A Taxing Development

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Singleton says that she doesn't know what "the project would look like if the tax credits were not available," but adds, "I'm thankful we didn't have to sort that out. [It] would have impacted our projected revenues and employment forecasts."

That's because under the new law, when developers look at the numbers, they'll be looking at a new set of equations. Instead of criteria which, if met, would offset some of the extra costs of historic or brownfield projects, they'll be entering a competition--one that may or may not pay off.

Not all developers see that as a problem. Ed Shaffran has developed a variety of projects in Ann Arbor, including historic preservation--which he did before the state credit was available. And while he's worked with other developers on projects that have utilized brownfield credits, he has not used them on any of his own properties.

"My feeling is that if you're basing your deal on the kind of economics where the tax credits are necessary to make it a reality, it's not a very good deal," Shaffran says. "Your deal needs to make sense on income and expenses.

"Certainly, you would love to see them retained," he says of the credits, "but I'm not going to be crying any big tears about" their elimination.