Port Huron officials green-light tax break for south-end Gibraltar redevelopment

Jackie Smith, Port Huron Times Herald
·4 min read
The former Gibraltar building is shown on Thursday, Aug. 17, 2023, at 3592 Military St. in Port Huron's south end. It was purchased by the Walker brothers under 3952 Military LLC in 2021.
The former Gibraltar building is shown on Thursday, Aug. 17, 2023, at 3592 Military St. in Port Huron's south end. It was purchased by the Walker brothers under 3952 Military LLC in 2021.

Brothers Mark and Hale Walker who own the century-old former Gibraltar building on Port Huron’s south end are getting a nine-year tax break while they redevelop the site for a future restaurateur.

Under the state’s Obsolete Property Rehabilitation Act, Port Huron City Council members on Monday green-lit an application for the partial tax abatement and the establishment of an OPRA district to support it at 3592 Military St., which includes an aged, partially brick building and 400 feet of frontage along the St. Clair River.

The Walkers, known locally for founding MiMutual Mortgage, purchased the building in 2021 where Conner Street intersects with Military, and for the last several months, a boat harbor has been under construction to accommodate future visitors.

In their OPRA application, they list a $2.75 million investment in construction that’d begin this December and wrap up in April 2025. Previously, the duo has said they have no concrete deadline, nor specific occupant in mind, but rather, were looking to inspire future investment in the south-end neighborhood.

On Monday, City Manager James Freed called it “philanthropic economic development.”

“Our investment in this property, truly, it will be a miracle to really make money,” Hale Walker said. “But I think one of the challenges we have not only in Port Huron, but all of St. Clair County, is population, and so, we need to on an ongoing basis attract people to not only visit our area but to invest in it.

“Mark and I do not want to be a restaurateur. But what we want to do with this project is create that environment for somebody, whether that be someone local who is an aspiring restaurateur who can really create something that’s unique because this property is so very unique, or if we get somebody that is a proven restaurateur who are from outside the area (but) wants to expand their business.”

Hale and Mark Walker stand outside the former Gibraltar building at 3592 Military St., where a small harbor has been under construction for a few months, on Thursday, Aug. 17, 2023.
Hale and Mark Walker stand outside the former Gibraltar building at 3592 Military St., where a small harbor has been under construction for a few months, on Thursday, Aug. 17, 2023.

Hale Walker credited their investment additionally to their “love of this area” and the Port Huron and St. Clair County community that’s supported them.

Of the nine-year abatement, he added, “We have not taken any money from the city of Port Huron, from the county, or the state of Michigan. So, this is really where we’re asking for the city to partner with us to give us a break on the taxes, give us time to be able to get this property to what it can be.”

How did council members, residents respond to the request?

Multiple council members spoke in support of the project.

Port Huron Mayor Pauline Repp also clarified how the tax break arrangement works.

“Obviously, taxes are frozen where they’re at right now, so we’re not losing any money on it,” she said. “It’s not like we’re giving a tax credit to them. It’s just that the taxes won’t be realized for nine years for the additional investment that they put into their property. So, we thank them for your investment.”

During a public hearing, Joe Bixler, who’s president of the Southside Initiative, also spoke in favor of the abatement and what “truly is a legacy project" from the Walkers.

Although he’s been inside the Gibraltar building, joking, “It’s a mess,” he said, “It’s going to be exciting in the next three to five years to see exactly what happens down there.”

The bones of the building at 3592 Military St. is shown on Thursday, Aug. 17, 2023. For close to a century, the building hosted a variety of outfits — from Bohn Aluminum and O. Backus Jr. & Sun to the Gibraltar Manufacturing and Sprocket companies — before long-sitting vacant.
The bones of the building at 3592 Military St. is shown on Thursday, Aug. 17, 2023. For close to a century, the building hosted a variety of outfits — from Bohn Aluminum and O. Backus Jr. & Sun to the Gibraltar Manufacturing and Sprocket companies — before long-sitting vacant.

Port Huron resident Alan Skinner, who lives on the city’s north end, was more skeptical of the abatement.

“I’m a bit concerned about that. This is a revenue-producing property, waterfront property, currently under construction for (what) looks like a pretty extensive renovation,” he said. “… A person should be able to pay his property taxes on that renovation. Otherwise, why would he be doing it?”

However, Freed said the building in its current state was “so beyond any current uses that could ever make it marketable or generate money.”

“I know that you’ll probably never see a return on your investment,” he told the Walkers, “but we do believe you will transform that area, creating the market for additional housing and commercial retail in that corridor.”

Contact Jackie Smith at (810) 989-6270 or jssmith@gannett.com.

This article originally appeared on Port Huron Times Herald: Council OKs tax break for south-end Gibraltar redevelopment