Commission OKs commercial redevelopment district and 12-year tax abatement for proposed Element by Marriott hotel

The Muskegon City Commission on Tuesday approved establishing a commercial redevelopment district at 181 Viridian Drive and authorized a 12‑year commercial facilities exemption certificate for the proposed Element by Marriott hotel.

The measures, moved and supported by commissioners during public hearings, clear a municipal step needed before the developer seeks the tax abatement tied to the project. Contessa Alexander, a development analyst for the City of Muskegon, described the proposal as a five‑story Element by Marriott with 132 rooms, a restaurant, a fitness center and an indoor pool. She said the project would create new long‑term and construction jobs and noted the developer was present to answer questions.

The motion to establish the commercial redevelopment district was approved by roll call with all commissioners voting yes. An internal tax‑incentive committee scored the project at the maximum points under the city’s tax incentive policy, recommending the full 12‑year abatement; the commission then voted to issue the commercial facilities exemption certificate for 12 years by roll call, with all members voting yes.

Developer Mike Hausman told commissioners the team was in advanced review with Marriott and had lenders’ term sheets, and that the developer aimed to break ground within about a month to six weeks. Commissioners asked about site connectivity; Hausman said sidewalks and trail access would be included and that the hotel would be built near the roundabout across from the GVSU hub. He said the team plans to begin auger‑cast piles in March and hopes to have the hotel open before summer 2026.

Commissioners and a caller from the Harbor 31 redevelopment team praised city staff for their coordination, noting city planning and development staff had helped move the long‑running Harbor 31 redevelopment forward.

The commission’s approval permits the developer to apply for the abatement and proceed with project financing and permitting; it does not itself commit the city to any construction or financing beyond permitting and tax‑incentive authority.

Action details and next steps: following the commission vote, the developer may finalize financing and begin site work. The commission authorized the mayor and city clerk to sign the district and certification resolutions.

Ending: Commissioners said they anticipate additional staff reports and permitting steps as the project advances. Hausman said, if financing is finalized, ground work could begin in March with an expected opening before summer 2026.