Health Update: Manistee DDA supports OPRA cert for health, wellness center – What Experts Say

MANISTEE — Starting a small business comes with a number of challenges, and the Manistee Downtown Development Authority is looking to mitigate one of them at 471 Water St.

During its regular meeting last week, the DDA board voted to recommend to Manistee City Council the creation of an Obsolete Property Rehabilitation Act district and approval of an OPRA certificate for the property, which is owned by Jackie Gutowski.

“Jackie has been working pretty much over the last year — if not more — behind the scenes really trying to pull everything together to start a new health and wellness facility in Manistee,” said Manistee Area Chamber of Commerce director of economic development Andrew Stafford.

Gutowski told the DDA she has been considering the business for at least three years.

“I’ve been kind of doing my own thing, one-on-one training, gym stuff at my home. I have some really great clients that come and see me,” she said. “I’m from Manistee. I’ve been here the majority of my life and planning on being here probably forever since as some of you know my husband is also the sheriff here … so I can’t move even if I wanted to.”

The Obsolete Property Rehabilitation Act provides property tax exemptions for commercial and commercial housing properties that are rehabilitated and meet the requirements of the act, according to the State of Michigan. Exemptions are approved for a term of one to 12 years as determined by the local unit of government.

The property taxes for the rehabilitated property are based on the previous year’s taxable value. The taxable value is frozen for the duration of the exemption.

“We are still going to be collecting all the current taxes we collect on that property as it stands,” Stafford said. “It’s just once that redevelopment happens, we won’t capture any of that increase for that (until the certificate expires).”

Stafford said the building has “quite a bit of damage in it.”

“To my understanding, it used to be the old carpet shop and then it was a Salvation Army,” he said. “… And that building’s been vacant pretty much over the last decade and only used for personal storage. … The building inspector and the assessor and I walked that building back in August and deemed it obsolete.”

Gutowski plans to invest more than $300,000 into the property, according to Stafford.

“I would recommend the full 12 years on that property simply because of the commitment of the business owner and the amount of private investment they’re bringing to the table on that property,” Stafford said.

DDA member Ben Crowley said he was excited about Gutowski’s business.

“I think it’s a great idea,” he said. “I think it’s going to be a great addition down there.”

Examples of developments that have received OPRA certification in the city include the Hotel Northern building on 141 Washington St., the apartment complex located at 155 Eighth St. and Fricano’s Manistee River at 440 River St.

Gutowski said the first order of business for the building is a new roof.

“Then there’s some work that Servpro has to also do because it sat vacant for 10 years and has a roof leak,” she said. “Once we can get that completed, once approvals and everything go through, hopefully (construction will start) next month and they’ll be working all summer.”

Manistee City Council will hold public hearings during its April 7 meeting to consider creating an OPRA district at 471 Water St. and approving an OPRA certificate application. The meeting will start at 5:30 p.m.

Gutowski said she is “really excited to bring this business downtown.”

“I’m kind of envisioning a little bit more of a grander project as far as, it will be a gym and a wellness center, but also I really want it to have a community feel,” she said. “I want there to be events. I want there to be partnerships. I really want it to be a place that draws people downtown.”