Incentives to turn vacant Rogers City property into housing
Farmington Hills developer Mike Uzelac is ready to deliver on a promise he made to construct homes on the city-owned Lakeview property now that his firm has been awarded a single business tax credit. The six-acre site, north of the Driftwood Motel in Rogers City, which once housed industrial businesses, will be redeveloped for residential housing with the assistance of a Brownfield single business tax credit from the Michigan Economic Development Corporation (MEDC). The announcement was made through Gov. Jennifer Granholm?s and State Rep. Matt Gillard?s offices. ?The project will bring real economic boost for Rogers City,? said Granholm. ?This redevelopment will turn vacant property into attractive housing that will attract residents and generate revenues for the city.? The site is located in a Renaissance Zone area, meaning no taxes will have to be paid by the residents that live there for more than 10 years.
?WE SAID we would develop the property if we could obtain single business tax credits, which are based on the amount you want to invest,? Uzelac told The Advance. ?The next step is to put a home up there, which we are working on right now. We want to build 22 homes in that area.? Uzelac?s firm, Federated Properties LLC, will use the $300,000 Brownfield credit to develop a project that will include 22 homes with new streets, curb, gutter, water and sewer. ?We?re excited about the project and thankful to the governor, state senator Jason Allen, and the very helpful people at the MEDC,? Uzelac said. ?Most importantly, we appreciate the encouragement and assistance offered by the people of Rogers City. This is a true team effort and we?re proud to be a part of it.?
The credit is based on how much money Federated puts into the project. Ten percent of their investment is what they would receive in a credit. ?Credits are not issued until we make the investment,? said Uzelac. ?We are thrilled to have the opportunity to do it. It?s a great program.?
FEDERATED IS working on other projects in northern Michigan including a $70 million redevelopment project in Traverse City that includes a 364 space parking deck that will be topped with several residential floors. The Rogers City Downtown Development Authority has spent more than $300,000 to prepare the property for redevelopment. ?Rogers City will benefit from this kind of investment, as will the rest of northern Michigan,? Gillard said. ?We?ve gotten the attention of the agencies that dole out the money, and hopefully it will bring even more good fortune to our northern Michigan communities.? There has not been a lot of good fortune that has come from this project, as there has been a revolving door of developers since 2001 and many broken promises. Uzelac plans to construct a spec home before winter and then build other houses as demand increases next year. ?As people see them, they can order them and we?ll put another one up,? said Uzelac.
?THIS PROJECT would have been too expensive to achieve without the Brownfield
The MEDC is a partnership between state and local communities. They promote smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.