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Michigan Department of Treasury
3674 (5-03)
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 not 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 one
copy 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;
(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)
Company Mailing address (No. and street, P.O. Box, City, State, Zip code)
Location of obsolete facility (No. and street, P.O. Box, City, State, Zip Code)
City, Township, Village County
Date of Commencement of Rehabilitation Planned date of Completion of Rehabilitation School District where facility is located (include school code)
Estimated Cost of Rehabilitation Number of years exemption requested Expected project likelihood (check all that apply):
Increase Commercial activity
Legal description of Obsolete Property Create employment
Retain employment
Prevent a loss of employment
Revitalize urban areas
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 _____
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.
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.
Contact person name Title Telephone Number
Mailing Address
Company Officer name Title Telephone Number
Signature Telephone Number
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.
PART 1: ACTION TAKEN
Action Date:____________________________________
Exemption Approved for __________ Years, ending December 31, __________ (not to exceed 12 years)
Disapproved
PART 2: RESOLUTIONS
A statement that the local unit is a Qualified Local Governmental Unit. A statement that the application is for obsolete property as defined in
A statement that the Obsolete Property Rehabilitation District was section 2(h) of Public Act 146 of 2000.
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. facility did not occur before the establishment of the Obsolete
Property Rehabilitation District.
A statement indicating whether the taxable value of the property
proposed to be exempt plus the aggregate taxable value of property A statement that the application relates to a rehabilitation program
already exempt under P.A. 146 of 2000 and under P.A. 198 of 1974 that when completed constitutes a rehabilitated facility within the
(IFT's) exceeds 5% of the total taxable value of the unit. meaning of P.A. 146 of 2000 and that is situated within an Obsolete
Property Rehabilitation District established in a Qualified Local
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
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
A statement that all of the items described on line 9 of the commencement of the rehabilitation as provided by section 2(l) of
Application for Obsolete Property Rehabilitation Exemption P.A. 146 of 2000.
Certificate have been provided to the Qualified Local Governmental A statement of the period of time authorized by the Qualified Local
Unit by the applicant. 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
Buildings
Buildings on Leased Land
Other Personal Property
Year of Values
Name of Local Government Body Date of Action on application
CLERK CERTIFICATION
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.
Clerk Signature Date Telephone Number
Clerk's Mailing Address City & State Zip Code
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
POLICY NO. _______
CITY OF MUSKEGON
OBSOLETE PROPERTY REHABILITATION DISTRICTS
ACT NO. 146
PUBLIC ACTS OF 2000
1.0 STRATEGIC PLANNING PROCESS
The City Commission, on November 14, 2000, determined that the following
policy is necessary, in order to implement the Obsolete Property Rehabilitation
Districts, for these reasons:
- New legislation available that will benefit the City of
Muskegon, particularly our commercial areas
- Implementation will encourage the development of commercial
areas that have experienced little or no redevelopment in recent
years
- To ensure that the redevelopment that does take place is
appropriate for the districts identified
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. In the past, the available incentives
for commercial businesses have been minimal. The State of Michigan is now
creating incentives that can be used on a local level to spark business
development and building rehabilitation. The purpose of this policy is to
stimulate business growth and improve commercial areas of the City where
certain properties have become obsolete. 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 for commercial rehabilitation is judicious, fair, and responsibly
accomplished. The City adopts this policy, not only to encourage the use of tax
abatements for commercial rehabilitation, but also to articulate the reasonable
expectations of performance by those directly benefiting from the policy.
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3.0 POLICY
A. It is the policy of the City of Muskegon to provide obsolete
property rehabilitation exemption certificates 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.
B. Multiple certificates 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 rehabilitation certificate 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 annual reports to
determine on a case-by-case basis that the application meets the
goals and objectives of the City.
3.1 Obsolete Property Rehabilitation 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 Obsolete Property Rehabilitation Policy as
adopted by the City Commission.
2. Completion of the rehabilitated facility must be calculated to, and
will at the time of issuance of the certificate have the reasonable
likelihood to, increase commercial activity, create employment,
retain employment, prevent a loss of employment, revitalize urban
areas, or increase the number of residents in the community in
which the facility is situated.
3. Will increase the tax base.
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4. Compliance of the petitioner in meeting previous obsolete property
rehabilitation requirements, and employment goals and investment
projections (if relevant).
5. The impacts on public right of way and general circulation
patterns.
6. General site improvements such as paving, parking areas, increases
in landscaping ground vegetation, and signage improvements.
7. The 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.
8. The applicant must state, in writing, that the rehabilitation of the
facility would not be undertaken without the applicant's receipt of
the exemption certificate.
9. The location of the proposed improvements and whether the
general area has already been designated as an Obsolete Property
Rehabilitation District, or is an area that would qualify as having
obsolete properties.
10. The value of the rehabilitation must include improvements
aggregating 10 % or more of the true cash value of the property at
the commencement of the rehabilitation of the obsolete property.
11. The impact on property values in the general area of the project.
11. The consistency of the project with adopted codes, ordinances and
plans.
12. Other considerations considered unique or of benefit to the
community.
3.2 Administration & Monitoring Procedures
The City of Muskegon Planning & Economic Development Department
shall be the administrator of the application process on obsolete property
exemption certificates. Prior to presenting an application to the City
Commission for approval the Planning & Economic Development
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Department, in conjunction with any other appropriate city departments,
shall review all applications for compliance with this policy.
For each approved application, the property owner receiving the obsolete
property rehabilitation certificate shall submit 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 Other Requirements Set Forth by the City
Commission
The City of Muskegon shall provide the report forms to the owner in the
month of November for year-end calculations.
The Planning & Economic Development Department shall provide an
annual report on the status of active obsolete property rehabilitation
certificates to the City Commission in February of the following year.
(i.e. 2000 annual report shall be submitted in February of 2001).
3.3 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 so 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 obsolete property rehabilitation
certificates will be submitted to the City Clerk. Copies will be
forwarded to the Planning & Economic Development Department
and other appropriate person(s). The Clerk will also notify in
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writing the City Assessor and the legislative body of each taxing
unit that levies ad valorem property taxes in the City of Muskegon.
b. Meeting scheduled with applicant to go over application, missing
items, etc.
c. A public hearing will be scheduled and resolution drafted to
approve a district or certificate.
d. A public hearing notice prepared by Planning & Economic
Development staff for publication and forwarded to the City Clerk
for publication in the Muskegon Chronicle. Public notice of the
hearing shall not be less than 10 days or more than 30 days before
the date of the hearing.
e. 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
County of Muskegon
f. Time requirements set forth in any applicable statute or regulation
shall be observed. This includes 60 days for the City Commission
to approve or disapprove the certificate and resolution authorizing
the certificate, after the completed application is received by the
City Clerk, and 60 days for the State Tax Commission
("commission") to approve or disapprove the resolution, after the
commission receives the application and resolution adopted by the
City Commission.
g. After approval by City Commission, the City Clerk will review the
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 property owner
and the original application to the. commission The resolution is
not effective unless approved by the commission.
3.4 Establishing Obsolete Prope rty Rehabilitation Districts & Approving
Obsolete Property Rehabilitation Certificates
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The City Commission, on its own initiative, may choose to establish
Obsolete Rehabilitation Districts on their own. They may establish 1 or
more districts that may consist of 1 or more parcels or tracts of land or a
portion of a parcel or tract of land. It is also possible for the City
Commission to establish a district if a written request is filed by the owner
or owners of property comprising at least 50% of all taxable value of the
property located within a proposed obsolete priority rehabilitation district.
The written request must be filed with the City Clerk. The resolution
creating the Obsolete Property Rehabilitation 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 Obsolete Property Rehabilitation Exemption shall be
approved only after the creation of the District. The Certificate shall be
approved by resolution of the City Commission to include the boundaries
of the Obsolete Property Rehabilitation District, the length of the
abatement (1-12 years), and any conditions the City Commission deems
appropriate for the issuance of the Certificate.
3.5 Filing and Compliance Monitoring Fee
The applicant shall pay the filing and monitoring fee 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 will be
equal to 2% of the abated taxes (based on the amount of investment on the
first full year of service) or a maximum of $1,000.
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CITY OF MUSKEGON
OBSOLETE PROPERTY REHABILITATION GUIDELINES
The following guidelines are intended to provide direction for determining the
length of all obsolete property rehabilitation exemptions as well as other potential
components of a tax exemption such as employment generation/retention and
site/facility requirements. The City Commission reserves the right to adjust the
length of any tax exemption or add or subtract any conditions placed on a tax
exemption based upon other community benefits including but not limited to
capital investment, jobs retained, and facility/site improvements.
A. Duration of Abatements
The following section represents the number of years to be granted for
projects.
Standard Exemption:
Real Property 6 Years
New Employment*/Investment Bonus:
2-4 Jobs 1 Year $25,000.00+ 1 Year
5-8 Jobs 2 Years or $50,000.00+ 2Years
9-12 Jobs 3 Years $100,000.00+ 3 Years
13-16 Jobs 4 Years $200,000.00+ 4 Years
17-20 Jobs 5 Years $350,000.00+ 5 Years
21+ Jobs 6 Years $500,000.00+ 6Years
* "New Employment" refers to full-time job equivalent
The standard exemption will apply to all applications. Additional years
(up to a total of 12 years) may be added to the certificate later (using
above criteria), if additional improvements and/or jobs are added within
the time period that the original exemption was granted. The applicant
will then need to request an amendment to their original application, from
the City of Muskegon.
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B. Site/Facility Requirements
Improvements made shall conform to the Obsolete Property Rehabilitation
Districts Act. Changes made to the facility, other than replacement that
restore or modify the property, together with all appurtenances, to an
economically efficient condition are eligible. This includes major
renovation and modification including, but not necessarily limited to, the
improvement to floor loads, correction of deficient or excessive height,
new or improved fixed building equipment, including heating, ventilation,
and lighting, improved structural support including foundations, improved
roof structure and cover, floor replacement, improve wall placement,
improved exterior and interior appearance of buildings, and other physical
changes required to restore or change the obsolete property to an
economically efficient condition. The commencement of the
rehabilitation of the facility cannot occur before the establishment of the
obsolete property rehabilitation district
C. Employment Requirements
All tax abatement applicants are encouraged to have a diverse 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. In the event
the employment is not maintained over the life of the abatement, the City
reserves the right to decrease the abatement by the number of bonus years
that were given directly for that employment.
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