Reinvesting along the Lakeshore: Opportunity zones explained

Opportunity zones in Muskegon county, mich. Opportunity Zones are a new federal tax incentive program found in the Tax Cuts and Jobs Act of 2017 to spur private investment and economic activity in specific distressed or low-income census tracts. Muskegon County has five Opportunity Zone census tracts – three in the city of Muskegon and two in the city of Muskegon Heights – as designated by

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y t i n u t At their core, Opportunity Zone allows for those with federal r o p p o capital gain liabilities to delay or eliminate their tax burdens by making n w to n w o substantial investments in the designated zones. Capital gain liabilities can d n t i en pm be generated by the sale of real property, businesses or stocks and bonds. C elo onstr dev uction of mixed use Opportunity Zone funds can be set up by financial institutions or groups of individual investors through a “self-certification” process with the U.S. Internal Revenue Service. Using Form 8996 with a federal income tax return, an eligible corporation or partnership can become a Qualified Opportunity Fund. Qualified Opportunity Funds can receive three types of federal tax benefits by investing in Opportunity Zones. An investor can defer federal taxes on any income that generates a capital gain. Opportunity Zone investments held for a minimum of five years receive a 10 percent tax break and a 15 percent tax break if held for seven years. Long- term investments in an Opportunity Zone of 10 years or longer are permanently excluded Muskegon County is in the midst of a historic transformation from an old from any future capital taxes. industrial town to a vibrant community boasting advanced manufacturing, world-class recreation, a tourist destination and a regional health care center. It Qualified Opportunity Funds can invest in real estate or businesses located in Opportunity Zones such as interest in real estate developments and infrastructure along is home to five Opportunity Zone census tracts in the cities of Muskegon and with investments in for-profit businesses located in an Opportunity Zone. Heights oppo egon rtun usk ity M zo n ne Muskegon Heights with a variety of dynamic investment possibilities. ow The funds can be invested in existing businesses and developments if nt ow “substantial improvement” is obtained by at least doubling the value D Muskegon county is home to: of the initial business or development over the course of 30 months. Finally, Qualified Opportunity Fund investments can be • The largest kayak manufacturer in the world combined with other incentives such as New Market Tax Credits, • The top rated community college in Michigan Low-Income Housing Tax Credits, historic rehabilitation tax credits • A Top 10 summer art festival among dozens of and other state of Michigan economic development programs. major events Local incentives available through the cities of Muskegon and • The largest deep-water port on MI west coast Muskegon Heights are also available. • The Lakeshore destination for state-of-the-art medical services • An industrial legacy and expertise in metal • Large, open waterfront properties with access • Affordable near-water living options Muskegon Area First • Miles of open, public sugar-sand beaches For more general information Interim President/CEO Darryl Todd • Abundant water and a world-class wastewater on Opportunity Zones in system 380 W. Western Ave. Suite 202 Muskegon County, contact: Muskegon, MI 49440 231-722-3751 Email: [email protected]

muskegon lake opportunity zone

Claiming the distinction of “West and the available acreage at the Western Michigan’s Shoreline City”, Muskegon is Waterfront are well-positioned to benet OPPORTUNITIES IN the largest city on the eastern shore of from the area’s natural amenities and MUSKEGON LAKE AREA with a population just reviving downtown. under 40,000. In addition to having the largest beach on Michigan’s west coast, Downtown Muskegon is in the midst of WESTERN WATERFRONT Muskegon also contains miles of major reinvestment. ough comprising lakefront along the shore of Muskegon the core of the city, the removal of a MIXED-USE DEVELOPMENT Lake. e city is located 180 miles renewal-era, urban shopping mall has northeast of made available , 190 miles much vacant land. MUSKEGON COUNTRY CLUB west of , and With a clear vision MIXED-USE DEVELOPMENT 80 miles due east of for the future, . Downtown Muskegon is on HARBOR 31 Today, Muskegon is course to become a progressive city the hub of the city, MIXED-USE DEVELOPMENT and has an county, and appreciation for its beyond. signicant history while continuing On the west end of forward growth and the city, sited near Grants, loans, and tax abatements movement in both Muskegon are also available. e owner or creating a new Lake and Lake developer should coordinate with identity for itself. Michigan, the the City of Muskegon to e casual and mixed-use determine which incentives are friendly atmosphere development most appropriate for their allows the local resident, vacationer, or opportunity at the Muskegon Country development project. Please sherman to truly kick back, relax and Club delivers a location unlike any other. contact: enjoy. For more information please visit the LeighAnn Mikesell Public Services Director As Muskegon’s industrial past makes way following websites: 933 Terrace Street for a mixed-use future, large waterfront Muskegon, MI 49443 sites have become available for www.shorelinecity.com (231) 724-6702 redevelopment. Both the Harbor 31 site www.muskegonarearst.org [email protected] muskegon heights opportunity zone

Muskegon Heights, known as the “City school buildings of varying ages. Once of Friendly People”, is located in the embedded in their respective OPPORTUNITIES IN southwest quadrant of Muskegon neighborhoods, these facilities oer the MUSKEGON HEIGHTs County, just a ten minute drive from the opportunity to, once again, serve as shores of beautiful Lake Michigan. Our community anchors. Redevelopment of close-knit community is the proud home old school buildings is not unfamiliar in VACANT SCHOOL BUILDINGS of just over 10,000 residents as well as the community, as the Roosevelt national and internationally recognized Apartments recently opened in a MIXED-USE DEVELOPMENT businesses. Once a manufacturing repurposed school building. community, we are excited about the Lining both sides of DOWNTOWN MUSKEGON possibility for Broadway Avenue, HEIGHTS RETAIL redevelopment and downtown growth. Muskegon Heights, has seen recent FORMER WASTEWATER e city, while only revitalization as three square miles new businesses FACILITY in size, contains a open alongside number of large and longstanding small sites available establishments. for redevelopment, Still, opportunities along with exist in both opportunities for underutilized reinvesting in residential and Grants, loans, and tax abatements are also available. e owner or existing buildings. retail buildings as developer should coordinate with well as vacant the City of Muskegon Heights to Large tracts of properties near the determine which incentives are formerly industrial land, like the past site downtown business district. most appropriate for their of the City’s wastewater facility, make development project. Please possible major redevelopment projects contact: within close proximity to major For more information please visit the thoroughfares, rail lines, and local following websites: Jacob Eckholm, City Manager attractions. 2724 Peck Street www.muskegonheights.us Muskegon Heights, MI 49444 Phone: 231-733-8870 Muskegon Heights also contains vacant www.muskegonarearst.org [email protected]