 94,629 $ 96,980 $ 99,390 $ 101,860 $ 104,391 $ 106,986 Millage Rate $ 980 $ 980 $ 128,560 $ 131,749 $ 135,019 $ 138,370 $ 141,804 $ 145,325 $ 148,934 $ 152,632 $ 156,424 $ 160,310 $ 164,293 $ 168,376 $ 172,561 $ 176,850 School Capture Millage Rate 42.17% State Education Tax (SET) $ - $ - $ 12,600 $ 12,915 $ 13,238 $ 13,569 $ 13,908 $ 14,256 $ 14,612 $ 14,977 $ 15,352 $ 15,736 $ 16,129 $ 16,532 $ 16,946 $ 17,369 School Operating Tax $ - $ - $ 37,800 $ 38,745 $ 39,714 $ 40,706 $ 41,724 $ 42,767 $ 43,836 $ 44,932 $ 46,056 $ 47,207 $ 48,387 $ 49,597 $ 50,837 $ 52,108 School Total $ - $ - $ 50,400 $ 51,660 $ 52,952 $ 54,275 $ 55,632 $ 57,023 $ 58,449 $ 59,910 $ 61,408 $ 62,943 $ 64,516 $ 66,129 $ 67,782 $ 69,477 Local Capture Millage Rate 57.83% CITY TOTAL Allocated $ - $ - $ 37,380 $ 38,315 $ 39,272 $ 40,254 $ 41,261 $ 42,292 $ 43,349 $ 44,433 $ 45,544 $ 46,682 $ 47,850 $ 49,046 $ 50,272 $ 51,529 Voted $ - $ - $ 2,625 $ 2,691 $ 2,758 $ 2,827 $ 2,898 $ 2,970 $ 3,044 $ 3,120 $ 3,198 $ 3,278 $ 3,360 $ 3,444 $ 3,530 $ 3,619 COUNTY TOTAL Allocated $ - $ - $ 12,794 $ 13,114 $ 13,442 $ 13,778 $ 14,122 $ 14,476 $ 14,837 $ 15,208 $ 15,589 $ 15,978 $ 16,378 $ 16,787 $ 17,207 $ 17,637 Library $ - $ - $ 936 $ 960 $ 984 $ 1,008 $ 1,033 $ 1,059 $ 1,086 $ 1,113 $ 1,141 $ 1,169 $ 1,198 $ 1,228 $ 1,259 $ 1,291 Police $ - $ - $ 1,873 $ 1,919 $ 1,967 $ 2,017 $ 2,067 $ 2,119 $ 2,172 $ 2,226 $ 2,282 $ 2,339 $ 2,397 $ 2,457 $ 2,518 $ 2,581 Recreation $ - $ - $ 1,017 $ 1,043 $ 1,069 $ 1,096 $ 1,123 $ 1,151 $ 1,180 $ 1,209 $ 1,240 $ 1,271 $ 1,302 $ 1,335 $ 1,368 $ 1,403 Roads $ - $ - $ 2,100 $ 2,153 $ 2,206 $ 2,261 $ 2,318 $ 2,376 $ 2,435 $ 2,496 $ 2,559 $ 2,623 $ 2,688 $ 2,755 $ 2,824 $ 2,895 Seniors $ - $ - $ 2,100 $ 2,153 $ 2,206 $ 2,261 $ 2,318 $ 2,376 $ 2,435 $ 2,496 $ 2,559 $ 2,623 $ 2,688 $ 2,755 $ 2,824 $ 2,895 Transit $ - $ - $ 1,476 $ 1,513 $ 1,550 $ 1,589 $ 1,629 $ 1,670 $ 1,711 $ 1,754 $ 1,798 $ 1,843 $ 1,889 $ 1,936 $ 1,985 $ 2,034 Veterans $ - $ - $ 525 $ 538 $ 552 $ 565 $ 580 $ 594 $ 609 $ 624 $ 640 $ 656 $ 672 $ 689 $ 706 $ 724 Kirkland CC Operating $ - $ - $ 4,430 $ 4,540 $ 4,654 $ 4,770 $ 4,889 $ 5,012 $ 5,137 $ 5,265 $ 5,397 $ 5,532 $ 5,670 $ 5,812 $ 5,957 $ 6,106 ISD $ - $ - $ 1,860 $ 1,907 $ 1,955 $ 2,003 $ 2,054 $ 2,105 $ 2,157 $ 2,211 $ 2,267 $ 2,323 $ 2,381 $ 2,441 $ 2,502 $ 2,565 Local Total $ - $ - $ 69,116 $ 70,844 $ 72,615 $ 74,430 $ 76,291 $ 78,198 $ 80,153 $ 82,157 $ 84,211 $ 86,316 $ 88,474 $ 90,686 $ 92,953 $ 95,277 Local Capture Millage Rate TOTAL $ - $ - $ 119,516 $ 122,504 $ 125,567 $ 128,706 $ 131,923 $ 135,221 $ 138,602 $ 142,067 $ 145,619 $ 149,259 $ 152,991 $ 156,815 $ 160,736 $ 164,754 Non-Capturable Millages Millage Rate Kirtland CC Debt $ - $ - $ 1,554 $ 1,593 $ 1,633 $ 1,673 $ 1,715 $ 1,758 $ 1,802 $ 1,847 $ 1,893 $ 1,941 $ 1,989 $ 2,039 $ 2,090 $ 2,142 Crawford AuSable School Debt $ - $ - $ 6,510 $ 6,673 $ 6,840 $ 7,011 $ 7,186 $ 7,365 $ 7,550 $ 7,738 $ 7,932 $ 8,130 $ 8,333 $ 8,542 $ 8,755 $ 8,974 $ - $ - $ 8,064 $ 8,266 $ 8,472 $ 8,684 $ 8,901 $ 9,124 $ 9,352 $ 9,586 $ 9,825 $ 10,071 $ 10,323 $ 10,581 $ 10,845 $ 11,116 Estimated Taxable Value (TV) Increase Rate: Plan Year Revenue Year *Base Taxable Value 2.50% $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 $ 16,128 Annual Value Additions Cumulative Value Additions $ 5,934,490 $ 6,082,852 $ 6,234,924 $ 6,390,797 $ 6,550,567 $ 6,714,331 $ 6,882,189 $ 7,054,244 $ 7,230,600 $ 7,411,365 $ 7,596,649 $ 7,786,565 $ 7,981,229 $ 8,180,760 $ 8,385,279 Estimated New TV $ 2,983,373 $ 3,057,554 $ 3,133,590 $ 3,211,526 $ 3,291,411 $ 3,373,293 $ 3,457,223 $ 3,543,250 $ 3,631,428 $ 3,721,810 $ 3,814,452 $ 3,909,411 $ 4,006,743 $ 4,106,508 $ 4,208,768 Incremental Difference (New TV - Base TV) $ 2,967,245 $ 3,041,426 $ 3,117,462 $ 3,195,398 $ 3,275,283 $ 3,357,165 $ 3,441,095 $ 3,527,122 $ 3,615,300 $ 3,705,682 $ 3,798,324 $ 3,893,283 $ 3,990,615 $ 4,090,380 $ 4,192,640 School Capture Millage Rate State Education Tax (SET) $ 17,803 $ 18,249 $ 18,705 $ 19,172 $ 19,652 $ 20,143 $ 20,647 $ 21,163 $ 21,692 $ 22,234 $ 22,790 $ 23,360 $ 23,944 $ 24,542 $ 25,156 School Operating Tax $ 53,410 $ 54,746 $ 56,114 $ 57,517 $ 58,955 $ 60,429 $ 61,940 $ 63,488 $ 65,075 $ 66,702 $ 68,370 $ 70,079 $ 71,831 $ 73,627 $ 75,468 School Total $ 71,214 $ 72,994 $ 74,819 $ 76,690 $ 78,607 $ 80,572 $ 82,586 $ 84,651 $ 86,767 $ 88,936 $ 91,160 $ 93,439 $ 95,775 $ 98,169 $ 100,623 Local Capture Millage Rate CITY TOTAL Allocated $ 52,817 $ 54,137 $ 55,491 $ 56,878 $ 58,300 $ 59,758 $ 61,251 $ 62,783 $ 64,352 $ 65,961 $ 67,610 $ 69,300 $ 71,033 $ 72,809 $ 74,629 Voted $ 3,709 $ 3,802 $ 3,897 $ 3,994 $ 4,094 $ 4,196 $ 4,301 $ 4,409 $ 4,519 $ 4,632 $ 4,748 $ 4,867 $ 4,988 $ 5,113 $ 5,241 COUNTY TOTAL Allocated $ 18,078 $ 18,530 $ 18,993 $ 19,468 $ 19,955 $ 20,454 $ 20,965 $ 21,489 $ 22,026 $ 22,577 $ 23,141 $ 23,720 $ 24,313 $ 24,921 $ 25,544 Library $ 1,323 $ 1,356 $ 1,390 $ 1,425 $ 1,460 $ 1,497 $ 1,534 $ 1,572 $ 1,612 $ 1,652 $ 1,693 $ 1,736 $ 1,779 $ 1,823 $ 1,869 Police $ 2,646 $ 2,712 $ 2,780 $ 2,849 $ 2,921 $ 2,994 $ 3,068 $ 3,145 $ 3,224 $ 3,304 $ 3,387 $ 3,472 $ 3,558 $ 3,647 $ 3,739 Recreation $ 1,438 $ 1,474 $ 1,510 $ 1,548 $ 1,587 $ 1,627 $ 1,667 $ 1,709 $ 1,752 $ 1,795 $ 1,840 $ 1,886 $ 1,933 $ 1,982 $ 2,031 Roads $ 2,967 $ 3,041 $ 3,117 $ 3,195 $ 3,275 $ 3,357 $ 3,441 $ 3,527 $ 3,615 $ 3,706 $ 3,798 $ 3,893 $ 3,991 $ 4,090 $ 4,193 Seniors $ 2,967 $ 3,041 $ 3,117 $ 3,195 $ 3,275 $ 3,357 $ 3,441 $ 3,527 $ 3,615 $ 3,706 $ 3,798 $ 3,893 $ 3,991 $ 4,090 $ 4,193 Transit $ 2,085 $ 2,137 $ 2,191 $ 2,245 $ 2,302 $ 2,359 $ 2,418 $ 2,479 $ 2,540 $ 2,604 $ 2,669 $ 2,736 $ 2,804 $ 2,874 $ 2,946 Veterans $ 742 $ 760 $ 779 $ 799 $ 819 $ 839 $ 860 $ 882 $ 904 $ 926 $ 950 $ 973 $ 998 $ 1,023 $ 1,048 Kirkland CC Operating $ 6,259 $ 6,415 $ 6,576 $ 6,740 $ 6,909 $ 7,081 $ 7,258 $ 7,440 $ 7,626 $ 7,816 $ 8,012 $ 8,212 $ 8,417 $ 8,628 $ 8,844 ISD $ 2,629 $ 2,694 $ 2,762 $ 2,831 $ 2,902 $ 2,974 $ 3,048 $ 3,125 $ 3,203 $ 3,283 $ 3,365 $ 3,449 $ 3,535 $ 3,624 $ 3,714 Local Total $ 97,659 $ 100,101 $ 102,603 $ 105,168 $ 107,797 $ 110,492 $ 113,255 $ 116,086 $ 118,988 $ 121,963 $ 125,012 $ 128,137 $ 131,341 $ 134,624 $ 137,990 Local Capture Millage Rate TOTAL $ 168,873 $ 173,095 $ 177,422 $ 181,858 $ 186,404 $ 191,064 $ 195,841 $ 200,737 $ 205,755 $ 210,899 $ 216,172 $ 221,576 $ 227,115 $ 232,793 $ 238,613 Non-Capturable Millages Millage Rate Kirtland CC Debt $ 2,196 $ 2,251 $ 2,307 $ 2,365 $ 2,424 $ 2,484 $ 2,546 $ 2,610 $ 2,675 $ 2,742 $ 2,811 $ 2,881 $ 2,953 $ 3,027 $ 3,103 Crawford AuSable School Debt $ 9,198 $ 9,428 $ 9,664 $ 9,906 $ 10,153 $ 10,407 $ 10,667 $ 10,934 $ 11,207 $ 11,488 $ 11,775 $ 12,069 $ 12,371 $ 12,680 $ 12,997 Non-Capturable Total $ 11,394 $ 11,679 $ 11,971 $ 12,270 $ 12,577 $ 12,892 $ 13,214 $ 13,544 $ 13,883 $ 14,230 $ 14,586 $ 14,950 $ 15,324 $ 15,707 $ 16,100

20 Maximum Reimbursement Proportionality School & Local Taxes Table Tax Increment Revenue Reimbursement Allocation Table State Brownfield Fund LBRF Local-Only Taxes Total Estimated Capture $ 1,733,530 State 42.2% $ 731,031 $ 141,034 $ 145,097 $ 1,017,161 Estimated Total Administrative Fees $ 45,000 Local 57.8% $ 1,002,499 $ - $ 498,296 $ 45,000 $ 1,545,795 Years of Capture: 11 State Revolving Fund $ 141,034 TOTAL 100.0% $ 1,733,530 $ 141,034 $ 643,393 $ 2,562,957 LSRRF $ 643,393 MDEQ $ 344,070 TOTAL $ 2,562,957 MSF $ 1,389,460 TOTAL $ 1,733,530 Plan Year Calendar Year notes Total State Incremental Revenue $ - $ - $ 50,400 $ 51,660 $ 52,952 $ 54,275 $ 55,632 $ 57,023 $ 58,449 $ 59,910 $ 61,408 $ 62,943 $ 64,516 $ 66,129 $ 67,782 $ 69,477 $ 71,214 State Brownfield Revolving Fund (50% of SET) $ - $ - $ 6,300 $ 6,458 $ 6,619 $ 6,784 $ 6,954 $ 7,128 $ 7,306 $ 7,489 $ 7,676 $ 7,868 $ 8,065 $ 8,266 $ 8,473 $ 8,685 $ 8,902 State TIR Available for Reimbursement $ - $ - $ 44,100 $ 45,203 $ 46,333 $ 47,491 $ 48,678 $ 49,895 $ 51,142 $ 52,421 $ 53,732 $ 55,075 $ 56,452 $ 57,863 $ 59,310 $ 60,792 $ 62,312 Total Local Incremental Revenue $ - $ - $ 69,116 $ 70,844 $ 72,615 $ 74,430 $ 76,291 $ 78,198 $ 80,153 $ 82,157 $ 84,211 $ 86,316 $ 88,474 $ 90,686 $ 92,953 $ 95,277 $ 97,659 BRA Administrative Fee 6% $ - $ - $ 4,147 $ 4,251 $ 4,357 $ 4,466 $ 4,577 $ 4,692 $ 4,809 $ 4,929 $ 5,053 $ 5,179 $ - $ - $ - $ - $ - Local TIR Available for Reimbursement $ - $ - $ 64,969 $ 66,593 $ 68,258 $ 69,965 $ 71,714 $ 73,507 $ 75,344 $ 77,228 $ 79,159 $ 81,137 $ 88,474 $ 90,686 $ 92,953 $ 95,277 $ 97,659 Total State & Local TIR Available $ - $ - $ 109,069 $ 111,796 $ 114,591 $ 117,455 $ 120,392 $ 123,402 $ 126,487 $ 129,649 $ 132,890 $ 136,212 $ 144,926 $ 148,549 $ 152,263 $ 156,070 $ 159,971 DEVELOPER Beginning $ 1,733,530 Balance % Allocation 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 40% 0% 0% Developer Reimbursement $ 109,069 $ 111,796 $ 114,591 $ 117,455 $ 120,392 $ 123,402 $ 126,487 $ 129,649 $ 132,890 $ 136,212 $ 144,926 $ 148,549 $ 60,237 $ - $ - Developer Reimbursement Balance $ 1,733,530 $ 1,733,530 $ 1,624,461 $ 1,512,665 $ 1,398,075 $ 1,280,619 $ 1,160,227 $ 1,036,826 $ 910,339 $ 780,690 $ 647,800 $ 511,588 $ 366,662 $ 218,112 $ 157,876 $ 157,876 $ 157,876 MSF Non-Environmental Costs $ 1,389,460 $ - $ 87,421 $ 89,607 $ 91,847 $ 94,143 $ 96,497 $ 98,909 $ 101,382 $ 103,916 $ 106,514 $ 109,177 $ 116,161 $ 119,065 $ 122,042 $ 50,740 $ 2,040 State Tax Reimbursement 80.15% $ 585,936 $ - $ 35,347 $ 36,231 $ 37,136 $ 38,065 $ 39,017 $ 39,992 $ 40,992 $ 42,017 $ 43,067 $ 44,144 $ 45,247 $ 46,378 $ 47,538 $ 48,726 $ 2,040 Local Tax Reimbursement 80.15% $ 803,524 $ - $ 52,074 $ 53,376 $ 54,710 $ 56,078 $ 57,480 $ 58,917 $ 60,390 $ 61,900 $ 63,447 $ 65,033 $ 70,914 $ 72,687 $ 74,504 $ 2,014 Total MSF Reimbursement Balance $ 1,389,460 $ 1,302,039 $ 1,212,432 $ 1,120,585 $ 1,026,442 $ 929,946 $ 831,037 $ 729,655 $ 625,739 $ 519,225 $ 410,048 $ 293,887 $ 174,822 $ 52,780 $ 2,040 $ (0) State MSF Balance to Be Reimbursed $ 585,936 $ 550,589 $ 514,358 $ 477,222 $ 439,157 $ 400,141 $ 360,149 $ 319,157 $ 277,140 $ 234,073 $ 189,930 $ 144,683 $ 98,304 $ 50,766 $ 2,040 $ (0) Local MSF Balance to Be Reimbursed $ 803,524 $ 751,450 $ 698,074 $ 643,363 $ 587,285 $ 529,805 $ 470,888 $ 410,498 $ 348,599 $ 285,152 $ 220,118 $ 149,204 $ 76,517 $ 2,013 $ (0) $ (0) MDEQ Environmental Costs $ 344,070 $ - $ 21,648 $ 22,189 $ 22,744 $ 23,313 $ 23,895 $ 24,493 $ 25,105 $ 25,733 $ 26,376 $ 27,035 $ 28,765 $ 29,484 $ 30,221 $ 12,565 $ 505 State Tax Reimbursement 19.85% $ 145,095 $ - $ 8,753 $ 8,972 $ 9,196 $ 9,426 $ 9,662 $ 9,903 $ 10,151 $ 10,405 $ 10,665 $ 10,931 $ 11,205 $ 11,485 $ 11,772 $ 12,066 $ 505 Local Tax Reimbursement 19.85% $ 198,976 $ - $ 12,895 $ 13,217 $ 13,548 $ 13,887 $ 14,234 $ 14,590 $ 14,954 $ 15,328 $ 15,711 $ 16,104 $ 17,560 $ 17,999 $ 18,449 $ 499 Total MDEQ Reimbursement Balance $ 344,070 $ 322,422 $ 300,233 $ 277,489 $ 254,177 $ 230,281 $ 205,789 $ 180,684 $ 154,951 $ 128,575 $ 101,540 $ 72,775 $ 43,291 $ 13,070 $ 506 $ 0 State MDEQ Balance to Be Reimbursed $ 145,095 $ 136,342 $ 127,370 $ 118,174 $ 108,748 $ 99,086 $ 89,183 $ 79,032 $ 68,628 $ 57,963 $ 47,032 $ 35,828 $ 24,343 $ 12,571 $ 505 $ (0) Local MDEQ Balance to Be Reimbursed $ 198,976 $ 186,081 $ 172,863 $ 159,315 $ 145,429 $ 131,195 $ 116,606 $ 101,651 $ 86,323 $ 70,612 $ 54,508 $ 36,947 $ 18,948 $ 499 $ (0) $ (0) Local Only Costs 6% $ 45,000 $ - $ 4,147 $ 4,251 $ 4,357 $ 4,466 $ 4,577 $ 4,692 $ 4,809 $ 4,929 $ 5,053 $ 3,719 $ - $ - $ - $ - $ - Local Tax Reimbursement Total Local Only Reimbursement Balance $ 45,000 $ 40,853 $ 36,602 $ 32,245 $ 27,780 $ 23,202 $ 18,510 $ 13,701 $ 8,772 $ 3,719 $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) Total Annual Reimbursement $ - $ 113,216 $ 116,046 $ 118,948 $ 121,921 $ 124,969 $ 128,094 $ 131,296 $ 134,578 $ 137,943 $ 139,931 $ 144,926 $ 148,549 $ 152,263 $ 63,305 $ 2,545 LOCAL BROWNFIELD REVOLVING FUND LBRF Deposits * $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 92,765 $ 250,191 State Tax Capture $ 2 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 59,767 Local Tax Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 92,765 $ 97,659 Total LBRF Capture $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 92,765 $ 157,426 * Up to five years of capture for LBRF Deposits after eligible activities are reimbursed. May be taken from DEQ & Local TIR only. Footnotes: July 2017

21 Table Tax Increment Revenue Reimbursement Allocation Table Plan Year Calendar Year Total State Incremental Revenue State Brownfield Revolving Fund (50% of SET) State TIR Available for Reimbursement Total Local Incremental Revenue BRA Administrative Fee Local TIR Available for Reimbursement Total State & Local TIR Available DEVELOPER Developer Reimbursement Developer Reimbursement Balance TOTAL $ 72,994 $ 74,819 $ 76,690 $ 78,607 $ 80,572 $ 82,586 $ 84,651 $ 86,767 $ 88,936 $ 91,160 $ 93,439 $ 95,775 $ 98,169 $ 100,623 $ 2,109,557 $ 9,124 $ 9,352 $ 9,586 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 141,034 $ 63,870 $ 65,467 $ 67,103 $ 78,607 $ 80,572 $ 82,586 $ 84,651 $ 86,767 $ 88,936 $ 91,160 $ 93,439 $ 95,775 $ 98,169 $ 100,623 $ 1,968,523 $ 100,101 $ 102,603 $ 105,168 $ 107,797 $ 110,492 $ 113,255 $ 116,086 $ 118,988 $ 121,963 $ 125,012 $ 128,137 $ 131,341 $ 134,624 $ 96,409 $ 2,851,360 $ - $ - $ - $ - $ - $ - $ 45,000 $ 100,101 $ 102,603 $ 105,168 $ 107,797 $ 110,492 $ 113,255 $ 116,086 $ 118,988 $ 121,963 $ 125,012 $ 128,137 $ 131,341 $ 134,624 $ 96,409 $ 2,804,900 $ 163,971 $ 168,070 $ 172,272 $ 186,404 $ 191,064 $ 195,841 $ 200,737 $ 205,755 $ 210,899 $ 216,172 $ 221,576 $ 227,115 $ 232,793 $ 197,032 $ 4,773,424 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,575,655 $ 157,876 $ 157,876 $ 157,876 $ 157,876 $ 157,876 $ 157,876 $ 157,876 $ 157,876 $ 157,876 $ 157,876 $ 157,876 $ 157,876 $ 157,876 $ 157,876 $ - MSF Non-Environmental Costs State Tax Reimbursement Local Tax Reimbursement Total MSF Reimbursement Balance State MSF Balance to Be Reimbursed Local MSF Balance to Be Reimbursed MDEQ Environmental Costs State Tax Reimbursement Local Tax Reimbursement Total MDEQ Reimbursement Balance State MDEQ Balance to Be Reimbursed Local MDEQ Balance to Be Reimbursed $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,389,460 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 585,936 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 803,524 $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ - $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 344,070 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 145,095 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 198,976 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ - $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) Local Only Costs Local Tax Reimbursement Total Local Only Reimbursement Balance Total Annual Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 45,000 $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ (0) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,778,531 LOCAL BROWNFIELD REVOLVING FUND LBRF Deposits * State Tax Capture Local Tax Capture Total LBRF Capture * Up to five years of capture for LBRF Deposits taken from DEQ & Local TIR only. Footnotes: $ 414,162 $ 538,224 $ 643,393 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 643,393 $ 63,870 $ 21,460 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 145,097 $ 100,101 $ 102,603 $ 105,168 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 498,296 $ 163,971 $ 124,063 $ 105,168 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 643,393 July 2017

22 Project Location - Grayling Brownfield Plan Figure 1: Site Location Date: November 2017

23 Project Location - Grayling Brownfield Plan Figure 2: Downtown Location Date: November 2017

24 East Michigan Avenue - Grayling Brownfield Plan Figure 3: Eligible Property Boundaries Date: November 2017