Petition.pdf

Urban Development Corporation Petitioner Vs. City Of Detroit Respondent · 26-001232-TT

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50878507.2/066667.00481 

STATE OF MICHIGAN 

MICHIGAN TAX TRIBUNAL 

URBAN DEVELOMENT CORPORATION, 

MTT Docket No. 26-____________ 

Petitioner, 

Parcel No. 13009300-5 

v. 

CITY OF DETROIT, 

Respondent. 

 ____________________________________________ 

MILLER, CANFIELD, PADDOCK AND 

STONE, P.L.C. 

Gregory A. Nowak (P39240) 

Attorney for Petitioner 

150 West Jefferson, Suite 2500 

Detroit, Michigan 48226 

(313) 963-6420 

Fax: (313) 496-8452 

 ____________________________________________ 

PETITION

NOW COMES, Petitioner, URBAN DEVELOPMENT CORPORATION, by and through its 

attorneys, Miller, Canfield, Paddock and Stone, P.L.C., and petitions this Tribunal as follows: 

GENERAL ALLEGATIONS 

1, 

Petitioner, URBAN DEVELOPMENT CORPORATION (the "Taxpayer"), is a Michigan non-

profit corporation with its principal place of business located at PO BOX 441691, DETROIT, MI 48244. 

2.

Petitioner is a party in interest as the owner of the Subject Property (described below).

50878507.2/066667.00481 

3.

Respondent, CITY OF DETROIT (the “City”) is a municipality, existing under the laws of the 

State of Michigan and is responsible for the property tax assessments levied again the Subject Property 

(defined below). 

4.

Petitioner owns certain real property located at 19209 Mt Elliott, Detroit, MI 48234, Parcel 

no. 13009300-5 (the “Subject Property”). 

5.

The Subject Property is located at 19209 Mt Elliott, City of Detroit, County of Wayne, State 

of Michigan and is in the Detroit School District. 

6.

On information and belief, the Subject Property is classified as Industrial-Improved as to 

Parcel No. 13009300-5. 

7.

The values for the Subject Property identified above as established by Respondent’s Board 

of Review are: 

Tax Year

True Cash Value

Assessed Value

Taxable Value

2026

$190,000

$95,000

$95,000

8.

The City withdrew the property tax exemption for tax year 2026. 

9.

Additionally, the Taxpayer received notification of an effort to revoke the exemption for prior 

periods through a State Tax Commission proceeding which the Commission had dismissed. 

10.

It appears that the City withdrew the exemption because they believe that the Subject 

Property cannot be in use partially due to utilities not being connected. 

11.

The Taxpayer stores items in the building such as lawn mowers and gardening equipment 

which is used for the volunteer activities that the Taxpayer coordinates. 

12.

The Taxpayer also holds community events and gatherings at the property at least once a 

month and have a generator on-site at the Subject Property.

50878507.2/066667.00481 

13.

On May 14, 2025, the Taxpayer mailed a letter to the assessor to confirm that they actively 

use the Subject Property for storage of materials and equipment which are necessary for its community 

beautification work and also to hold regular events. 

14.

The Taxpayer did not receive a response from the City. 

15.

The Taxpayer is a non-profit corporation which meets Michigan’s definition of a charitable 

institution. 

16.

The Subject Property should be exempt from property tax. 

17.

The Taxpayer protests the basis for the City’s withdrawal of the exemption. 

18.

This appeal contests the withdrawal of the property tax exemption of the Subject Property, 

and is being submitted prior to the May 31, 2026 deadline related to commercial and industrial taxpayers. 

COUNT I — PETITIONER QUALIFIES FOR PROPERTY TAX EXEMPTION UNDER MCL 211.7o 

19.

Petitioner restates and incorporates herein paragraphs 1 through 18 above. 

20.

The City provided no explanation for the basis of the exemption withdrawal. 

21.

The statutes do not authorize the Assessor withdrawal the exemption without a substantive 

basis for the withdrawal. 

22.

The withdrawal was unlawful. 

23.

MCL 211.7o(1) provides: 

(1) Real or personal property owned and occupied by a nonprofit charitable institution while 

occupied by that nonprofit charitable institution solely for the purposes for which that nonprofit 

charitable institution was incorporated is exempt from the collection of taxes under this act. 

24.

Michigan Department of Treasury Bulletin 26 of 2017 dated December 12, 2017 provides 

that in determining whether a taxpayer is qualified for the exemption, a three part test is applied. If all three 

prongs of the test are met, then a claimant qualified for the charitable institution exemption. 

1. Is the real estate owned and occupied by the exemption claimant? 

2. Is the exemption claimant a nonprofit charitable institution?

50878507.2/066667.00481 

3. Is the real estate occupied by the claimant solely for the purposes for which the claimant was 

incorporated? 

25.

The Subject Property is a 9,000-square-foot industrial facility which is owned by the 

Taxpayer as demonstrated by the last deed of record, Quit Claim Deed dated July 20, 2006 and recorded on 

November 27, 2006 in Liber 45647, page 1126, Wayne County Register of Deeds. The real estate is currently 

occupied solely by the Taxpayer. Exhibit 1. 

26.

The Taxpayer actively maintains the Subject Property. 

27.

The Subject Property stores landscaping equipment and materials for use in neighborhood 

beautification projects. Exhibit 2. 

28.

Caselaw has established that storage of items in an otherwise vacant property by a nonprofit 

charity is sufficient to meet the active use requirement. For example, Welcome Missionary Baptist Church v. 

City of Pontiac, decided by the Michigan Tax Tribunal and subsequently upheld by the Michigan Court of 

Appeals in 2017 (MTT Docket No. 13-004543; COA No. 330487).

29.

Welcome Missionary is a significant precedent for charitable organizations in Michigan with 

properties used for storage or outreach. The dispute involved a former nursing home located at 532 Orchard 

Lake Road, which was adjacent to the main church building. The church initially used the building for a health 

outreach program, but later transitioned to using it primarily to store donated food and furniture pending 

distribution to the community. The City of Pontiac revoked the property's tax-exempt status, arguing that the 

building was not being used for "religious worship" and that it lacked a proper occupancy permit. The 

Michigan Tax Tribunal ruled that the property was exempt, and the Court of Appeals affirmed this decision. 

30.

The Tax Tribunal’s decision established several critical points:



Storage as Charitable Use: The court found that storing items for a charitable 

purpose (like food and furniture for the needy) constitutes "occupation" under 

MCL 211.7o (the charitable institution exemption), even if it didn't qualify as a 

"house of public worship" under MCL 211.7s.

50878507.2/066667.00481 



Regular Physical Presence: Even though items were only stored there 

"temporarily" before being distributed, the court held that the ongoing use of 

the building for this purpose created a "regular physical presence."



Legality of Use vs. Tax Status: Critically, the court ruled that whether the 

church had an occupancy permit or was using the building "legally" under local 

zoning/building codes had no bearing on whether the property was tax-exempt 

under the state tax code.

31.

Similarly, in Fresh Start v. City of Roseville, MTT Docket No. 20-002222, decided in January 

2022, held that "occupation" for tax purposes does not require a building to be inhabited. Instead, if the 

storage of items is necessary and useful for the ongoing activities of the church, the property is considered 

"occupied" for the purpose for which the church was incorporated. 

32.

Like the taxpayers in Welcome Missionary and Fresh Start, the Taxpayer in this matter is 

actively using the Subject Property for storage of materials and equipment necessary for its community 

beautification work and also to hold regular events. 

33.

The real estate occupied by the Taxpayer is used solely for the purposes for which the 

claimant was incorporated. The Subject Property is used 100% by the Taxpayer. 

34.

Pursuant to the Articles of Incorporation, the purpose for which the Taxpayer was 

incorporated is to: 

ASSIST IN THE REVITALIZATION OF URBAN COMMUNITIES, INCLUSIVE OF 

REHABBING DETERIORATED HOMES AND BUIDLING OF NEW HOMES. 

Exhibit 3. 

35.

The Club is a domestic non-profit corporation which was incorporated on November 27, 

2002. It received a determination letter from the IRS on March 22, 2007 confirming its qualification for federal 

tax exemption pursuant to IRC Section 501(c)(3). Exhibit 4. 

36.

As suggested by its mission statement, the Taxpayer is a grassroots 501(c)(3 entity that 

serves the Farwell Community of Detroit, and within the area, they have adopted a nine-block neighborhood

50878507.2/066667.00481 

in the Mt Elliott/East Outer/Mound area, for which they have diligently worked for years to achieve 

stabilization, revitalization, and sustainability. 

37.

The Taxpayer’s mission is: 

To improve the quality of life and bring about positive life-style changing experiences of 

low-to-moderate income families who live in urban communities. In carrying out our 

mission, UDC serves as a catalyst in the revitalization of communities through the 

development of activities and programs which promote safe, drug-free, healthy, clean, 

beautiful, and enjoyable environments. 

38.

The programs offered by the Taxpayer include: 



Hosting of numerous neighborhood clean-up / beautification blitzes 



Engage with residents, other community groups, local government, business 

community and regulatory agencies to address environmental issues that present 

potential health risks and impact quality of life 



Provide impactful summer youth programs that inspire at-risk youth through 

mentorship, skill development, and exposure to new opportunities 



Serving as a liaison between residents, businesses; local police and municipalities 

to alleviate illegal activity 



Facilitating sustainable community renewal in a nine-block area facing 

socioeconomic challenges through collaborative initiatives focused on 

empowerment, engagement, and quality of life improvement 



Facilitating workshops in partnership with local universities to educate and empower 

residents to become informed advocates for positive community change and 

improved quality of life 



Revitalizing blighted houses and vacant lots that support healthier neighborhoods 

and improved quality of life 

39.

The services and programs offered by the Taxpayer provide support for people of all different 

ages and backgrounds. 

40.

The Taxpayer uses the Subject Property to benefit the community by storing in-kind 

donations and operating it as a distribution site where residents can pick up needed items. 

41.

The Subject Property has also been used to store building materials for housing 

rehabilitation, including work on homes vulnerable to trespassers, as well as landscaping equipment, 

supplies, and tools. 

42.

The grounds are also used for outdoor community events.

50878507.2/066667.00481 

WHEREFORE, Petitioner respectfully requests that this Honorable Tax Tribunal enter an Order 

holding that Petitioner is entitled to a 100% property tax exemption for the subject property for the 2026 tax 

year under MCL 211.7o and granting Petitioner such other and further relief as is appropriate under the 

circumstances. 

Dated: May 21, 2026 

Respectfully submitted,

MILLER, CANFIELD, PADDOCK AND STONE, P.L.C. 

Attorneys for Petitioner 

By: / s / Gregory A. Nowak 

Gregory A. Nowak (P39240) 

150 West Jefferson Ave., Suite 2500 

Detroit, Michigan 48226 

(313) 963-6420 

Email: nowak@millercanfield.com

EXHIBIT 1

Li-45647 

Pa-1126 

206554565 

11/27/2006 

02:31PH 

Bernard 

Jo ‘founablood 

Woune Co. Resister 

of Deeds 

2005NOV 27 pH 2: 3 

CHIRCO TITLE BELLTY NS 

| 

I 

QUIT CLAIM DEED 

ye 

KNOW ALL MEN BY THESE PRESENTS, THAT: INSTANTWHIP-DETROIT, INC., a Michigan Corporation, 

whose address is 

31607 Gossett Dr., Rockwood, Michigan 48173 QUIT CLAIMS TO: URBAN DEVELOPMENT CORP., a 

Michigan Non-Profit Corporation, whose address is: 2727 Second Ave., Suite 129, Detroit, Michigan 48201 

The following described premises situated in the City of Detroit, County of Wayne, State of Michigan: 

PARCEL 1: LOT 104, MORGAN PARK SUBDIVISION, ACCORDING TO THE PLAT THEREOF AS RECORDED IN 

LIBER 43, PAGE 64 OF PLATS, WAYNE COUNTY RECORDS 13/278 41 X 123.31A, COMMONLY KNOWN AS 19228 

ST. LOUIS. 

PARCEL 2: LOT 34 

- 29, GEORGE J. KOLOWICH SUBDIVISION, ACCORDING TO THE PLAT THEREOF AS 

RECORDED IN LIBER 46, PAGE 45 OF PLATS, WAYNE COUNTY RECORDS 13/287 129 X 124.51, COMMONLY 

KNOWN AS 19209 MT. ELLIOT. 

Tax parcel No.’s 13-011335, 13-009300-5 

for the sum of: None; value of consideration is less than $100.00, thus exempt pursuant to MCLA 207.505(a) and MCLA 

207.526(a). 

Dated this 20%iay of July , 2006. 

— 

— 

Signed and sealed: 

INSTANTWHIP-DETROIT, INC., a Michigan corporation 

= 

= 

2 

1 

By: ZG 

Zadeh Smith 

OCA 

Its: Authorized Representative 

STATE OF Mi€HH&6AN 

: 

R 

n 

) SS 

COUNTY OF Egat 

3 

The 

foregoing 

instrument 

was 

acknowledged 

before 

me 

this 20 

ps 

of 

July, 

, 

2006 

by 

fer’ 

the authorized representative of Instantwhip-Detroft, Inc., a Michigad 

corporation. 

Coed 

Trr 

\ 

IM, 

JS 

NS 

Notary Public, Shi of Ohio, County of = 

My commission expires: 

O) 

Acting in the County of 

RITEGA 

Prepared by and when recorded return 

to: 

Natalie C. Najarian (P6761) 

Mail Subsequent Tax Bills to: 

Urban Development Corporation 

Law Offices of Mark S. Démorest, PLLC 

19853 Outer Drive, Siite 100 

2727 Second Avenue, Suite 129 

Cl 

\o 

Dearborn, Michigan 48124-2066 

Detroit, Michigan 43201 OREVENE ATTACH - 

wn 

P\DemorestiInstantwhip\Urban Devel Corp\Quit Claim Deed FINAL.doc 

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EXHIBIT 3

Michigan Department of Consumer and Industry Services 

Filing Endorsement 

This is to Certify that the ARTICLES OF INCORPORATION - NONPROFIT 

for 

URBAN DEVELOPMENT CORPORATION 

ID NUMBER: 777890 

received by facsimile transmission on November 27, 2002 is hereby endorsed 

Filed on November 27, 2002 by the Administrator. 

The document is effective on the date filed, unless a 

subsequent effective date within 90 days after 

received date is stated in the document. 

In testimony whereof, 

| have hereunto set my 

= consumer 

5, 

“Wl 

hand and affixed the Seal of the Department, 

SoS qeneeeseng i, ly 

in the City of Lansing, this 27th day 

£4 

% SRA 2% 

of November, 2002. 

*3 

Kroemors 

$ 

* 

2% 

rsa: 

$5 

BNI col) 

5. 

, 

Vr, o00eeees® JF 

, Director 

\ 

Chat services. 

rg 

pa 

Bureau of Commercial Services 

Sent bv Facsimile Transmis<ion 02331

Nov.27. 2002 

2:02PM 

Corporate 

Division 

No.0008 

P. 

BCS/ACD-502 

(Rov. 28/101 

MICHIGAN DEPARTMENT OF CONSUMER & INDUSTRY SERVICES 

BUREAU OF COMMERCIAL SERVICES 

: 

Date Received 

(FOR BUREAU USE ONLY) 

This document is effective on the date filed, unless a 

subsequent affective date within 9) days after 

received date is stated in the docurnant. 

Name 

Urban Development Corporation 

Address 

N 

P.0. 

Box 

441691 

City 

: 

State 

2ip Code 

Detroit 

MI 

48244 

EFFECTIVE DATE: 

4, Document will be retuned to the name and address you enter above, 4 

If loft blank document wili ba mailed to the registered office. 

boy 

ARTICLES OF INCORPORATION 

For use 

by Domestic Nonprofit Corporations 

(Please read information and instructions on the last page) 

Fursuant to the provisions of Act 162, Public Acts of 1982, the undersigned corporation executes the following 

Articles: 

. 

’ 

. 

. 

ARTIGLE 

| 

The name of fhe corporation is: 

Urban Development Corporation 

ARTICLE Il 

The purpose or purposes for which the corporation is organized are. 

Aggist in the ravitalizetion of 

urban communities, 

inclusive of rehabbing deteriorated homes and building of new 

homes. 

ARTICLE It 

nonstock 

{Stock of Nonstork) 

basis. 

1. The corporation is organized upan a 

21 organized on a stock basis, the total numbar of shares which the corporation has authority to issue is 

. If the shares are, or are to be, divided into 

classes, he designation of each class, the number of shares in each class, and the relative rights, preferences and 

imitations of the shares of each class are as follows: 

: 

11/26/2002 

11/2772002 

07:21PM 

01:59PM

Nov.27. 

2002 

2:03PM 

Corporate 

Division 

No.0008 

P. 

3 

VEU see 

oo aorm 

1 

ARTICLE IH (cont.) 

2 

‘% 

a. 

If organized an a nonstock basis, the description and value of its real property assets are; 

(if none, insert "none™) 

None 

b. The description and value of its personal property assets are: 

(if none, insert none”) 

None 

¢. The corporation is to be financed under the following general plan: Donations 

& Grants. 

d. The corporation is organized ona __ Directorship 

basis. 

(Membership or Directorshipk 

ARTICLE IV 

1. The address of the registered office is: 

©2727 Second Avenue, 

Suite 

129 

Detroit 

, Michigan _ 48201 

(Street Address) 

{City) 

(ZIP Code) 

2. The mailing 4ddress of the registered affice, if different than above: 

P,Q. 

Box 

44169] 

. 

Detroit 

Michigan _ 48244 

(Straat Address or P.O, Box) 

: 

(Gity) 

(ZIF Code) 

* 3, The name of the resident agent at the registered office is: 

Vanessa 

I. 

Peake 

ARTICLE v 

The name(s) and address(es) of the incorporator(s) is (are) as follows: 

Name 

Residence or Business Address 

i Vanessa 

TI. 

Peake 

2727 Second Avenue, 

Suite 

129, Detroit, 

oh 

MI 

4B201 

11/26/2002 

07 

11/2772002 

1:20PM 

01:59PM

Nov.27. 2002, 2:03PM 

Corporate Division 

No.0008 

Po 4 

Use space below for additional Articles or for continuation of previous Articles. Please identify any Article being continued 

or added. Attach additional pages if needed. 

hk Say sign my {our) name(s) 

this 26th 

ay 

of 

November 

,_2002 

11/26/2002 

07:20PM 

11/27/72002 

01:59PM

EXHIBIT 4

INTERNAL REVENUE SERVICE 

DEPARTMENT OF THE TREASURY 

P. 

0. 

BOX 2508 

CINCINNATI, 

OH 

45201 

Employer Identification Number: 

Date: 

MAR 22 007 

83-0343371 

DLN: 

17053055706047 

URBAN DEVELOPMENT CORPORATION 

Contact Person: 

PO BOX 441691 

JOSEPH R KENNEDY 

ID# 31647 

DETROIT, 

MI 

48244 

Contact Telephone Number: 

(877) 

829-5500 

Public Charity Status: 

170(b) (1) (A) (vi) 

Dear Applicant: 

Our letter dated May 8, 

2004, 

stated you would be exempt from Federal 

income tax under section 501(c) (3) 

of the Internal Revenue Code, 

and you would 

be treated as 

a public charity, 

rather than as 

a private foundation, 

during 

an advance ruling period. 

Based on the information you submitted, 

you are classified as 

a public charity 

under the Code section listed in the heading 

of this letter. 

Since your 

exempt status was not under consideratior, 

you continue to be ‘classified as 

an organization exempt from Federal income tax under section 501(c) (3) 

of 

the 

Code. 

Publication 557, 

Tax-Exempt Status for Your Organization, provides detailed 

information about your rights and responsibilities as an exempt organization. 

You may request 

a copy by calling the toll-free number for forms, 

(800) 

829-3676. 

Information is also available on our Internet Web Site at 

www.irs.gov. 

If you have general questions about exempt organizations, 

please call our 

toll-free number shown in the heading. 

Please keep this letter in your permanent records. 

Sincerely yours, 

. 

Lois 

G. 

Lerner 

Director, 

Exempt Organizations 

Rulings and Agreements: 

Letter 1050 

(DO/CG)

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