Tax incentive approved for downtown Sturgis property
STURGIS — Following a public hearing Wednesday, the Sturgis City Commission approved a 12-year tax incentive resolution for a downtown redevelopment project.
The Obsolete Property Rehabilitation Act (OPRA), Public Act 146 of 2000, provides for a tax incentive to help redevelop older buildings in which a facility is contaminated, blighted or functionally obsolete. The goal is to rehabilitate older buildings into vibrant commercial and mixed-use projects. The tax incentives under OPRA freeze the local property taxes for up to 12 years, exempting the property from local property tax on improvements made.
In June, the city commission approved an OPRA district for the property at 105 W. Chicago Road, owned by Harrison Investment Properties. Harrison has submitted an application for an OPRA certificate and is redeveloping the property. The first-floor is intended to be retail space for a business tenant. Two one-bedroom apartments are set for development on the second floor, and one two-bedroom apartment is planned for the third floor. Additional improvements will include cleanup of the front facade, a new roof and new windows.
It is anticipated that the investment in the project will be $600,000.
As part of the application at the state, a local resolution had to be adopted, approving the exemption and setting the number of years for the tax abatement.
The city commission also approved a request for proposals to secure a consultant firm and formally lay out approximately 100 acres along the state border.
The city recently bought the property on the state line for development as a business park. The property is intended to have split development use, with about 25 percent of the property developed for retail and commercial with the other 75 percent developed for industrial use.
The intent is to find a firm familiar with developing sites both for “big box” retail as well as industrial parks so that the final layout of the park will meet the needs for both types of development. City staff is also looking for the final design concept to provide flexibility in development to be able to serve unforeseen opportunities in the future.
The number of acres for each proposal is also subject to change based on interest or need.
Prior to the vote, discussion included whether the property could be considered to address the housing shortage in town.
Assistant city manager Andrew Kuk said several parcels in the city have been looked at or considered for potential housing development. One of the biggest, current barriers is developer costs. While demand is high for housing, costs to bring such housing to reality is a deterrent.
In other business, the city commission approved a $10,600 bid from Ray’s Welding of Benton Harbor to repair or replace obsolete vents on the city's water tower.
This article originally appeared on Sturgis Journal: Tax incentive approved for downtown Sturgis property
