The Zeeland City Council will soon consider a recommendation from the city’s Brownfield Redevelopment Authority to include a mixed-use development at the northeast corner of Main Avenue and State Street as a brownfield site, making it eligible for the development to have a portion of its costs reimbursed through tax-increment financing.
The redevelopment authority on Jan. 21 voted to recommend the council include the three-story building now under construction at 17 E. Main Ave. in the city’s brownfield plan. The council is expected to get its first look at the authority’s recommendation when it meets next Monday.
Midwest Construction is investing $7 million into the project, which will consist of office and commercial space on the main floor and 22 one-bedroom apartments on the upper two floors, City Manager Tim Klunder said.
The site qualifies as an eligible property under the state’s Brownfield Redevelopment Financing Act because the project involves the construction of new affordable housing. The law was changed in 2023 to allow for housing developments to be included as brownfield projects. The law had previously had limited such projects to sites that needed environmental cleanup.
“This will be our first project (that involves housing), and we suspect there will be many more in the future that (will) seek this type of incentive,” Klunder said.
The project seeks to provide housing to individuals and families earning between 80 and 120 percent of Ottawa County’s area median income (AMI). Six of the apartments will have their rent capped at Michigan State Housing Development Authority (MSHDA) rates for renters whose incomes are at 80 percent of the county AMI for the life of the plan, estimated at 30 years, Klunder said.
Midwest Construction is seeking approval of tax-increment financing for the 17 E. Main project, which means any new tax revenues generated by growth in property values for the site could be reimbursed back to the developer to help cover such expenses as a baseline environmental assessment, demolition and site preparation. The developer is seeking to be reimbursed $671,900 over a period of 14 years for those expenses, Klunder wrote in a memo to the City Council.
In addition, the brownfield authority is proposing the city collect about $2 million more in new tax revenues over an additional period of 16 years after the developer is reimbursed that would go toward the purchase of boilers to expand the city’s snowmelt system. Tax increment financing can be used for public infrastructure projects like snowmelt expansion, Klunder said.
The council is expected at next Monday’s meeting to set a public hearing for Feb. 17 to receive input on adding the 17 E. Main project to the city’s brownfield plan.
The redevelopment authority on Jan. 21 voted to recommend the council include the three-story building now under construction at 17 E. Main Ave. in the city’s brownfield plan. The council is expected to get its first look at the authority’s recommendation when it meets next Monday.
Midwest Construction is investing $7 million into the project, which will consist of office and commercial space on the main floor and 22 one-bedroom apartments on the upper two floors, City Manager Tim Klunder said.
The site qualifies as an eligible property under the state’s Brownfield Redevelopment Financing Act because the project involves the construction of new affordable housing. The law was changed in 2023 to allow for housing developments to be included as brownfield projects. The law had previously had limited such projects to sites that needed environmental cleanup.
“This will be our first project (that involves housing), and we suspect there will be many more in the future that (will) seek this type of incentive,” Klunder said.
The project seeks to provide housing to individuals and families earning between 80 and 120 percent of Ottawa County’s area median income (AMI). Six of the apartments will have their rent capped at Michigan State Housing Development Authority (MSHDA) rates for renters whose incomes are at 80 percent of the county AMI for the life of the plan, estimated at 30 years, Klunder said.
Midwest Construction is seeking approval of tax-increment financing for the 17 E. Main project, which means any new tax revenues generated by growth in property values for the site could be reimbursed back to the developer to help cover such expenses as a baseline environmental assessment, demolition and site preparation. The developer is seeking to be reimbursed $671,900 over a period of 14 years for those expenses, Klunder wrote in a memo to the City Council.
In addition, the brownfield authority is proposing the city collect about $2 million more in new tax revenues over an additional period of 16 years after the developer is reimbursed that would go toward the purchase of boilers to expand the city’s snowmelt system. Tax increment financing can be used for public infrastructure projects like snowmelt expansion, Klunder said.
The council is expected at next Monday’s meeting to set a public hearing for Feb. 17 to receive input on adding the 17 E. Main project to the city’s brownfield plan.
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