The Plymouth City Council members heard public comment during a hearing Monday night about the proposed six-year property tax abatement for the River Gate South, LLC housing project.
Steve Guriel, who owns several rental properties, asked if any other housing units in Plymouth were granted tax abatements. City Attorney Sean Surrisi noted that this is the first time in the history of the city where this type of residential tax abatement was requested.
The tax abatement is being used as an incentive for the developer to build the housing unit at the corner of Michigan Street and Lake Avenue. It is operated under the same idea of when a company asks for tax abatement when it’s time to expand operations or for new operations. A 100% tax abatement would be realized for the first year with a phase-in formula for the next five years. Full property tax benefits will be realized on the seventh year, if approved. Specific impacts will be given during the next meeting on Monday, Dec. 11.
Councilman Gary Cook commented that the city has given about $1.5 million toward this project and Regional Cities has committed $1.5 million. Cook said the city’s acquisition of property and demolition of homes and other paperwork associated with this is enough taxpayer money toward this project.
Councilman Jeff Houin noted that the developer, Scott Sivan, is investing $7 million of his own money to develop this housing project in Plymouth. The tax abatement is part of the incentive for him to build in the city.
Councilman Shawn Grobe voiced his support of the tax abatement.
Marshall County Economic Development Corporation President and CEO Jerry Chavez said the finished product will bring in eventual tax dollars that weren’t being collected. He added it will help revitalize the entire downtown area.
Resident Mike Delp supported the project while the President of the Plymouth Housing Providers Association Rex Crump voiced his opposition. The Marshall County Center Township Trustee sent a letter requesting that the tax abatement be rejected.
Sivan was not present at Monday night’s meeting so the city council members agreed to continue the public hearing for more public comment until the next meeting on Monday, Dec. 11.
