Benton Harbor brownfield board adopts updated housing and LBRF guidelines after debate over grants and local hiring

The Benton Harbor Brownfield Redevelopment Authority voted 8–0 to adopt revised housing incentive evaluation guidelines and operational policies for its Local Brownfield Revolving Fund after an extended discussion about how to preserve fund sustainability and encourage local hiring.

Teresa, the authority’s staff lead, told the board the key changes clarify that the authority will pursue both local and state tax-increment sources when appropriate and that developers typically pay the cost of preparing brownfield plans, subject to third-party review. "The authority will determine the LBRF balance at its first regular meeting of the fiscal year and establish a maximum annual LBRF expenditure," Teresa said, summarizing the amendment the board adopted.

The discussion centered on how to keep the LBRF sustainable while supporting development. Board members debated whether to allow grants, limit the share of the fund used for grant awards, or restrict financial support to loans that would be repaid through tax-increment financing. "I don't want to sit here after 27 years of my time and watch our money just totally disappear," Commissioner Mary Alice Adams said, urging the board to prioritize local contractors and long-term fund health. She added that she would prefer tools that create jobs locally, saying she wanted "to see us doing something as a board ... creating one or two jobs."

Other members favored keeping flexibility. Ivy Chandler said limits could unnecessarily block worthwhile projects and suggested case-by-case review; several members supported making loans — including low- or no-interest loans for city projects or residents — the preferred tool. Teresa said many communities primarily use brownfield plans and reimbursable loans repaid through TIF and that grants are less common.

After debating specific proposed caps on annual spending and single-project grant maximums, the board agreed to remove the drafted single-project grant cap and to adopt a process in which the authority will (1) determine the LBRF balance at the start of the fiscal year and (2) evaluate incentive requests on a case-by-case basis. The changes will be revisitable at future meetings.

The board approved the guidelines "as amended during board discussion" by roll call, 8–0. Members said they expect to revisit related details — including whether to formalize a no-interest loan program for city projects or residents — at the board’s next fiscal-year meeting.

The policy references state brownfield rules discussed in the meeting, including the use of Act 381 brownfield plans and potential work-plan submittals to the state authority (MISTA) when state sources are pursued.