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Commission approves three Neighborhood Enterprise Zone certificates for new homes across Muskegon
Summary
The commission approved Neighborhood Enterprise Zone (NEZ) certificates for three new-construction homes—1542 Adams Street (15 years), 397 Marquette Avenue (15 years), and 303 Terrace Point Circle (12 years)—clearing tax-reduction certificates and prompting staff and state review for a clerical-era application.
The Muskegon City Commission approved three Neighborhood Enterprise Zone certificates on June 10 that reduce the taxable value added by new construction or rehabilitation for eligible homeowners.
Jocelyn Hines, the city’s development analyst, presented each NEZ request. Hines described the NEZ program as allowing a reduction in the new value added to a property—"almost a reduction of 15% in property taxes for a new construction or rehab of homes," she said—and presented the three separate public‑hearing items.
The commission approved a 15‑year NEZ certificate for a new home at 1542 Adams Street built by Stevens Homes and Investments. Developer Steve (Stephen) Benedick, who spoke at the hearing, discussed the market for his product and said most of his houses are targeted at “missing‑middle” and first‑time buyers; he said the Adams house was listed around $225,000 and that estimated payments discussed previously were about $1,700 a month "plus taxes and insurance." The commission voted to close the public hearing and approve the certificate; a roll-call vote was recorded as yes by all commissioners present.
The commission next approved a 15‑year NEZ certificate for 397 Marquette Avenue, a new single‑family home by LRS Enterprises. Developer Ruben (Rudy) Briggs said the unit will be two stories with some single‑level/ADA on‑grade options planned and said LRS is building on vacant lots ("All vacant lots," he said when asked). Hines told the commission the cost of construction for the Marquette house is listed at $180,000 on the application. Commissioners asked about displacement and buyer profile; Briggs said recent projects showed a mix of local buyers and nonlocal buyers.
The commission then considered a more complicated 12‑year NEZ request for 303 Terrace Point Circle. Hines explained a clerical error led to an application submitted in 2023 not being processed by the city even though the applicant had evidence of submitting paperwork to the county assessor; staff sought guidance from the Michigan Department of Treasury (state tax commission) and reported the state said applicants could apply but that final approval is not guaranteed. Hines said the ownership of the Terrace Point property is split between an out‑of‑state parent (primary residence in Florida) and a son who lives in Muskegon and holds roughly 1% ownership and is homesteaded at the property (staff reference: PRE affidavit shows homestead since November 2019). Commission members asked whether approving at the local level would restart the NEZ clock for the Terrace Point development; staff said the commission has discretion over certificate years but final approval rests with the state tax commission and separation of ownership could raise questions at the state level. The commission voted to approve the 12‑year certificate and authorized the city clerk and mayor to sign the certificate and resolution; staff noted the state will make the final determination and that separation of ownership may affect state approval.
All three motions to close the hearings and approve the NEZ certificates passed by roll call. Staff said these certificates must be processed with the assessor and that property owners will see NEZ reductions reflected on their tax bills if the certificates are finalized by the state.
