Nate Heffron, city manager, city of Negaunee

NEGAUNEE — Investments into downtowns don’t happening every day, especially in small communities like Negaunee. When they do, it makes sense to find ways to make sure that these investments can stay on track and will become successful.

As a representative of the city of Negaunee, I don’t ever want to be accused of standing in the way, for no good reason. This is why the city of Negaunee has taken major steps in the past two years to create a positive business environment, with special focus committed in the downtown.

The city is looking to continue this spirit and provide even more tools and opportunity to those that are looking to move or start their business in Negaunee, or to assist those that already have a business or building in our downtown.

Negaunee leaders are considering the establishment of the Commercial Rehabilitation District. According to the Michigan Economic Development Corporation website, a CRD “Encourages the rehabilitation of commercial property by abating the property taxes generated from new investment for a period up to 10-years.”

Not to get too complicated, but any new and significant property tax generated by a property owner would be eligible to receive tax abatement (a tax break on the new taxes).

For example, if a property owner increases their tax bill by $5,000, the city could allow for a tax abatement (on that amount only), for up to a period of time that would not exceed 10-years. Of course, this break wouldn’t just be given, they would have to earn it. How they earn it will depend on several factors, such how much investment they put into a building, how much value they created, how many jobs, etc.

An investment that increases the taxable value must be made first, meaning any construction must be completed prior to the city granting any tax abatement to the property owner. This type of tool checks many of the boxes that the city, Downtown Development Authority, and our community wants.

Those boxes include: repairs to old buildings, attracting new businesses, creating or sustaining jobs, making grants available through the MEDC, and the prospective use of historic tax credits for major investment.

As the city continues to Move Forward, our positive actions set the scene where investors can begin to realize the benefits of moving to Negaunee. We hope investors and business owners alike can see the city as their partner.

As we speak, one major project happening now and may be able to take advantage of these benefits. All I can say, there is more to come, unfortunately I can’t tell you about that yet. Become part of our success, we are ready for you to become part of our community!

Editor’s note: Nate Heffron is city manager of the city of Negaunee.