The Escanaba City Council on Oct. 2 opened public hearings and approved two related actions under the Obsolete Property Rehabilitation Act (OPRA) for 1213 Ludington Street.

Kurt Spalding, who said he is the current or prospective owner of the property, told the council the site is planned as a high-end martini lounge and that the applicants are requesting the OPRA district and associated tax-exemption to leverage state support for rehabilitation. “We are the current owner or to be the current owners of 1213 Ludington Street,” Spalding said during the public hearing.

Crystal Martin, Escanaba’s city assessor, told the council the property closing will be completed before the city submits the OPRA paperwork to the state tax commission at the end of the month. “The closing of the property will be done before we submit to the state tax commission at the end of the month. So the property will be in his name when we submit all the paperwork,” Martin said.

Council members proceeded to vote first to establish OPRA District No. 29 and then to approve the OPRA exemption application the same evening. Council members stated the program has been used previously in the city and that the application deadline required timely action; staff noted the city has used the program 28 times before.

Why this matters: OPRA districts and exemptions can reduce property tax liabilities during rehabilitation to attract private investment for deteriorated properties. The council noted the state submission deadline for the application process and that, if a sale or development fell through, OPRA certificates can be revoked.

Votes: Resolution 25-19 (establish OPRA District No. 29) was approved on roll call (recorded votes: Council Member Duhart — yes; Council Member Flack — yes; Council Member Boshot — yes; Council Member Moore — yes; Mary Hammel — yes). Resolution 25-20 (OPRA exemption recommendation to the state tax commission) was approved on roll call (recorded votes: Council Member Boschak — yes; Council Member Moore — yes; Council Member DuBour — yes; Council Member Flock — yes; Mary Hamill — yes).

Next steps: staff will submit the OPRA application and supporting materials to the state tax commission before the end-of-month deadline; staff noted that OPRA certificates can be revoked if transactions fail to close.