Big Rapids brownfield plan advances to Nov. 17 city commission; 54-home development described

The Brownfield Redevelopment Advisory Board voted to forward a revised brownfield plan for a 54-home subdivision in Big Rapids to the City Commission for consideration on Nov. 17.

Board members heard a staff summary of changes to the plan and presentations from Michigan Growth Advisors and Allen Urban Homes. City and developer presentations described a roughly 20-acre project on the east side of Bjornson Street that the developers estimate will require about $18 million in private investment, be built over about two years at roughly 27 homes per year, and include six income-restricted rental units reserved for about 15 years.

Sam, the staff presenter, summarized financial changes made since the Aug. 26 application, saying infrastructure support in the plan was reduced from $2,000,000 to $1,000,000. That reduction, Sam said, allowed a greater amount of interest to be captured by the developer; staff described a $277,000 increase in interest captured and a $5,000 increase in plan-preparation costs, for a net rise of $318,079 in developer-funded activities. Staff also described splitting the local capture of tax increment revenue so that 5% would fund administrative and operating expenses for the city's brownfield authority and 5% would go to the local brownfield revolving fund (LBRF). The board was told the LBRF total would be about $2,100,000 over the life of the plan plus an additional five years post-developer reimbursement, and that the plan length increases by one year.

Jared Lewis of Michigan Growth Advisors, who helped prepare the plan, said the development would contain 54 single-family homes with six income-restricted rental units that will be indistinguishable from for-sale homes. "My name is Jared Lewis. I'm with Michigan Growth Advisors," Lewis said when introducing himself. He added the six rentals would be income-qualified, restricted for 15 years and priced at about 100% of area median income (about $1,900 per month in the county). Lewis and a representative of Allen Urban Homes said the developer expects to market for-sale homes through local realtors and to build a proportion of homes "on spec" (finished and for sale without a previously identified buyer).

City staff members Mark and Michelle said they supported the project as filling a housing need in Big Rapids and said they liked the layout and multi-phased financing, while acknowledging the reimbursement period is long under current rules. Andrea Ryswick, representing the Eagle Brownfield program, introduced herself and offered state brownfield technical assistance, including site assessments and grant and loan support. "Use me as a resource," Ryswick said, and she described services including phase I and II environmental assessments, grant and loan funding for environmental components, and the state's role in approving tax increment financing when an environmental component is present.

A board member moved and seconded to forward the revised brownfield plan to the City Commission on Nov. 17 and to proceed with preparing reimbursement agreements. The board approved the motion by voice vote; the minutes record the board saying "aye" and no opposition was recorded. Staff said legal staff would work with the presenter to prepare reimbursement agreements ahead of the commission meeting.

The board also discussed scheduling for future meetings and site-assessment work tied to the plan. Members briefly reviewed another local project (a theater remodel) and concluded that project is likely to proceed without brownfield participation. The board did not set firm dates for additional meetings, saying it would revisit scheduling after the commission hearing.

Next steps listed by staff include drafting reimbursement agreements with the city attorney and presenting the brownfield plan to the City Commission on Nov. 17.