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Council approves brownfield TIF for 123 Washington after debate over incentive length and affordability
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Summary
After debate over incentive length, affordable-unit levels and preservation commitments, the Grand Haven City Council approved a brownfield plan for the 123 Washington redevelopment that trims the developer’s reimbursement period and requires future development-agreement safeguards.
The Grand Haven City Council voted 3–2 on April 27 to approve a brownfield tax-increment financing (TIF) plan for the Washington 123 LLC redevelopment at 123 Washington Avenue, clearing the way for renovation of a mid-century building and associated remediation work.
City staff told the council the developer dropped an obsolete property rehabilitation abatement (OPRA) request and now seeks TIF reimbursement for eligible remediation and construction costs; staff said that change reduced the developer’s expected reimbursement period to about 19 years while the brownfield plan itself covers 25 years because reimbursement does not begin until 2027. ‘‘The reimbursement period will drop to 19 years or sooner, depending on the total cost of eligible activities being reimbursed,’’ a city staff member said during the presentation.
Developer Marcy DeVries, who identified herself as one of the owners, told council the project’s goals are to perform thorough contamination remediation, preserve an architectural ‘‘fin’’ and add dining and housing in downtown Grand Haven. ‘‘The TIF is an incentive to spend more money on this important remediation work to provide a clean and healthy environment to the community,’’ DeVries said.
Several council members pushed back on the length of the incentive and whether the project’s proposed income targeting would meet local housing needs. Councilmember Sarah noted the Ottawa County Housing Needs Assessment projects many units will be needed at 50% area median income (AMI) but said the applicants are proposing units at 100% AMI. ‘‘I’m assuming that you’re not looking to make any of these 50% AMI?’’ she asked; the developer replied no and confirmed the proposal sets units at 100% AMI or less.
Supporters argued the TIF is a cash-flow tool that enables substantial remediation and rehabilitation while protecting the city with caps and conditions. ‘‘This is asking for 589,000 some odd dollars of relief spread out over 19 years,’’ the mayoral presiding officer said during deliberations, adding safeguards are included such as caps on eligible costs and the option to end reimbursement if conditions are not met.
Council members discussed adding explicit development-agreement language to enforce incentive-policy provisions (including clauses aimed at preventing short-term rental conversions) and said the development agreement is the next place to lock in clawbacks and other requirements.
The resolution passed on a roll call: Fritz Yes; Dora Yes; Calio No; Lyon No; Maneta Yes. The council did not specify the exact capped eligible costs in the resolution as introduced; staff said the development agreement will finalize eligible-cost details and enforcement language. The developer and staff said the city’s Downtown Development Authority capture and debt millage structure mean certain tax revenues will not be lost to the city’s debt funds.
Next steps: the council-approved brownfield plan allows staff to negotiate a development agreement that will set final eligible costs, enforcement language and any clawbacks the council requires before reimbursement begins in 2027.
