Michigan brownfield tax incentive clears hurdle for Emergent BioSolutions

A $6.4 million brownfield tax incentive for Emergent BioSolutions, Inc., a developer of the anthrax vaccine, successfully cleared a procedural roadblock on Monday after the Lansing City Council held a public hearing on the matter.

The incentive would collect new taxes generated by a potential $108 million investment by Emergent in its Lansing, Mich.-based operations. It would also return $6.4 million to Emergent for infrastructure and environmental improvements, Mlive.com reports.

The first part of the $108 million investment will start in June with Emergent constructing a 32,000-square-foot administration building that will cost $9.6 million. The company will also make approximately $4 million worth of upgrades to the infrastructure of the Lansing campus. Further improvements planned include constructing a new warehouse for supply chain and cold storage, improving existing buildings, updating offices, upgrading the facility's power plant and constructing a new science building.

If the brownfield plan is approved it would generate approximately $10.7 million in new taxes for the city, approximately $6.4 million of which would be paid back to the developer.

Some residents of the Michigan city, however, expressed concern about the tax incentive in light of Emergent's use of incentives from the city in the past and the company's major federal government contract. The proposal will go back to the council's Committee on Development and Planning for additional discussion and a vote, MLive.com reports.