Approved Agreements and Contracts 2024/07/09 Issue Commercial Facilities Exemption Certificate West Haven 280 LLC

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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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