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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: August 13, 2024 Title: Public Hearing - Request to issue an
Obsolete Property Certificate, Shaw Walker
Opportunity Zone Business 2, LLC- Building 4, 920
Washington Ave.
Submitted by: Contessa Alexander, Development | Department: Economic Development
Analyst
Brief Summary:
Pursuant to Public Act 146 of the Michigan Public Acts of 2000, Shaw Walker Opportunity Zone
Business 2, LLC, has requesting the issuance of an Obsolete Property Certificate at 920 Washington
Ave. to support further development.
Detailed Summary & Background:
The developer is requesting the issuance of an Obsolete Property Certificate for Building 4 at 920
Washington Ave. If granted, the property taxes would be frozen at the pre-rehabilitation rate for the
duration of the certificate. The Obsolete Property Rehabilitation District for this property was
established on July 12, 2016.
The project involves converting the first floor of Building 4 into commercial retail space available for
lease. The developer aims to attract businesses such as restaurants, markets, fitness centers, daycare,
hair salons, massage therapists, and others that will complement the residential components of the
building. The total capital investment is over $4 million, and the project is expected to create 200 jobs
as a result of the rehabilitation.
This project is part of the larger Shaw Walker redevelopment initiative.
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 an
Obsolete Property Certificate for Building 4 at 920 Washington Ave. and authorize the City Clerk and
Mayor to sign.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head Yes
Information
Technology
Other Division Heads
Communication
Legal Review
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
RESOLUTION NO. 2024-75 (D)
A resolution approving the application for an Obsolete Property Rehabilitation Exemption Certificate by Shaw
Walker Opportunity Zone Business 2, LLC.
The City Commission of the City of Muskegon hereby RESOLVES:
Recitals
A. The City Commission has received an Application for an Obsolete Property Rehabilitation Exemption
Certificate from Shaw Walker Opportunity Zone Business 2, LLC, to apply to the improvements
located in an Obsolete Property Rehabilitation District established by previous resolution. All items
described under “Instructions” (a) through (f) of the application for Obsolete Property
Rehabilitation Exemption Certificate have been provided to the City of Muskegon, the Qualified
Local Government Unit, by the applicant.
The City of Muskegon is a qualified local governmental unit as determined by STC Bulletin No. 9 of
2000, dated July 12, 2000.
An Obsolete Property Rehabilitation District in which the application property is located was
established after a hearing on July 12, 2016.
The taxable value of the property proposed to be exempt, plus the aggregate taxable value of
properties already exempted under PA 146 of 2000 and under PA 198 of 1974, does not exceed five
percent (5%) of the total taxable value of the City of Muskegon.
In the event it is determined that the said taxable values do exceed five percent (5%), the City
Commission determines further that the said exceedance will not have the effect of substantially
impeding the operation of the City of Muskegon or impairing the financial soundness of any affected
taxing units.
This resolution of approval is considered by the City Commission on August 13, 2024, after a public
hearing as provided in Section 4(2) of PA 146 of 2000. The hearing was held on this date.
The applicant, Shaw Walker Opportunity Zone Business 2, LLC, is not delinquent any taxes related
to the facility.
The exemption to be granted by this resolution is for twelve (12) years.
The City Commission finds that the property for which the Obsolete Property Rehabilitation
Exemption Certificate is sought is obsolete property within the meaning of Section 2(h) of Public Act
146 of 2000 in that the property, which is commercial, is functionally obsolete. The City has received
from the applicant all the items required by Section 9 of the application form, being the general
description of the obsolete facility, a general description of the proposed use, a description of the
general nature and extent of the rehabilitation to be undertaken, a descriptive list of fixed building
equipment that will be part of the rehabilitated facility, a time schedule for undertaking and complete
the rehabilitation, and statement of the economic advantages expected from the exemption.
Commencement of the rehabilitation has not occurred before the establishment of the district.
The application relates to a rehabilitation program that when completed will constitute a rehabilitated
within the meaning of PA 146 of 2000 and will be situated within the Obsolete Property Rehabilitation
District established by the City under PA 146 of 2000.
Completion of the rehabilitated facility is calculated to and will, at the time of the issuance of the
Certificate, have the reasonable likelihood to increase commercial activity and create employment; it
will revitalize an urban area. The rehabilitation will include improvements aggregating more than ten
percent (10%) of the true cash value of the property at the commencement of the rehabilitation.
The City Commission determines that the applicant shall have twenty-four (24) months to complete
the rehabilitation. It shall be completed by August 13, 2026, or two years after the Certificate is
issued, whichever occurs later.
That notice pursuant to statute has been timely given to the applicant, the assessor for the City of
Muskegon, representatives of the affected taxing units and the general public.
NOW, THEREFORE, THE CITY COMMISSION RESOLVES:
Based upon the statements set forth in, and incorporating the recitals to this resolution, the City
Commission hereby approves the application filed by Shaw Walker Opportunity Zone Business 2,
LLC, for an Obsolete Property Rehabilitation Exemption Certificate, to be effective for a period of
twelve (12) years;
BE IT FURTHER RESOLVED, that this resolution of approval relates to the property set forth in
Attachment A, the legal description containing the facilities to be improved;
BE IT FURTHER RESOLVED, that, as further condition of this approval, the applicant shall comply
with the representations and conditions set forth in the recitals above and in the application material
submitted to the City.
This resolution passed.
Ayes: Kochin, St.Clair, Johnson, Kilgo, Keener, German, and Gorman
Nays: None
CITY OF MUSKEGON
BY: OV Wheto
Ken Johnson
Mayor
prttst\ Yue “Ann Meisch
Clerk
CERTIFICATE
This resolution was adopted at a meeting of the City Commission held on August 13, 2024. The meeting was
properly held and noticed pursuant to the Open Meetings Act of the State of Michigan, Act 267 of the Public
Acts of 1976.
ITY OF MUSKEGON
B Son
p
Ann Meisch, City Clerk
ATTACHMENT A: PROPERTY DESCRIPTION
Address: 920 Washington Ave (Building No. 4, ist Floor Only)
PIN#: 61-24-205-467-0001-00
Parcel Size: 5.16 Acres
Legal: CITY OF MUSKEGON REVISED PLAT 1903 PT OF BLKS 467 AND 468 AND
ENTIRE BLK 474 TOGETHER WITH PT OF THE C & O RR R/W IN SD BLK 467
VAC MICHIGAN AVE BET SD BLKS 467 & 474 THE 2 VAC ALLEYS IN SD BLK
474 DESC AS BEG ON THE N RM LN OF MICHIGAN AVE AT A POINT BEING
N 89D 48M 11S E 549.04 FT FROM THE SW COR OF SD BLK 468 TH N 02D
11M 01S E 7.87 FT TH S 87D 51M 37S E 111.67 FT ALG SLY LN OF A5 STY
BLDG TH N 02D 23M 08S E 85.09 FT ALG E SIDE OF A 4 IN WALL TH S 87D
48M 59S E 28.01 FT ALG NLY LN OF SD 5 STY BLDG TH N 02D 11M O1S E
21.28 FT ALG SD BLDG TH N 88D 38M 32S W 12.93 FT ALG SD BLDG LN THN
00D 42M 58S E 57.92 FT ALG SD BLDG LN TH S 88D 25M 41S E 8.43 FT ALG
SD BLDG LN TH N 00D 42M 58S E 29.45 FT ALG SD BLDG LN TH N 88D 25M
41S W 0.40 FT ALG SD BLDG LN TH N 01D 34M 19S E 0.30 FT ALG SD BLDG
LN TH N 88D 25M 41S W 8.72 FT ALG SD BLDG LN THN 00D 30M 20S E 24.63
FT TH N 82D 30M 04S W 8.71 FT TH S 00D 30M 20S W 9.53 FT TH N 83D 24M
04S W 13.72 FT ALG SD 5 STY BLDG LN TH N OSD 23M 07S E 9.68 FT ALG SD
5 STY BLDG LN TH N 82D 30M 04S W 112.12 FT ALG SD BLDG LN & THE
EXTENSION TH'OF TH N 07D 28M 33S E 75.55 FT ALG SD BLDG LN & THE
EXTENSION TH'OF TH S 82D 42M 42S E 474.11 FT ALG THE SLY R/W LN OF
WESTERN AVE TH S 00D 01M 06S E 664.21 FT ALG THE W RAW LN OF
DIVISION ST TH S 89D 34M 02S W 476.58 FT ALG THE N RAW LN OF
WASHINGTON AVE TH N 00D 20M 35S W 414.17 FT ALG THE E RAW LN OF
HUDSON ST TH S89D 48M 11S W 1.29 FT ALG THE N RAW LN OF MICHIGAN
AVE TO POB CONTAINING 304,686 SF (6.995 AC) EXCEPT CITY OF
MUSKEGON REVISED PLAT OF 1903 PART OF BLKS 467 & 474 TOGETHER
WITH PART OF VAC HUDSON PART OF MI AVE BOTH OF WHICH ARE BET
SD BLKS & PART OF VAC ALLEY IN SD BLK 474 ALL OF A SECOND VAC
ALLEY IN SD BLK 474 MORE PARTICULARLY DESC AS COM @ SW COR SD
BLK 474 FOR POB TH N 00D 20M 35S W 414.17 FT ALG E LN OF HUDSON ST
TH S 89D 48M 11S W 1.29 FT ALG N LN OF MICHIGAN AVE TH N 02D 11M 01S
E 7.87 FT TH S 87D 51M 37S E 185.29 FT ALG SLY LN OF A5 STORY BLDG
TH S 00D 06M 34S W 231.27 FT ALG W LN OF A5 STORY BLDG THN 89D 57M
03S E 39.77 FT ALG EXPANSION JOINT BET 5 STORY BLDGS TH S 00D 00M
258 W 182.21 FT ALG W LN OF A 10" BRICK WALL TH S 89D 34M 02S W 221
FT ALG N LN OF WASHINGTON AVE TO POB SUBJ TO DECLARATION OF
RESTRICTIVE COVENANT RECOR'D 3629/083 SBJT TO ELECTRIC LNS
ESMT RECORD'D L/P 3630/666 DESC AS A 10FT WIDE STRIP & BEING 5 FT
ON EA SIDE OF EA UNDERGROUND ELECTRIC LN AS CONSTRUCTED ON
OWNER'S LAND A 30 FT WIDE STRIP OF LAND BEING 15 FT ON EA SIDE OF
EA OVERHEAD ELECTRIC LN AS CONSTRUCTED ON OWNERS LAND
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