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Allegan council adopts Brownfield/TIF plan for 42-home River Ridge Village at 500 Delano
Summary
The Allegan City Council adopted Resolution 25-07 on Feb. 24, approving a brownfield plan and tax-increment financing for a proposed 42-unit River Ridge Village at 500 Delano Street; the developer estimates about $12.6 million in investment with roughly $4.4–4.5 million captured for eligible reimbursements over ~25 years.
The Allegan City Council voted to adopt a brownfield plan and associated tax-increment financing for a 42-unit single-family development called River Ridge Village at 500 Delano Street. The council approved Resolution 25-07 after a presentation by city staff and the developer.
Joel, the city staff presenter, said the developer would invest "over approximately $12,600,000" and that "4,400,000.0 some change is gonna be captured and reimbursed back to the developer through the Brownfield tax increment financing plan." He added the state would capture roughly $380,980.00 of those taxes and the city could capture up to about $1,500,000. The plan duration was described as approximately 25 years.
Brian, the developer representative, described River Ridge Village as a one-phase, homeownership-focused project with "3 to 5 bedrooms" and energy-efficient designs; he said the project will include five workforce-housing rental units restricted to households at or below 120% of area median income. Joe Agostinelli, an economic development incentive consultant, explained the statutory basis for using a brownfield/TIF approach: the legislature recently added "housing property" as an eligible category under the Brownfield Redevelopment Financing Act to encourage housing projects that otherwise might not move forward.
Staff and consultants outlined planned uses of captured taxes: roughly $1,000,001 for infrastructure improvements (roads, utilities), about $630,000 for site preparation and earthwork, and about $979,000 for affordability subsidies for the income-restricted units. Joel said the brownfield documents and reimbursements are reimbursement-based and that invoices will be verified before payment: "if it comes in at 1.2, they only get 1.2. They don't get what was in the plan."
Mayor Perrigo opened a public hearing and received no public comment. After the presentation and questions, a council member moved to adopt Resolution 25-07; the motion was supported and approved by voice vote.
What’s next: The developer indicated it would close on the property within about 30 days if the plan proceeded and aims to begin infrastructure work immediately; the plan as adopted will now be implemented according to the reimbursement procedures in the brownfield/TIF documents and applicable state law.
