The city of Ishpeming seems like it’s on the right track with expanding the first district of its Neighborhood Enterprise Zone.

Under Michigan’s 1992 Neighborhood Enterprise Zone Act, cities like Ishpeming can establish areas in which homeowners and developers are eligible to have a portion of their property taxes exempted for a period of 15 years for specific development or redevelopment projects.

The proposed expansion would add 77 parcels to the NEZ by extending the zone west along the south side of Euclid Street from the intersection of Euclid and First streets, then southeast along the east side of Lakeshore Drive, where it will meet the current boundary at Hematite Drive.

Once a property owner gets an NEZ certificate – the application for which takes about nine months to a year – their property taxes are levied based on an average millage for the state of Michigan, which was approximately 18 mills.

Jackie Lykins of the Marquette County Equalization Department said a resident whose Ishpeming property is their principle residence normally pays about 44 mills. By contrast, with an NEZ certificate, she said, the roughly 18 mills a homeowner or developer would pay would be “the equivalent of just the school operating (mill) for their entire property.”

The NEZ certificate lasts for 15 years, phasing out in the final three years. The land the building is located on is taxed at the normal rate.

Zone expansion takes time and effort. The Ishpeming City Council must not only hold a public hearing (it already did – no public comments were made) but also solicit input from other tax jurisdictions in the area, such as Ishpeming Public Schools and Marquette County.

The panel must also decide that it finds the expansion to be consistent with the city’s master plan and adopt a statement of housing goals, objectives and policies for the zone.

All of that said, we are pleased the city is taking advantage of availing itself to a state program designed to give taxpayers a break.

We’ll be watching for a successful outcome.