Negaunee City Manager Nate Heffron is pleased to announce the establishment of a Commercial Rehabilitation District (CRD) by the Negaunee City Council. A CRD is an area of land prescribed under Public Act 2010 of 2005 that allows for tax abatements under specific circumstances. Negaunee’s DDA has been established in its traditional downtown.
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.”
This means 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.
This break wouldn’t just be given, it would have to be earned. How they earned it will depend on several factors, such how much investment they put into a building, how much value has been created, how many jobs, etc. Currently the Negaunee DDA is working to establish an application packet with guidelines for determining such criteria. “We are trying to find balance that both serves the DDA and will incentivize investors”, DDA Consultant Mona Lang said.
‘The City sees this as great opportunity for property owners in the downtown, where this type of program can have a significant impact. We believe that this will help to check many of the boxes in our development plan for the community, those 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 investments”, Lang said.
According to Heffron, the DDA hopes to accept applications as soon as this year. “We already have some projects underway or just starting that can take advantage of this opportunity. Negaunee will always be looking to find ways to assist our property owners in investing in our community”.
For more information, contact Nate Heffron, Negaunee City Manager, at 906-475-7700, Ext. 11.