This summer, representatives from Buffalo Dragon Investments, LLC approached City staff to discuss the possibility of requesting an Obsolete Property Rehabilitation Act (OPRA) exemption certificate for their recently purchased property at 136 West Washington Street.
The guidelines for establishing OPRA districts and processing OPRA exemption certificates are detailed in Michigan Public Act 146 of 2000. Under this Act, local government units may grant tax exemption certificates to properties within established OPRA districts - such exemptions may have terms of up to 12 years.
The principals of Buffalo Dragon Investments, LLC have indicated that they plan a $2.6 million rehabilitation on the parcel, ultimately leading to the restoration of the property to an economically efficient condition and culminating in the opening of The Honorable Distillery. Including construction employment, the project is estimated to create 26 jobs.
The applicant has requested a three-year exemption under PA 146 of 2000. This three-year window will begin on Dec. 31, 2021. Granting of this exemption application would mean that local property taxes on the parcel would be effectively frozen at current levels during the next three years.
As this property is located in the Marquette Downtown Development Authority's tax-increment financing district, any increases in future tax revenue would go primarily to the DDA. During the August meeting, the DDA board of directors voted to support this proposal.
The applicant has also requested that the Michigan State Tax Commission consider reducing the school operating and state education tax levies by 50 percent during the term of the exemption.
Under the requirements in the Act, a certificate may only be granted for a property located within an OPRA district, and may only be acted upon following a public hearing.
This hearing was scheduled during the Commission's September 27 regular meeting. This item can only be considered tonight in conjunction with the public hearing to consider the establishment of an OPRA district at 136 West Washington Street.