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Council approves 17-year NEZ certificate for historic Casa Del Rey renovation at 111 Oneida
Summary
The council approved a 17-year Neighborhood Enterprise Zone (NEZ) tax-exemption certificate to support renovation of the historic Casa Del Rey building at 111 Oneida into about 50 affordable units, after development partners described financing layers and public benefits.
The Pontiac City Council on Jan. 21 approved a 17-year Neighborhood Enterprise Zone (NEZ) tax-exemption certificate to support renovation of the historic Casa Del Rey (111 Oneida) into roughly 50 residential units priced to affordable levels, a project the administration and planning staff said would not be financially feasible without layered public support.
Why NEZ: Because Casa Del Rey is a qualified historic property, the NEZ period requested was 17 years. The NEZ certificate freezes taxes at the current base and limits tax increases from building improvements for the NEZ period to encourage private investment while keeping the property affordable. Planning staff said the county owned the property and it had not paid taxes since the foreclosed transfer in 2014; renovation replaces a long-standing vacancy and restores a landmark structure.
Project details and partners: Developers told council they are working with the Michigan State Housing Development Authority (MSHDA), the Michigan Economic Development Corporation (MEDC), two community development financial institutions and Oakland County as part of the capital stack. The developers said the project is historic, thus more expensive to renovate, and the NEZ is one necessary element among tax credits and other financing to keep rents affordable. Council and staff noted the NEZ will not affect city income tax collected from future residents.
Vote and fiscal note: The council adopted the NEZ certificate by roll call (6-0) after discussion; administration estimated the city would forego roughly $280,000 in property-tax revenue over the 17-year NEZ period but emphasized that the property paid no taxes while vacant and that the redevelopment will increase the tax base after the NEZ period.
Ending: The developers said they will proceed with other financing steps, and city staff noted subsequent approvals for site plan and other technical steps would follow before construction. Council members praised the project as a long-awaited reuse of a deteriorated historic structure.
