Basic Investment Information for The Village

The Village at Grand Traverse Commons is located in the region’s only Michigan Tax Free Renaissance Zone, granting virtually tax-free status to businesses and residents located in the zone. In addition, buyers may qualify for historic tax credits that reward private investment in historic rehabilitation.

The Village is a site condominium, whereby individuals and companies can purchase residential or commercial units. Buyers will be part of a condominium association with monthly association fees. Many units are available for lease in The Village, offering more flexible and affordable housing solutions.

The base purchase price of the unit is calculated on a number of factors. Considering the diverse Commons setting, the possibility to walk or bike to work, and the benefits of the Michigan Tax Free Renaissance Zone, The Village is an exceptional value.

The Village is part of a Michigan Tax Free Renaissance Zone.
What that means to you...
Michigan’s Renaissance Zones are designed to spur new jobs and investment. They work by granting virtually tax-free status to any business or resident presently in a zone or moving into a zone. Traverse City’s former ‘Building 50’ is such a zone. This zone became effective in 2002, and will continue for a duration of 15 years, with a 3-year phase-in of taxes starting in the 13th year.

The taxes that companies or individuals located or residing in the zone do not pay are:

• Single business tax
• State personal income tax
• 6-mill state education tax
• Local personal property tax
• Local real property tax
• Local income tax
• Utility users tax

(Taxes still due are those mandated by the federal government or local bond obligations, including Social Security tax, unemployment and workers’ compensation, sewer and water fees, as well as Michigan’s 6% sales tax.)

There is no paperwork. Businesses or individuals who move into a zone can just start keeping their tax dollars!

A property tax savings scenario
Tax savings for home owners in The Village covered by the Renaissance Zone can be significant. For example,assume you have a $150,000 home purchase with a 30 year 7.0% mortgage. Outside of a Renaissance Zone, your total monthly payment will be $798.36, plus $206.25 for property taxes ($1,004.61 total). Over the life of the mortgage you will have paid $167,410.68 in interest-- more than the price of the home!

In The Village Renaissance Zone the math is far different. Monthly payment on the property loan is $798.36 for the first 13 years of the loan. You could enjoy the savings during that period and use it on other expenses, OR you could apply the property tax savings to your principal, making an extra monthly payment of $206.25 ($1,004.61 total). By doing this, your 30 year mortgage will be paid off in 18 years one month, and you will have saved nearly $80,000 dollars in interest! *

Please consult the Michigan Economic Development Corporation (MEDC) web site and your tax advisor for more information.

Historic Tax Credits
The Village may qualify for Historic Tax Credits. These federal and state financial incentives reward private investment in rehabilitating historic properties. This credit is earned on every dollar spent on federally certified historic rehabilitation.

The bottom line: companies or individuals can invest in the redevelopment of The Village, and proportionately reduce their tax liability. Consult the National Park Service's Federal Historic Preservation Tax Incentives web site and your tax advisor for more information.*

*It is not advisable to make purchase decisions based on the information presented here. Please consult your tax advisor for complete details.

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