Council approves Sandy Acres Brownfield TIF to support 54‑home development

After a statutorily required public hearing, the City of Big Rapids council approved a Brownfield redevelopment plan for the Sandy Acres development.

Sam Marius, a brownfield consultant, told the council the plan covers a 54 single‑family home subdivision in which six homes will be income‑restricted for 15 years. Eligible activities under the plan include pre‑approved EGLE work, infrastructure and site preparation; the plan anticipates up to $7,200,000 of eligible reimbursable activities and a developer interest request of 3.5 percent. The plan’s financial structure is layered: developer reimbursement is first in line for eligible costs, followed by city reimbursement, and the Brownfield Redevelopment Authority (BRA) will retain 5 percent of local available increment to fund administrative expenses. An initial projection in the materials anticipates developer reimbursement in plan year '22 and city reimbursement between plan years '22 and '25 under conservative growth assumptions.

Tom Larabell, representing Allen Edlund Homes, said his company has worked in nearby communities and intends to manage the project’s sales strategy. Larabell said the firm typically spec‑builds roughly 70 percent of units to create inventory that helps sales and that if any units do not sell they would be retained and managed as rentals to avoid vacancies. Jared Lutz, a consultant, said the Brownfield tool is being used more broadly to help address a statewide housing shortfall and that the plan targets workforce housing roughly in the 80–120 percent area median income band.

During discussion, a commissioner noted public skepticism about selling 50+ houses in Big Rapids at a $350,000 price point; Larabell said market modeling supports sales over a two‑ to three‑year period and the firm has sales mechanisms including in‑house salesforce and partnerships with local realtors.

The mayor read the resolution language referencing Act 381 of the Public Acts of Michigan of 1996, as amended, and a motion and second were made. The clerk conducted a roll‑call vote: James (Yes); Johnson (Yes); Rhodes (Yes); Simmons (Yes); Gunther (Yes). The resolution passed.

Next steps described during the meeting include drafting the development agreement and reimbursement agreement, preparing a larger state packet for Brownfield review, and returning draft agreements to council for final approvals. Sam Marius said the reimbursement agreement has been drafted and a development agreement will follow.

The council did not record additional conditions tied to the vote in the hearing record. The developer and city staff will continue to refine the development agreement and send required materials to the state as part of the Brownfield review process.