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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: August 13, 2024 Title: Request, Issuance of a Commercial
Rehabilitation Certificate, Muskegon Midtown
Center, LLC 1095 Third St.
Submitted by: Contessa Alexander, Development | Department: Economic Development
Analyst
Brief Summary:
Pursuant to Public Act 210 of 2005, as amended, Midtown Center, LLC is requesting the issuance of a
Commercial Rehabilitation Certificate (PA 210) to support further development at 1095 Third St.
Detailed Summary & Background:
On May 14, 2024, the City Commission approved the establishment of a Commercial Rehabilitation
District. Since then, city staff has worked closely with the developer to finalize a purchase agreement
with the city, which was approved on June 25, 2024. The developer is now seeking the issuance of a
Commercial Rehabilitation Certificate to further facilitate this development. Issuance of this incentive
will freeze the taxable value of the building and exempt the new real property investment from local
taxes.
The structure will be renovated to accommodate mixed uses, including residential, retail, and office
spaces. The project will also support low- to moderate-income housing by accepting housing choice
vouchers. The total capital investment exceeds $10 million, with 30 new permanent jobs and 100
construction jobs expected to be created during the rehabilitation.
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Create an environment that effectively attracts new residents and retains existing residents by filling
existing employment gaps, attracting new and diverse businesses to the city, and expanding access
to a variety of high-quality housing options in Muskegon.
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Amount Requested: Budgeted Item:
N/A Yes No N/A |X
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A | X
Recommended Motion:
| move to close the public hearing and approve/deny the attached resolution for the issuance of a
Commercial Rehabilitation Certificate at 1095 Third St. and authorize the City Clerk and Mayor to
Resolution No. 2024-75(A)
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE
OF A COMMERCIAL REHABILITATION CERTIFICATE
Muskegon Midtown Center, LLC
WHEREAS, pursuant to P.A. 210 of 2005 as amended, after duly noticed public hearing held on May 14, 2024,
this Commission by resolution established a Commercial Rehabilitation District as requested by City Staff
for the building at 1095 Third St., Muskegon, Michigan 49441; and
WHEREAS, Muskegon Midtown Center, LLC requested in writing for the City to establish a Commercial Rehabilitation
District at 1095 Third St., Muskegon in a letter dated July 30, 2024; and
WHEREAS, the application for the issuance of a Commercial Rehabilitation Certificate was filed within six months of the
project's commencement; and
WHEREAS, the rehabilitation of this building is calculated to and will have the reasonable likelihood to retain, create, or
prevent the loss of employment in Muskegon, Michigan; and
WHEREAS, Muskegon Midtown Center, LLC is not delinquent in any taxes related to the facility; and
WHEREAS, the application is for commercial property as defined in section 2(a) of Public Act 210 of 2005; and
WHEREAS, Muskegon Midtown Center, LLC has provided answers to all required questions under the application
instructions to the City of Muskegon; and
WHEREAS, the City of Muskegon requires that rehabilitation of the facility shall be completed by August 13, 2026;
and
WHEREAS, the application relates to a rehabilitation program that when completed constitutes a qualified
facility within the meaning of Public Act 210 of 2005 and that is situated within a Commercial
Rehabilitation District-established under Public Act 210 of 2005; and
WHEREAS, the rehabilitation includes improvements aggregating 10% or more of the true cash value of the
property at commencement of the rehabilitation as provided by section 2(j) of Public Act 210 of 2005; and
WHEREAS, a Public Hearing was held on August 13, 2024 at which the applicant, the assessor and representatives of
the affected taxing units were given written notice and were afforded an opportunity to be heard; and
WHEREAS, the aggregate SEV of real property exempt from ad valorem taxes within the City of Muskegon, will not
exceed 5% of an amount equal to the sum of the SEV of the unit, plus the SEV of personal and real property
thus exempted.
NOW, THEREFORE, BE!T RESOLVED by the Muskegon City Commission of the City of Muskegon, Michigan
that:
1) The Muskegon City Commission finds and determines that the Certificate considered together with the
aggregate amount of certificates previously granted and currently in force under Act No. 210 of the Public
Act of 2005 as amended shall not have the effect of substantially impeding the operation of the City of
Muskegon or impairing the financial soundness of a taxing unit which levies ad valorem property taxes in
the City of Muskegon.
2) The application of Muskegon Midtown Center, LLC, for the issuance of a Commercial
Rehabilitation Certificate with respect to the building improvements and equipment on the following
described parcel of real property situated within the City of Muskegon to wit:
CITY OF MUSKEGON REVISED PLAT OF 1903 LOT 9 EX W 15 FT TH'OF LOT 10 11 12 ALL LOT 13 EX A TRI PIECE
IN SE COR SD LOT COMM AT SE COR THN 3.85 FT TH SWLY TO A PT ON THE SELY LN LOT 13 3.85 FT W OF
POB TH 3.85 FT TO POB BLK 350
3) The Commercial Rehabilitation Certificate is issued and shall be and remain in force and effect for a period
of ten (10) years, ending on December 31, 2034 and may not be extended.
Adopted this 13th Day of August 2024.
Ayes: Gorman, Kochin, St.Clair, Johnson, Kilgo, Keener, and German
Nays: None
Absent: None
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Ken Johnson
Mayor
ATTEST: wee
Ann Meisch
Clerk
CERTIFICATION
| hereby certify that the foregoing constitutes a true and complete copy of aresolution adopted by the Muskegon City
Commission, County of Muskegon, Michigan, at a regular meeting held on August 13, 2024.
Qa dss ak
Ann Meisch
Clerk
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