Proposed boundary for new Commercial Development Districts
By Jessica Lovay, Office Manager/Grant Administrator
The City of Cheboygan has taken the first step to opening an economic window of opportunity within the Downtown Development district. On recommendation from the Downtown Development Authority (DDA), the City will hold a public hearing to establish a Commercial Rehabilitation District and a Commercial Redevelopment District.
A Commercial Rehabilitation District, pursuant to Public Act 210 of 2005 as amended encourages the rehabilitation of qualified commercial properties with an incentive of freezing the current real property taxes for up to 10 years.
A Commercial Redevelopment District, pursuant to Public Act 255 of 1978 as amended encourages the redevelopment, restoration, or new construction of qualified commercial properties with an incentive of abating the 50% of the real property taxes generated from the new investment for up to 12 years, and in some cases taxes on the real property are frozen for up to 12 years.
By establishing these districts the City is allowing new and existing building owners the opportunity to apply for an incentive for their investment and development within the DDA. A public hearing is scheduled for July 24th, 7:00 pm at the Cheboygan City Hall. Stay tuned for project updates!
The application process for either incentive can be complicated, and the qualifications may not always be clear. Before starting construction, it is recommended that you consult with legal counsel, City officials, or a qualified expert in the area of tax abatements for clarification. If you have any questions, or would like more information on the new districts please contact the NLEA at 231-582-6482.
