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ON THE COVER
PUTTING A PINCH ON PORCH PIRATES Doorbell cameras, security systems help homeowners and police identify suspects
BY RICH ADAMS
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The first patent for a home security system was filed in 1966 by a nurse from Queens, New York.
Marie Van Britton Brown’s system, developed with the help of her electronics technician husband, Albert, monitored the front door through a camera linked to a television. A two-way intercom allowed her to speak with the person at the door, and a remote-control option enabled her to control the door lock from a safe distance.
From that initial patent, the global home security market has exploded, and sales are expected to grow from $2.14 billion in 2018 to $4.37 billion by 2022, according to a news release from The Business Research Co.
Products ranging from do-it-yourself systems to traditional companies such as ADT, Ring, SimpliSafe, Nest, LifeShield and more provide people with the necessary components to protect their homes.
So how does this technology help residents and police catch a porch pirate?
To begin with, home security systems assist law enforcement in identifying suspects in cases where packages are stolen. Robert Merritt, public information officer for the Lansing Police Department, said the department’s investigation team has used and continues to use video captured by surveillance cameras and doorbell cameras.
Homeowners in one case posted video on social media prior to contacting Lansing police, sharing the video on the Ring Neighbors app.
“The suspects were identified as a result of this process. Lansing Police Department was contacted and began the investigation,” Merritt explained. “The detective team has completed the investigation. The detailed reports have been submitted to the Ingham
County prosecutor’s office to review and possibly issue criminal charges.”
Merritt said the department not only encourages the use of home security cameras, a few years ago it began a program called Security Camera Registry and Mapping, or SCRAM, which can be accessed at lansingmi.gov/1640/What-is-SCRAM. The program informs the department of which residences or businesses have functioning cameras. It does not give authorities access to the cameras or captured video.
The first step people who are victims of porch pirates should always take is calling law enforcement.
“Lansing Police Department encourages citizens to file a report the minute they become a victim. The sooner the police are aware of the crime, the faster the case can be solved,” Merritt said.
Bob Tucker, a spokesman for ADT, said the security monitoring company responds to 15 million alarms nationwide every year, a majority of which are false alarms.
ADT has six centers nationwide to alert homeowners or businesses an alarm is sounding. If it’s a burglary alarm, the monitoring system first calls the home phone. If there is no answer, the call goes to the cellphone number.
“If we get a fire alarm, we call once; and if there is no answer, we immediately call 911,” Tucker said, noting that the same procedure goes for carbon monoxide alarms.
Tucker said ADT started offering residential security systems 40 years ago, and it has grown as technology has developed and mass marketing has brought the price down.
“It used to be so darned expensive for a person to have (a residential security system),” Tucker explained. “Today, installation will run $100 or so, and $40 to $60 a month for monitoring. The main thing has been the technology, which has made it more affordable.”
Tucker said many customers have told him the video from their surveillance cameras has resulted in arrests when the homeowner either shared the video with the police or local television station.
He also said a security company sign in front of a house causes porch pirates to think twice about stealing a package.
“Bad guys will keep on going if they are able to see there is a doorbell camera, and I know they will keep on going if they see an ADT yard sign,” Tucker said. “There have been studies when convicted burglars have been interviewed. They have said flat out if they see an ADT sign, they see there’s a system installed and they go to
For people who want an even more secure way to have their Amazon packages delivered, they can have them sent to an Amazon Hub Locker, which is a secure, self-service kiosk that allows people to pick up their package at a place and time convenient for them. When the package is delivered to the requested location, the recipient gets an email with a six-digit code and uses that code to access their locker. There are 20 Amazon Hub Locker locations in the Greater Lansing area at Whole Foods, Rite-Aid and other locations. For a full listing go to amazon.com/gp/ css/account/address/view.html.
Now a freelance writer, Rich Adams was a print and broadcast journalist for more than four decades. When he is not watching his beloved Chicago Cubs, he is counting the days until spring training begins.
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UNCAPPING OF COMMERCIAL REAL ESTATE ASSESSMENTS
Fraser Trebilcock Real Estate Team | (517) 482-5800 | fraserlawfirm.com
Most are aware that the taxable value assessment of a commercial property is uncapped on its sale, but it can also uncap in the event of certain other transfers which do not involve the sale of property and the recording of a deed.
By way of background, Michigan real property taxable value assessments are "capped" and can only increase yearto-year at the lesser of 5% or the rate of inflation. Section 211.27a(6) of the General Property Tax Act defines "transfer of ownership" generally as the conveyance of title to or a present interest in property, the value which is substantially equal to the value of the fee interest. Section 211.27a(6) provides a variety of examples of what constitutes a transfer of ownership for taxable value uncapping purposes.
Many are unaware that the sale or transfer of an ownership interest in an entity which owns real property is a transfer of ownership of the entity's real estate for tax purposes if the ownership interest sold or transferred is more than 50% of the total ownership interest in the entity. In other words, if you sell or transfer more than half of the ownership interest in an entity owning real property, you have created a "transfer of ownership" of the entity's real property for real estate tax purposes. This provision is applicable to stock in a corporation, membership interests in a limited liability company and percentage ownership in a partnership. Such a sale or transfer will result in the "uncapping" of the property tax assessment of all real property owned by the entity. By way of example, suppose John Doe owns a majority of the ownership interest in Universal Widget and transfers it as a gift to his son, Peter Doe. The transfer will result in the uncapping of the property tax assessment on all real property owned by Universal Widget. If the transfer occurs in increments over time, the lifting of the taxable value cap occurs at the point John Doe no longer owns the majority interest in Universal Widget.
When a majority ownership interest in an entity has been sold or transferred, a Real Estate Property Transfer Affidavit must be filed with the local assessor. Section 10 of the Affidavit states "Type of Transfer: Transfers include, but are not limited to, deeds, land contracts, transfers involving trusts or wills, certain long-term leases and business interest." Failure to timely file the Affidavit permits the assessor to go back and increase prior tax assessments (after the transfer took place) to adjust the property tax assessment, possibly resulting in (i) an increased assessment resulting in increased property taxes, (ii) interest on the difference on the tax that was paid and the tax that should have been paid and (iii) penalties.
Any time you are contemplating a sale or transfer of an ownership interest in an entity which owns real estate you should consult with your attorney about the means and ramifications of your proposed transaction.
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SCHOR SETS GOALS IN HIS STATE OF THE CITY ADDRESS
BY RICH ADAMS
Lansing Mayor Andy Schor outlined his administration’s goals for 2020 in his State of the City address, focusing on mental health, neighborhoods, roads and continued economic development.
Schor spoke before a standing-roomonly audience in The Abigail, a building that was part of the Michigan School for the Blind and stood vacant for years until it was recently renovated to provide 60 senior apartments.
Among many of the new positions announced during the Feb. 5 speech was creation of a Mental Health Task Force, which will find solutions to the mental health challenges in Lansing.
“Like cities throughout the state and nation, mental health issues have a significant impact in Lansing.” Schor said. “We’ve seen this through the activities of our police, and that’s why I prioritized placing a social worker in the Lansing Police Department – so we can assist those with mental illness rather than putting them in jail.”
Also at the top of the mayor’s to-do list is Lansing’s infrastructure. Schor said 15 miles of city streets were improved in 2019, and he touched on an initiative to change six one-way streets in downtown Lansing into two-way streets. Those streets are Capitol and Grand avenues as well as Ottawa, Allegan, Pine and Walnut streets.
“Two-way streets have been shown to slow traffic, make streets more pedestrian-friendly, safer for our residents and visitors, and more beneficial to local businesses by giving them more visibility,” Schor explained.
The mayor also touted the new residential and retail development in Lansing.
“We are moving faster than the speed of business,” Schor said. “This is all part of my vision to create jobs and grow our economy downtown, in our corridors and in our neighborhoods.”
Schor said various construction occurring in Lansing will create 227 new housing units in downtown Lansing alone. To generate more development, Schor has created two new corridor improvement authorities, one on South Martin Luther King Jr. Boulevard and another on North Grand River Avenue.
“This means we’ll have four corridor improvement authorities in Lansing whose goal it is to focus on revitalizing these areas,” Schor said. “Our two existing corridor authorities on Michigan Avenue and West Saginaw have already approved their corridor plans, and we’re looking forward to new opportunities on all four of these critical arteries.” Neighborhood revitalization continues to be a goal of Schor’s administration. For the past year the focus was on southwest Lansing, specifically the Baker Street neighborhood and the neighborhood along Pleasant Grove and Holmes roads.
“The result of our focus on the Baker Street neighborhood is significant. Victim and property crime is down 33% and … more families with young children are moving into the area,” he explained.
Schor announced the focus on neighborhoods will expand.
“I am announcing that the neighborhood we are currently in right now, the WillowNEWS
Walnut-Comstock Park area, will be designated the next neighborhood of focus,” he said. “Like we did in the Baker neighborhood of southwest Lansing, the city of Lansing will focus on empowering our residents, building wealth and ensuring they have the services they need while working with existing community partners in the area.”
OTHER SIGNIFICANT PARTS OF THE ADDRESS INCLUDED:
• Creating the city’s 12th community policing area, this one in southeast Lansing.
• Requiring developers to make public improvements as part of their renovation or construction projects.
• Implementation of an age-friendly community plan to make downtown easily accessible to older residents.
• Working with the various employee unions to address future unfunded liabilities.
• Creation of a sustainability management coordinator to develop and implement existing plans to bolster sustainability and address climate change.
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HISTORIC ST. JOHNS BUILDING SEES NEW LIFE
BY EMMA C. JOHNSON
Merriam-Webster defines a waypoint as “an intermediate point on a route or line of travel.” Over a century old, the F.C. Mason building has had many waypoints over the years and is looking forward to a big one in 2020.
The historic two-story, 45,744-squarefoot F.C. Mason building in downtown St. Johns has been vacant for eight years until it recently found new life repurposed as apartments and a coffee shop. The 40 apartment units are slated to be finished in the first quarter of 2020.
The red-brick structure at Railroad Street and Spring Street was built in 1898. Its walls have housed grist, saw, planing, lumber and flour mills, as well as a manufactured natural gas plant. In 1908, the F.C. Mason Co. set up shop as a manufacturer of farming implements and added an east wing.
Ken Harris, a member of FCM Development LLC and St. Johns resident, saw the F.C. Mason building in need of revitalization. Harris also saw that middle-class housing was needed.
“We have a real shortage of housing,” said Harris.
city to make the project possible.
The original structure was preserved. However, to bring the building up to code and repurpose the space, the roof was replaced; the courtyard was landscaped; and drainage, concrete and grass were installed.
Harris said revitalization projects can be tricky because “everyone has to be on board.”
FCM Development needed tax abatement from the city to move forward. Environmental cleanup and renovation (compared to building new) are expensive. Support and approval from the state, city
and the Michigan Economic Development Corp. was critical for the project to be economically feasible for developers.
In fact, the MEDC requires local municipality participation in order to grant an Obsolete Property Rehabilitation Act abatement.
The investment to revitalize the building cost FCM Development $2.2 million. Phase 1, Phase 2, a baseline environmental analysis and cleanup amounted to an environmental cost to FCM Development of $50,000.
Consumers Energy invested $1 million to conduct an environmental cleanup. Contaminated soil was removed, replaced and retested for contaminants. The abandoned F.C. Mason property was assessed at $170,000. The 2018 predevelopment tax to the city was $4,726. Post-development, taxes would be $19,485 without an OPRA tax abatement. The abatement freezes taxes at the predevelopment level for a specified time period so developers can recoup the costs from environmental cleanup and renovating an obsolete, blighted building.
The annual $11,245 in tax savings to the developer over 10 years totals $148,243, when accounting for yearly 2% tax increases.
Currently completed apartment units are filled and there is a waiting list.
Co-owners Ethan Painter and Davey Fore, both St. Johns residents, are opening Waypoint Coffee Co., a 1,200-square-foot commercial space on the ground floor.
“We found a lot of generic office space that we probably could have remodeled to make it work, but we weren’t in love with anything until we walked into the old F.C. Mason building,” said Painter. “We knew as soon as we walked in that it was the right place for us.”
“From the exposed brick walls, to the original tin-stamped ceilings, to the aged penny tile, we fell in love with the character of the building,” he added. “We have tried to preserve as much of the original feel of the building as possible, while adding some modern accents.”
The coffee shop’s name comes from aviation. A waypoint is a GPS point in space that helps guide pilots. Airspeed, altitude and heading all change at a waypoint. Davey, a former commercial pilot and flight instructor, said a waypoint is a significant place on a journey.
“Your journey may not involve airplanes, but it does include places of significance where the momentum of your daily life is altered,” said Painter. “We have been in the process of finding a space and opening a coffee shop for almost three years, so we are thrilled to be this close to opening our doors to serve the community.”
The coffee shop will also offer baked goods from a local company and host events. Marilu St. John will move in come March. What attracted St. John to the apartments was “preserving the history.”
“Each apartment has something special about it,” she said.
However, location was St. John’s No. 1 reason for moving in. NEWS
“It’s walking distance to pretty much everything,” she said. “It’s an ideal place to live.”
Emma C. Johnson is a writer based in Midland. She has written for the Midland Daily News, the Delta Collegiate, and Great Lakes Bay Magazine, among others. She studied English at Rutgers University - New Brunswick and holds a B.A. in English from the University of Minnesota - Twin Cities.
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WAYFAIR SERVICE CENTER BRINGS 500 JOBS
The scoop behind the project and what’s in store for the community
BY LAUREN FARHAT
For Meridian Township, 2020 has some exciting news in store for its community, local businesses and higher education facilities. In November, Wayfair, a Fortune 500 internet retail company and e-commerce giant, finalized its decision to open a new customer service center in the Lansingarea. The building, a previously vacant office space on Hagadorn Road, is over 63,000 square feet and will provide 500 new jobs to Meridian Township. With intentions to take control of the space
SAID KEITH LAMBERT, VICE PRESIDENT OF BUSINESS ATTRACTION AT LEAP
this spring, the Boston-based company will spend its first six months “Wayfairizing” the building’s interior and begin the hiring process at the start of summer.
“This was a LEAP project that we recruited intentionally from start to finish,” said Bob Trezise, president and CEO of the Lansing Economic Area Partnership. “Initially, Wayfair was examining multiple sites for its customer service center across the whole country, including various sites and regions in the state of Michigan. LEAP became so important in this situation because it was our region competing against other regions. In a collective effort, we had to showcase everything we could in order to portray ourselves as the best, most competitive environment for Wayfair’s facilities.”
Among Meridian Township’s impressive qualities, the region’s two highly regarded educational facilities served as enticing and competitive offerings. “Wayfair was really impressed with the new graduates coming out of Lansing Community College and Michigan State University, which is their target audience for employees,” said Chris Buck, economic development director for Meridian Township. “So, to have an office space adjacent to campus was just a great way for them to put all of these 500 future employees under one roof. We’ve talked for decades about how to keep recent graduates from leaving the region, and I think having a wider employment base for entry-level graduates was critical.”
Atop of the encouraging partnership between Wayfair and Lansing’s educational facilities, the company’s presence is equally expected to revitalize the community’s business district. Buck said that even with all of the things Meridian Township has going for it — world-class school districts, sought-after subdivisions, tons of commercial shopping — the township NEWS
has been continually working to enhance its local workforce options. Wayfair’s arrival will not only energize the area with availability to more jobs but also through attracting new people to the area and by those people inhabiting the housing options that surround the new office building.
As the project nears its 2020 start date, the community can expect a threeyear time frame for Wayfair to fulfill all 500 customer service jobs.
“Wayfair intends to spend their first six months, from spring to about early fall, completing a full interior build-out,” said Keith Lambert, vice president of business attraction at LEAP. “Then, to align with those efforts, will ramp up hiring over the summer by doing so in tiers of 20- to 25-person cohorts. The company will continue this hiring process steadily over a span of three years, while also providing training programs to each new hire.”
Lauren Farhat is a graduate of Michigan State University with a background in creative writing. Farhat works for a nonprofit in Chicago while continuing her love for writing through freelancing. In her spare time, she enjoys being a foodie and exploring all of the great restaurants the Windy City has to offer.
Contact Keith R. Pfeifle, CPA. 517.886.9524 kpfeifle@manercpa.com
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