City approves tax abatement for Grayling Place Apartments

Council opts for 8-year exemption instead of 10 years for development at former Hospitality House site
The Grayling City Council approved a Grayling Place Apartments application for a tax abatement during a regular meeting on Monday, November 14, following a public hearing.
According to City of Grayling officials, Grayling Place Apartments, LLC is building three three-story buildings (108 housing units) and parking areas at the former site of the Hospitality House (a long vacant series of motel structures located on M-93 northwest of downtown Grayling). Demolition of the Hospitality House began in late May of 2022, and construction of the new development has been ongoing during the summer and fall.
In October, the Grayling City Council approved a Commercial Rehabilitation District for the Grayling Place Apartments site following a public hearing.
City Manager Erich Podjaske said Grayling Place Apartments was seeking a 10-year tax abatement, and the exemption would be on new structures at the site, not on the land. Podjaske said the city needed to create a zone for the tax abatement first and then consider the developers’ application for the exemption after hosting another public hearing.
The city council conducted the public hearing regarding the Grayling Place Apartments application during its November 14 meeting.
During the hearing, District #1 County Commissioner Laurie Jamison said “we need the housing” but expressed concern about the length of the tax abatement at 10 years, asking if it could be approved at five years and then extended if needed. Jamison asked if the exemption would be transferable if the development were to be sold, and she asked about some of the financial numbers, including whether or not the abatement would include any stipulations on the rent prices for the apartments.
Podjaske said the abatement would be transferable but the developer is a “long-term company” and city officials do not anticipate it being sold while the abatement is active.
“From what I’ve seen they hold on to their projects,” Podjaske said.
Podjaske said the developers have said they plan to offer the apartments for rent at “market value.”
Later in the meeting, after closing the public hearing, the council continued its discussion with regard to the Grayling Place Apartments application.
Council members said they would prefer a “set number of years,” not a situation in which it would be approved and then possibly extended later.
Councilman Dennis Sloan said he would be in favor of a six-year tax exemption instead of the requested 10 years.
Mayor Heather Forbes asked if the council should “meet in the middle” at eight years.
“I think eight would be fair,” said Councilman Jack Pettyjohn.
“I would compromise at eight,” Councilman Sloan said.
Councilman Sloan moved to approve the resolution for the Grayling Place Apartments Commercial Rehabilitation Exemption Application for an eight-year tax abatement. The motion passed 4-0 (one member absent).

Crawford County Avalanche

Mailing Address
Box 490
Grayling, MI 49738

Phone: 989-348-6811
FAX: 989-348-6806
E-Mail: information@crawfordcountyavalanche.com

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