25 Michigan Holdings, LLC

16 Monroe Center, Suite 200

Grand Rapids, MI 49503

September 27, 2016

Mr. Ted Dearing

Assistant City Manager
City of Battle Creek
10 N. Division, St
Battle Creek, MI 49016

Dear Mr. Dearing:

25 Michigan Holdings, LLC is requesting an extension of the ORPA tax exemptions for an additional
eighteen months. The reason for the request is that the due diligence and financing of the project has
taken significantly longer than anticipated due to the complexities and costs of the project. Financing is
continuing to move forward for the funding of the project. The Citys consideration of an extension is
very much appreciated.

Very Truly Yours,

Mark Harmsen
Owners Representative

GuidelinesforObsoletePropertyRehabilitationAct

TheObsoletePropertyRehabilitationAct(OPRA),PublicAct146of2000,providesfora
tax incentive to encourage a project that redevelops obsolete buildings. Taxable value
maybefrozenontheoriginalbuildingandnewimprovementstaxedatalowermillage
rate for up to 12 years. Redevelopment may include commercial, retail, or residential
projects.
Minimum Threshold Criteria: Projects must meet the following minimum threshold
criteriatobeconsideredforsuchincentive:

Meetallstateandlocallaws,guidelines,andregulations;and

Must pursue availablestate incentives before pursuing local incentives. May be

satisfiedbysubmittingstateapplication(s)andprovidingacopyofthesubmitted
application(s);and

Project design, construction and operation must be harmonious with the City
Master Plan and the general character of the business district or neighborhood;
and

Projectmustbeadequatelyservedbypublicfacilitiesandservices;and

Projectwillprovideaneconomicbenefittothecommunity;and

Investment will include at least $100,000 in real property improvements by

applicant;and

Theprojectwillcreatenofewerthansixfulltimeorfulltimeequivalent(FTE)new
jobs(tothecity)within30monthsofprojectapproval;and

Theprojectwillnotcreatenegativeconditionsincludingvacancy/blightconditions
throughbusinesses/jobsrelocatingwithinthecity.

Targeted Development Area: Projects located in the defined downtown Battle Creek
area will be deemed eligible to receive consideration for the next highest abatement
award level regardless of other minimum threshold criteria. The following chart shows
the threshold criteria and establishes the number of years the taxable value may be
frozen.

Downtown
*SeeAttachedMap

AllOtherAreas

Potential
elevationtonext
level

Incentives
FourYears
Meetstheminimumthresholdcriteria
EightYears
$250,000investmentminimum,and
Jobcreationshallcreatenofewerthan
12 fulltime or FTE new jobs (to the city)
within30monthsofprojectapproval
TwelveYears
$500,000investmentminimum,and
Jobcreationshallcreatenofewerthan
18 fulltime new jobs (to the city) within
30monthsofprojectapproval
Extension
Must meet all criteria for either eight or
twelveyears

Project elevation: Exceptions to the minimum threshold criteria may be considered for projects
having an exceptionally favorable impact on property values, elimination of blight, or creating high
wage,highskilljobswhetherdirectlyorindirectly.
Incentivesaccordingtocriteria:Aprojectwillbereviewedtoensureitmeetstheminimumthreshold
criteriaforeligibility.Followingprequalification,theCityofBattleCreekandtheprojectdeveloper
will pursue the creation of Obsolete Property Rehabilitation District. Once an Obsolete Property
RehabilitationDistrictisestablished,thescaleofthethresholdcriteria(outlineabove)willdetermine
thelengthoftheincentive.Redevelopmentmayincludecommercial,retail,orresidentialprojects.
Maximumbenefit:Themaximumincentivecannotexceed12years.
ContractandReportingRequirements:Anybusinessreceivinganincentiveundertheseguidelines
will be required to enter into an agreement with the City setting forth the specific terms. Any
businessreceivingataxincentiveundertheseguidelineswillberequiredtosubmitannualreportsto
theCityshowingcompliancewiththerespectiveprogramrequirements.
Resources:Applicationscanbeobtainedatwww.battlecreekmi.gov

Page2GuidelinestoObsoletePropertyRehabilitationAct

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G:\projects\merrick\battle_creek\compliance\draft_cbd\draft_cbd_area_aerial.mxd - JLM

City of Battle Creek GIS Department

10 North Division Street
Battle Creek, Michigan 49014
269.966.3355