Algonac City Council supports adoption of brownfield plan – The Voice

Algonac City Council members discussed several items at their July 2 meeting. (Courtesy of City of Algonac/YouTube)

At the July 2 Algonac City Council meeting, council members passed a resolution supporting the adoption of a brownfield plan from Corcat Properties LLC, changed their calendar, and more.

During the public hearing, Paul Muscat, owner of Corcat Properties, and Jeff Hawkins introduced themselves to Fishbeck, who helped him draft the brownfield plan. They explained that they would be there to answer any questions about the plan when the council discussed the agenda item.

“Corcat Properties LLC plans to build 52 single-family homes ranging in size from 1,287 to 1,526 square feet on approximately 19.346 acres at the corner of Mill and State Streets,” said Mayor Rocky Gillis during discussion of the agenda item. “Construction is scheduled to begin in winter 2024, with an anticipated build-out schedule of eight homes per year. Construction is expected to be completed in late 2032. Because these (moderately) priced and large homes serve the ‘missing middle’ market, the property is considered an ‘eligible property’ under Act 381 of the Michigan Public Acts of 1996, as amended, and meets the definition of a ‘residential property’ under the Brownfield Redevelopment Financing Act.”

He said the bill provides local units of government with an opportunity to facilitate the revitalization of environmentally distressed, functionally obsolete, dilapidated, historic and/or residential properties by allowing the use of tax increment financing to help developers cover their costs for infrastructure improvements.

Corcat prepared a brownfield plan and submitted it to the St. Clair County Brownfield Redevelopment Authority, which was unanimously approved on June 25. The brownfield authority also recommended approval to the St. Clair County Board of Commissioners, conditioned on Algonac’s consent.

“The median household income in St. Clair County is $60,955, and rising construction costs have made it nearly impossible to build the housing that St. Clair County residents can afford without a developer seeking some type of assistance,” Gillis said. “Without brownfield development assistance, the project likely would not move forward because the homes would have to sell for over $390,000 apiece, and there is no market for homes in that price range in this area.”

The current taxable value of the property is $156,370. The city will collect the same amount of tax as it does now, or about $2,024, annually for 24 years. While the homes are being built, the SCCBRA will absorb the increase in property taxes and reimburse the developer for infrastructure costs.

“The total investment for the project is estimated at $18 million,” Gillis said. “In year 25, the future taxable value of the property is estimated at $8,561,500. At that point, the city will collect approximately $129,277 plus $2,024, for a total of $131,301 per year.”

The city will continue to collect administrative fees, special levies and garbage collection fees, which Gillis said are not ad valorem tax rates and therefore are not included in the brownfield plan.

“The final project will expand the tax base, result in significant capital investment in the community and create new housing (opportunities),” Gillis said. “Supporting the brownfield plan is not approval of the development. Corcat still has to submit a site plan and other documents. Once all the documents are in order, they go to the Planning Commission, and the Planning Commission will recommend to the City Council whether preliminary approval should be granted. Once preliminary approval is granted, the contractor will prepare the final plans, which will then go back to the City Council for approval.”

Council Member Dawn Davey made a motion to adopt Resolution 2024-10 supporting the adoption of a brownfield plan for Corcat Properties in Algonac pursuant to and in accordance with the provisions of Act 382 of the Public Laws of the State of Michigan of 1996, as amended.

When asked by Council Member Michael Bembas, Hawkins explained in more detail how the brownfield plan works.

“The owners will ultimately, when those homes are sold and so on, pay their taxes as normal, the taxes will be collected as normal, but they will go to the Brownfield Redevelopment Authority,” he said. “The Brownfield Redevelopment Authority will then distribute the new taxes collected as a result of the investment and cover the recoverable costs that the developer incurred in creating the infrastructure for that new housing development. So those taxes – the new taxes, not the existing property taxes – will be used to offset the cost of the infrastructure for the development, and they will also help to ultimately keep the cost of housing lower in terms of the product that is for sale.”

Mayor Raymond Martin asked if the city would be required to make further payments. Hawkins said that should not be the case.

Muscat said they should be back with the remaining documents at the next planning commission meeting.

“I think it’s great,” Bembas said. “I wish we got the money sooner rather than later because I might not be here in 25 years to see it, but that’s OK. It’s developing it, it’s giving people affordable housing, nothing else is happening to this country, so I support you 100%.”

The Council unanimously approved the proposal.

Meeting calendar, more

The council also unanimously approved a motion to amend the City Council meeting calendar for the 2024-2025 fiscal year, with the meeting scheduled for August 6 at Smith Recreation Park.

At their June 4 meeting, council members adopted the City Council meeting calendar for the 2024-2025 fiscal year as proposed, which proposed holding the first meeting in August on Wednesday, August 7, since the primary election is on Tuesday.

“Instead of holding the first meeting in August, administration proposes holding the meeting on Tuesday, August 6th at 6 p.m. at Smith Recreation (Park), prior to the National Night Out/Touch-A-Truck event, as was done last year,” Gillis said.

In addition, Council approved a motion to appoint Josh Stewart, Director of Public Services, to the Algonac Board of Directors and to reappoint Alysia Bugg, Town Treasurer, as an alternate member to the Southwater Municipal Utility Authority Board of Directors for three-year terms from July 1, 2024 to June 30, 2027. Also, a motion to appoint Polly Barbour to the Library Board of Directors for a partial term ending October 1, 2026 and Darryl Sopata to the Planning Commission for a three-year term ending July 17, 2027.

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