Pontiac council approves community benefits deal, concurs with Brownfield plan for 28 North Saginaw
Loading...
Summary
The Pontiac City Council on March 3 approved a community benefits agreement for the 28 North Saginaw redevelopment and concurred with the Oakland County Brownfield Redevelopment Authority’s Brownfield plan, enabling the project to seek county-level tax-increment support. The council also approved a payment plan to the city’s attainable housing fund.
The Pontiac City Council voted to approve a community benefits agreement for the 28 North Saginaw redevelopment project and to concur with the Oakland County Brownfield Redevelopment Authority’s Brownfield plan, moving the downtown conversion forward.
Manager Deborah Younger told the council the conversion will create about 114 apartments in the former People State Bank/ Pontiac State Bank building and that the developer is seeking Brownfield/TIF support. Because final construction costs are not yet set, Younger recommended the community benefits payment — a payment calculated as 0.05% of total project cost — be amortized over five years rather than paid as a single lump sum. She estimated the project at $10–$14 million and the resulting housing-fund payment at roughly $55,000–$75,000 beginning January 2027 and completed by Dec. 31, 2031.
“Because of cash-flow timing in this midstream project, staff recommends a five-year amortization so the project can proceed while meeting the ordinance’s other tenant obligations,” Younger said.
Council members pressed staff on the ordinance tiering and enforcement mechanisms. Councilwoman Campbell asked whether the ordinance’s tier thresholds were being applied correctly; Younger confirmed the project falls into the top tier and that the community benefit agreement includes clawback and remedy provisions (recording the agreement so it runs with the property, suspension or revocation of incentives, civil penalties and liquidated damages) should the developer materially breach requirements.
Mayor McGinnis noted the agreement launched Pontiac’s new attainable housing fund. Developer representative Michael Hanna described the project as “vital for downtown” and said the team is in the final stretch and would welcome tours of the site.
The council adopted the resolution approving the community benefits agreement (roll call: 6 yeas, 0 nays). Immediately afterward the council voted to concur with the Oakland County Brownfield Redevelopment Authority’s Brownfield plan for the same project, a required administrative step before the matter goes to the county board of commissioners for final approval (roll call: 6 yeas, 0 nays).
What’s next: concurrence sends the plan to county commissioners for the final Brownfield approval and, as the agreement is recorded against the property, future owners will inherit its obligations and remedies.
