An important goal of a successful economic development program is to attract investment and development projects. Property tax abatement or tax increment financing (TIF) tools are widely used across the State of Michigan and give communities the ability to target specific sites, buildings, or areas.  

These tools are tax policies that reduce the amount of property tax payments in exchange for a state and local priority, like rehabilitation of blighted buildings or a new development that creates jobs. The state laws that create the incentives give local governments control of these decisions. A local incentive will not eliminate the property taxes but freezes the tax bill at the pre-development levels for a period of allowable years.  

The “savings” on property taxes will then go towards the proposed rehabilitation, development, or another public benefit. The purpose is to attract investment dollars to improve our community and local economy, and eventually increase the local property tax base for governmental services.  

As construction costs and the cost of borrowing money, i.e. interest rates, continue to be high, desired projects may work themselves out of being profitable or may not be good candidates for loans from lending institutions. To fill a financial gap, TIF programs can be effective and may be the only way to move a project forward.

We have used incentives to great success in the Manistee County area, including a housing project at the old Kennedy School, Fricano's Manistee River, the Hampton Inn & Suites Manistee Waterfront, and the Young's Construction housing project. 

Unfortunately, these policies can be easily misunderstood and misinformation can be spread because they contain the word “taxes.” The Manistee Area Chamber of Commerce has been performing outreach to educate stakeholders and officials on the use of these incentives.  

When we encounter misinformation and resistance to change, we need to point out that partnerships are required to move forward, and we need to keep these incentive tools in our toolbox.

Riley Apartments (Old Kennedy School) Manistee Township

• Chamber worked with the County Land Bank to receive a $500,000 grant for demolition and environmental work.  
• Manistee Township held a hearing on the Commercial Rehabilitation tax incentive, and the Chamber developed a sign-on letter for businesses to support.   
• Demolition is expected this Fall and a 2024 start on the 288-unit market-rate apartment project.
• This housing project represents a major victory for employers, the workforce, and economic development. 

Hampton Inn & Suites Manistee Waterfront

• Grand opening on July 18th with Chamber assistance and planning. 
• The Michigan Liquor Control Commission issued a license, but 6PM Hospitality had not yet received the official license. The Chamber advocated to two state agencies to move along this important business license before the Labor Day weekend.  

Gateway Project 

• Little River Holdings (LRH) received approval for a Planned Unit Development application to the City of Manistee. The Chamber spoke in public comments.  
• All stipulations for the application were agreed to by LRH.  
• Conversations continue about brownfield plans, financing, incentives, and other development tools.  

Thoroughbred Boat Company 

• The Chamber scheduled a business retention and expansion visit for the company and included the representatives of the Michigan Economic Development Corporation and the USDA Rural Development.  
• The agencies will continue to work with Thoroughbred on potential funding for expansion activities and supply chain capital support.  

518 First Street Housing Project 

• The Chamber, Land Bank, County Planning, and Housing North worked with a developer on plans to demolish a blighted warehouse and provide new housing in the City.  
• Available incentives were explored, with the potential for Land Bank grants being the likeliest fit for the project. Information has been provided by the developer for a County Land Bank grant application that is due in November.  
• Design work and proformas are being developed and a possible start could occur in early 2024.  

McKenzie Housing Development (Downtown Manistee)

• Housing North and the Chamber have been working with a developer on a downtown housing development project for market-rate apartments that will be a mix of 1 and 2 bedrooms.  

Northern Hotel Mixed-Use Development

• The project will have 15 long-term rental units and space available for commercial leases.  
• Chamber worked with the developer and city staff to prepare for an Obsolete Property Rehabilitation Act (OPRA) abatement.  
• The developer is also seeking assistance from MEDC to address the construction financing gap in the historic rehabilitation.  
• Incentives will be necessary to support the project, and a 2024 construction start is possible. 

Lakeside Social Restaurant Project 

• Regulatory issues slowed the momentum on the US-31 corridor/Manistee Lake project. The developer continues to work through regulatory issues related to wetlands. There may be additional steps required by EGLE. 
• The Chamber developed an update memo for the City Council to update on progress. This property received an OPRA incentive.  
• The developer is working toward new plans and construction costs for the restaurant.  

Outsider Cafe Project 

• The restaurant opened in the third quarter, and a ribbon cutting occurred in August.  
• The Chamber/DDA worked on a redevelopment liquor license for the business moving forward and submitted an agenda request packet to the City. This was approved in early September. 
• The business has submitted an MLCC application after receiving local support from the City Council in September. The application is now in the queue for MLCC consideration.  

Golden Stag Restaurant 

• The soft opening occurred in the third quarter and was a big hit.
• The chamber continues to work with owners on business start-up and expansion plans.  

Outdoor Recreation Retail/Service 

• The Chamber reached out to several businesses in the region to consider expanding to Manistee. 

Iron Works Building 

• Facilitated a meeting between the owner and MEDC to better utilize the space. Discussions included an end-user.   

Good Stuff, LLC 

• Entrepreneur plans on starting up a micro-distillery at 308 River Street (Hokanson's Camera) and utilizing Riverwalk facing frontage.  
• The chamber worked on DDA support and received a City Council resolution of support. The next steps are to finalize lease arrangements and apply to MLCC for a spirits tasting room permit.  

Discussions on retention, new businesses, and expansion were provided to Trophies Cafe (new), Third Life Brewing, North Channel Brewing, Stacey’s Flowers, Fricano’s Manistee River, Freshwater Window Cleaning, Z’s Carts, Burdco, Inc., Boyer Family Dentistry, Manistee Inn and Marina, Golden Stag, Port City Emporium, Wellnested, and a few others.

Stacie Bytwork, Manistee Area Chamber of Commerce

Paul Cova, Packaging Corporation of America

Jeff Dontz, Manistee County

Bill Gambill, City of Manistee

Sammie Lukaskiewicz, Manistee County Tourism Authority

Eugene Magnuson, Little River Holdings, LLC

Dennis McCarthy, Blarney Castle Oil & Propane

Kelly Tomaszewski, Munson Healthcare Manistee Hospital

Scott Ward, West Shore Community College/IDC

West Shore Community College

Manistee County

Manistee Industrial Development Corporation

City of Manistee

Manistee Downtown Development Authority

Blarney Castle Oil & Propane

Munson Healthcare Manistee Hospital

Little River Holdings, LLC

Pioneer Construction

Manistee County Tourism Authority

Filer Credit Union

Martin Marietta Magnesia Specialties

West Shore Bank

Morton Salt

Iron Fish Distillery