Council sends 1200 W. 9 Mile PILOT back to incentives committee to seek more 80% AMI units

Council referred a request from a developer for a Payment‑In‑Lieu‑of‑Taxes (PILOT) workforce‑housing pilot at 1200 West 9 Mile Road back to the incentives committee for further deliberation and to increase the number of units at 80% Area Median Income (AMI).

Staff said the project — previously approved as a site plan and NEZ — now faces a funding gap after state grants ran out. The developer proposed converting the NEZ plan into a 15‑year PILOT that would make all units 'attainable' (16 units at 80% AMI, 21 at 100% AMI and 19 at 120% AMI). As proposed, the pilot would lower annual city tax revenue compared with a market‑rate outcome but would deliver about $300,000 in one‑time community benefits (9 Mile repaving/restriping, landscaping, additional barrier‑free units, mural funds, park contributions, and a municipal service agreement) and a recurring PILOT payment tied to a percentage of rents.

Council members pressed for more lower‑cost (80% AMI) units and discussed tradeoffs; staff and the developer said increasing the number of 80% AMI units would require reducing some community benefits or changing pilot percentages because of pro forma financing constraints. Staff and the incentive review committee had modeled several scenarios and recommended a configuration that delivered workforce housing and the listed community benefits while meeting project financing requirements.

Council voted unanimously to return the item to the incentives committee for specific direction to increase the number of 80% AMI units and to refine the community benefits package. The committee will return a revised recommendation to council in the new year.