Approved Agreements and Contracts 2024/01/23 Green Development Ventures, LLC PILOT Fee Resolution

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                       Agenda Item Review Form
                     Muskegon City Commission


Commission Meeting Date: January 23, 2024            Title: Green Develooment Ventures, LLC (Allen
                                                     Edwin Homes) PILOT Fee Resolution


Submitted by: Jake Eckholm, Development              Department: Economic Development
Services Director


Brief Summary:
A resolution is required to establish the annual Payment in lieu of Taxes (PILOT) fee for the proposed
infill housing scattered site project proposed by Green Development Ventures, LLC (Allen Edwin).

Detailed Summary & Background:
This reolution acts in concert with the proposed Restrictive Covenant on the agenda as necessary
documents to be passed by a local municipality in order to establish a PILOT for scattered site
homes. The resolution sets the annual payment at 10% of gross shelter rents for the life of the PILOT.

Goal/Focus Area/Action Item Addressed:


Key Focus Areas:
Diverse housing types


Progress toward completion of ongoing economic development projects

Goal/Action Item:
Action Item 2022 — 2.3 Increase variety of housing types

Amount Requested:                                     Budgeted Item:
N/A                                                   Yes            No           N/A


Fund(s) or Account(s):                                Budget Amendment Needed:
N/A                                                   Yes            No           N/A


Recommended Motion:
Motion to adopt the Resolution establishing the annual PILOT fee as presented, and authorize the
mayor and clerk to sign.

Approvals:                                            Guest(s) Invited / Presenting:

Immediate Division
                                                        Yes
Head

Information Technology

Other Division Heads

Communication

Legal Review



                                                                                              Paae 87 of 161
                         Resolution Setting Annual Service Fee
                        for the Workforce Housing Development
                         by Green Development Ventures, LLC
                                        2024-131)


Whereas,    Green Development Ventures, LLC (the “Sponsor’”), has applied to the City of
            Muskegon for a determination that a proposed workforce housing project sponsored
            by it at 1227 Adams, 514 Oak, 1919 Elwood, 733 Marcoux, 586 Orchard,912 E.
            Isabella, 501 E. Apple, 499 Ada, 1115 Chestnut, 1123 Chestnut, 613 E. Isabella,
            1968 Park, 1280 Sanford, 1338 Arthur, 1459 Terrace, 1694 Pine, 1691 Smith, 204
            W. Dale, 237 Washington, 1259 Sanford, 390 Catherine, 430 Langley, 730
            Marcoux, 1725 Wood, 367 E. Holbrook, 1874 Manz, 582 Amity, 586 Allen, 1282
            Fleming, 1773 Superior, 741 Getty, 1778 Pine, 1867 Austin, 357 E. Isabella, 1303
            Sixth Street, and unaddressed parcel 24-205-406-0009-00 is entitled to the
            exemption from taxes authorized by Chapter 82 of the City of Muskegon Code of
            Ordinances; now therefore, be it

Resolved,   that the proposed workforce housing project is within the class of housing
            developments entitled to an exemption under Chapter 82, if it meets the following
            contingencies:
            a.     Sponsor shall provide documentation to the City substantiating ownership
                   of the subject properties.
            b.     Construction of at least 12 units of the proposed workforce housing project
                   shall be commenced within twelve (12) months from the date of the
                   Michigan State Housing Development Authority’s (MSHDA) notification
                   of exemption, or this resolution shall be void and of no effect.
            C.     For the life of the this Workforce Housing Resolution, 100% of the dwelling
                   units in the proposed workforce housing project will be restricted to rental
                   units or other housing options that are reasonably affordable to, and
                   occupied by, a household whose total household income is not greater than
                   120% of the area median income published by the United States Department
                   of Housing and Urban Development.
            d.     The Sponsor shall submit an affidavit to MSHDA in the form required by
                   MSHDA for certification that the workforce housing project is eligible for
                   the workforce housing exemption.
            e.     Upon receipt of notification from MSHDA that the workforce housing
                   project is eligible for a workforce housing exemption, the Sponsor shall file
                   the certified notification of exemption with the City Assessor before
                   November 1 of the year preceding the tax year in which the exemption is to
                   effective; and,
            f.     Sponsor shall record a restrictive covenant in a form acceptable to the City
                   Attorney. The restrictive covenant shall be recorded in the register of deeds
                   for the county in which the workforce housing project is located and shall
                   comply with the requirements of Chapter 82; and, further be it
Resolved,    that in lieu of ad valorem property taxes, the Sponsor shall pay an annual service
             charge equal to ten percent (10%) of the “Annual Shelter Rents” as defined in
             Section 82-52 for that portion of the workforce housing project occupied for
             Workforce Housing; and, further be it



Resolved,     that annually, no later than April 29, the Sponsor shall provide the City Assessor
              the Sponsor’s budget for Annual Shelter Rent for the current calendar year and a
              copy of Sponsor’s audited financial statements for the preceding calendar year,
              prepared in accordance with generally accepted auditing standards or, if Sponsor is
              not subject to an audit requirement, Sponsor’s compiled financial statements for the
              preceding calendar year prepared in accordance with generally accepted accounting
              principles and certified by Sponsor; and, further be it


Resolved,     that the tax exempt status granted by this Resolution shall remain in effect for 15
              years, unless otherwise terminated pursuant to Chapter 82 or this Resolution; and,
              further be it


Resolved,     that all portions of Chapter 82 are hereby incorporated by reference; and, further be
              it


Resolved,     that this Resolution may be assigned by the Sponsor only to subsequent owners of
              the workforce housing project who shall agree to abide to its terms. If not assigned,
              to and accepted by subsequent owners of the workforce housing project, it shall
              automatically terminate; and further be it


Resolved,     that the Mayor and City Clerk execute a contract with the Sponsor providing the
              tax exemption and acceptance of payments in lieu of taxes as defined within this
              resolution and its application, such contract subject to approval as to substance by
              the City Manager and as to form by the City Attorney.


YEAS: Johnson, Kilgo, St.Clair, Gorman, Kochin, and Keener

NAYS: None




                                     Ken Johnson, City of Muskegon Mayor


I hereby certify that the above Resolution was adopted by the City Commission of the City of
Muskegon at its regular meeting held on January 23, 2024, in the Commission Chambers, City
Hall, 933 Terrace, Muskegon, me



                                        Ann Meisch, City Clerk

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