The South Haven City Council has given a boost to the Dwelling Place of Grand Rapids as it seeks to develop housing at the former Overton property at 229 Elkenburg Street.
The city has been seeking a use for the former industrial site for years, with the latest proposal being the Dwelling Place’s plan for a three-story, 40,000 square foot, 53-unit apartment building.
The city council this week approved a Payment in Lieu of Taxes pilot agreement with the Dwelling Place so it can receive tax exemptions established under the Michigan Housing Development Authority Act. Dwelling Place Real Estate Development Director Nathan Poel told council the pilot is critical for the group to apply for low-income housing tax credits from the state.
“The pilot, as proposed, allows us to keep a balanced budget for the first 19 years on our operational projections on our pro forma,” Poel said. “If we have a higher pilot, makes it more difficult. Doesn’t make it impossible, but it does mean that we’re going to have a gap that we’ll have to fill.”
The deadline to apply for those state credits is April 1, so Poel said the timing is key. Mayor Annie Brown told Poel it’s the council’s pleasure to help the project move forward.
“I just wanted to tell you how much we have enjoyed working with you and we are so grateful to the Dwelling Place for choosing us and choosing South Haven,” Brown said. “We are a pro-housing city council.”
The Dwelling Place is seeking to keep the units at the Overton site affordable, one of the requirements of the state tax credits.
The city council also approved a letter of support for the project while Brown said state Representative Joey Andrews is being asked to do the same.
