Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Policy topic
No spam. Unsubscribe anytime.
Council asks staff to draft fee-in-lieu option for downtown inclusionary housing requirements
Summary
After extensive public comment in favor of revising Ordinance 13-84, council voted 4-1 to direct staff and the planning commission to study a fee-in-lieu option, expand the ordinance's geographic reach and draft ordinance language, with a motion asking developers to indemnify the city against legal challenges.
The East Lansing City Council voted 4-1 on Oct. 21 to direct staff and the Planning Commission to prepare ordinance language to add a fee-in-lieu option to the city's inclusionary-housing requirements (Ordinance 13-84) and to consider expanding the geographic area in which the requirement applies.
What speakers said: Multiple residents, developers and former planning commissioners said the current ordinance—adopted in 2016—has stifled downtown development and produced no affordable units in nearly nine years. Supporters argued a fee-in-lieu would generate funds for an affordable-housing trust or other programs while enabling larger market-rate projects, including a developer who said a $150 million investment in a downtown site (the former bookstore/SPS site) depends on such a change.
Council debate: Staff presented background research and several policy options; council members asked for detailed analysis on fee levels and legal vulnerabilities. Council member Altman warned against changing policy only to suit a single project. City attorney and city manager said staff should prepare a draft ordinance and analysis for council and the planning commission, including potential diversion and legal risks.
The motion and vote: Mayor Brookover moved that staff and the Planning Commission investigate a fee-in-lieu program, expanded geographic scope, and include an indemnification clause for property owners/developers to defend the city in case of legal challenge. The motion passed 4-1 (Altman: no; Meadows: yes; Watson: yes; Singh: yes; Brookover: yes).
Financial and timeline details: Speakers and commenters offered multiple cost estimates: a developer representative cited a $150 million project that would seed nearly $2 million into a fee-in-lieu fund and generate roughly $23 million in new taxes over 20 years; council directed staff to return with more precise fee-calculation options and comparisons to peer cities such as Ann Arbor, Chapel Hill and Evanston.
