Council approves seven-year tax abatement for Michigan Motorsports, plans site at William Richardson Court
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Summary
By a 7-0 vote the council approved Resolution 25-46 granting a seven-year real property tax abatement to Michigan Motorsports LLC for a proposed warehouse/office at 3315 William Richardson Court; redevelopment commission sold the parcel for $50,000 and the company committed to $4.5 million in site investment and an estimated 29 full-time jobs.
The Common Council voted unanimously on Monday to adopt Resolution 25-46, confirming a seven-year real property tax abatement for Michigan Motorsports LLC to build a warehouse/office facility at 3315 William Richardson Court.
Joe Molnar, assistant director for Growth & Opportunity, told the council the project would occupy a roughly seven-acre parcel on the northwest side of the city. Molnar said the redevelopment commission agreed to sell the land for $50,000 and the company committed to invest approximately $4.5 million in a Phase 1 buildout. Staff estimated Phase 1 would support about 29 full-time jobs and an annual payroll of more than $2.1 million.
Ian Baber, representing Michigan Motorsports, told the council the company had searched for space and appreciated the city's assistance in locating the site. Molnar said that even with the abatement, the property would generate significantly more tax revenue once developed compared with remaining vacant land.
Why it matters: The abatement is intended to facilitate private investment and job creation on a vacant industrial parcel. Molnar provided an analysis showing projected annual taxes after the project would be over $83,000 compared with roughly $2,500 if the site remained vacant; during the seven-year abatement the city estimates the owner would still pay about $264,000 in taxes and the abatement would reduce roughly $317,000 of otherwise owed property taxes over that period.
Next steps: The council adopted the confirming resolution and city staff will proceed with redevelopment tasks associated with the purchase-and-development agreement.