Approved Agreements and Contracts 2024/08/13 Commercial Rehabilitation Certificate 349 W. Webster

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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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