Tax Increment Financing (TIF) is used to assist development projects. There are two such funding mechanisms expected to be used in the proposed Village of Okemos. 

The Brownfield Redevelopment Financing Act 381 of 1996 states that brownfield funds can only be used for environmental contamination or work on blighted, functionally obsolete or historic properties. The Downtown Development Authority (DDA) Act 197 of 1975 defines how municipalities can write a tax increment financing project plan within a defined DDA district. 

The Township created requirements for the types of development projects that would be eligible for funding, as well as what activities can be reimbursed. 

This type of brownfield funding was created to encourage development in areas defined by the government. It is often profoundly cheaper to build in a greenfield, an area never developed before, whereas repurposing a parcel that had a prior use can be more complex and expensive. Meridian encourages infill development versus sprawl. When a property is developed, the value increases. The difference between the predevelopment tax value and the new construction value is the increment. The increment is reimbursed to the developer after they’ve spent money on eligible activities. No existing taxes are taken away from taxing jurisdictions and taxpayers throughout the Township will not have an increase to their taxes because of this development project.