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Muskegon seeks 50‑year shared jurisdiction under Act 425 for former West Shore Correctional parcel
Summary
City staff presented a proposed 50‑year Act 425 shared jurisdiction agreement with Fruitport Township to allow the city to administer roughly 28 acres of former correctional facility land contiguous to the Port City Industrial Park; Fruitport will retain a portion of millage and both jurisdictions would share abatements.
City of Muskegon Director of Development Services Jake Eckholm told commissioners the city is proposing a 50‑year shared jurisdiction agreement under Michigan’s Act 425 for about 28 acres that were part of the former West Shore Correctional Facility and now lie along the Fruitport Township line.
The parcel is owned by the city but falls within Fruitport Township jurisdiction. Eckholm said the 4/25 agreement (Act 425) would let Muskegon administer the property for industrial park development without traditional annexation; Fruitport Township would continue to receive its allowable township millage and public safety millage while the city would receive the remaining local mills and city income tax revenue. Eckholm said the two units would proportionally share any property tax abatements if a developer used state incentives.
Eckholm described operational terms in the draft: a 50‑year term, limits on unilateral annexation or detachment of related property without partner consent, and a negotiated renewal discussion during the final year of the term. He said the state statute requires a public hearing and a separate 30‑day comment period after approval, which can trigger county or state review; Fruitport Township held a concurrent hearing the evening of March 10.
Commissioners asked for clarifications. Commissioner German confirmed the parcel being discussed is the southerly 28 acres of the parent parcel (the other parcels house Northern Biomedical Research and the Forming Technologies expansion). Eckholm said an interested nationwide industrial user has been in discussions but no commitment is finalized; the city hopes the shared jurisdiction will make redevelopment and utility service administration clearer for prospective industry.
Eckholm said the agreement would preserve automatic aid arrangements for emergency response and that Fruitport’s better response times in parts of the area informed the millage split proposal. He said the city will hold a public hearing on the agreement at its next meeting and anticipates the 30‑day comment window is unlikely to produce objections because the city is the only property owner affected.
The commission took no vote at the work session; staff will take the agreement back for public hearing and possible approval after the statutory notice period.
