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County approves Brownfield plan to add workforce housing at former Kmart site in Acme Township
Summary
After a public hearing and extended questions about enforceable income limits, the Grand Traverse County Board of Commissioners approved a Brownfield tax‑increment financing plan to support the Strathmore/Oak Shore Commons redevelopment, which aims to add roughly 171 apartments and use TIF dollars to subsidize lower rents for 25 years.
The Grand Traverse County Board of Commissioners voted to approve a Brownfield plan that will enable tax‑increment financing for the Strathmore (Oak Shore/Oak Shore Commons) redevelopment in Acme Township, a project that developers say will add about 171 apartments and protect affordable rents for a 25‑year period.
At a public hearing, Anne Jamieson, executive director of the Grand Traverse County Brownfield Redevelopment Authority, said the Brownfield plan focuses on workforce housing and was approved by both Acme Township and the county brownfield authority. Jacob Chapelle, the developer's representative, described the project as infill redevelopment of former Kmart and Tom’s big‑box structures and said the work has been ongoing for several years.
“By using the Brownfield TIF we are able to keep rents low,” consultant Susan Wenzlik said, adding that roughly 135 of the proposed units (about 65%) will be income‑restricted between 60% and 100% of area median income and that the current phase represents about $27,000,000 in new investment. Wenzlik also said the state would cover approximately 63 cents of every dollar of the incentive in the program as structured.
Commissioners pressed staff and the development team for documentation that would legally bind the income‑target and rent limits to the project. Commissioner Andrews said the board needed to “trust but verify,” citing past projects where verbal commitments did not appear in legal paperwork. Jamieson responded that the development and reimbursement agreement — the legal contract that follows Brownfield plan approval — along with annual MSHDA‑certified reporting, will specify unit counts, AMI targets and enforcement mechanisms.
Commissioners also asked about the distribution and magnitude of tax capture. Jamieson said county capture for the project is roughly $2.0–$2.3 million over 25 years, and described the Brownfield plan’s spreadsheets showing allocations among state and local taxing jurisdictions.
After public comment from Acme Township officials and local supporters who emphasized trail connections and conversion of blight to housing, the board approved a resolution supporting the Brownfield plan. The roll call recorded a majority in favor with Commissioner Andrews voting no.
The board also agreed to form an ad hoc work group to develop consistent standards for pilot programs, Brownfield/TIF requests and other housing‑related tax abatements; the committee will include board members and Brownfield staff. The developer and staff said the next step is executing a development and reimbursement agreement that will be presented to the Brownfield authority and the state for final approvals.
The county’s approval allows staff to proceed to the legally binding agreement phase, but several commissioners said they expect to review backup spreadsheets and the draft development agreement before authorizing tax capture distributions.
