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Agenda Item Review Form Muskegon City Commission Commission Meeting Date: July 9, 2024 Title: Issuance of a Commercial Facilities Exemption Certificate - West Haven 280 LLC Submitted by: Jocelyn Hines, Development Department: Economic Development Analyst Brief Summary: Pursuant to Public Act 255 of 1978, as amended, West Haven 280 LLC has requested the issuance of a Commercial Facilities Exemption Certificate. The certificate will freeze the taxable value of the building and exempt new real property investment from local taxes. The company will be investing over $1,050,000 in the building and will create 22 new jobs, which qualifies Them for an abatement of 4 years. Detailed Summary & Background: West Haven 280 LLC will rehab the 11,500 sq. ft. facility starting in July 2024. The total real property investment will be $1,050,000 and will create 22 new jobs. West Haven 280 LLC recently purchased 280 W. Muskegon Ave from Central United Methodist Church. This will change this building to commercial use, which will create taxable value. This building will house several family businesses, including Little Miss Green Thumb, Broadway Bootcamp, and Heal from Within. It will also house a performance venue, coffee shop, immersive play area, and additional lease space. Staff Comments: The Commercial Redevelopment District is scheduled for public hearing and approval for July 9th by the City Commission. The resolution is included in the agenda packet. The Internal Tax Committee reviewed the applicant's project on June 26, 2024, and based on their findings and calculations, the committee suggests approval of the attached resolution for a term of 4 years for real property. The company has turned in all necessary documents. Goal/Focus Area/Action liem Addressed: Key Focus Areas: Progress toward completion of ongoing economic development projects Goal/Action ltem: 2027 Goal 2: Economic Development Housing and Business Amount Requested: Budgeted ltem: Yes No N/A Xx Fund(s) or Account(s): Budget Amendment Needed: Yes No N/A xX Recommended Motion: | move to close the public hearing and approve the attached resolution granting a Commercial Facilities Exemption Certificate for a term of 4 years for real property to West Haven 280 LLC and to authorize the Mayor and Clerk to sign. Approvals: Guesi(s) Invited / Presenting: Immediate Division X Head Yes Information Technology Other Division Heads x Communication Legal Review Resolution No. 2024-66(B) MUSKEGON CITY COMMISSION RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF A COMMERICAL FACILITIES EXEMPTION CERTIFICATE West Haven 280 LLC WHEREAS, the City of Muskegon legally established the Commercial Redevelopment District 280-2024 on July 9, 2024, after a public hearing held on July 9, 2024; and WHEREAS, the state equalized value of the property proposed to be exempt plus the aggregate state equalized value of property previously exempt and currently in force under Public Act 255 of 1978 and under Public Act 198 of 1974 (IFT's) does not exceed. 5% of the total state equalized value of the City of Muskegon; and WHEREAS, the application was approved at a public hearing as provided by section 6(2) of Public Act 255 of 1978 on July 9, 2024; and WHEREAS, the West Haven 280 LLC is not delinquent in any taxes related to the facility; and WHEREAS, the application is for commercial property as defined in section 3(3) of Public Act 255 of 1978; and WHEREAS, the applicant West Haven 280 LLC has provided answers to all required questions under Section 6(1) of PA 255 of 1978 to the City of Muskegon; and WHEREAS, the City of Muskegon requires that the construction, restoration or replacement of the facility shall be completed by May 31, 2025; and WHEREAS, the Commercial Facilities Exemption Certificate is granted for a period of six (6) years and no extension will be allowed; and WHEREAS, the commencement of the construction, restoration or replacement of the facility did not occur more than 45 days prior to the filing of the application for exemption; and WHEREAS, the commencement of the construction, restoration or replacement of the facility did not occur prior to the establishment of the Commercial Redevelopment District; and WHEREAS, the application relates to a construction, restoration or replacement program which when completed constitutes a new, replacement or restored facility within the meaning of Public Act 255 of 1978 and that is situated within a Commercial Redevelopment District established under Public Act 255 of 1978; and WHEREAS, completion of the facility is calculated to, and will at the time of issuance of the certificate, have the reasonable likelihood to, increase commercial activity, create employment and retain employment in which the facility is situated; and WHEREAS, the restoration includes improvements aggregating 10% or more of the true cash value of the property at commencement of the restoration as provided by section 4(6) of Public Act 255 of 1978. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Muskegon Be and hereby is granted a Commercial Facilities Exemption for the real property, excluding land, located in Commercial Redevelopment District 280-2024 at 280 W. Muskegon Ave for a period of six (6) years, beginning December 31, 2024, and ending December 30, 2030 pursuant to the provisions of PA 255 of 1978, as amended. Adopted this 9" Day of July 2024. AYES: Johnson, Kilgo, German, Gorman, Kochin, and St.Clair NAYS: None Absent: keener ON 4 BY: via ‘Ken Johngon, Mayor Bled Bn.Meisch, arms Se Ann ~N Clerk CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on July 9, 2024. Qe as Ann Meisch, Clerk
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