City approves $338,369.83 transfer and contract to rehab 614 Northeast Capitol for recovery housing

The Battle Creek City Commission on Dec. 16 approved a $338,369.83 transfer of federal Community Development Block Grant (CDBG) funds from the minor home repair program to the rehabilitation of 614 Northeast Capitol and accepted the lowest responsive bid for the work.

The transfer (Resolution 283) was described by staff as a required step to make funds available to sign a competitively bid construction contract. The commission then approved Resolution 284 to accept Cornerstone Construction Group’s bid and authorize the city manager to execute the contract and change orders up to 10% in the aggregate for city-initiated, preapproved scope increases. Staff said the project will be paid with a combination of CDBG funds and locally controlled opioid-settlement dollars.

The apartment building contains five units — three one-bedroom units on the first floor and two two-bedroom units on the second — and the rehab scope includes finishing the basement to add laundry, storage and a conference room. Staff said the finished building will provide housing for people in recovery from opioid addiction through a recovery services provider.

Speakers from Recovery Services Unlimited and people with lived experience urged the commission to reallocate the money. "Recovery housing provides stability, accountability, and safety," said Tyler, who identified himself as representing Recovery Services Unlimited and said he had nine years in recovery. Lance Craw, who said he had been homeless and is now a homeowner, described his nearly five-and-a-half years clean and urged commissioners to prioritize the project.

Several commissioners asked technical questions about the bidding process and contract terms before voting. Commissioner Lacass suggested postponing the resolutions to the first meeting of the year because she had questions about the alternates in the bids and whether particular alternates had been selected; staff and the city manager said the money was needed to execute the contract and that purchasing had run a competitive process with five bids. Commissioners also questioned a liquidated-damages figure of $200 per day, with one commissioner calling it "extremely low" compared with the size of the project; staff responded that the clause reflects standard purchasing language.

One commissioner asked why one bidder, Miller Davis, had a much higher price for an alternate, and staff and the architect explained that alternates accounted for much of the variance and that some bidders had priced certain options differently; purchasing said bidders participated in a walkthrough and question-and-answer process.

Resolution 283 and Resolution 284 were each moved, seconded and approved by the commission. The public record includes multiple supportive comments from recovery-service staff and residents urging completion of the project.

Actions recorded in the meeting minutes list Resolution 283 (transfer of $338,369.83) and Resolution 284 (award to Cornerstone Construction Group with up to 10% change-order authority for city-initiated, preapproved scope changes). The meeting transcript does not record named roll-call tallies for these motions; the chair announced each resolution was approved.

The project timeline discussed at the meeting anticipates contractor mobilization in January. Staff offered commissioners a walkthrough of the property and said project managers (including the chief building official and the minor home repair program manager) are managing the construction and budget.