Commission approves continued pilot agreement, municipal services payment for Parkplace Towers

The Mount Clemens City Commission voted to continue a tax abatement pilot for Parkplace Towers and to enter a Municipal Services Agreement requiring annual payments of $35,000, adjusted annually by the Consumer Price Index, while the property’s federally aided mortgage remains outstanding.

City Administration presented a resolution describing the arrangement: the pilot will set payments at 6% of total rental or occupancy charges collected by Parkplace Towers, less utilities paid by the owner; the attached Municipal Services Agreement (MSA) requires annual payments of $35,000 to the city and will not terminate while the federal mortgage or related financing remains outstanding or for a period not to exceed 20 years from the date of the agreement.

Commissioners asked about the prior arrangement and how much the city previously received under the old 10% pilot. A commissioner said under the prior agreement the city received only a modest amount (the presentation said the prior 10% arrangement produced roughly $2,225 to the city in a cited period). Administration said the building’s new owners plan a complete rehabilitation of the property using financing tied to the pilot and that continuing the pilot and adding the MSA will provide the city with a predictable revenue stream.

Following discussion a roll‑call vote approved the resolution and MSA; the clerk recorded unanimous ‘‘yes’’ votes. The resolution authorizes the mayor and city clerk to execute the documents as prepared by the city attorney.

The commission did not specify further implementation steps in the discussion recorded in the transcript; the resolution text indicates the agreements remain in effect while federal financing remains outstanding or for up to 20 years.