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Michigan Department of Treasury
1012 (Rev. 4/04)
Application for Industrial Facilities Tax Exemption Certificate
Issued under authority of P.A. 198 of 1974, as amended. Filing is mandatory.
INSTRUCTIONS: File the original and two copies of this form and the required attachments (three complete sets) with the clerk of the
local government unit. The State Tax Commission (STC) requires two complete sets (one original and one copy). One copy is retained
by the clerk. If you have any questions regarding the completion of this form or would like to request an informational packet, call (517)
373-3272.
To be completed by Clerk of Local Government Unit
Signature of Clerk Date received by Local Unit

STC Use Only
Application Number Date Received by STC

APPLICANT INFORMATION
All boxes must be completed.
1a. Company Name (Applicant must be the occupant/operator of the facility) 1b. Standard Industrial Classification (SIC) Code - Sec. 2(10) (Four Digit Code)

1c. Location of Facility (Street, City, State, ZIP Code) 1d. Name of City/Township/Village
(Indicate which) 1e. County

2. Type of Approval Requested 3a. School District where facility is located 3b. School Code
New (Sec. 2(4)) Transfer (1 copy to only)
Speculative Building (Sec. 3(8)) Rehabilitation (Sec. 3(1)) 4. Amount of years requested for exemption (1-12 Years)
Research and Development (Sec. 2(9))

5. Thoroughly describe the project for which exemption is sought: Real Property (Type of Improvements to Land, Building, Size of Addition); Personal Property (Explain New,
Used, Transferred from Out-of-State, etc.) and Proposed Use of Facility. (Please attach additional page(s) if more room is needed).

6a. Cost of land and building improvements (excluding cost of land)
* Attach list of improvements and associated costs. Real Property Costs
* Also attach a copy of building permit if project has already begun.
6b. Cost of machinery, equipment, furniture and fixtures
* Attach itemized listing with month, day and year of beginning of installation plus total costs Personal Property Costs
6c. Total Project Costs
Total of Real & Personal Costs

7. Indicate the time schedule for start and finish of construction and equipment installation. Projects must be completed within a two year period of the effective date of the
certificate unless otherwise approved by the STC.
Begin Date (M/D/Y) End Date (M/D/Y)

Real Property Improvements Owned Leased

Personal Property Improvements Owned Leased

8. Are State Education Taxes reduced or abated by the Michigan Economic Development Corporation (MEDC)? If yes, applicant must attach a signed MEDC Letter of
Committment to receive this exemption. Yes No

9. Number of existing jobs at this facility that will be retained as a result of this project. 10. Number of new jobs at this facility expected to be created within two years of
project completion.

11. Rehabilitation applications only: Complete a, b and c of this section. You must attach the assessor's statement of valuation for the entire plant rehabilitation district. The
SEV data below must be as of December 31 of the year prior to the rehabilitation.

a. SEV of Real Property (excluding land)
b. SEV of Personal Property (excluding inventory)
c. Total SEV

12a. Check the type of District the facility is located in:
Industrial Development District Plant Rehabilitation District

12b. Date district was established by local government unit 12c. Is this application for a speculative builiding (Sec. 3(8))?
Yes No

Form 1012, Page 2

APPLICANT 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 are truly descriptive of the industrial property for which this application is being
submitted.

It is further certified that the undersigned is familiar with the provisions of P.A. 198 of 1974, as amended, being Sections 207.551 to 207.572, inclusive,
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 Industrial Facilities
Exemption Certificate by the State Tax Commission.
13a. Preparer Name 13b. Phone Number 13c. Fax Number 13d. E-mail Address

14a. Name of Contact Person 14b. Phone Number 14c. Fax Number 14d. E-mail Address

15a. Name of Company Officer (No Authorized Agents)

15b. Signature of Company Officer (No Authorized Agents) 15c. Date

15d. Mailing Address (Street, CIty, State, ZIP) 15e. Phone Number 15f. E-mail Address

LOCAL GOVERNMENT ACTION & CERTIFICATION
This section must be completed by the clerk of the local governing unit before submitting application to the State Tax Commission. Check items on file
at the Local Unit and those included with the submittal.

16. Action taken by local government unit 16b. The State Tax Commission Requires the following documents be filed for an
administratively complete application:
Abatement Approved for _______ Years (1-12) Indicate N/A if Not Applicable
After Completion Yes No 1. Original Application plus attachments, and one complete copy
2. Resolution establishing district
Denied (Include Resolution Denying) 3. Resolution approving/denying application.
4. Letter of Agreement (Signed by local unit and applicant)
16a. Documents Required to be on file with the Local Unit 5. Affidavit of Fees (Signed by local unit and applicant)
Indicate N/A if Not Applicable
1. Notice to the public prior to hearing establishing a district. 6. Building Permit for real improvements if project has already begun
2. Notice to taxing authorities of opportunity for a hearing. 7. Equipment List with dates of beginning of installation
3. List of taxing authorities notified for district and application action. 8. Form 3222 (if applicable)
4. Lease Agreement showing applicants tax liability. 9. Speculative building resolution and affidavits (if applicable)

17. Name of Local Government Body 18. Date of Resolution Approving/Denying this Application

Attached hereto is an original and one copy of the application and all documents listed in 16b. I also certify that all documents listed in 16a
are on file at the local unit for inspection at any time.

19a. Signature of Clerk 19b. Name of Clerk 19c. E-mail Address

19d. Clerk's Mailing Address (Street, City, State, ZIP) 19e. Phone Number 19f. Fax Number

State Tax Commission Rule Number 57: Complete applications approved by the local unit and received by the State Tax Commission by October 31
each year will be acted upon by December 31. Applications received after October 31 may be acted upon in the following year.

Local Unit: Mail one original and one copy of the completed application and all required attachments to:
State Tax Commission
Michigan Department of Treasury
P.O. Box 30471
Lansing, MI 48909-7971

STC USE ONLY
LUCI Code Begin Date End Date End Date2

Form 1012, Page 3
Instruction for Form 1012, Industrial Facilities
Tax Exemption (IFT) Application
The completed original application form 1012 (formerly L- applicable, verifying lessee (applicant) has direct ad
4380) and all required attachments, plus two additional valorem real and/or personal property tax liability. The
copies, MUST be filed with the clerk of the local unit of applicant must have real and/or personal property tax
government where the facility is or will be located. Complete liability to qualify for an IFT abatement on leased
applications must be received by the State Tax Commission property. If applying for a real property tax exemption
by October 31 to ensure processing and certification for on leased property, the lease must run the full length of
the following tax year. Applications received after the time the abatement is granted by the local unit of
October 31 deadline will be processed as expeditiously as government.
possible. The following information is required of the local unit of
Please note that attachments listed on the application in government: (Please note that only items 2, 4, 5, 6, & 7
number 16a are to be retained by the local unit of when applicable, are forwarded to the State Tax Commission
government, and attachments listed in number 16b are to with the application, along with items 2 & 3 from above.
be included with the application when forwarding to the The original and one complete copy are required by the
State Tax Commission (STC). STC. The remaining items are to be retained at the local
(Before commencement of a project the local unit of unit of government for future reference. The local unit must
government must establish a district, or the applicant must verify that the school district listed on all IFT applications is
request in writing a district be established, in order to qualify correct.)
for an IFT abatement. Applications and attachments must 1.A copy of the notice to the general public and the certified
be received by the local unit of government within six months notice to the property owners concerning the
of commencement of project.) establishment of the district.
The following information is required on separate 2. Certified copy of the resolution establishing the Industrial
documents attached to form 1012 by the applicant and Development District (IDD) or Plant Rehabilitation
provided to the local unit of government (city, township District (PRD), which includes a legal description of the
or village) in triplicate. (Providing an accurate school district. If the district was not established prior to the
district where the facility is located is vital.): commencement of construction, the local unit shall
1. Legal description of the real property on which the facility include a certified copy or date stamped copy of the
is or will be located. Also provide property identification filing of the request to establish the district.
number if available. 3. Copy of the notice and the certified letters to the taxing
2. Personal Property Requirements: Complete list of new authorities regarding the hearing to approve the
machinery, equipment, furniture and fixtures which will application.
be used in the facility. The list should include description, 4. Certified copy of the resolution approving the application.
beginning date of installation or expected installation by The resolution must include the number of years the
month/day/year, and costs or expected costs. Detail local unit is granting the abatement and the statement
listing of machinery and equipment must match amount "the granting of the Industrial Facilities Exemption
shown on question 6b of the application. Personal Certificate shall not have the effect of substantially
property applications must have attached a certified impeding the operation of (governmental unit), or
statement/affidavit as proof of the beginning date of impairing the financial soundness of a taxing unit which
installation. levies ad valorem property taxes in (governmental unit).
3. Real Property Requirements: Proof of date the 5. Letter of Agreement (signed by the local unit of
construction started (groundbreaking). Applicant must government and the applicant per P.A. 334 of 1993.
include one of the following if the project has already 6. Affidavit of Fees (signed by the local unit of government
begun; building permit, footings inspection report, or and the applicant), (Bulletin 3, January 16, 1998). This
certified statement/affidavit from contractor indicating statement may be incorporated into the Letter of
exact date of commencement. Agreement.
4. Complete copy of lease agreement as executed, if

Form 1012, Page 4

7. Treasury Form 3222 (if applicable) - Fiscal Statement
for Tax Abatement Request.
The following information is required for rehabilitation
applications in addition to the above requirements:
1.A listing of existing machinery, equipment, furniture and
fixtures which will be replaced or renovated. This listing
should include description, beginning date of installation
or expected installation by month/day/year, and costs
or expected costs.
2.A rehabilitation application must include a statement from
the Assessor showing the taxable valuation of the plant
rehabilitation district, separately stated for real property
(EXCLUDING LAND) and personal property only
applications should have attached a certified statement
or affidavit as proof of the date personal property
installation commenced.
The following information is required for speculative
building applications in addition to the above
requirements:
1.A certified copy of the resolution to establish a speculative
building.
2.A statement of non-occupancy from the owner and the
assessor.

CITY OF MUSKEGON
INDUSTRIAL TAX EXEMPTION GUIDELINES

The following guidelines are intended to provide direction for determining the
length of all tax abatements as well as other potential components of a tax
abatement such as employment composition and site/facility requirements. The
City Commission reserves the right to adjust the length of any tax abatement or
add or subtract any conditions placed on a tax abatement based upon other
community benefits including but not limited to capital investment, jobs retained,
wage/salary levels, and facility/site improvements.

A. Duration of Abatements

The following section represents the number of years to be granted for
projects containing personal property and those containing real property. If
an application contains both real and personal property the resolution
approving the abatement may include separate lengths for both
components.

Standard Exemption:
Real Property 12 Years
Personal Property 6 Years

Employment/Investment Bonus:
5-9 Jobs 1 Year $3 million 1 Year
10-19 Jobs 2 Years or $5 million 2 Years
20+ Jobs 3 Years $8 million 3 Years

Diversification Bonus:
Diversification of Production 9 Years

The standard exemption will apply to all applications. Personal property
abatement extensions may be obtained through exercising the potential
bonuses available to the applicant (only personal property abatement may
be extended through the bonus program). An abatement may receive a
longer term through the creation of additional employment opportunities
(see above).

A nine (9) year personal property exemption (total exemption of nine years
not a nine year extension) may also be obtained if an applicant is
diversifying production. A Diversification Bonus shall only be granted
when a company installs new or modifies existing equipment or machinery
for the purpose of manufacturing new products for an industry not currently
served by the company. (For example, if Company X produces rocker
arms for the automotive industry it cannot receive the Diversification
Bonus for any property related to the manufacturing of automobile parts. It

may receive the bonus for machinery and/or equipment used for the
production of goods for other industries such as, but not limited to, office
furniture, aerospace, construction, etc.) A copy of a customer list and a
signed affidavit from the company stating the intended use of the
machinery and equipment listed in the application for the Diversification
Bonus shall be required.

Employment and Diversification Bonuses may not be combined. That is, if
a company receives a Diversification Bonus it cannot receive an
Employment Bonus and vice versa.

B. Site/Facility Requirements

Any site or facility associated with a request for tax abatement shall be
reviewed for conditions that may be determined to be detrimental to the
safety, health and welfare of the community. If such conditions are
determined to exist at the applicant's facilities/site, the applicant will be
notified by the appropriate City department. Existing facility/site
conditions shall be reviewed against the State of Michigan Certified
Industrial Park industrial development standards.

The City shall utilize the Certified Industrial Park standards because they
are widely accepted throughout the State of Michigan as representing
responsible industrial development as well as providing a pleasant and
desirable location in which to work and/or conduct business.

C. Employment Requirements

All tax abatement applicants are encouraged to have a labor force
consisting of a representative percentage of minorities and females. All
applicants will be required to submit a workforce breakdown to include the
total number of employees along with the number of minority and female
personnel. If, at the time of application, the company does not meet the
above requirement, the company shall endeavor to create a workforce that
is representative of the community's labor force.

The Company shall also agree to work with the City's Affirmative Action
Director to market and publish notices regarding employment opportunities
to underserved populations.

All new jobs promised at the time of application must be filled within two
years and must be maintained over the life of the abatement. Therefore,
companies are encouraged to proj ect employment creation and/or
retention as accurately as possible.

POLICY NO. _______

CITY OF MUSKEGON
INDUSTRIAL FACILITIES TAX EXEMPTIONS
ACT 198 of 1974

1.0 STRATEGIC PLANNING PROCESS

The City Commission, in January 2000, determined that the following policy is
necessary to replace the former Industrial Facilities Exemption Policy of 1990 for
the following reasons:
- Significant amendments have been made to the enabling
legislation (P.A. 198 of 1974)
- The economic circumstances of the community have improved
dramatically

This policy of the City of Muskegon continues to be endorsed by the City
Commission as a result of the identification of specific goals and objectives
through a Strategic Planning Process conducted by the City Commission and
Administration in February 1990.

2.0 PURPOSE

The Muskegon City Commission is a strong advocate of economic development
activities, programs, and structures designed to create and promote employment
opportunities and expand the local tax base through the retention, rehabilitation,
and expansion of existing businesses and industries, the expansion and/or
retention of employment opportunities for all, with particular attention to
opportunities for women, minorities, and the disadvantaged. The City
Commission believes that it should be an active participant and a leader where
appropriate in the economic development of the City.

The City of Muskegon supports the establishment of policies, programs, and
facilities, permitted by law, which will carry out this policy. For the City to
accomplish these purposes in an orderly fashion, it must be assured that the use of
tax abatements is judicious, fair, and responsibly accomplished. The City adopts
this policy, not only to encourage the use of tax abatements, but to articulate the
reasonable expectations of performance by those directly benefiting from the
policy.

3.0 POLICY

A. It is the policy of the City of Muskegon to provide tax abatements
to qualifying applicants under certain State laws. The policy will
increase the tax base of the community, attract new business,

housing and industry, and will result in the expansion,
modernization, and rehabilitation of existing businesses, industrial
facilities and housing.

B. Multiple abatements by the same applicant are permitted, if
authorized by State law, based upon previous performance and
compliance with projections and conditions of previous
applications. Specific monitoring techniques will be employed
which analyze the results of the tax abatement program overall and
specifically of each applicant on an annual basis. An annual
performance report will be prepared for review by the Commission
to determine the need for amendment to this policy.

C. It is the intent of the City of Muskegon that each application be
reviewed against this policy, procedures and the reports to
determine on a case-by-case basis that the application meets the
goals and objectives of the City.

3.1 Duration of Abatements

The policy of the City of Muskegon is to determine the length of any
abatement based upon the amount of capital invested in each project.
The following schedule represents the number of years to be granted for
projects containing personal property and those containing real property.
If an application contains both real and personal property the resolution
approving the abatement may include separate lengths for both
components.

Personal Property:
Less than $100,000 2 years
$100,000 - $1,000,000 4 years
$1,000,000 - $10,000,000 6 years*
Over $10,000,000 9 years**

(** - only applications consisting primarily of long life personal property)

Real Property
Less than $500,000 8 years
$500,000 - $1,000,000 10 years
Over $1,000,000 12 years

The scale noted above serves as a guide for determining the length of all
tax abatements. The City Commission reserves the right to adjust the
length of any tax abatement based upon community benefits other than
capital investment. Other such benefits may include but are not limited to
job creation/retention, wage/salary levels, facility/site improvements, and
diversification of the local economy.

3.2 Site/Facility Requirements

Any request for tax abatement that includes the construction of new
facilities (i.e. structures, additions to existing structures, parking lots,
loading bays, etc.) shall comply with the development requirements of the
State of Michigan Certified Industrial Park industrial development
standards, which are as attached as Exhibit A.:

Signs, setbacks, and environmental conditions (e.g. litter, vegetation, etc.)
of the applicants facility/site shall also be reviewed for compliance with
appropriate city codes or ordinances.

3.3 Employment Requirements

All tax abatement applicants should have a percentage of its employees
consisting of minorities and women equal to that found in the labor force
population of the labor market area. If at the time of application the
company does not meet the above requirement, the company shall
endeavor to fill a percentage of the new jobs to be created with minorities
and women equal to that found in the labor force of the labor market area.

All new jobs promised at the time of application must be filled within two
years and must be maintained over the life of the abatement.

(EXAMPLE: If the labor market area has a minority labor force of 15%
then the company requesting a tax abatement should have a workforce
consisting of 15% minorities. Also, if the labor market composition is
30% females, then the company should have 30% of its workforce
comprised of females. If the applicant did not have the appropriate
workforce, they would endeavor to fill 15% of the total new jobs with
minority applicants, while undertaking to fill 30% of the new jobs with
females.)

The Company shall also agree to work with the City's Affirmative Action
Director to market and publish notices regarding employment
opportunities.

3.4 Tax Abatement Criteria

The criteria to be considered by the City Commission in approval of
applications, including applications for the establishment of districts, as
well as the issuance of certificates, are the following:

1. Compliance with the tax abatement policy as adopted by the City
Commission.

2. Increased employment and tax base of the project.

3. The compliance of the petitioner in meeting previous tax
abatement investment and employment goals and investment
projections.

4. Requirements for additional public safety services.

5. Impacts on water supply systems, sanitary and storm sewer
systems.

6. Impacts on air and water quality, solid waste generation, or
reduction.

7. Nuisance consideration such as dust, noise, glare, or vibration
emissions,

8. Use of Muskegon County and more specifically City of Muskegon
labor or contractors, especially those that are minority or female
owned and operated.

9. Impacts on public right of way and general circulation patterns.

10. Potential for general site aesthetics considerations such as paving,
parking areas, increases in landscaping ground vegetation, and
signage improvements.

11. History of the applicant in payment of taxes, water bills, or any
other obligations to the City. "Applicant," for this purpose, shall
include any entity controlled by the principal officers or owners of
the entity signing the present application. The City shall not issue
a certificate or approve a district in cases where the "applicant" as
here defined, is delinquent in any tax, water bill, or obligation to
the City.

12. The location of the proposed improvements and whether the
general area is or was characterized by obsolete commercial or
industrial property and a decline in commercial or industrial
activity.

13. The size and extent of the capital outlay and its relative size to the
existing value of the property.

14. The impact on property values in the general area of the project.

15. The extent of providing a service need or commercial or industrial
activity currently not available in the market area.

16. The impact of the property improvement or tax abatement on
competitors in the general area of the project and Citywide.

17. Tax abatements previously granted or denied to competitors in the
general area and Citywide.

18. The willingness of the applicant to agree to use local contractors
and hire local residents for permanent employment opportunities,
and to extend meaningful opportunities for employment to
minorities and women.

19. The extent to which the project can be serviced by existing streets,
utilities, police, fire, and other municipal operations.

20. The consistency of the project with adopted codes, ordinances and
plans.

21. Performance in fulfilling construction and employment estimates
as stated in previous approved abatement applications.

22. Other considerations considered unique or of benefit to the
community.

3.5 Impact Analysis

Before consideration of any application by the City Commission, City
staff shall provide an impact analysis of the requested abatement. The
analysis shall include the following:

- Impact on local income taxes
- Impact on local operational millages
- Any potential environmental impact
- Impacts on transportation systems
- Impact on other economic segments of the community (i.e.
spin-off effects such as indirect job creation and income
generation or construction jobs used in project)
- Impact on property values in project area
- Impact on public services including water, sewer, police, fire,
schools, etc.
- Impact on general land use patterns of the community

3.6 Administration & Monitoring Procedures

The City of Muskegon Planning & Economic Development Department
shall be the administrator of the application process on tax abatements.
Prior to presenting an application to the City Commission for approval the
Planning & Economic Development Department, in conjunction with any
other appropriate city departments, shall review the employment and
general facility/site conditions at the project location and recommend any
conditions to be placed upon approval by the City Commission.

The Affirmative Action Department, in conjunction with the Planning &
Economic Development Department, shall be responsible for the
monitoring of approved applications for conformance with this policy.

For each approved application, the company receiving the abatement shall
submit semi-annual monitoring reports. These reports will include the
following information:

- New Jobs Created
- Workforce Breakdown (by race and gender)
- Capital Investment Expended
- Status of Any Required Site/Facility Improvements

The City of Muskegon shall provide the report forms to the company in
the months of January and July.

The Planning & Economic Development and Affirmative Action
Department shall provide an annual report on the status of active tax
abatements to the City Commission in February of the following year.
(i.e. 1999 annual report shall be submitted in February of 2000).

3.7 Application Procedures

The following procedures are intended to implement the foregoing
policy and provide complete applications upon which to base a
decision for approval or denial. It is intended that the administration
of this procedure and the application process be efficient and
flexible do as to meet the applicant's needs while complying with the
policy as adopted.

1. Applications

a. Application forms (Exhibit A) provided by the City shall be filled
out completely and additional required documents shall be attached
when submitted to the City Clerk.

b. All fees shall be paid with the application. The Clerk will not
process any application without the payment of all required fees.

2. Processing of Applications; Schedule. The application will be processed
on the following schedule.

a. Properly completed application for tax abatement will be submitted
to the City Clerk. Copies will be forwarded to the Planning &
Economic Development Department and other appropriate
person(s).

b. Construction site plan submitted (if applicable).

c. Meeting scheduled with applicant to go over application, missing
items, affirmative action plan, etc.

d. A public hearing may (if required) be scheduled and resolution
drafted to approve a district or certificate.

e. A public hearing notice prepared by Planning & Economic
Development staff for publication and forwarded to the City Clerk
for publication in the Muskegon Chronicle. (if applicable)

f. Certified mailing to property owners and taxing authorities with
notification of application and public hearing date prepared and
executed. (If applicable) Notice will be given to all of the
following:

Property Owner
Business Owner (if other than property owner)
Muskegon School District or Orchard View School District
(whichever is applicable)
Muskegon Community College
Muskegon Area Intermediate School District
City of Muskegon Assessor's office

g. Time requirements set forth in any applicable statute or regulation
shall be observed.

h. After approval by City Commission, the City Clerk will review all
application and attachments for completeness, then sign the
application and send copies to the appropriate persons. A copy of
the completed application will be forwarded to the business owner
and the original application to the appropriate State Agency.

3.8 Establishing Industrial Development Districts & Approving Industrial
Facilities Exemption Certificates

The City Commission will approve the establishment of an Industrial
Development District only after the terms of the abatement are finalized
and the Contract for Tax Abatement is executed. The resolution creating
the Industrial Development District will note all terms and conditions to
be met by both the applicant and the community, if any. The District shall
be approved by resolution of the City Commission to include the
boundaries of the district.

A Certificate for Industrial Facilities Exemption shall be approved only
after the creation of the Industrial Development District. The Certificate
shall be approved by resolution of the City Commission to include the
boundaries of the Industrial Development District, the length of the
abatement (length may differ between personal and real property), and any
conditions the City Commission deems appropriate for the issuance of the
Certificate.

Upon expiration of any tax abatement, the Industrial Development District
created for the purpose of granting said abatement shall be immediately
revoked.

3.9 Filing and Compliance Monitoring Fee

The filing and monitoring fee shall be paid by the applicant at the time the
application is made. No applications shall be submitted to City
Commission for approval prior to the payment of this fee. The fee may be
equal to 2% of the abated taxes or $1,766 whichever is less.