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City to consider co-op tax abatement

August 13, 2012
By KYLE WHITNEY - Journal Staff Writer (kwhitney@miningjournal.net) , The Mining Journal

MARQUETTE - The Marquette City Commission tonight will consider approving a tax exemption for the Marquette Food Co-op.

The board's regular meeting is scheduled for 7 p.m. in the commission chambers of city hall.

In June, the commission established a five-year commercial rehabilitation district at 500 and 502 W. Washington, properties purchased recently by the co-op for use in an upcoming expansion. On July 26, co-op General Manager Matt Gougeon submitted an application for a commercial rehabilitation exemption certificate to the city.

Under the law governing the establishment of CRDs, the city is required to hold a public hearing prior to making a decision.

Under an exemption, the taxable values of the properties would be frozen at the previous year's level and new investment would be exempted from local taxes. The school operating tax and the state education tax are still levied on new investment and land and personal property can't be abated.

According to city staff, the current tax received for the property is $20,363.61 and a CRD abatements would be approximately $7,697. Once planned improvements are made, the annual tax capture would be about $36,000, while the abatement would be roughly $45,000.

The city previously estimated that the creation of a five-year commercial rehabilitation district would result in a total city operating millage tax abatement of $115,451.

Gougeon told the commission in June that the CRD could be a "linchpin" to outside funding for the project.

Co-op officials are hoping to secure up to $1.2 million in state funding, including up to $1 million from the Michigan Economic Development Corporation's Community Revitilization Program.

Gougeon said one requirement for the funding is a show of community investment and commitment. The establishment of the district must also be approved by the county and by the state tax commission before it becomes official.

Kyle Whitney can be reached at 906-228-2500, ext. 250.

 
 

 

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