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CITY OF
mi SP@ MUSKEGON
Agenda Item Review Form
Muskegon City Commission
Commission Meeting Date: January 27, 2026 Title: Issuance of an Obsolete Property Certificate
— 1185 Third St.
Submitted by: Jocelyn Hines, Development Department: Economic Development
Analyst
Brief Summary:
Pursuant to Public Act 146 of the Michigan Public Acts of 2000, as amended, 1185 Third St. LLC has
requested the issuance of an Obsolete Property Certifcate at 1185 Third St. to support further
development.
Detailed Summary & Background:
1185 Third St. LLC has requested issuance of an Obsolete Property Rehabilitation Certificate for the
property located at 1185 Third Street. If approved, the property’s taxable value would be frozen at
the pre-rehabilitation level for the duration of the certificate. The Obsolete Property Rehabilitation
District for this site was established by the City Commission on October 22, 2002.
The applicant proposes to rehabilitate a long-vacant commercial building in the downtown, The
project represents an estimated investment of $4,925,000 and includes significant upgrades to
mechanical, electrical, and plumbing systems, structural improvements, and exterior and facade
enhancements. Upon completion, the building will be used as an office and research and
development facility. The prospective tenant is expected to retain approximately 80 full-time
positions at this location, supporting continued employment within the City.
The City’s Internal Tax Committee has reviewed the application and all required supporting
documentation. Based on its analysis and calculations, the Committee recommends approval of the
attached resolution granting a twelve (12)-year Obsolete Property Rehabilitation Certificate.
Goal/Action Item:
2027 Goal |: Destination Community & Quality of Life - Reduction of blighted commercial properties
Is this a repeat item?:
Explain what change has been made fo justify bringing it back to Commission:
Amount Requested: Budgeted Item:
N/A Yes No N/A a
Fund(s) or Account(s): Budget Amendment Needed:
N/A Yes No N/A |
Recommended Motion:
| move to close the public hearing and approve the attached resoution for the issuance of an
Obsolete Property Certificate for 1185 Third St. and authorize the City Clerk and Mayor to sign.
Approvals: Name the Policy/Ordinance Followed:
Public Act 146 of the Michigan Public Acts of
Immediate Division
2000, as amended
Head
Information
Technology
Other Division Heads
Communication
Legal Review
Michigan Department of Treasury
3674 (Rev. 12-04)
Application for Obsolete Property Rehabilitation Exemption Certificate
This form is issued as provided by P.A. 146 of 2000. Filing of this form is voluntary. This application should be filed after the district is established. This
project will not receive tax benefits until approved by the State Tax Commission. Applications received after October 31 may nol be acted upon in the
current year. This application is subject to audit by the State Tax Commission.
INSTRUCTIONS: File the original and one copy of this form and the required attachments with the clerk of the local government unit.
(The State Tax Commission requires two copies of the Application and the Resolution. The original is retained by the clerk.) Please
see State Tax Commission Bulletin 9 of 2000 for more information about the Obsolete Property Rehabilitation Exemption. The
following must be provided to the local government unit as attachments to this application: (a) General description of the obsolete
facility (year built, original use, most recent use, number of stories, square footage); (b)General description of the proposed use of the
rehabilitated facility, (c) Description of the general nature and extent of the rehabilitation to be undertaken, (d) A descriptive list of the
fixed building equipment that will be a part of the rehabilitated facility, (e) A time schedule for undertaking and completing the
rehabilitation of the facility, (f) A statement of the economic advantages expected from the exemption.
Applicant (Company) Name (applicant must be the OWNER of the facility)
1185 Third Street LLC
Company Mailing address (No. and street, P.O. Box, City, State, ZIP code)
1593 Jefferson Street, Muskegon, MI 49441
Location of obsolete facility (No. and street, P.O. Box, City, State, ZIP Code)
1185 Third Street, Muskegon, MI 49441
City, Township, Village County
Muskegon Muskegon
Date of Commencement of Rehabilitation Planned date of Completion of Rehabilitation School District where facility is located (include school code)
2/1/26 8/30/26 MI-61010
Estimated Cost of Rehabilitation Number of years exemption requested a Legal description of Obsolete Property on separate
$4,925,000.00 12
Expected project likelihood (check all that apply):
[x] Increase Commercial activity | x! Retain employment [x] Revitalize urban areas
x | Create employment [x] Prevent a loss of employment [| Increase number of residents in the
community in which the facility is situated
Indicate the number of jobs to be retained or created as a result of rehabilitating the facility, including expected construction employment 80
The State Treasurer may exclude from the specific tax up to 1/2 of the mills levied for local school operating purposes and for the State Education Tax. Check the following box
if you wish to be considered for this exclusion. x
APPLICANT'S CERTIFICATION
The undersigned, authorized officer of the company making this application certifies that, to the best of his/her knowledge, no information contained
herein or in the attachments hereto is false in any way and that all of the information is truly descriptive of the property for which this application is being
submitted. Further, the undersigned is aware that, if any statement or information provided is untrue, the exemption provided by P.A. 146 of 2000 may
be in jeopardy.
The applicant certifies that this application relates to a rehabilitation program that, when completed, constitutes a rehabilitated facility, as
defined by P.A. 146 of 2000 and that the rehabilitation of the facility would not be undertaken without the applicant's receipt of the exemption
certificate.
It is further certified that the undersigned is familiar with the provisions of P.A. 146 of 2000, of the Michigan Compiled Laws; and to the best of his/her
knowledge and belief, (s)he 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 unit of government and the issuance of an Obsolete Property Rehabilitation Exemption Certificate by the State Tax Commission.
Company Officer name (no authorized agents) Telephone Number Fax Number
Frank Peterson (231) 788-8086
Mailing Address Email Address
1593 Jefferson Street, Muskegon, Ml 49441 frank@fjpeterson.com
Fane fe?CLOALOVL Member
Signature Title
LOCAL GOVERNMENT UNIT CLERK CERTIFICATION
Clerk must also complete Parts 1-3 on Page 2.
Signature Date application received
FOR STATE TAX COMMISSION USE
Application Number Date Received
Form 3674, Page 2
LOCAL GOVERNMENT ACTION
This section is to be completed by the clerk of the local governing unit before submitting the application to the State Tax Commission. Include a copy of
the resolution which approves the application. All sections must be completed in order to process.
PART 1: ACTION TAKEN
Action Date:
[| Exemption Approved for Years, ending December 30, (not to exceed 12 years)
| | Denied
PART 2: RESOLUTIONS (All boxes must be checked prior to submitting this form.)
[_]A statement that the local unit is a Qualified Local Governmental Unit. [_] A statement that the application is for obsolete property as defined in
section 2(h) of Public Act 146 of 2000.
[_] A statement that the Obsolete Property Rehabilitation District was
legally established including the date established and the date of A statement that the commencement of the rehabilitation of the
hearing as provided by section 3 of P.A. 146 of 2000. C facility did not occur before the establishment of the Obsolete
Property Rehabilitation District.
A statement indicating whether the taxable value of the property
A statement that the application relates to a rehabilitation program
Cc] proposed to be exempt plus the aggregate taxable value of property
that when completed constitutes a rehabilitated facility within the
already exempt under P.A. 146 of 2000 and under P.A. 198 of 1974
meaning of P.A. 146 of 2000 and that is situated within an Obsolete
(IFT's) exceeds 5% of the total taxable value of the unit.
Property Rehabilitation District established in a Qualified Local
Cl A statement of the factors, criteria and objectives, if any, necessary for Governmental Unit eligible under P.A. 146 of 2000 to establish such
extending the exemption, when the certificate is for less than 12 years. a district.
A statement that the application was approved at a public hearing as A statement that completion of the rehabilitated facility is calculated
provided by section 4(2) of P.A. 146 of 2000 including the date of the to, and will at the time of issuance of the certificate, have the
hearing. reasonable likelihood to, increase commercial activity, create
O A statement that the applicant is not delinquent in any taxes related to employment, retain employment, prevent a loss of employment,
the facility. revitalize urban areas, or increase the number of residents in the
community in which the facility is situated. The statement should
If it exceeds 5% (see above), a statement that exceeding 5% will not
indicate which of these the rehabilitation is likely to result in.
have the effect of substantially impeding the operating of the Qualified
Local Governmental Unit or of impairing the financial soundness of an A statement that the rehabilitation includes improvements
affected taxing unit. aggregating 10% or more of the true cash value of the property at
commencement of the rehabilitation as provided by section 2(I) of
Oo A statement that all of the items described on line 9 of the
P.A. 146 of 2000.
Application for Obsolete Property Rehabilitation Exemption
Certificate have been provided to the Qualified Local Governmental A statement of the period of time authorized by the Qualified Loca
Unit by the applicant.
O Governmental Unit for completion of the rehabilitation.
PART 3: ASSESSOR RECOMMENDATIONS
Current Taxable Value and State Equalized Value of obsolete properties
Taxable Value State Equalized Value (SEV)
Land 25,000 25,000
Buildings a al 5D4 1O3 100
Buildings on Leased Land —_— aan
Other Personal Property
Year of Values
£1073 262°
Name of ae alia Body Date of Action pn application
TY of Muskeapny /13/2d% ©
CLERK CERTIFICATION e
The undersigned clerk certifies that, to the best of his/her knowledge, no information contained herein or in the attachments hereto is false in any way.
Further, the undersigned is aware that if any information provided is untrue, the exemption provided by P.A. 146 of 2000 may be in jeopardy.
Aare | /-¥ 7-XOL G 72 9-4/78
(231) 72 4-672) | (23/)
Clerk Signature A Date Telephone Number Fax Number
Clerk's Mailing Address ~~ city & State ZIP Code
933 Terrace. Muskegon, Z77L YIY YO
Mail completed Application and copy of Resolution to: If you have any questions, call (517) 373-2408 or 373-3302.
State Tax Commission
Michigan Department of Treasury
P,O. Box 30471
Lansing, Michigan 48909-7971
CITY OF MUSKEGON
MUSKEGON COUNTY, MICHIGAN
RESOLUTION NO. 2026-06(C)
A resolution approving the application for an Obsolete Property Rehabilitation Exemption Certificate by 1185
Third St. 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 1185 Third St. 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 October 22, 2002.
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 January 27, 2026, after a public
hearing as provided in Section 4(2) of PA 146 of 2000. The hearing was held on this date.
The applicant, 1185 Third St. LLC, is not delinquent any taxes related to the facility.
The exemption to be granted by this resolution is for 12 years.
The City Commission finds that the property for which the Obsolete Property Rehabilitation
Exemption Certificateis soughtis obsolete property within the meaning of Section 2(h) of Public Act
146 of 2000in 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.
L. 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.
M. The City Commission determines that the applicant shall have twenty-four (24) months to complete
the rehabilitation. It shall be completed by January 27, 2028, or two years after the Certificate is:
issued, whichever occurs later.
N. 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:
1. Based upon the statements set forth in, and incorporating the recitals to this resolution, the City
Commission hereby approves the application filed by 1185 Third St. LLC, for an Obsolete Property
Rehabilitation Exemption Certificate, to be effective for a period of 12 years;
2. 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;
3. 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: Jackson, Kochin, St.Clair, Johnson, Kilgo, and German
Nays: None
CITY OF MUSKEGON
BY: Vo Ndveor
“Ken Johnsdn
Mayor -
ATTEST: Wee
Ann Meisch
Clerk
CERTIFICATE
This resolution was adopted at a meeting of the City Commission held on January 27, 2026. 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
By ee ee a>
Ann Meisch, City Clerk
ATTACHMENT A: PROPERTY DESCRIPTION
Address: 1185 Third St.
PIN#: 61-24-205-379-001 1-00
Parcel Size: 0.42 Acres
Legal: CITY OF MUSKEGON REVISED PLAT OF 1903 LOTS 11-12 & NELY 3 FT LOT 10 BLK 379
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