Approved Agreements and Contracts 2025/09/09 Commercial Facilities Exemption Certificate 175 & 177 W. Clay

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                                                                         74 (0-)

                                               CITY OF


                                 mw@ MUSKEGON
                          Agenda Item Review Form
                          Muskegon City Commission

Commission Meeting Date: September 9, 2025           Title: Issuance of adCommercial Facilities
                                                     Exemption Certificate - 175 & 177 W. Clay Ave.


Submitted by: Jocelyn Hines, Development             Department: Economic Development
Analyst


Brief Summary:
Pursuant jo Public Act 255 of 1978, as amended, S&S Properties has requested the issuance of a
Commercial Facilities Exemption Certificate. The certificate will freeze the taxable value of the
building and exempt new real property investment from local taxes.


Detailed Summary & Background:
S&S Properties plans to rehabilitate a 5,300 sq. ft. building beginning in September 2025. The project
represents a $200,000 real property investment and is expected to create between one (1) and five
(5) jobs.


The applicant intends to retain existing tenants in the building while activating currently vacant
space for other smaller, locally owned businesses.


A public hearing on the establishment of the Commercial Redevelopment District is scheduled for
the September 9, 2025, City Commission meeting.


The Internal Tax Committee has reviewed the application and, based on their findings and
calculations, recommends approval of ihe attached resolution for a term of four (4) years for real
property. The applicant has submitted all required documentation.


It should be noted that 173 W. Clay Ave. is not included in this exemption, as work has already
commenced on that unit, rendering it ineligible for a PA 255,



Goal/Action Item:
2027 Goal 2: Economic Development Housing and Business - Progress toward new and ongoing
economic development projects


ls this a repeat item?:
Explain what change has been made fo justify bringing it back to Commission:


Amount Requested:                                     Budgeted ltem:

N/A                                                   Yes            No           N/A |
Fund(s) or Accouni(s):                                Budget Amendment Needed:
N/A                                                Yes           No           N/A | |
Recommended Motion:
| move to close the public hearing and approve a four (4) year Commercial Facilities Exemption
Certificate for S&S Properties, and authorize the Mayor and City Clerk to sign the resolution.

Approvals:                                         Name the Policy/Ordinance Followed:
                                                   Commercial Redevelopment Act - PA 255 of
Immediate Division
                                                   1978
Head

Information
Technology

Other Division Heads

Communication

Legal Review
Michigan Department of Treasury
4757 (Rev. 12-20)                                                                                        STATE USE ONLY
                                                           Application Number                   Date Recaived                                        LUCI Code




Application for Commercial Facilities Exemption Certificate
Issued under authority of Public Act 255 of 1978, as amended.
Read the instructions page before completing the application. This application must be filed after a Commercial Redevelopment District is
established. The original application and required documents are filed with the clerk of the Local Governmental Unit (LGU).
 PART 1: OWNER / APPLICANT INFORMATION (applicant must complete all fields)
                                                                                                                                              NAICS or SIC Code

                               StS ‘Vopetes
 Applicant (Company) Name




                 (iqwns| + VC]
  Name of City, Vay            Us : Cy Wve Wu  sym                                                                                            sre iw
 Facility's Street Address




                           Mu stusen        LAustegu                                                                                            Most
                                     [_] Township                       [village
  Date of “— Commencement (mmidd/yyyy)                                                      Planned Date of Rehabilitation Completion (mm/dd/yyyy)
                        -(5-25                                                                               Vis 55: 25
  Estimated Cost of Rehabilitation                                                          Number of Years Exemption Requested (1-12)
                 X2Wop Bvd. BO
  Expected Project Outcomes (check all that apply)

        P<Lincrease Commercial Activity                        Ph esetain Employment                               fq Revitaize Urban Areas

        [| Create Employment                                   [ZA erevent Loss of Employment                       [| Increase Number of Residents in Facility's Community
  No. of perm. jobs to be created due to facility's rehab. | No. of perm. jobs to be retained due to facility's rehab.) Number of construction jobs to be created during rehabilitation


  Each year, the State Treasurer may approve 25 additional reductions of half the state education tax for a period not to exceed six years.
  [Xk check this box if you wish to be considered for this exclusion.
  PART 2: APPLICATION DOCUMENTS                                           \
  Prepare and attach the following items: peo tvork
   [__] General description of the facility (year bult, original use, most recent use,               [__] Descriptive lst of the fixed building equipment that willbe a par of the facity
        number of stories, square footage)

  [ | General description of the facility's proposed use                                             [| Time schedule for undertaking and completing the facility's restoration,
                                                                                                            replacement or construction

   [| General description of the nature and extent of the restoration, replacement, or               [ | Statement of the economic advantages expected from receiving the
        construction to be undertaken                                                                       exemption

   [| Legal description of the facility
   PART 3: APPLICANT CERTIFICATION

                                                                                                                 QB 2hoy- TSRY
   Name of Authorized Company          Qfficer (no authorized agents)                        Telephone Number

                                          Oper ACS                                           E-mail Addre
   Fax Number                                 Xv




   "AS S Doi WY                                                                              |P/Musivoan                                       |e ye
   ! certify that, to the best of my knowledge, the information contained herein and in the attachments is truly descriptive of the property for which this
   application is being submitted. Further, | am familiar with the provisions of Public Act 255 of 1978, as amended, and to the best of my knowledge the
   company has complied or will be able to comply with all of the requirements thereof which are prerequisite to the approval of the application by the local
   governmental unit and the issuance of a Commercial Facilities Exemption Certificate by the State Tax Commission.

   { further certify that this agen relates to a program, when completed, will constitute a facility, as defined by Public Act 255 of 1978, as amended.
                                                                          Title                                         Date

                                                                                                                                                     B 2% 25
   Signature of Authorized Company Offjcer (nojaljthorized agents)

       CC)  F                bani
                                                                                                   Ras
                                                                                                                                                                       Continue on Page 2
4757, Page 2




 PART 4: LGU ASSESSOR CERTIFICATION
 Provide the Taxable Value and State Equalized Value of the Commercial Property.
                                                                         Taxable Value (excluding land)                      State Equalized Value (SEV) (excluding land)

                           Building
                                                                            S432                                                        640,200
 The property to be covered by this exemption may not be included on any other specific tax roll whila receiving he Commercial Facililies Exemption. For example, property
 on the Eligible Tax Reverted Property (Land Bank) specific tax roll cannot be granted a Commercial Facilities Exemption that would also put the same property on the
 Commercial Facilities specific tax roll.


      14) By checking this box | certify that, if approved, the property to be covered by this exemption will be on tha Commercial Facilitias Exemption specific tax roll and
               not on any other specific tax roll,

 Name of Assessor (first and last name)               ,                                   Telephane Number

              Ana               VanderUri'eS                                               Z3( 150-750
 Fax Number                                                                               E-mail Address

          E35         12424                                                              Vaide cutiesdadD Muskegoncoun y Net
 Mailing Address                                                                          City                                          State        ZIP Code

  173 E dope Ave Ste Boi                                                                   Hok Coann                                   ML             YPY4L
 I certify that, to the best of my knowledge, the information contained in Part 4 of this spplidétion is complete and accurate.
                                                                                                                                       Date




                 C/N                         Vandy Von
               : LGU ACTION / CERTIFICATION (LGU Clerk must complete Part 5)
                                                                                                                                          eliupors
Action Taken By LGU:


          [| Exemption approved for                  years, ending December 30,               (not to exceed 12 years)



          [| Exemption Denied
 Date District Established (attach resolution for district) | Local Unit Classification Identification (LUC]) Code | Schaol Code



Name of Clerk (first and last nama)                                                      Telephone Num

  Aan Lite. [Lleisch)
Fax Number
                                                                                             Ca3l) ZAYV-6 721
                                                                                         E-mailAddress

    (31) ZAY-YIZE.                                                                        ann mer sch @ shoreline Gity Cor
                                                                                         Ms kegor1                                      71 \4994O
Mailing    Address                                                                                                                     State         ZIP Code

     133 SEPP ACE
LGU Contact Person for Additional Information                                            LGU Contact Person Telephone Number           Fax Number



| certify that, to the best of my knowledge, the information contained in this application and attachments is complete and accurate.

ae,                                                                                                                                    Date



                                                                                                                                         2-9 202. €
If you have questions, need additional information or sample documents, call 517-335-7491 or visit
www.michigan.gov/propertytaxexemptions.
                              Resolution No. 2025-74(D)

                        MUSKEGON CITY COMMISSION


RESOLUTION APPROVING APPLICATION FOR ISSUANCE OF A COMMERICAL
                      FACILITIES EXEMPTION CERTIFICATE
                                    S&S Properties


WHEREAS, the City of Muskegon legally established the Commercial Redevelopment
District 2025-74(C) on September 9, 2025, after a public hearing held on September 9,
2025; and


WHEREAS, the state equalized value of the property proposed to be exempt plus the
aggregate state equalized value of property previously exempt and currently in 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 September 9, 2025; and

WHEREAS, S&S Properties 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 S&S Properties 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 December 30, 2025; and

 WHEREAS, the Commercial Facilities Exemption Certificate is granted for a period of
 four (4) 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 2025-74(C) at 175 and
177 W. Clay Ave for a period of four (4) years, beginning December 30, 2025, and
ending December 30, 2029 pursuant to the provisions of PA 255 of 1978, as amended.

Adopted this 9" Day of September 2025.

AYES: Johnson, Kilgo, Keener, German, Gorman, Kochin, and St.Clair

NAYS: None


ABSENT: None                                      OM (amor
                                           BY:
                                                   “Ken Johngon, Mayor


                                      ATTEST: Q)\ ode
                                                     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 September 9, 2025.




                                                           Ann Meisch, Clerk
COMMERCIAL REHABILITATION EXCEMPTION REQUIREMENTS:



Facility Address: ~~     175 &177 W. Clay Ave.




General Description: Built in the 1940’s, used for commercial use then and currently. One
story building with 5300 sq. ft. in total.

General Description of Rehabilitated Use: The building will continue to be used for
commercial use with current tenants benefiting from all upgrades.

 eneral Description of        Rehabt       ertaken: All buildings will have new heating and
cooling systems, all new electrical and lighting upgrades. New roof on entire building. New
facia on store fronts.

            of fixed
General Descri                on incl
                     bldg, equipment
                   pti                  uded
                                     in rehabilitate d facility:
All the above upgrades will be fixed building equipment in the rehab.

Time schedule for facility rehab: 3-6 months to complete.

Economic Advantage from Exemption: All upgrades will modify the property to a better
and more efficient property. This will result in keeping the current tenants and drawing new
tenants as well as making the building structure more in line with the Muskegon Downtown
Development.

               tion Land situated in the City of Muskegon, County of
            of property:
Legal Descrip
Muskegon, and Stat of Michigan.

The Northeasterly 52 feet of Lot 4, Block 330, Revised Plat (of 1903) of the city of Muskegon,
according to the recorded plat thereof, as recorded in Liber 3 of Plats, Page 71, Muskegon
County Records. Together with an easement for ingress and egress granted in the
instrument recorded in Liber 1336, Page 877, and ratified by Ratification Agreement
recorded in Liber 1352, page 307. Commonly known as 173 West Clay Ave., Muskegon, MI.
49440-1212
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                                             OReOLnDASSOUEIROROCSNAOESDRS UE|aIRtTeGa IONE S |O
                                                                1825 South Wolf Lake Rd     Muskegon, M189442         0-231 788 4661




PROPOSAL SUBMITTED TO:                                                 S & S Properties                                                CONTACT:                              Jim Stevens


                   PROJECT NAME:                                     Clay Street Project                                                       DATE:                          4/1/2025


Provide materials and labor to complete demo, install framing & trims for new facade, window sill rebuild, glass
  replacement in all windows & doors, new soffits & fascia at exterior canopy, roofing, and electrical. Permits
                                                                                          included.



                               Interior Demo                                  $15,000.00


                                    Roofing                                   $55,000.00

                          Door Hardware                                         $2,800.00


                          Rough Framing                                       $66,500.00

                                    Painting                                    $3,000.00

                                 Mechanical                                   $48,000.00

                                   Electrical                                 $30,000.00

                         Exterior Facade                                      $79,300.00




                                                            TOTAL $299,600.00




                       Submitted By: James Chrysler

                                       Title: Project Manager



                                                      paces from cur suppers are ceannueutly cuanging J Ste vans Construction is comn                                                BO   PRUREL OMaNgeS
         GC avatauiiy may be     chlo change 2                                                                                                    Sup,

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                                                                subject to ddjusiment Based on changes at spe   fe
                                                                                                                 heahous ar matenal costs

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                                                 Hughes Builders Inc.

                                                    1848 S. Dangl

                                              Muskegon, MI 49442

                                             Phone: 231-773-0077                      03/18/2025

Proposal Submitted To: Jim Stevens                             Work to be performed at:

                               1825 Wolf Lake Rd                 Clay St project

                               Muskegon MI 49442




This Proposal includes the furnishing of all materials and performances of all labor necessary for the
completion of the following described items:



  Exterior upgrade and new storefront windows and doors, proposal includes the following:

                   tL.   Plans and Parrmits as required

                   ?.    Dario area as needed

                   3.    Add frarning, new facade and trims as oer plans and agreement with customer

                   3.    Rebuild widow sills to be at 20° above interior floor

                   5.    Add new aluminurn somit and fascia on canopy (roofing oy orhers)

                         Replace all glass and glass doors with new black alurninur frames and trsulaced glass
                   mM




                   7.    Albtrim work required

                   &     ELECTRICAL IS NOT INCLUDED


                   5.    AMY UMPORSEEN STRUCTURAL ISSUES WILL          BE BILLED SEPARATE

                   10. CUSTOMER TO PROVIDE DUMPS

                                                  & OTHER HAZARDOUS MATERIAL REMOVAL BY OTHERS Ir
Payment Schedule:




Down Payment. Twenty (20%) percent of the contract ts due when contract 1s signed.

Monthly Progress Payments for work camplated and material stored by the end of the month is to be paid by the 10 of the
following month, Any moneys not paid when due to either party under this Contract shall bear interest at the rate of ane and half
(1.5%) percent per month.

This proposal 1s subject to standard terms and conditions of sale. If the contractor is delayed in the progress af the Project by acts or
neglect of the owner, owner's employees, separate contracts employed by the owner, change ordered in work not caused by the
fault of the contractor, labor disputes, fire, unusual delay in transportation, adverse weather conditions not reasonably anticipatable,
unavoidable casualties, or other causes beyond the contractors’ control, the contract time shall be reasonably extended. And
additions required by governmental agencies or price increases by vendors and not covered in this Contract are the responsibility of
the owner. Revisions and differences shall be subject ta negotiation. Sales Tax included. This proposal effective for ten (10) days.



ACCEPTED:                                                                HUGHES BUILDERS, INC,

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                                                                                                            ny
                                                                      1925 Souih Wolf Lake Rd     Muskegen, ME49442        231 788 4661




PROPOSAL SUBMITTED TO:                                                      S & S Properties                                              CONTACT:                    James Chrysler

                 PROJECT NAME;                                   ..~, 175, 177 Clay Street Project                                            DATE:                      4/1/2025

Provide materials and labor to complete demo, framing, trims, glass work, soffits, sills, and fascia necessary for
the installation of the new exterior building facade. All electrical, mechanical, painting, door hardware, interior
work, and roofing by others. All permits necessary to complete this work included.




                                                                 TOTAL          $88,500.00




                      Submitted By: James Chrysler

                                           Title: Project Manager




     davadabuty insy bo sub, joct to chan        beacause paces from cur supphers are coniunucusty changing J Stevens Consiruction is com     do sugph ing our   cusiomary throug Ulese Garael changes
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                                                               ands subject to adjustment based on changes in specificatians or malenal co

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Michigan Department of Treasury
4468 (4-07)




       Commercial Facilities Exemption Certificate
        Restored Certificate




        Pursuant to the provisions of Public Act 255 of 1978, as amended, the City of
        Muskegon hereby finds that the commercial properties, hereafter referred to as the
        commercial facilities, owned or leased by S&S Properties, and located at 175 & 177 W.
        Clay Avenue, City of Muskegon, County of Muskegon, Michigan, located within a
        Commercial Redevelopment District, is intended primarily for the purpose of restoration
        of obsolete commercial property, and complies with Section 10 and other provisions of
        the act.

        Therefore, as provided by MCL 207.651 to 207.668, the City of Muskegon hereby
        certifies as restored commercial facilities the property located at 175 & 177 W. Clay
        Avenue.


         This certificate provides the authority for the assessor to exempt the commercial facility
         for which this Commercial Facilities Exemption Certificate is in effect, but not the land
         on which the facility is located or the personal property placed within the facility, from ad
         valorem taxation. This certificate further provides the authority to levy a specific tax
         known as the Commercial Facilities Tax.

         This certificate, unless revoked by resolution of the City of Muskegon as provided by
         Public Act 255 of 1978, as amended, shall remain in force for a period of 4 years;

         Beginning December 31, 2025, and ending December 30, 2029.

         The taxable value of the obsolete commercial property related to this certificate is
         $56,632.00                             "


         This Commercial Facilities Exemption Certificate is issued on September 9, 2025


                                                            Seo
                                                           Ann Meisch, Clerk
                                                           City of Muskegon

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