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Allegan council approves rezoning for 52‑unit PUD, accepts $1.18M CDBG for 10 downtown apartments and OKs developer due‑diligence
Summary
Council adopted Ordinance 536 to rezone a Low Street parcel for a 52‑unit apartment planned unit development (targeting households at 30–80% AMI), adopted Resolution 26.08 accepting about $1.18 million in MSHDA CDBG funding for 10 downtown second‑floor apartments, and issued an intent to negotiate with ND Community Partners for development of a small city parcel.
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The Allegan City Council unanimously adopted Ordinance 536 on second reading to rezone Parcel 035125104100 from TN‑2 (transitional residential neighborhood) to a PUD after staff said Woda Cooper proposed a three‑story, 52‑unit apartment building with one‑ and two‑bedroom units on just over two acres off Low Street. Parker summarized the project and its affordability target: "This would be available for folks who make 30 to 80 percent of the area median income," he said.
Council also adopted Resolution 26.08 to accept a Michigan State Housing Development Authority (MSHDA) Community Development Block Grant letter of intent for approximately $1,180,000 to create 10 new second‑floor apartments downtown. Staff listed addresses under consideration—116 Locust (two buildings counted as four units), 115 Locust (former pharmacy), 138 Hubbard and 145 Brady—with some units earmarked for low‑to‑moderate income occupancy.
On a related city‑owned parcel, the council issued an intent to enter a development agreement with ND Community Partners for a triangular lot (parcel 51‑280‑018‑00). A representative for the developer said the concept is atypical and not necessarily "tiny homes," describing compact detached units in a design concept and requesting up to 12 months for zoning due diligence. Council approved the intent to negotiate to allow the developer to advance due diligence and zoning review.
Staff noted the downtown photos in the packet were pulled from Google Maps and may be outdated. There were no public comments during the hearings for the rezoning or CDBG request. The ordinance and resolution passed by voice vote with no opposition.

