Erickson Jewelers on South Stephenson Avenue was among the Iron Mountain developments that benefited from Michigan's Commercial Rehabilitation Act, a state property tax abatement program that aimed to promote building improvements by reducing or exempting local taxes on such improvements for up to 10 years after completion of construction. The act ended Dec. 31 and was not extended. (Daily News, file)

IRON MOUNTAIN — A Michigan property tax abatement program adopted in 2005 to promote building improvements has sunsetted, but certificates in effect will continue until they expire, Iron Mountain City Council learned this week.

The Commercial Rehabilitation Act ended Dec. 31 and was not extended, City Manager Jordan Stanchina said.

The city has issued several certificates for renovations and new construction, and these will remain valid for the duration specified by the council, he said.

“Unfortunately, no new certificates can be issued,” he said. “I have no idea why they let it lapse.”

The program has aided Iron Mountain developments that include the Sandstone building on East Ludington Street, Contrast Coffee on South Carpenter Avenue, Paul J. Fornetti Dentistry on Cedar Avenue and Erickson Jewelers on South Stephenson Avenue.

The city formed a district for CRA tax relief in 2017 to promote investments in vacant or underutilized buildings and land. Its boundaries mirror the Downtown Development Authority district.

The abatement program reduces or exempts local taxes on building improvements for up to 10 years after completion of construction. The length of the abatement is based on the program’s investment criteria and only the improved taxable value is exempt from taxes for the specified period,

The sunset date for the original CRA legislation was Dec. 31, 2020, but the program was extended for five years under a Michigan Senate bill signed in 2020, Stanchina said.

The Senate again approved an extension last year, but no legislation was brought to a vote in the State House.

In other action Monday, the council:

— Approved an independent contractor agreement with Professional Driver Services of Spalding to provide training that enables new public works employees to obtain a commercial driver’s license. The total cost for CDL Class A training is $4,870. The city covers the initial cost of the training, provided the employee signs a two-year reimbursement agreement. If an employee leaves within two years of obtaining a CDL, the city is reimbursed on a pro-rated monthly basis for the training costs.

— Approved paying Payne & Dolan of Waukesha, Wis., $175,232 for paving completed in the fall on the 1200 block of Fairbanks Street, Golfview Drive and the 500 block of North Hemlock Street. The total bid price for nearly a mile of street paving, along with more than a half-mile of alleys, was $572,532. The remaining work — including sections of Fleshiem, Tamarack and East Grant streets and Bayshore Drive — is scheduled for spring.

— Approved the purchase of 136 water meters from Core & Main of St. Louis, Missouri, at a total cost of $24,650. The city had budgeted $25,000, anticipating the need for new meters at some sites as multiple service line replacements are undertaken.

———

Jim Anderson can be reached at 906-774-2772, ext. 85226, or janderson@ironmountaindailynews.com.