Michigan's Approach to Urban Redevelopment Involving Contaminated Properties

Owners are liable for the cleanup of contaminated properties regardless of their failure to contribute to the contamination. Consequently, investors avoid polluted brownfield locations. To promote redevelopment of such properties, Michigan has enacted legislation that specifies the state's interest and criteria for entering into a "covenant not to sue" (CNTS) with innocent purchasers of polluted sites (those not responsible for causing the contamination). By mitigating cleanup liability, CNTSs enhance redevelopment prospects. The state also has a site reclamation program that provides grants or loans to governmental entities for the cleanup of contaminated sites. A requirement for funding is that there be committed investors for future economic activity on the property.