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Commission authorizes development and reimbursement agreement for Muskegon Central Park housing TIF
Summary
The commission approved a Brownfield Development and Reimbursement Agreement for Muskegon Central Park LLC (Central Park Apartments), a 144-unit project on the former Muskegon General Hospital site that uses housing TIF provisions requiring state review.
The Muskegon City Commission voted Sept. 23 to approve a Brownfield Development and Reimbursement Agreement with Muskegon Central Park LLC for the Central Park Apartments project at the former Muskegon General Hospital site.
Jake Ekholm, director of development services, said the development and reimbursement agreement (DRA) sets the terms for tax-increment finance (TIF) capture and payment under an approved brownfield plan that the Brownfield Redevelopment Authority approved earlier in 2025. Ekholm told the commission this project is the city’s first housing TIF under an update to Michigan’s Brownfield Act (Public Act 381) that allows developers to capture certain potential rent loss for apartments that reserve units at or below 120% of area median income (AMI).
Because the housing-TIF statute includes a role for the Michigan State Housing Development Authority (MSHDA) when the state education tax is involved, Ekholm said the DRA required additional review and coordination with MSHDA and that process delayed bringing the agreement forward until the city and developer had MSHDA review in place.
The proposed project comprises 144 units with a mix of one-, two- and three-bedroom apartments, Ekholm said. Demolition of existing structures is underway and construction on initial buildings is slated to begin this fall, according to staff. Ekholm said the developer is pursuing brownfield TIF reimbursement consistent with the approved plan.
Commissioners voted to authorize the mayor and city clerk to sign the agreement. The motion passed by roll call; all voting members present voted yes.
