Commission approves brownfield plan to support Alro Steel redevelopment at 215 North River Road

The Mount Clemens City Commission on April 6 adopted a brownfield plan to support redevelopment at 215 North River Road, a project presented to the city as an Alro Steel investment in a large distribution facility.

City manager Mr. Shipman told commissioners the Brownfield Redevelopment Authority had already voted unanimously on March 3 to recommend the plan and that the public hearing was held to satisfy state law before the commission considered adoption. He said the developer would later return to the authority to seek a reimbursement agreement.

Lauren, the city's brownfield consultant, summarized the financial structure, saying, "The total eligible costs are not to exceed $14 million," and that the plan length is 19 years, with developer reimbursement anticipated within 15 years and five years of capture in the local brownfield revolving fund. She added that non-environmental eligible activities that occurred before plan approval can be included retroactively.

Consultants explained a municipal services agreement tied to the plan that allocates a portion of the local tax increment toward developer reimbursement. Kirk, a consulting representative, described the mechanics: the developer captures a share of the increment and returns roughly half to the city under the agreement so taxing jurisdictions are made "somewhat whole" during the capture period; staff estimated the developer reimbursement at roughly $5 million of approximately $9.5 million in developer-eligible activities.

Commissioners asked for clarifications about timing, municipal impact and what would happen after the capture period; staff said, once developer capture concludes, full tax receipts revert to taxing jurisdictions. After discussion the commission moved and adopted the resolution approving the brownfield plan.

The plan now enables the developer to pursue a reimbursement agreement and proceed with the project steps laid out by the Brownfield Redevelopment Authority. The city will work with the authority and the developer on next steps, including the reimbursement agreement and any required implementation details.