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Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: August 13, 2024 Title: Public Hearing - Request fo issue an
Obsolete Property Certificate, Shaw Walker
Opportunity Zone Business 2, LLC- Building 7, 965
W. Western
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 requested 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 7 at 965 W.
Western. If granted, the property taxes would be frozen at the pre-rehabilitation rate for the duration
of the certificate. The approval of the certificate is contingent upon the approval of the Obsolete
Property Rehabilitation District.
The project involves converting Building 7 into an approximately 52,000-square-foot enclosed parking
garage. The building is currently being used as warehouse storage. The total capital investment is
over $1.5 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 Accouni(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 7 at 965 W. Western Ave. and authorize the City Clerk and
Mayor fo sign.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Yes
Head
information
Technology
Other Division Heads
Communication
Legal Review
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
RESOLUTION NO. 2024-75 (G)
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 August 13, 2024.
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: German, Gorman, Kochin, St.Clair, Johnson, Kilgo, and Keener
Nays: None
CITY OF MUSKEGON
BY: Neder
” Ken Johnson
Mayor
artes Ye Se 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.
CITY OF MUSKEGON
BN Nan
Ann Meisch, City Clerk
ATTACHMENT A: PROPERTY DESCRIPTION
Address: 965 W Western Ave (Building No. 7)
PIN#: 61-24-205-468-0001-10
Parcel Size: 4.95 Acres
Legal: CITY OF MUSKEGON REVISED PLAT 1903 BLK 468 AND PT OF BLK
467 VAC ALLEY IN BLK 468 PART OF FORMER C & 0 RAILROAD R/W IN
BLK 467 & 468 AND VAC HUDSON ST BET BLK 467 AND 468 AND ALL
BEING DESC AS BEG AT THE SW COR OF SAID BLK 468 TH N 00D
19M 25S W
351.64 FT ALGE RAV LN OF FRANKLIN ST TH N 89D 58M 00S E 278.5
FT ALG THE S R/(WLN OF WESTERN AVE TH S 82D 42M 42S E 284.66
FT ALG SD R/WLN TH S 07D 28M 33S W 75.55 FT ALG THE WLY LN &
EXTENSION TH'OF OF A 5 STORY BRICK BLDG TH S 82D 30M 04S E
112.12 FT ALG SD BLDG LN & THE EXTENSION TH'OF TH S 09D 23M
07S W 9.68 FT ALG SD BLDG LN TH S 83D 24M 04S E 13.72 FT ALG SD
BLDG LN TH N 00D 30M 20S E 9.53 FT TH S 82D 30M 04S E 8.71 FT TH
SOOD 30M 20S W 24.63 FT TH S 88D 25M 41S E 8.72 FTALG SD BLDG
LN TH S OID 34M 19S W 0.30 FT ALG SD BLDG LN TH S 88D 25M 41SE
0.40 FT ALG SD BLDG LN TH S 00D 42M 58S W 29.45 FT ALG SD BLDG
LN TH N 88D 25M 41S W 8.43 FT ALG SD BLDG LN TH S 00D 42M 58S
W 57.92 FT ALG SD BLDG LN TH S 88D 38M 32S E 12.93 FT ALG SD
BLDG LN TH S 02D 11M OIS W 21.28 FT ALG SD BLDG LN TH N 87D
48M 59S W 28.01 FT ALG SD BLDG LN TH S 02D 23M 08S W 85.09 FT
ALG E SIDE OF A 4 IN WALL TH N 87D 51M 37S W 111.67 FT ALG
SLY SIDE OF SD 5 STY BLDG LN TH S 02D 11M 015 W 7.87 FTTH S
89D 48M 11S W 549.04 FT ALG N LN OF MICHIGAN AVE TO POB
CONTAINING 217056 SF (4.983 AC) SUBJ TO DECLARATION OF
RESTRICTIVE COVENANT RECOR'D 3629/083
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