Kalamazoo holds public hearing on Neighborhood Enterprise Zone tied to 619 Porter mixed-use project

Kalamazoo City Commission held a public hearing Aug. 18 on creation of a Neighborhood Enterprise Zone (NEZ) covering three blocks northeast of downtown, a district city staff said is designed to help finance a proposed 58-unit mixed-use development at 619 Porter Street.

Assistant City Planner Bobby Durkee told the commission the NEZ would allow developers to apply for tax-abatement certificates tied to qualifying projects and that the certificates could run for up to 15 years. Durkee said the district being considered would formally “sunset” after five years while certificates issued inside the period could continue beyond that window.

The NEZ presentation detailed how the district was drawn to include adjacent vacant lots and developer-owned property and to match local housing-policy rings used in the county housing plan. Durkee said the zone is located in a Live Work 2 mixed-use district, that it could allow reduced parking to increase housing density, and that projects in the urban center portion would need to set aside 20% of units at 80% area median income (AMI) to qualify for NEZ benefits.

Why it matters: city staff described the NEZ as a tool to help otherwise infeasible projects proceed by reducing ad valorem taxes during early years of occupancy. Commissioners and residents raised questions about who benefits from tax incentives, how the district interacts with existing neighborhoods, and the timeline for formal action.

Public comment at the hearing focused on affordability and displacement. A long‑time North Side resident, who identified herself as Tijuana, said giving tax breaks to developers while longtime homeowners face higher taxes is unfair: “Giving tax breaks to the developers and raising taxes for current homeowners is not fair.” Other residents warned the NEZ could accelerate gentrification in the corridor and urged the city to consider incentives for existing homeowners.

Commissioners used the hearing to seek clarifications on AMI calculations, the five‑year sunset and the policy limits on the portion of city land that can be designated NEZ. Durkee and staff explained AMI figures are set by the federal government for counties, that the proposed NEZ would increase the city’s designated NEZ area from about 1.4% to roughly 1.5% of city land area and that the five‑year district period would let staff and the commission reassess success before proposing an extension.

No final vote was taken at the Aug. 18 meeting; Durkee said formal certificate approvals would return to the commission after required notice periods and a second public hearing if jurisdictions that collect property tax provide comment.

The commission closed the public hearing and moved on to other agenda items; staff confirmed notices were sent to taxing jurisdictions and that the next opportunity for commission action would come after the statutorily required waiting period.