25-002384.pdf
Broadway Detroit Development II LLC, Petitioner Vs. City Of Detroit, Respondent · 25-002384-TT
Text extracted from the reviewed PDF, organized by page. OCR and reading order may contain errors; confirm details in the PDF below.
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RECEIVED SEP 252025 STATE OF MICHIGAN MICHIGAN TAX TRIBUNAL DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MICHIGAN ADMINISTRATIVE HEARING SYSTEM MICHIGAN TAX TRIBUNAL BROADWAY DETROIT DEVELOPMENT II LLC, Petitioner, MTT Docket No. 25-002384 v CITY OF DETROIT, Traninfo:4606h 260582211 09/24/25 Chk: 1576 Ants $50.00 Respondent. ID: LAW OFFICE OF AARON M FALES FC / AARON M. FALES (P72864) Kevin Richard (P43417) LAW OFFICE OF AARON M FALES PC Coleman A. Young Bldg. Attorney for Petitioner 2 Woodward Ave., Suite 500 1080 Canyon Creek Drive Detroit, MI 48226 Rochester Hills, MI 48307 313-237-3061 (248) 767-9840 PETITIONER’S MOTION FOR RECONSIDERATION Petitioner, by and through its counsel, Law Office of Aaron M. Fales, P.C., hereby serves its Motion for Reconsideration, and states as follows: BACKGROUND 1. This case involves a very late issued 2025 March Board of Review determination erroneously uncapping Petitoner’s property that was transferred between related entities under common control. Petitioner timely appealed the final determination
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. Respondent, City of Detroit, entered a March Board of Review (“MBOR”) Determination on May 17, 2025 ( EXHIBIT A — MBOR Notice) and subsequently mailed said determination to Petitioner. . Petitioner received the determination on June 7, 2025, after the normal May 31, 2025 filing deadline (EXHIBIT B — Email Confirming receipt of Notice (6/7/25)). . Five (5) days after actually receiving the Notice, Petitioner’s Counsel appealed the final decision of Respondent’s MBOR on 6/12/25 (EXHIBIT C — Petition), pointing out the notice was issued on 5/17/25 (27 days prior) to the Tribunal. . On August 20" the Tribunal entered an Order dismissing Petitioner’s Petition (EXHIBIT D — 8/20/25 Order). The Tribunal’s 8/20/25 Order is an Error of Law and Must be Reversed. The Tribunal errored in its application of MCL 205.735a(6) (EXHIBIT E — Statute) by focusing solely on the May 31 deadline language, however, the May 31° deadline is not applicable in this matter as Petitioner is invoking the Tribunal’s jurisdiction pursuant the other prong of MCL 205.735a(6) which states: “In all other matters, the jurisdiction of the tribunal is invoked by a party in interest, as petitioner, filing a written petition within 35 days after the final decision, ruling, or determination.” . In this matter the “final decision, ruling, or determination” of the MBOR was issued on 5/17/25 (27 days prior to appeal) and actually received by Petitioner on 6/7/25 (5
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IL was, and is, proper and this Motion for Reconsideration must be granted to correct this error in law. Petitioner alleged and invoked jurisdiction under MCL 205.735a(6) in section 5 of its Petition and the Tribunal has jurisdiction over this matter because it was filed within 35 days of receipt of the final decision giving rise to this appeal and therefore Petitioner’s Motion for Reconsideration must be granted as a matter of Law. A Palpable Error Exists Therefore This Motion Must be Granted 10. IIL. A palpable error is an error from which “a different disposition would result from a correction of the error.” Luckow v Luckow, 291 Mich App 417, 426; 805 NW2d 453 (2011). Here, a different disposition would result from correcting this error; Petitioner would have a right to expeditious and properly correct the error by granting this motion for reconsideration. Therefore, there is a palpable error because dismissal is an error of law and not proper in this instance. Petitioner invoked the timely jurisdiction of the Tribunal and should be permitted to correct this error at the Tribunal. Petitioner would not be able to timely correct the erroneous uncapping unless this Motion is granted and therefore this dismissal results in a palpable error as well as an error in law. The error of law result in a palpable error as well and therefore Petitioner’s Motion for reconsideration should also be granted. Conclusions
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WHEREFORE, Petitioner respectfully asks this Tribunal to 1) enter an Order granting Petitioner’s Motion for Reconsideration, 2) reinstate this case as active on the Tribunal’s docketing system, and 3) award any other costs or relief it deems necessary to Petitioner in this matter. Respectfully submitted, LAW OFFICES OF AARON M. FALES Attorneys for Petition By: Aaron M. Fales (P72864) 330 Hamilton Row, Ste. 350 Birmingham, MI 48009 (248) 767-9840 Dated: September 5, 2025
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EXHIBIT A
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Coleman A. Young Municipal Center 2 Woodward Avenue, Suite 105 Detroit, Michigan 48226 Phone: (313) 628-0722 Fax: (313) 224-4576 www.detroitmi.gov Board of Review osm BROADWAY DETROIT DEVEL II, LLC 1300 BROADWAY STE 600 DETROIT MI 48236 RE: 2025 MARCH BOARD OF REVIEW PETITION NUMBER: M-501258 The March Board of Review has considered the appeal on the 2025 assessment for the below described property and concluded that: FINDING OF FACTS: 1. Parcel Number: 01004005. 2. Property Address: 1322 BROADWAY 3. District: 6 4. Property Classification: 201 (COMMERCIAL-IMPROVED) Ad Valorem 6. Principle Residence Exemption: 0% 5. Property Legal Description: NE BROADWAY N 30.65 FT OF 6 AND VAC 10 FT OF LAND IN FRONT PLAT OF SEC 9 GOVERNOR & JUDGES PLAN L34 P552 DEEL 6. Petitioner timely filed an appeal to the March Board of Review. 7. The March Board of Review considered (if any) petitioner's and/or duly authorized representative evidence and/or testimony. The March Board of Review considered facts presented as on the assessment roll and/or any recommendations offered by the Office of the Assessor. CONCLUSION: Taxable Value Uncapping due to Proposal A of 1994 Before Appeal After Appeal 2025 Assessed Value 411,700 411,700 2025 Taxable Value 184,490 411,700 If you are dissatisfied with the decision of the March Board of Review, submit this notice and complete the enclosed small claims form to appeal to: Michigan Tax Tribunal P.O. Box 30232 Lansing MI 48909 A Michigan Tax Tribunal appeal must be made by May 31st of the current year for properties classified as:
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STATE OF MICHIGAN ., GRETCHENWHITMER DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MARLON I. BROWN, DPA GOVERNOR LANSING DIRECTOR PROPERTY TAX APPEAL PETITION FORM VALUATION / EXEMPTION / CLASSIFICATION APPEAL Do not use this form to appeal Principal Residence Exemption, Qualified Agricultural Exemption, Special Assessment, or Non-Property tax disputes. Pursuant to Michigan Tax Tribunal Rule (TTR) 277(3), you MUST submit a copy of the notice giving rise to the appeal (e.g. Board of Review Decision or Notice of Uncapping) with this Small Claims Petition, if applicable. If you do not submit this document, you may be held in default. Section 1: Petitioner's Contact Information First Name ML Last Name/Company Name Mailing Address (No., Street, P.O. Box or Rural Route) City or Town State ZIP Code Telephone Number Fax Number E-mail Address (do not enter unless you want MTT to send all correspondence via e-mail) Section 2: Petitioner's Attorney/Authorized Representative’s Contact Information First Name m.I Last Name Firm Name (if any) Address (No., Street, P.O. Box or Rural Route) City or Town State ZIP Code Telephone Number Fax Number E-mail Address (do not enter unless you want MTT to send all correspondence via e-mail) Section 3: Subject Property Information How many If you are appealing more than one parcel, are they contiguous or adjoining? parcelsareyou | [7] yes* [] No* appealing? *If yes, use a multiple parcel form for information regarding any contiguous parcels.
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STATE OF MICHIGAN GRETCHEN WHITMER DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MARLON I. BROWN, DPA GOVERNOR LANSING DIRECTOR Section 7: Valuation Information *use the multiple parcel form for additional, contiguous parcels. Parcel ldentification Number: Classification of Property: Real Personal (check one) Agricultural Commercial Industrial Residential Timber-Cutover Developmental Utility (check one) Current Assessed Value (also known as State Equalized Value) as established by the BOR: Current Taxable Value as established by the BOR: What do you belleve is the fair market value (also known as True Cash Value)? Multiply the True Cash Value by .5 and enter here. This Is your contention of Assessed Value. If you believe the Taxable Value differs from your contention of Assessed Value, enter your contention of Taxable Value. Section 8: Classification Information *Only the MI Dep't of Treasury may appeal this Issue to the Tribunal* Parcel Identification Number: Current Classification of Property as established by Board of Review: Real Personal (check one) Agricultural Commercial Industrial Residential Timber-Cutover Developmental Utllity (check one) What do you believe is the property's classification? Real Personal (check one) Agricultural Commercial Industrial Residential Timber-Cutover Developmental Utility (check one) Ifimproved property, how is the property currently being used? Ifimproved property, for what use was the property designed?
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STATE OF MICHIGAN GRETCHEN WHITMER DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MARLON I. BROWN, DPA GOVERNOR LANSING DIRECTOR PAPER FILING INSTRUCTIONS FOR VALUATION/EXEMPTION/GLASSIFICATION APPEAL Follow these instructions for filing this small claims petition. For any questions that are not answered in these instructions, see the Tribunal's website at www.michigan.gov/taxtrib or contact the Tribunal at 517-335-9760. Mail the completed form to: Michigan Tax Tribunal 611 W. Ottawa St., Lansing, MI 48933 U.S. Postal Mailing Address: PO BOX 30232, Lansing, MI 48909 Other Carriers (UPS,FedEx,DHL): 2nd Floor MTT, 2407 N. Grand River Avenue, Lansing, MI 48906 Section 1: Petitioner's Contact Information: "Petitioner" is the person, business, or entity filing the appeal. Section 2: Petitioner's Attorney/Authorized Representative’s Contact Information: Petitioner does not have to be represented by an attorney or authorized representative to file an appeal with the Tribunal. If Petitioner is represented, provide all contact information for the attorney or authorized representative. If Petitioner elects to have an attorney or authorized representative, only the attorney or authorized representative will receive notices and documents from the Tribunal. IMPORTANT: If the contact information for Petitioner, or the attorney or authorized representative, if listed, includes an email address, the Tribunal will use that email address to electronically serve all future documents issued by the Tribunal. A request by Petitioner or Petitioner's attorney or authorized representative to opt out of electronic service once an email address is provided must be made in writing. Section 3: Subject Property Information: © How many parcels are you appealing: List the number of parcels under appeal. © Are they contiguous or adjoining: If multiple parcels are being appealed, indicate whether the parcels are adjoining. If multiple parcels are being appealed, a separate petition must be filed for each non-adjoining parcel being appealed. Property Address: Provide the address of all properties being appealed. o Taxing Authority: Provide the name of the city OR township (not both) where the property is located. © County: Provide the name of the county where the property is located. Section 4: Issues Being Appealed: Check all issues being appealed Section 5: Explain the Reason for this Appeal: Explain the reason(s) for the appeal. Section 6: Jurisdictional Issues: © Year(s) you are appealing: List the tax year(s) being appealed. If more than one year is being appealed, explain the reason(s). e Did you protest the assessment at a Board of Review (BOR): Indicate whether Petitioner
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EXHIBIT B
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0) Outlook
FW: Scanned image from BASCO
From Roger Basmajian <«gpinSiiuamiugre
Date Tue 6/10/2025 9:05 AM
To
Aaron Fales SRSNGHREIRIISIED
Cc
Bridgette Smith <gEpENEEISES
0
1 attachment (2 MB)
BASCO_20250607_125916.pdf;
I'm trying to understand this. Looks like there was an appeal and they increased the value to the full
assessed value?
Lets discuss
Roger Basmajian
| President & CEO
a: Basco
| 1300 Broadway, 6th Floor, Detroit, MI 48226
w: www.bascomi.com
From: Bridgette Smith <{isigeea@iSanmmay»
Sent: Saturday, June 7, 2025 1:22 PM
To: Roger Basmajian < pianos
Subject: FW: Scanned image from BASCO
Hi,
Does this need to go to Aaron Fales?Page 12
EXHIBIT C
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STATE OF MICHIGAN
MICHIGAN ADMINISTRATIVE HEARINGS SYSTEM
MICHIGAN TAX TRIBUNAL
BROADWAY DETROIT DEVELOPMENT II LLC,
Petitioner,
(=
MTT Docket #25.
OO 1384
VS.
Parcel No. 01004005.
CITY OF DETROIT,
Respondent.
PETITION
BROADWAY
DETROIT
DEVELOPMENT
II
LLC
(“Petitioner”),
through
its
attorneys, Law Office of Aaron M. Fales, P.C., says:
1.
Petitioner's
principal
office address
is
1300 Broadway,
Suite
600,
Detroit, MI 48226.
Petitioner is a party in interest with respect fo property taxes
on
real
property
tax parcel
nos. 01004005.
("Petitioner's
Property"),
at
1322
Broadway, Detroit, Ml, 48226.
2.
Respondent, City of Detroit assesses and collects property taxes on
Petitioner's Property.
3.
In 2025, Respondent determined the taxable value of Petitioner's
Parcel # 01004005. to be $184,490 and assessed Petitioner's Property at $411,700Page 14
4, At the March Board of Review, Respondent erroneosly uncapped Petitioner's Taxable Value and Adjusted it up to $411,700. 6. Petitioner's Property is classified as Commercial Real Property. Petitioner's Property is commercial property. Petitioner believes that Petitioner's Property was designed to be used as a commercial purposes. 5. This matter involves issues relating to: (a) valuation, (b) assessment, (c) taxable value, and (d) uniformity. 6. At this time, Petitioner believes, as it relates to taxable value, that there is a dispute relative to an erroneous uncapping. Z. The 2025 assessment, including state equalized value and taxable value, imposed on Petitioner's Property, and the taxes to be levied and collected thereon, are invalid and unlawful and operate as a fraud upon the taxpayer for the reasons that: (a) The assessment, including state equalized value and/or taxable value, exceeds the amount permitted by the Michigan Constitution and applicable statutes;
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(c) The assessment, including taxable value and/or state equalized value, are based upon an erroneous determination of the true cash value of that portion of Petitioner's Property that is taxable under Michigan law, and are based upon the application of wrong principles; and, (d) The assessment, including state equalized value and/or taxable value, and the mode of assessment adopted by Respondent, discriminate against Petitioner and deny Petitioner its constitutional rights to uniformity, equal protection and due process of law. WHEREFORE, Petitioner requests that the Tax Tribunal enter an Order reducing and recapping the 2025 taxable value of Petitioner's Parcel # 01004005. from $411,700 to $184,490, and requiring Respondent to pay Petitioner the refunds attributable to such reductions, plus interest and costs. Respectfully submitted, LAW OFFICE OF AARON M. FALES, P.C. Attorney for Petitioner By: Lm zs 2 Aaron M. Fales (P72864) 330 Hamilton Row, Ste 350 Birmingham, MI 48009 (248) 767-9840 Dated: June 12, 2025
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EXHIBIT D
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STATE OF MICHIGAN GRETCHEN WHITMER DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MARLON I. BROWN, DPA GOVERNOR DIRECTOR LANSING Broadway Detroit Development Il LLC, Petitioner, MICHIGAN TAX TRIBUNAL ENTIRE TRIBUNAL v MTT Docket No. 25-002384 City of Detroit, Respondent. ORDER OF DISMISSAL The Tribunal has reviewed the file in the above-captioned case and finds that: The petition was not filed by May 31 or the next business day after the Tribunal offices were closed. See MCL 205.735a(6). Therefore, IT IS ORDERED that the case is DISMISSED. This order resolves all pending issues and closes the case. APPEAL RIGHTS If you disagree with the final decision in this case, you may file a motion for reconsideration with the Tribunal or a claim of appeal with the Michigan Court of Appeals. A motion for reconsideration must be filed with the Tribunal with the required filing fee within 21 days from the date of entry of the final decision. Because the final decision closes the case, the motion cannot be filed through the Tribunal’s web-based e-filing system; it must be filed by mail or personal service. The fee for the filing of such motions is $50.00 in the Entire Tribunal and $25.00 in the Small Claims Division, unless the Small Claims decision relates to the valuation of property and the property had a principal residence exemption of at least 50% at the time the petition was filed or the decision relates to the grant or denial of a poverty or disabled veterans exemption and, if so, there is no filing fee. You are required to serve a copy of the motion on the opposing party by mail or personal service or by email if the opposing party agrees to
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MTT Docket No. 25-002384 Page 2 of 6 the claim is filed more than 21 days after the entry of the final decision, it is an “appeal by leave.” A copy of the claim of appeal must be filed with the Tribunal to certify the record on appeal. There is no certification fee. ) By: _ 7a lice LA A J PY. Fy Patricia L. Halm, Tribunal Chair Entered: August 20, 2025 PROOF OF SERVICE | certify that a copy of the foregoing was sent on the entry date indicated above to the parties or their attorneys or authorized representatives, if any, utilizing either the mailing or email addresses on file, as provided by those parties, attorneys, or authorized representatives. By: Tribunal Clerk
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EXHIBIT E
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ICHIGAN LEGISI M Michigan Compiled Laws Complete Through PA 12 of 2025 Senate adjourned until Tuesday, September 9, 2025 10:00 AM House adjourned until Tuesday, September 9, 2025 1:30 PM Home Legislature Laws More Sign Up Log In MCL - Section 205.735a Download Section Chapter 205 Act 186 of 1973 186-1973-3 4 Previous Section Next Section p TAX TRIBUNAL ACT (EXCERPT) Act 186 of 1973 205.735a Applicability after December 31, 2006; de novo proceedings; jurisdiction in assessment disputes; filing of petition; amendment of petition or answer; representation; "designated delivery service" defined. Sec. 35a. (1) The provisions of this section apply to a proceeding before the tribunal that is commenced after December 31, 2006. (2) A proceeding before the tribunal is original and independent and is considered de novo. (3) Except as otherwise provided in this section or by law, for an assessment dispute as to the valuation or exemption of property, the assessment must be protested before the board of review before the tribunal acquires jurisdiction of the dispute under subsection (6). (4) In the 2007 tax year and each tax year after 2007, all of the following apply: (a) For an assessment dispute as to the valuation or exemption of property
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appealed directly to the tribunal without protest before the board of review as provided in subsection (6), if a statement of assessable property is filed under section 19 of the general property tax act, 1893 PA 206, MCL 211.19, prior to the commencement of the board of review for the tax year involved. (c) For an assessment dispute as to the valuation of property that is subject to taxation under 1974 PA 198, MCL 207.551 to 207.572, the commercial redevelopment act, 1978 PA 255, MCL 207.651 to 207.668, the enterprise zone act, 1985 PA 224, MCL 125.2101 to 125.2123, the technology park development act, 1984 PA 385, MCL 207.701 to 207.718, the obsolete property rehabilitation act, 2000 PA 146, MCL 125.2781 to 125.2797, the commercial rehabilitation act, 2005 PA 210, MCL 207.841 to 207.856, or 1953 PA 189, MCL 211.181 to 211.182, the assessment may be protested before the board of review or appealed directly to the tribunal without protest before the board of review as provided in subsection (6). This subdivision does not apply to property that is subject to the neighborhood enterprise zone act, 1992 PA 147, MCL 207.771 to 207.786. (5) For a dispute regarding a determination of a claim of exemption of a principal residence or qualified agricultural property for a year in which the July or December board of review has authority to determine a claim of exemption for a principal residence or qualified agricultural property, the claim of exemption shall be presented to either the July or December board of review before the tribunal acquires jurisdiction of the dispute. For a special assessment dispute, the special assessment shall be protested at the hearing held for the purpose of confirming the special assessment roll before the tribunal acquires jurisdiction of the dispute. (6) The jurisdiction of the tribunal in an assessment dispute as to property classified under section 34c of the general property tax act, 1893 PA 206, MCL 211.34c, as commercial real property, industrial real property, developmental real property, commercial personal property, industrial personal property, or utility personal property is invoked by a party in interest, as petitioner, filing a written petition on or before May 31 of the tax year involved. The jurisdiction of the tribunal in an assessment dispute as to property classified under section 34c of the general property tax act, 1893 PA 206, MCL 211.34c, as agricultural real property, residential real property, timber-cutover real property, or agricultural personal property is invoked by a party in interest, as petitioner, AL a written REtaET on or befors 2 duly cil of the tax year tye all 0 natter: 35 days afte nal decision, ruli > ation. Afi p— ps contested tax bill shall be made within 60 days after mailiig by the assessment district treasurer and the appeal is limited solely to correcting arithmetic errors or mistakes and is not a basis of appeal as to disputes of valuation of the property, the
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(a) The petition is postmarked by the United States postal service on or before the expiration of that time period. (b) The petition is delivered in person on or before the expiration of that time period. (c) The petition is given to a designated delivery service for delivery on or before the expiration of that time period and the petition is delivered by that designated delivery service or, if the petition is not delivered by that designated delivery service, the petitioner establishes that the petition was given to that designated delivery service for delivery on or before the expiration of that time period. (8) A petition required to be filed by a day during which the offices of the tribunal are not open for business shall be filed by the next business day. (9) A petition or answer may be amended at any time by leave of the tribunal and in compliance with its rules. If a tax was paid while the determination of the right to the tax is pending before the tribunal, the taxpayer may amend his or her petition to seek a refund of that tax. (10) A person or legal entity may appear before the tribunal in his or her own behalf or may be represented by an attorney or by any other person. (11) As used in this section, "designated delivery service" means a delivery service provided by a trade or business that is designated by the tribunal for purposes of this subsection. The tribunal shall issue a tribunal notice not later than December 31 in each calendar year designating not less than 1 delivery service for the immediately succeeding calendar year. The tribunal may designate a delivery service only if the tribunal determines that the delivery service meets all of the following requirements: (a) Is available to the general public. (b) Is at least as timely and reliable on a regular basis as the United States postal service. (c) Records electronically to a database kept in the regular course of business or marks on the petition the date on which the petition was given to the delivery service for delivery. (d) Any other requirement the tribunal prescribes. History: Add. 2006, Act 174, Imd. Eff. May 30, 2006 ;-- Am. 2008, Act 125, Imd. Eff. May 9, 2008
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PROOF OF SERVICE STATE OF MICHIGAN ) ) ss. COUNTY OF OAKLAND ) Aaron M. Fales, being duly sworn, deposes and says that on September 5, 2025 he served a copy of Petitioner’s Motion for Reconsideration by Email to Respondent at the following Address: Kevin Richard (P43417) Coleman A. Young Bldg. 2 Woodward Ave., Suite 500 Detroit, MI 48226 313-237-3061 richkc@detroitmi.gov Aaron M. Fales
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sy Gmail Aaron Fales <aaron@afaleslaw.com> Broadway - Motion for reconsideration 25-002384 1 message Aaron Fales <aaron@afaleslaw.com> Fri, Sep 5, 2025 at 3:27 PM To: Kevin Richard <richkc@detroitmi.gov> Please see Attached which is going out today to the MTT. -Aaron = Motion for Reconsideration - Broadway.pdf 4949K
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Aaron M. Fales, P.C.
330 Hamilton Row, Ste. 350
Birmingham, MI 48009
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