Zeeland authority approves Brownfield amendment for mixed-use 17 E. Main redevelopment

The Zeeland Brownfield Redevelopment Authority voted unanimously on Jan. 21 to amend the city’s Brownfield Plan to include the 17 E. Main redevelopment, a three-story, 27,461-square-foot mixed-use project the developer estimates will cost about $7 million and include 22 one-bedroom residential units and first-floor commercial space. The vote came after staff and consultants reviewed eligibility, financing and municipal infrastructure provisions.

Kirk Perschbacher of Fishbeck Consultants told the Authority the site qualifies as “Eligible Property” under the Brownfield Redevelopment Financing Act because it meets the Act’s housing-property definition. Perschbacher said the developer intends the project to provide housing for individuals and families earning up to 120% of Ottawa County’s area median income, and that six of the 22 units will be controlled at MSHDA-approved rent levels for 80% of AMI for the life of the plan (estimated at about 30 years).

Finance Director/ACM Plockmeyer outlined the project’s proposed tax-increment financing structure and how it would layer with a previously approved Commercial Rehabilitation Act incentive. Because the CRA freezes the building taxable value for up to 10 years, local tax increment for Brownfield reimbursement would be delayed during that period; state education tax and school operating portions of the increment would still be available. The developer’s eligible Brownfield activities (baseline environmental assessment, demolition, plan amendment and implementation, infrastructure, site preparation, housing gap activities and contingencies) are estimated to be reimbursed at $671,900, with full developer reimbursement projected in about 14 years under the draft plan.

Staff also explained municipal benefits built into the sale agreement: the developer will provide basement boiler space for a city snowmelt system, and the city expects to capture roughly $2 million in later-year TIF (years 14–30) to contribute toward a snowmelt boiler system estimated at $2.6 million. In total, officials said about $2,671,900 in TIF is projected to flow toward developer reimbursement and the city’s snowmelt costs, and roughly $2.9 million in TIF could be collected over a 30-year maximum term after accounting for reimbursements to administering entities. Authority member Tim Klunder summarized the distribution, saying about 20% (approximately $538,000) of the TIF would come from the city, nearly $1.5 million from state sources (state education tax and school operating), and the remainder from other taxing units.

Trevor Woollatt of Fleis & VandenBrink, participating electronically, said the Housing TIF opens up projects to take advantage of the incentive and observed, “We will probably see more of these in the future.” Plockmeyer described the next municipal steps: if the Authority’s resolution is forwarded, Zeeland City Council is expected to be asked on Feb. 3, 2025 to set a public hearing and to hold that hearing on Feb. 17, 2025; a reimbursement agreement between the city/Brownfield Authority and the developer will be required before any tax reimbursements are made.

Authority member Beth Blanton moved to approve the resolution to amend the City’s Brownfield Plan to include the 17 E. Main, LLC Redevelopment project as presented; Authority member Andy Boatright seconded. The motion carried with all voting aye. The Authority also approved routine minutes and adjourned the meeting at 4:14 p.m.

The immediate next procedural steps are City Council consideration to set a public hearing on Feb. 3, followed by the Feb. 17 public hearing and subsequent council action; a formal reimbursement agreement must be approved before TIF reimbursements occur.