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Albion council approves Austin School redevelopment pilot despite debate over tax-credit terms
Summary
Council approved a pilot application to redevelop the long-vacant Austin School into mixed-income housing and an additional building, but members debated the length and percentage of tax exemptions and concerns about fairness between competing applicants.
The Albion City Council approved a pilot program March 25 to pursue tax-credit-backed rehabilitation of the long-vacant Austin School and construction of an adjacent housing building, voting to move forward with an application and local tax-exemption amendment as staff requested.
City staff explained the pilot is intended to help competitive state tax-credit applications by demonstrating local support and a local tax incentive. The proposed project would rehabilitate the Austin School (vacant for roughly 30 years) and add approximately 47 apartment units on the property. Staff said the application deadlines and competitive, points-based nature of state tax-credit awards mean the city’s prompt support could influence whether a developer pursues the project.
Several council members and residents supported redevelopment as a way to return a deteriorated historic building to productive use and to add mixed-income housing in a city that has lost population. One council member, however, questioned whether the city should accept the developer’s initial financial terms — noting the developer’s average tax-exemption packages in other communities and urging the council to negotiate stronger terms (for example, a higher abatement percentage or a shorter term). “If this is a partnership, it behooves us to make it as equal and as beneficial to both parties as possible,” one council member said.
Public commenters and other council members argued the project could catalyze broader neighborhood improvement, increase tax revenue over time and help stabilize local population decline; supporters pointed to similar redevelopment projects in nearby communities as evidence of positive outcomes.
After debate, the council moved and passed the application/authorization for the Austin School pilot. The transcript records at least one recorded dissent (Councilmember Frost) with the remainder of recorded votes affirmative. Staff and proponents said the award is not guaranteed — if state credits are not awarded the local incentive does not trigger project construction — and that applicants may reapply in future rounds.
Staff said they will bring back more detailed project terms, the draft local incentive language and any recommended safeguards for negotiation before final developer agreements are executed.
