Portage City Council reviews $35M Brownfield redevelopment plan for affordable housing

During the City Council meeting on March 25, 2025, the Portage City Council held a public hearing to discuss a significant Brownfield redevelopment plan application from Green Development Ventures LLC. This marks a pivotal moment as it is one of the first applications utilizing new Brownfield legislation aimed at housing investment in Portage, a city grappling with increasing housing demands.

The proposed developments, Oakland Commons and Creekside Commons, are set to create a total of 104 housing units with a combined capital investment exceeding $35 million. The developments aim to address the city's pressing need for affordable housing, with approximately 21% of the units designated for low to moderate-income households. This initiative aligns with the city council's ongoing objective to enhance housing supply and affordability.

Jonathan Hallberg, Deputy Director of Economic Development, explained that the updated Brownfield legislation allows for a broader range of eligible activities, including infrastructure improvements that support housing, such as sidewalks and solar panels. The legislation also provides gap financing for developments that commit to offering affordable housing options, which is crucial for attracting developers to invest in the community.

The financial structure of the project involves a 25-year Tax Increment Financing (TIF) plan, where the first 20 years will help recover eligible costs associated with the developments. Allen Edwin Homes, the developer, is seeking approximately $8.15 million in eligible cost recovery for Oakland Commons and $2.56 million for Creekside Commons. This funding will be sourced from the increased tax revenues generated by the developments, ensuring that the city does not incur additional costs.

Council members raised questions regarding the financial implications for local taxing bodies, as the TIF plan diverts tax revenues that would typically support schools and other local services. However, Hallberg assured that the state school aid fund would compensate for any losses, ensuring that schools remain financially whole throughout the TIF period.

The discussions highlighted the challenges faced by developers in the current economic climate, with rising costs making it difficult to build affordable housing without such incentives. Brian Farkas from Allen Edwin Homes emphasized that these incentives are essential for the viability of the project, stating that without them, the developments would not proceed.

In conclusion, the City Council's deliberations on the Brownfield redevelopment plan underscore a proactive approach to addressing housing shortages in Portage. As the council moves forward with this initiative, the anticipated outcomes include not only the creation of new housing units but also a potential model for future developments aimed at enhancing community living standards. The council's next steps will involve further discussions and potential approvals to ensure the timely advancement of these critical housing projects.