View the PDF version Google Docs PDF Viewer
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: 4/14/2020 Title: Tax Incentive Policy and Guidelines
Submitted By: LeighAnn Mikesell Department: Economic Development
Brief Summary: The Tax Incentive Committee has created a policy document for Commission
approval that reflects the findings and recommendations in the previously reviewed committee
report.
Detailed Summary:
In an effort to standardize and control the rate and term of tax abatements granted in the City of
Muskegon, the Tax Incentive Committee (comprised of staff from Economic Development,
Planning, and Finance) has created the attached policy to guide our recommendations to the City
Commission when tax abatements are requested. This system incentivizes companies that reflect
community goals and values, while keeping Muskegon competitive in the region for attraction and
expansion of business base.
Amount Requested: N/A Amount Budgeted: N/A
Fund(s) or Account(s): Fund(s) or Account(s): N/A
Recommended Motion: Motion to approve the Tax Incentive Policy and Guidelines as presented.
Check if the following Departments need to approve the item first:
Police Dept.
Fire Dept.
IT Dept.
For City Clerk Use Only:
Commission Action:
TAX INCENTIVES POLICY
INFORMATION PACKET AND GUIDELINES
OVERVIEW:
A company that is in the planning phase of a major business attraction or expansion project that
will include a capital investment in real and/or personal property may be eligible for a number of
statutorily provided and locally approved tax incentives or abatements. The City of Muskegon
strives to apply these incentives with maximum return on investment for the developer and
community. The process for requesting and receiving an eligible tax incentive for a development
or expansion project has been simplified in the following policy guidelines and forms.
The City of Muskegon maintains this policy with the objectives of:
• increasing employment opportunities for our residents,
• diversifying and stabilizing the tax base of the community,
• reducing functional obsolescence of existing buildings and lots,
• encouraging expansion of our existing business base,
• providing for improved housing and commercial amenities for the community,
• encouraging attractive, viable building sites and
• enhancing our economic development tools to attract and retain businesses
POLICY ELIGIBILITY CRITERIA:
1. A tax abatement shall not be granted until there is compliance with the associated state
statute; and
2. Leasehold property shall not qualify for a real property tax abatement unless applicant is
responsible for payment of the property taxes, and can demonstrate timely payment of property
taxes upon the City’s request; and
3. A tax abatement shall be issued for a term reflective of the points earned in the City’s scoring
matrix; and
4. A tax abatement shall not be issued unless an Applicant completes the attached application
form and provides all necessary documents to ensure accurate scoring by the Tax Incentive
Review Committee.
APPLICATION PROCESS:
Once a company has determined that it meets the minimum criteria for consideration of a tax
abatement, then a company may begin the process of formally applying for the relevant
incentive. The process is as follows:
1. Letter of Intent submitted on applicant’s letterhead to the Planning Director (No
improvements shall be considered for abatement if made or permitted prior to the approval of
the abatement application).
2. Complete any relevant Michigan Department of Treasury Forms. Include with the form:
a. Cost Sheet for anticipated improvements in real property.
b. Lease Agreement showing building terms and applicants’ tax liability (if applicable).
3. Submit application form and attachments to the City of Muskegon Planning Department.
4. Tax Incentive Review Committee verifies completion and eligibility of Applicant’s documents
for submission and makes recommendation to the City Commission regarding approval and
length of the requested abatement.
5. City Commission Public Hearings are scheduled.
6. City Commission votes on establishment of the District and approval of the associated
abatement (City Commission may also vote to reject any application for abatement).
7. Resolution submitted to State Tax Commission for final approval and issuance of certificates
where necessary.
8. Projected investment must be complete within two years or risk liability for any abated values.
LENGTH OF THE TAX ABATEMENT:
The City Commission has approved the use of the following matrices to calculate the length of
the associated tax abatement. The points in this scoring system are tied to community goals
endorsed by elected officials and staff, thereby rewarding and incentivizing specific development
types and values with additional potential years of abatement:
Cognate Value Cognate Value
PA 198 PA 210, 255, 146
Taxable Value 0-5 Taxable Value 0-5
Job Creation 0-3 Location 0-2
Resident Hiring 0-2 New Business 0-1
Resident
Owned/Managed 0-2
TOTAL 0-10 TOTAL 0-10
PA 198 IFEC Scoring Guide
1-7 Points: 9-Year 50% Abatement
7-10 Points: 12 Year 50% Abatement
PA 210 Tax Abatement Scoring Guide
1-5 Points: 3 Years frozen taxable values
6-8 Points: 6 Years frozen taxable values
9-10 Points: 10 Years frozen taxable values
PA 255 Tax Abatement Scoring Guide
1-5 Points: 4 Year Abatement
6-8 Points: 8 Year Abatement
9-10 Points: 12 Year Abatement
PA 146 Tax Abatement Scoring Guide
1-5 Points: 4 Years frozen taxable values
6-8 Points: 8 Years frozen taxable values
9-10 Points: 12 Years frozen taxable values
TAX ABATEMENT APPLICATION FEE:
The City Commission has authorized the implementation of a non-refundable application fee of
$1,000.00 for Public Act 146, Public Act 255, and Public Act 210 abatement applications. Public
Act 198 tax abatement applications carry a non-refundable application fee equal to 2% of the
abated taxes, not to exceed $1,722.
REQUIREMENTS AFTER TAX ABATEMENT IS APPROVED:
By the December 31 that is two years after the December 31 of the year that the abatement is
approved, the applicant will supply the Planning Director with a letter confirming that the
purchases, employment numbers, renovations, and/or other applicable cognates are complete.
If these figures have not been reached, a letter of explanation must be submitted to the Planning
Director, for review by City Commission, which may then cancel the abatement, or offer a new
abatement with reduced values and years.
For assistance with your business attraction and retention needs, please contact the City
Economic Development Office at 231-724-6870. For assistance with the associated process and
application, please contact the City Planner’s Office at 231-724-6702.
Tax Incentive Policy Scoring Guide
INDUSTRIAL FACILITIES EXEMPTION (PUBLIC ACT 198)
TAXABLE VALUE: The City will consider the estimated additional tax base that the development
will generate based on plan review, assessor's analysis and permit fees. 1 point awarded for
$250,000 - $499,999 in taxable value, 2 points awarded for $500,000 to $749,999, 3 points
awarded for $750,000 to $999,999, and 4 points awarded for taxable value creation over
$1,000,000. Any improvement resulting in $5,000,000 or more in new taxable value will be
recommended for the full 12 year abatement. Additionally, any construction of a new industrial
facility will be recommended for the full 12 year abatement.
JOB CREATION: Up to 3 additional points can be earned by creating new full time jobs in the
City Limits. 1 point will be earned for 10 newly created jobs, 2 points for 11-24 jobs, and the full
3 points for 25+ jobs. Any development creating 100 or more jobs in the first three years will
recommended for the full 12 year abatement.
RESIDENT HIRING: An additional point will be awarded if the proposed development will
commit to employing 10% of its full time staff from within the city limits, and an additional 2
points will be awarded if the proposed development will commit to employing 20% of its full
time staff from within the city limits.
COMMERCIAL REHABILITATION TAX ABATEMENT (PUBLIC ACT 210)
COMMERCIAL REDEVELOPMENT DISTRICT ABATEMENT (PUBLIC ACT 255)
OBSOLETE PROPERTY REHABILITATION ACT (PUBLIC ACT 146)
TAXABLE VALUE: The City will consider the estimated additional tax base that the development
will generate based on plan review, assessor's analysis and permit fees. 1 point awarded for
$150,000 to $249,999 in taxable value, 2 points awarded for $250,000 to $499,999, 3 points
awarded for $500,000 to $749,999, and 4 points awarded for $750,000 to $999,999, and 5
points for taxable value creation over $1,000,000. Any development creating a taxable value
over $5,000,000 will recommended to receive the full abatement.
LOCATION: An additional two points will be awarded to a development if it is proposed in one
of the City's identified Commercial or Residential Redevelopment Areas (map attached).
NEW BUSINESS: An additional point will be awarded if the development is being proposed by a
commercial entity or housing developer that has not previously developed in the City of
Muskegon.
RESIDENT OWNER: An additional two points will be awarded if the proposed business or
development is owned or managed by a City of Muskegon resident.
LS
IL
M
CHADWICK
WESTWIND
EI
M
FO
K
SU
ER
OA
MEAD
W
N
KE
SE
LE
PI
CA
LA
T
R
NE
RK
US
OW
W
PA
EW
O
O
AY
ST
D
EW
LS
IL
AR
M
T
HICKORYNUT
ST
EW
FL
B WINDY
VA
EM
1S
AR
3 R IDGE
ND
BR
IN
T
TO
G
ER
B
1S
S3
W
U
ER
CHESTNUT
LS
P
BEAR LAKE IL 31 NB
ALLENWOOD
M O US
1 NB T
BR 3
RA
SB
US 31
Y
NB TO
BR 31 MACARTHUR
1S
T
US 31 NB TO BR 31 SB
BR
31
E AN TO
ER D IM M
AMY
AK
M
N R UD -1
20
O
1S
O
HUETHER LT
T
U ACCESS
O M-120 TO BR 31 NB
3R
M
D
2N
FAMLEE
D
E
4T
ER
H
M L
KE AK RA KE STEBBIN S
DAUTERSON
LA
GETTY
LI
LA O NT
ND
CE
WA
ER
M
TA
PEN NSYLVANIA
AN
3R
OT
BEAR LA
D
E
ENAB
M
TOST
QUARTERLINE
AR
HANOVER
YL
G
BA
AR
YO
AN
KE
M
U
BE
D
IL
LANCASTE KE
LE
R LA
R
NE
R
PL
VI
YM
O
FR
UT
RA
LY
A
R
H
NK
NC
TE BU BRUSSE
BRUSSE
LI
O
T LE
N
TT
R HALL
CALIFORNIA
BRUSSE
MORGAN
TT
MC
MI
O
C ON
MEEKING
D
CR
SC
CI
NE ADAMS
SCHOOL
OS
OA
N
LL
RC
S
FOREST
E
DONALD
ER
ADAMS
CHANNEL
K
PR
LE
CA Y ADAMS
LANGLEY
OAKHILL
CAMPBELL
ST
SA D
O
MARSHALL
NE
BROADMOOR
EL
WE
LLI
DRATZ
M LEONARD
B
SHONAT
JA
N
C LEONARD
GUNN
KS LEONARD
LIGHTON
31
ON
RENAE
KRAFT
DENSMORE
BR
ON
MARQUETTE
EA
CHARLES
BEN NETT
KS
CRESTON
RY
IC
HARVEY
MAC
DU
ER
KRAFT KRAFT
BA
IUS
JACKSON DUCEY
Y
DUCEY
TAV
GLEN OAKS
ROBLANE
BROADMOOR
DUCEY
MCLAREN
ABBEY
GID
A
HERRICK
OC
B
D ING
YU
ALVA
JAMES
MARLANE
MARGARET
ROBERTS
S JAMES
MULDER
ELLIFSON
MARY
SUELANE
GID
SCHOOL
JAMES
AGNES
EAST
HA D ING
LL S SUMNER ALBERT
DENSMORE
AK
ALBERT
WEST
CIH
VIR ALBERT
ID IAN
GLEN
BROADMOOR
WESLEY
VIRIDI AN
WESLEY
MARCOUX WESLEY
CARLTON
EASTERN
SURREY
CENTER
MARCOUX MONICA
TE MARC OUX
R VILLAGE
MUSKEGON LAKE RA
I NT
CE MARC OUX
MA
PO
RS
DUDLEY
HOME
H
CE
EM
1S MARVIN
ON
PIN
T WHITE MARVI N
RA
LT
ER
WAGNER
WA
E
MU
R
AL
BROADMOOR
Y
CARRIAGE
TE
LA LAWRENCE
R
D
RILEY
C
QUAIL
PH
COVEY
JEROME
Y
OAK
SP
E
TL
RI
SHIRLEY
CE
R OAK OAK
NG
MY HIL
TE
IS
DA
LC
RR
EMERALD
R
R
APPLE T
KENNETH
R
O ES
RA
HOME
M ORCH ARD T
CARLTON
3R
SCOTT
CE
CLARK
SIDELL
D
STEVENS
ORCHARD
O
ON
FORK
LT E AMITY
U S 31 N
TL
M
CENTER
WA R
AR
MY
T
ALLEN MADALENE MADALENE
EVART
B RAMP
JAY
PLYMOUTH
2N
ALLEN
5T
D
H
MILTON
RN RD
SHIRLEY
STE CO
E N
W CO APPLE
APPLE
EASTGATE
HAMILTON
SO
OAKGROVE
PH
RD ADA
FO ADA
IA
GRAHAM
ROBERTS
RT ADA
TO
HA ADA
KEN NETH
HOUSTON
AM
U S 31 S
BURTON
GREEN
BR
GORDON
A
OS
AN
MAPLE
HOLT
E ISABELLA ISABELLA
DI R ISABELLA
ISABELLA
WA
IA
MONROE
B RA M
CHESTNUT
N
WILL IAMS
ER LA
GO DE
ST KE
SP
INGRAM
B S NA
MADISON
E CATHERINE
RI
JEFFERSON
U IO CATHERINE
P
W M L
NG
SHONAT
IL MERRILL
R
SAUTER
ER
M
RA
MCLAUGHLIN MCLAUGHLIN
BAR LOW
4T
8T
NS
PEC K
EAST
E MCLAUGHLIN
H
H
RO
OM
IN MCLAUGHLIN
WESTERN ON STRONG HL
M NE UG
11
GRAF
RI LA CALVIN
TH
HE MC
9T
CALVIN
OAKLEA
T CALVIN
CA HIL
H
H
ON ANNETTE
ET
L
AS
NN
CENTER
AR
MICHIGAN BA FRANCIS
ROBERTS
M
NG W CA FRANCIS
KE
TH
O FRANCIS
WEST
R TA TA FRANCIS
ST CA BENTON
U
MORRALL W BURKE
BA
R
JEFFERSON
US R LANGELAND
HOLLYWOOD
P UE
RA
DENSMORE
M BA LANGELAND
CA LANGELAND
MS
EASTWOOD
WASHINGTON MANGIN WINSLOW
IRWIN KENT
O
WASHINGTON
M
OOSTERBAAN HOWARD
MO
WINTERS
LO
GARDEN
HARVEY
VINE
AU
UI
BEIDLER
VINE
SE
HI S EV
OA
IRWIN IRWIN
PINE
RN
GH GRAND AN
D
ST VINE
KL
HUDSON
FLOWER
AL
FARNSWORTH
ON
HA
JIROCH
GRAND
AW
E
SAMBURT
GLADE
GRAND BUSH BUSH
6TH
LEAHY
N
KAMPENGA KAMPENGA
KINGSLEY
SUMMERSET
DIVISION
GRAND
CLINTON
CARLTON
5TH
FRANKLIN
SOUTHERN GRAND
CLARK
BURTON
NI FLEMING OAK PK
M OAK PARK
TERRACE
M S OAK PARK OAK PARK
CG
RA FOREST
FOREST
FT FOREST EMERSON
7TH
KREGEL
MESSLER
Y
VE FOREST KREGEL KREGEL
ER
R IRELAND FOREST FOREST
NO
DAVIS
M
IV
O
HUIZENGA
FOREST
GLADE
N DALE IRELAND
G
Y
GLADE
SOUTHLAND
NT
DALE SOUTHLAND
O
DALE
SAUTER
M
EL DALE JEFFERSON
G
MCGRAFT
M DALE
NEW
SC DALE RA DALE DALE DALE
MADI SON
DALE CE
CRESTON
H UY LARCH
BROADMOOR
EDWIN
BURTON
VULCAN
ROBERTS
LE LARCH LARCH
R
LARCH AURORA AURORA EV AURORA
AN
CLINTON
M LARCH ST
ON
SMITH
O
O
WIERENGO
G RE LARCH LARCH
FAIRVIEW
MCILWRAITH
RE
EL
SUPERIOR
ELWOOD
MANZ
EY TUR NER
DYSON
ER
LM
LAKETON
JARMAN
SHERIDAN
PA
FRANKLIN
LAKETON
FRI
NEVADA
5TH
N
RAY
SB
NI
LA
ALPHA
AUSTIN
TEMPLE
M
BURTON
NO
COMMERCE
IE
WINDSOR S
ADDIS
JIROCH
RO
US 31 NB
CONTINENTAL
IL
SO
BAR BARA
ON
VALLEY
N HOLBROOK
CLINTON
ROUSE
REYNOL DS
HOLBROOK
HOWDEN
SHELBY
INTERWOOD
CROWLEY
ON
KINSEY
BRUNSWICK
IS
RR
RIAL
HUIZENGA
PORT CITY
HA YOUNG
YOUNG
GLADE
US 31 SB
YOUNG
INDUST
EV
VULCAN
O RE AN
ST
ESH KEATING ON
LAK
HUDSON
LYMAN KEATING
WOOD
MA
FAIR KEATING KEATING
KEATING
ON WOODCREEK
PARSLOW
NN
BOURDON
ESTES
RIS KEATING
BURTON
KEATING
DYSON
HAR
WOODWARD
THERESA
WILSON
7TH
VAN DINTHER
WILSON DELANO
GLADE
TORRENT
ROYALE GLEN
SAN FORD
REMEMBRANC E
BLODGETT
DELANO
ELWOOD
DOWD
ER
MIN HANCOCK
M
CENTER
CG
MO
RO
MCILWRAITH
RA
HARVEY
SE MANN
HOWDEN
HOYT
ON
FT
W LATIMER
DEN
LEAHY
HENRY
OO
BAR CLAY
PK
SUPERIOR
D HACKLEY
9TH
LEON
MA
POLISKI
BEIDLER
G
CONTINENTAL
5TH
RK
DIN
STEIN
MORTON HAR
AUSTIN
JEFFERSON
VALLEY
GLEN
VINCENT
GLEN HACKLEY
HACKLEY
MAFFETT
CREEKVIEW
HARDIN G
IN G
PARK
LEMUEL
TEMPLE
D BAR NEY
HAR N
SO
SIS
WAALKES
RIDGE BAR NEY
CROZIER BAR NEY
ELWOOD
G
ALBERTA
CUMBERLAND
BEIDLER
R
LEXINGTON
EE
MANZ
HADDEN
GLE
N
REYNOL DS
BLACK CRK
W
BR 31 SB
MCCRACKEN
GLADE
O
CUTLER
N
RAMP
O
PULASKI PULASKI
WESTWOOD
D
BEARDSLEY WILD WOOD IVORY
HOVEY
BAKER
US 31 SB TO SHERMAN
PHILO RANDOLPH HOVEY
WICKHAM
HOVEY
PINE GRV
RIOR DAN
LETART WINCHESTER HOWELL
LEON
TORRENT
MONTAGUE HUME MERCY
SUPERIOR
SUN DOLPHIN
OLTHOFF
JEFFERSON
ELWOOD
5TH
DYSON
HARRIS
8TH
WARREN
BEL LEVUE
RAY
LINDBERG
CHARLES
PUBLIC ALLEY
BR 31 NB
FOREST HILLS
LIBERTY
EMERSON
PINEHURST
BUNDT BUNDT
PARK
FAIRFIELD
HUGHES SHERMAN
9TH
6TH
JARMAN
PLAZA DRIVE E
SEAWAY
MANOR
UTAH
OAK
TEMPLE
NORMAN BEU LAH
ESTES
THIRD
NORMAN IDAHO
MANAHAN PEN
BLUE JAY
HUIZENGA
MAPLE N
GLENSIDE
ROBERTS
MANAHAN
VULCAN
PLAZA DRIVE W
WORDEN
MAIN MAIN
VAL K
HARBOR MANAHAN
SHERIDAN
U S31 NB
OREGON
PARK
MCARTHUR
MCILWRAITH
GARRISON
MONTANA
BROADWAY CENTER
GRIFFIN
MERTESE
PLAINFIELD
KRUGER
D MANAHAN
CORNELL AN
DAWES
TL
MAPLE GRV
LEON
S
CONTINENTAL
E
LT
JEFFERSON
BR 31 SB
WAALKES
OAKRIDGE
MCDERMOTT
LINCOLN PARK
BRUNSWICK
W
LEMUEL
MAFFETT
VE
MADI SON
SHERIDAN
FAIRFIELD
SHEFFIELD
AUSTI N
VAL LEY
VULCAN
PARK
WORDEN
SUMMIT D
BAILEY
SE
LEAHY
GLADE
5TH
AN
M
VALK
O KOOI
US31 SB
AS
TL
RO
PANZL
RO
OAK
O
S K
Y
EA
N
MAYFAIR
PRINCETON
POST OA COLUMBIA
BONNEVILL E COLUMBIA YARMOUTH
Environmental Building Standards Committee Recommendation
April 4, 2020
REVIEW
Current energy code standards equate to LEED baseline certification. If we want to incentivize
construction that meets a higher standard, we can only include stricter or higher level
certification.
Costs to reach higher levels of LEED certification far outweigh any tax abatement we could
offer, and therefore would not result in the incentive we were hoping to provide.
LEED construction is 3.3 – 8.5% more than standard construction plus certification fees from
$20,000 to $60,000. If we average the value of all the IFT abatements currently within the city,
a company can count on about $4,000 per year in reduced taxes paid to the city. If the points
awarded to the developer provide another 3 years of abatement, they can expect to save
$12,000. That amount does not cover the certification fees, let alone the additional
construction costs.
Only 6 states have municipalities that offer tax refunds/abatements/credit. The Cincinnati
program has been under scrutiny and is being redesigned. Chatham County, Georgia offers full
property tax abatement for 5 years, then reduces the abatement by 20% for the next 5 years
for any commercial building that reaches gold certification. Current incentives given by a
municipality within Michigan only apply to municipal buildings. In other local agencies
throughout the country, policies are more related to providing faster permit reviews, a density
bonus, or cash toward construction costs. A density bonus would not be applicable in
Muskegon at this time since we have so much vacant land ready for construction. Any program
that offers cash toward construction would be developed outside the tax incentive policy.
Ideas related to faster permit reviews and the possibility of adding certain green practices to
our building code such as material conservation, use of recycled material, or a requirement to
use LED lights were presented to Public Safety.
Environmental Building Standards Review and Recommendation Page 2
We can make a larger impact on the environment (reducing carbon emissions) by using proper
planning principles and developing a walkable, bikable, transit friendly city. Reducing the need
for and use of cars will provide a significant and lasting impact on the environment. An EPA
study entitled “Location Efficiency and Building Type – Boiling It Down to BTUs” compared four
factors: drivable versus walkable location; conventional construction versus green building;
single-family versus multifamily housing; and conventional versus hybrid automobiles. The
study made it clear that none of the factors contributed as much as walkability. It showed
specifically how, in drivable locations, transportation energy use consistently tops household
energy use, in some cases by more than 2.4 to 1. The most green home in sprawl still loses out
to the least green home in a walkable neighborhood.
RECOMMENDATION
• Approve the tax incentive policy without inclusion of points for green building
practices.
• Continue to incorporate good planning principles when guiding potential developers
and approving site plans.
• Work with Safebuilt to develop building code modifications to require material
conservation, the use of recycled materials when available, and the inclusion of LED
lighting.
• Work with Safebuilt to accelerate permit review processes for buildings that are LEED
certified.
Environmental Building Standards Supporting Data
April 4, 2020
Michigan Energy Code
• Incorporates the International Energy Conservation Code (IECC) – this is a model code that
regulates minimum energy conservation requirements for new buildings.
• The Michigan Energy Code is intended to provide flexibility to permit the use of innovative
approaches and techniques.
LEED (Leadership in Energy Environmental Design program) is a green design mission which
promotes design and construction practices with the idea that an increase in energy efficiency
will lead to a decrease in expenditure.
• Companies pay LEED to critique a building’s green design based off criteria developed by
the U.S. Green Building Council (USGBC) and labeling it Certified, Silver, Gold, or
Platinum. If the building does not meet the USGBC’s criteria, LEED will deny certification.
• USGBC - launched an online data visualization resource that highlights real-time green
building data for each state in the U.S. It highlights LEED projects, LEED-credentialed
professionals, and USGBC membership in each state.
https://www.usgbc.org/resources/state-market-brief
• LEED project data below only includes commercial rating systems. USGBC green building
data from each state – LEED-credentialed professionals, member organizations and
LEED projects.
LEED ACHIEVEMENT PROJECTS, 1/7/20
Certified Silver Gold Platinum
638
622
605
NUMBER OF PROJECTS
368
352
287
280
230
174
159
151
132
118
110
109
109
30
27
26
7
MI IL IN OH WI
STATE
EPA’s Energy STAR program
• This program helps to calculate the returns on energy efficiency investments by way of
various calculators based on cash flow opportunity, financial value and building upgrade
values.
Environmental Building Standards Supporting Data Page 2
Energy Vanguard
• A diminishing return can take place whereby adding additional energy efficient
materials to a structure results in smaller increments of efficiency.
• Examples of incentives offered across the U.S. - Financial incentives / Expedited permitting /
Property tax reductions or abatements for significant periods of time / Density bonuses /
Accelerated building permit processing / Free publicity
• The cost to obtain LEED certification can depend upon a variety of factors and expectations.
The U.S. Green Building Council (USGBC) indicates the cost to obtain LEED certification can
depend on factors/expectations:
o Type and size of project / timing of introduction of LEED as a design goal or
requirement / level of LEED certification desired / composition and structure of the
design and construction teams / the process used to select LEED credits / clarity of
the project implementation documents / base case budgeting assumptions
• Fees charged by the U.S. Green Building Council to earn LEED are expensive - $20,000 to
$60,000.
• One of the first LEED cost studies was published in October 2003 by KEMA, an energy
consulting company. The total project cost LEED certification premiums identified in the
KEMA study continue to be among the most commonly cited:
o LEED Certified – 0-2.5 percent
o LEED Silver – 0-3.3 percent
o LEED Gold – 0.3-5.0 percent
o LEED Platinum – 4.5-8.5 percent
Sign up for City of Muskegon Emails