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Agenda Item Review Form Muskegon City Commission Commission Meeting Date: August 13, 2024 Title: Public Hearing, Issuance of a Commercial Rehabilitation Certificate, 349 W. Webster, LLC, 349 W. Webster Ave. Submitted by: Contessa Alexander, Development | Department: Economic Development Analyst Brief Summary: Pursuant to Public Act 210 of 2005, as amended, 349 W. Webster, LLC is requesting the issuance of a Commercial Rehabilitation Certificate (PA 210) at 349 W. Webster Ave. to support further development at 349 W. Webster Ave. Detailed Summary & Background: The developer is requesting the issuance of a Commercial Rehabilitation Certificate (PA 210) at 349 W. Webster Ave. The approval of this certificate is contingent to the approval of the Commercial Rehabilitation District. Issuance of this incentive will freeze the taxable value of the building and exempt the new real property investment from local taxes. The project involves renovating the former Muskegon Public Schools administrative offices to accommodate mixed uses, short term rentals, lodging, retail, and office spaces. The renovation will preserve key historic components while repairing the exterior fagade. The total capital investment is over $11 million, and the project is expected to create 5 new jobs and 100 construction jobs during 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 Accouni(s): Budget Amendment Needed: N/A Yes No N/A | X Recommended Motion: | move to close the public hearing and approve the attached resolution establishing a Commercial Rehabilitation Certificate at 349 W. Webster Ave. and authorize the City Clerk and Mayor to sign. Resolution No. 2024-75 (C) MUSKEGON CITY COMMISSION RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF A COMMERCIAL REHABILITATION CERTIFICATE 349 West Webster, LLC WHEREAS, pursuant to P.A. 210 of 2005 as amended, after duly noticed public hearing held on August 13, 2024, this Commission by resolution established a Commercial Rehabilitation District as requested by 349 West Webster, LLC for the building at 349 West Webster Ave., Muskegon, Michigan 49440; and WHEREAS, 349 West Webster, LLC requested in writing for the City to establish a Commercial Rehabilitation District at 349 West Webster Ave., 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, 349 West Webster, 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, 349 West Webster, 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 IT 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 349 West Webster, 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 ENTIRE BLOCK 335 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: Kilgo, Keener, German, Gorman, Kochin, St.Clair, and Johnson Nays: None Absent: None BY: Ne pdrwre ~~ Ken Johnson Mayor ATTEST: — Sci pk Ann Meisch Clerk CERTIFICATION | hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the Muskegon City Commission, County of Muskegon, Michigan, ata regular meeting held on August 13, 2024. QO ssa Ann Meisch Clerk
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