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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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