Allegan council holds public hearing on Girl Scout property, postpones sale agreement to June 23

A public hearing on June 9 gave residents a chance to weigh in on a proposed purchase-and-development agreement between the City of Allegan and Allegan Development Company for roughly 15 acres commonly called the Girl Scout property.

City Manager Joel said the developer’s plan calls for 38 housing units (26 condos and 12 townhouses) and that the developer is offering $100,000 to buy the land. Joel told council that traffic and utility reports from outside experts were included in the council packet and that the city’s legal review of the draft purchase-and-development agreement is not complete.

Why it matters: The property sits near the Highland neighborhood and staff said the lower portion of the parcel would be donated to the Allegan Conservation District as a nature area, with parking and trails in the plan. Joel and staff framed the proposal as filling a local housing gap identified in a county housing analysis and said the city has lost households who needed smaller units.

During public comment, neighborhood resident Jeff Mills described past outreach to staff and asked why residents were not given an opportunity to submit competing due-diligence proposals or know whether tax incentives would be offered. “I would be more than happy to purchase a property,” Mills said, and he asked how a local resident could enter a due-diligence agreement and whether tax credits or long-term tax arrangements would reduce near-term revenue.

Staff response and finance context: Joel said the city has entertained proposals in the past and that, aside from Allegan Development Company’s submission, no formal proposal had been filed from other local parties during the formal solicitation. He explained that the developer would use the state’s Brownfield/TIF process for reimbursement of eligible project expenses (staff described the Brownfield Redevelopment Authority and a hypothetical reimbursement scenario in which the developer is repaid eligible expenses from future increments in property taxes). Joel said the city would not be giving a direct tax break to buyers: “Other than that, there’s no tax breaks that the developer gets,” he said.

Council action and next steps: Because the developer’s attorney and the city attorney were still reviewing the agreement, councilmember (speaker 5) moved to postpone action on agenda item 8a. The motion to postpone any further action on 8a until the June 23 meeting was seconded and approved by voice vote. No construction contract or final sale was approved at the June 9 meeting. The council will revisit the agreement at its June 23 meeting after both parties’ legal reviews are complete.

The city packet includes staff memos and traffic/utility studies; additional public comment is possible at the June 23 meeting prior to any vote.