MUSKEGON, MI – The new owner of the Amazon subsidized apartment building in downtown Muskegon has agreed to pursue apartments for higher-income residents and improve the building in exchange for an alternative way to pay taxes.
The Muskegon City Commission agreed to a five-year payment in lieu of taxes, or PILOT, plan for the ownership group that purchased the 126-unit apartment and commercial complex at a bankruptcy auction in April 2016.
Rather than pay property taxes that are based on the value of the property, the Amazon owner will pay 3 percent of the total rents for the 110 subsidized apartment units. In addition, the owner will pay a 3 percent service charge to the city for reimbursement of city services. It will continue to pay property taxes on the dozen market-rate apartments.