The Mount Clemens City Commission on Feb. 16 acknowledged first reading of a pilot tax-exemption ordinance for the Edison Crossing Phase 1 development and approved a municipal services agreement with Woda Cooper Companies Inc.
City staff said the package approved in principle at a Dec. 21 meeting includes a 16-year payment-in-lieu-of-taxes (PILOT) at 6% and a $30,000 municipal services agreement. The commission voted to set March 1 as the date for second reading and potential adoption of the ordinance and authorized the mayor and clerk to execute the municipal services agreement.
"We're asking the commission to approve the agreement and to acknowledge first reading of the ordinance," Mr. Johnson said, summarizing the administration's recommendation. The ordinance and the municipal services agreement were prepared by the city attorney and already reviewed by Woda Cooper, staff said.
City attorney Michael Murray clarified an element of the ordinance that governs mixed projects: "If this development had a portion that was not subject to the low-income criteria — a market-rate portion — that portion would have to be carved out and taxed at a normal rate," Murray said, explaining how tax treatment applies to non‑qualified units within a project.
Commissioners asked staff to confirm timing and mechanics for the municipal services agreement payment; Murray and staff responded that the municipal-services payment is due at the same time as the pilot payment, which the ordinance sets for April 1.
The initial motion to acknowledge first reading and set the March 1 adoption date was moved by Commissioner Mentzer and supported by Commissioner Hammond. The companion motion to approve the municipal services agreement and authorize execution was moved by Commissioner Mentzer and supported by Commissioner Campbell; both motions passed on roll call.
What happens next: the ordinance will return to the commission for a second reading on March 1, when commissioners may adopt it or send it back for further negotiation. If adopted, the ordinance will implement the pilot payment schedule and the municipal services agreement terms as approved.