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Commission approves Act 425 shared-jurisdiction agreement with Fruitport Township for 28-acre parcel
Summary
The commission approved a 50-year conditional Act 425 agreement with Fruitport Township to bring a 28‑acre parcel formerly part of West Shore Correctional Facility under Muskegon jurisdiction for future industrial park expansion; tax sharing and prorated tax incentives were described.
The City of Muskegon on March 11 approved a conditional shared-jurisdiction agreement under Michigan Public Act 425 with Fruitport Township to bring a 28-acre parcel that the city owns — previously part of the West Shore Correctional Facility — under the city’s zoning, public safety and utility jurisdiction for potential expansion of the Port City Industrial Park.
Jake Eckholm, the city’s director of development services, explained the mechanism: “The item, speaks to a conditional shared jurisdiction agreement pursuant to public act 4 25 of the public acts of Michigan. Effectively, it's a mechanism by which 2 municipal parties can share jurisdiction, in a negotiated way for a term of up to 50 years.” He said the parcel sits inside Fruitport Township limits and is contiguous to parcels the city formerly owned and programmed by private users; the remaining 28 acres are “targeted for future expansion of the Port City Industrial Park.”
Under the proposed agreement Fruitport Township would retain its general operating and public-safety millages while the remainder of Muskegon’s millage would be collected by the city. Eckholm described tax sharing and incentives: tax incentives issued on the parcel for industrial or commercial development would be prorated and split so each jurisdiction receives an equivalent share corresponding to its millage. The agreement’s initial term is 50 years with a required renegotiation before expiration.
No public comment was received during the hearing. The commission moved to close the hearing and approve the Act 425 agreement and authorize the mayor and clerk to sign. The motion was made by Commissioner Keener and supported by Commissioner Kochen; roll-call votes recorded a unanimous yes among voting members present. Staff said the agreement initiates the jurisdictional transfer process and will be followed by any implementation steps (utility coordination, permitting, and any tax-incentive paperwork) as projects arise.
