Politics & Government

Dearborn City Council Approves Tax Abatement for University of Michigan Student Housing

Property taxes for the land on Town Center Drive will be frozen for 12 years.

The Dearborn City Council approved a 12-year tax abatement for the University of Michigan-Dearborn's student housing complex following a public hearing on Thursday.

UrbCam Michigan LLC., the owners of the 231,000 square foot facility located on Town Center Drive across from the UM-Dearborn campus, applied for an Obsolete Property Rehabilitation Exemption certificate. Under Michigan law, the certificate effectively freezes the taxable value on the property for the duration of the exemption. In addition, the property taxes for the property are based on the previous year's (prior to rehabilitation) taxable value.

The approximate taxable value of the property is $1.26 million, according to the city.

Under the city's ordinance, an Absolete Property Rehabilitation Exemption can be issued for property that has a "reasonable likelihood to increase commercial activity, to create employment, to retain employment and to revitalize an urban area within the community."

UrbCam Michigan LLC has invested roughly $29.5 million in the student housing project and plans to create 55 permanent part-time and full-time jobs once the building opens in September. In addition, construction of the facility that has been ongoing this summer has already created 350 jobs.

A ribbon cutting and grand opening celebration for the public is scheduled for Aug. 21.


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