Mount Clemens approves 16‑year PILOT and $30,000 MSA for Edison Crossing 1

The Mount Clemens City Commission on Dec. 21 approved a developer request for a 16‑year, 6% payment‑in‑lieu‑of‑taxes (PILOT) and a $30,000‑per‑year municipal services agreement for Edison Crossing 1, a housing project that received site plan approval and state housing tax credits.

City Manager Johnson briefed the commission that Woda Cooper received site‑plan approval and MSHDA housing tax credits and formally requested the PILOT and MSA. Johnson said the agenda packet included an analysis showing the city would receive more revenue under the PILOT+MSA than under ad valorem taxes — roughly $15,000 more per year for the city — while other taxing jurisdictions would receive less overall, by about $34,000 annually. “The company claims City of Mount Clemens will receive more revenue with the pilot municipal services agreement than we would through ad valorem taxes,” Johnson said, noting the project will likely be built whether the pilot is approved or not.

Commissioners debated the tradeoffs between city benefit and reduced receipts for other jurisdictions. Commissioner Hammond, who moved the motion, said the project will be built regardless and that the PILOT puts the city in a better financial position: “I move to approve the request of Woda Cooper Companies for a 16‑year, 6% payment in lieu of taxes and a $30,000 municipal service agreement, subject to negotiation on municipal services agreement and pilot ordinance acceptable to the administration,” he said. Several commissioners said they are normally reluctant to grant pilots but supported this one because of the city’s financial interest and the project’s imminent construction.

The motion passed on a roll call vote with the commissioners present voting yes. The approval is conditioned on final negotiation of the municipal services agreement and ordinance language acceptable to the city attorney.

The commission and city staff also noted a discrepancy in the motions packet — the developer requested a 16‑year term, but motions in the packet referenced 30 years — and the commission directed that paperwork be corrected to reflect the 16‑year term before finalization.

Next steps include completing the MSA negotiations and drafting the pilot ordinance for final administrative review and legal approval. City staff said the developer indicated the project would proceed with or without approval but that the agreements will determine long‑term tax distribution among jurisdictions.