Commission approves Lincoln Place tax-exemption request to aid downtown housing redevelopment

The Royal Oak City Commission voted Aug. 25 to approve a commercial rehabilitation exemption certificate for Lincoln Place, a downtown redevelopment project developers say will add market-rate housing along with 25 workforce units.

The commission’s approval, introduced by Commissioner Douglas and seconded during the meeting, is the final local administrative step in a multi-month review that included a brownfield plan and negotiation of development incentives. ‘‘This is sort of the last step in the local process,’’ consultant Joe Gastinelli of Michigan Growth Advisors told the commission, saying the exemption helps manage real-estate tax expenses so the project can support enough debt to be financially viable.

Why it matters: Commission members framed the vote as a trade-off between foregoing some future tax revenue and creating housing options near downtown businesses and transit. ‘‘There’s wide consensus in our community on the value of providing rental housing at lower than market rates,’’ Commissioner Douglas said, adding that state tools and local incentives are necessary to attract developers to include below-market units.

Developer and staff statements: Gastinelli said the development team also submitted a request that day to the state seeking school-tax capture under the brownfield plan. He told commissioners the incentive package, including the exemption certificate, was necessary to make the project financially viable. The petitioners were on hand to answer questions, and no additional technical questions were raised by commissioners at the hearing.

Public input: During the public hearing segment, resident Nancy Poprovsky asked whether mature trees at the Lincoln Place site would be preserved and urged stronger local ordinances or incentives to protect mature trees during development. ‘‘One tree of shade can make so much difference,’’ Poprovsky said, urging the commission to do more to retain mature canopy where possible.

Outcome and next steps: The motion to approve the exemption passed on a voice vote. With local approvals complete, project leaders will await any required state approvals, including the school-tax capture referenced by the developer. The commission did not provide a numeric vote tally in the meeting record; the motion passed as called from the dais.

Provenance: The Redevelopment presentation and petitioners’ remarks began in the meeting materials and were discussed publicly starting with staff references to Lincoln Place earlier in the meeting and in the public hearing, culminating in the approval vote at the close of the Lincoln Place agenda item.