Houghton’s City Council approved a commercial rehabilitation district and exemption application from the owners of the Downtowner Motel.
City Manager Eric Waara shared with the council at a public hearing details of a pending sale for 110 Shelden Avenue, located between the Downtowner Restaurant and Lahti Jewelers. Waara described the plan to place a tax exemption on potential development as similar to how the city would use the brownfield authority program.
“After that the city is collecting full taxes on that. Honestly, I can’t think of too many buildings downtown that most people would rather see rehabilitated in some form or fashion,” Waara said. “The state makes these tools available to communities to get projects like this off the ground. But the city has to create the district first.”
The exemption application will lock in the development tax rate for the value when sold and will not exceed 5% of the taxable value. During the 10-year period, the property will presumably increase in value. After the exemption period ends, the city will begin to collect the full taxable amount.
Bridgeview Properties LLC’s tax exemption for 110 Shelden Avenue will begin Dec. 31, 2025, and end Dec. 30, 2035. The developer anticipates rehabilitation work will cost $2.9 million and must complete work by May 31, 2026.
The project will create 21 middle-market housing units by converting the motel design. Bridgeview Properties LLC expects to employ 14 people during the project.
