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Developer seeks PILOT extension and $8.8M rehab to preserve 153 low-income senior apartments at Ziegler Place
Summary
Jonathan Rose Companies representatives asked council to extend the current PILOT and amend Chapter 3.12 to support an $8.8 million rehabilitation of Ziegler Place, proposing a 30-year deed restriction to maintain 153 low-income senior units; council asked for PILOT payment numbers and scheduled ordinance first read for July 13.
Jonathan Rose Companies representatives told the Livonia City Council they plan a comprehensive rehabilitation of Ziegler Place senior apartments and asked the council to continue a payment-in-lieu-of-taxes (PILOT) pilot that supports financing for the project.
Scott Frey, representing Jonathan Rose Companies, described Ziegler Place as a 153-unit property built in 1976 serving low-income elderly residents. He outlined an $8.8 million hard-cost scope of work covering the building envelope, roof, facade, windows and sliding doors, mechanical systems (HVAC, plumbing, electrical and fire safety), full kitchen and bathroom remodels, ADA upgrades (including eight accessible units), new amenity spaces, and the addition of a full-time resident services coordinator to connect residents with social and medical services.
Frey said the project will rely on a larger first mortgage (made possible by the PILOT), low-income housing tax credits allocated by the Michigan State Housing Development Authority, and the developer’s construction arm. In return for the city’s continued support, Jonathan Rose Companies will place formal deed restrictions preserving the property as elderly affordable housing for the next 30 years.
Council members sought financial details before final action: one councilmember asked for the actual PILOT payments the city has received and projected receipts (the presenter and staff said the assessor and treasurer can supply numbers and that the current service charge is 10% of annual shelter rents). Staff explained the process: an ordinance amendment to chapter 3.12 would be brought for first reading on July 13 and the pilot extension would be scheduled for a subsequent meeting for final adoption, likely with a roll-call vote that pairs the ordinance language change with the PILOT extension.
Public comments included support from a local volunteer who said the building and residents would benefit from the work. The developer said they anticipate HUD approvals and state housing credit commitments in the coming weeks and hope to close the financing in August, with construction expected to take 10–12 months.
What happens next: The ordinance amendment will be presented for first reading at the July 13 meeting; council asked staff to supply PILOT payment figures and permit/construction plans in advance of subsequent final action.
