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Allegan council authorizes RFP to convert city parcel on Low Street into housing
Summary
After several developers expressed interest, council authorized staff to produce an RFP to solicit proposals to develop a city‑owned Low Street parcel into housing, including using Low‑Income Housing Tax Credits; staff noted the parcel is contaminated but developers were still interested.
The Allegan City Council on Oct. 13 directed staff to prepare and solicit a request for proposals to develop a city‑owned parcel on Low Street into housing.
City staff told the council multiple developers — two from out of state and one in state — have contacted the city about using Low‑Income Housing Tax Credits (LIHTC) to build housing on the site. Staff said the parcel is roughly 2 acres and has contamination issues but that developers indicated they routinely develop on contaminated sites.
Council authorized staff to draft the RFP and solicit proposals that require housing as the permitted use. Staff noted that selecting a project via an RFP can yield additional competitive points under the LIHTC scoring system versus a private sale.
Council members asked clarifying questions and then moved and supported the motion to direct staff to issue an RFP. Staff said they had already discussed the matter with the city’s contracted realtor and will remove the parcel from general sale marketing for this targeted process.
The motion passed by voice vote; staff will return to council with proposed RFP language and a timeline for selection.
