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CITY OF
MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 28, 2025 Title: Public Hearing Establishment of a
Commercial Facilities Exemption Certificate,
Lakeshore Hotel Partners, LLC- 181 Viridian Drive
Submitted by: Contessa Alexander, Development | Department: Economic Development
Analyst
Brief Summary:
Lakeshore Hotel Partners, LLC has formally requested the establishment of a Commercial Facilities
Exemption Certificate for 181 Viridian Drive on December 9, 2024. The approval of a Commercial
Facilities Exemption Certificate, which freeze the building's taxable value and exempt new
investments from local taxes.
Detailed Summary & Background:
Lakeshore Hotel Partners, LLC has formally requested the establishment of a Commercial Facilities
Exemption Certificate for 181 Viridian Drive on December 9, 2024, This designation will enable the
property owner to apply for a Commercial Facilities Exemption Certificate, which freezes the
building's taxable value and exempts new investments from local taxes. The approval of the
certificate is contingent upon the approval of the Commercial Redevelopment District.
The proposed project involves the development of the Element Hotel by Marriott, part of the broader
Harbor 31 Redevelopment Plan. Key details of the hotel project include:
e Size & Scope: A 5-story building featuring 132 rooms.
e Amenities: A full-service restaurant, fitness center, and indoor pool.
e Location: Situated along the Lakeshore, enhancing the area's appeal as a destination for
visitors and residents.
e Investment: The project represents a $30 million construction effort spanning 31 acres.
The Element Hotel is a key component of the larger Harbor 31 Redevelopment Plan, which aims to
transform the area into a vibrant, mixed-use community. In addition to the hotel, the redevelopment
plan includes:
e Senior living facilities.
e Single-family homes.
e Townhomes and apartments.
e Office space.
The project is expected to:
Begin construction in February 2025 and conclude in April 2026.
Create approximately 50 permanent jobs upon completion, enhancing the local workforce.
Generate approximately 225 construction jobs during the development phase.
Revitalize underutilized property along the Lakeshore
Goal/Focus Area/Action Item Addressed:
Key Focus Areas:
Progress foward completion of ongoing economic development projects
Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business
Amount Requested: Budgeted Item:
N/A Yes No N/A ||
Fund(s) or Accouni(s): Budget. Amendment Needed:
N/A Yes No N/A a
Recommended Motion:
| move to close the public hearing and approve the request from Lakeshore Hotel Partners, LLC, to
establish a Commercial Facilities Exemption Certificate at 181 Viridian Drive and authorize the Mayor
and City Clerk to sign the attached resolution.
Approvals: Guest(s) Invited / Presenting:
Immediate Division
Head No
Information
Technology
Other Division Heads
Communication
Legal Review
Resolution No. 2025-08(B)
MUSKEGON CITY COMMISSION
RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF A COMMERICAL
FACILITIES EXEMPTION CERTIFICATE
181 Viridian Drive.
WHEREAS, the City of Muskegon legally established the Commercial Redevelopment
District on January 28, 2025, after a public hearing held on January 28, 2025; and
WHEREAS, the state equalized value of the property proposed to be exempt plus the
ageregate state equalized value of property previously exempt and currentlyin force
under Public Act 255 of 1978 and under Public Act 198 of 1974 (IFT's) does not exceed
5% of the total state equalized value of the City of Muskegon; and
WHEREAS, the application was approved at a public hearing as provided by section 6(2)
of Public Act 255 of 1978 on January 28, 2025; and
WHEREAS, the Lakeshore Hotel Partners, LLC is not delinquent in any taxes related to
the facility; and
WHEREAS, the application is for commercial property as defined in section 3(3) of
Public Act 255 of 1978; and
WHEREAS, the applicant Lakeshore Hotel Partners, LLC has provided answers to all
required questions under Section 6(1) of PA 255 of 1978 to the City of Muskegon; and
WHEREAS, the City of Muskegon requires that the construction, restoration or
replacement of the facility shall be completed by January 28, 2027; and
WHEREAS, the Commercial Facilities Exemption Certificate is granted for a period of
twelve (12) years and no extension will be allowed; and
WHEREAS, the commencement of the construction, restoration or replacement of the
facility did not occur more than 45 days prior to the filing of the application for
exemption; and
WHEREAS, the commencement of the construction, restoration or replacement of the
facility did not occur prior to the establishment of the Commercial Redevelopment
District; and
WHEREAS, the application relates to a construction, restoration or replacement program
which when completed constitutes a new, replacement or restored facility within the
meaning of Public Act 255 of 1978 and that is situated within a Commercial
Redevelopment District established under Public Act 255 of 1978; and
WHEREAS, completion of the facility is calculated to, and will at the time of issuance of
the certificate, have the reasonable likelihood to, increase commercial activity, create
employment and retain employment in which the facility is situated; and
WHEREAS, the restoration includes improvements aggregating 10% or more of the true
cash value of the property at commencement of the restoration as provided by section
4(6) of Public Act 255 of 1978.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Muskegon
Be and hereby is granted a Commercial Facilities Exemption for the real property,
excluding land, located in Commercial Redevelopment District at 181 Viridian Drive for
a period of twelve (12) years, beginning December 31, 2025, and ending December 30,
2037, pursuant to the provisions of PA 255 of 1978, as amended.
Adopted this 28th day of January, 2025.
AYES: Johnson, Kilgo, German, Gorman, Kochin, and St.Clair
“NAYS: None .
9/
ABSENT: Keener
"” Ken Jbhnson, Mayor
~~
ATTEST: \ Qe
TM
Ann Meisch, Clerk
CERTIFICATION
I hereby certify that the foregoing constitutes a true and complete copy of a resolution
adopted by the Muskegon City Commission of the City of Muskegon, County of
Muskegon, Michigan at a regular meeting held on January 28, 2025.
RQTM~Ann
Yo—Meisch,xClerk9 PX
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