Pavilion Township brownfield housing plan proposes 275 homes, 29 income‑restricted units; board to hold hearing

Kalamazoo County Brownfield staff and the developer Pavilion Investors LLC presented a housing tax‑increment finance plan to the county board on March 18 proposing 275 for‑sale housing units on roughly 35 acres in Pavilion Township, including about 29 income‑restricted units to be sold at approximately 80 percent area median income (AMI).

"This brownfield plan is eligible as a qualifying housing property," said Macy Rose Walters, the county’s Brownfield Redevelopment Administrator, describing site work, infrastructure and an estimated $87 million in private investment. She said the plan anticipates reimbursing roughly $13.9 million of eligible developer costs over about 15 years and contributing approximately $6.3 million to the county Local Brownfield Revolving Fund (LBRF).

Walters said the housing mix would include about 160 single‑family units, approximately 64 traditional neighborhood‑design (TND) homes, and about 51 townhomes. The plan aims to add taxable value from about $444,000 to about $65 million and modeled a 15‑year reimbursement period for developer eligible activities, with a 20‑year total plan life. The Brownfield Authority recommended the plan after a third‑party review by Fishbeck.

Questions from commissioners centered on the income‑restricted units and enforcement of affordability. Commissioner Gisler asked who verifies buyer income and how often. Walters said the plan requires income verification at the first sale and the Brownfield Authority will collect annual project metrics for reporting to the state economic development agency; the affordability requirement applies to the first sale of each income‑restricted unit.

Commissioners and developers discussed whether deed restrictions or covenants should be used to preserve affordability for a set time and whether a clawback or other enforcement mechanism should be included. Joe Agostinelli of Michigan Growth Advisors (plan author) said deeper affordability (for example, 50% AMI) would require additional subsidy and that the 80% AMI target reflected the financing gap the plan was designed to fill. Developers indicated they are open to continued discussions about enforcement language but warned of administrative complexity.

Several commissioners praised the project’s scale and potential tax base increase while urging future housing TIF applications to consider longer affordability periods or layered subsidies to reach lower AMI households. Walters said the plan received Pavilion Township approval and the board set a public hearing for April 1 at 6:45 p.m.; the Brownfield Authority will continue negotiating the development agreement and reporting terms.

Ending: The board set an April 1 public hearing. Staff and developers said they will refine the development agreement, affordability monitoring and annual reporting before the hearing and potential adoption.