County hears proposal for 38-unit affordable housing project using brownfield TIF

Teresa Surl of Fishbach told the board how changes to Michigan's Brownfield Redevelopment Financing Act let brownfield tax-increment financing (TIF) support housing projects. She said the tool is intended to help projects that meet a documented public good—workforce housing, job growth or tax‑base expansion—and that local support strengthens state funding prospects. "One of our four elements was we needed to have eligible property...you have an active authority here in Leela County," she explained.

Surl introduced the 980 Herman Road Housing Development, a two‑parcel (~11 acre) Suttons Bay Township project recommended by the Brownfield Authority. Developer Peninsula Housing (a local community land trust) and partner Homestretch would deliver 38 units—six single‑family homes, 12 two‑bedroom duplexes, 12 one‑bedroom duplexes and eight rental apartments—on a $10.4 million budget. She said the project’s TIF request would cover about 27% of development costs and that local township support, a public hearing and state approvals would be required before any county action. Commissioners asked whether school operating and state education tax increments and local millages would be affected; Surl said ad valorem millages are capturable but debt millages are not, and that state review (including the Michigan State Housing Development Authority and the Michigan Strategic Fund, as appropriate) would follow if state support is sought.

Supporters from the housing collaborative and the League of Women Voters addressed the board during public comment, urging use of tools to address an identified gap in housing: the 2023 Northern Michigan Housing Needs Assessment cited a county need of 363 rental units and 1,462 for‑sale units. Surl said the county's brownfield authority and township must first confirm public‑good criteria and hold a public hearing; the board was not asked to vote tonight. Next steps are legal review by Suttons Bay Township, a township resolution of support, and then presentation to the county with proper notices and hearings.