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Apartment complex decisions delayed

ESCANABA — An apartment complex that could be built on North 26th Street in Escanaba was a hot topic during a regular meeting of the Escanaba City Council Thursday. Council decided to postpone a number of decisions related to the complex until next month.

During the meeting, a public hearing was held on a proposed payment in lieu of taxes (PILOT) agreement with developer Woda Cooper Companies. If constructed as planned, the Bay de Noc Apartments would be a four-story, 70-unit low-income apartment complex at 500 N. 26th St. — north of Aldi and next to Walmart’s southeast retaining pond. Units in the complex would be available to singles, families and seniors who meet income guidelines.

In order for Woda Cooper to get state of Michigan Low Income Housing Tax Credit Program funding, the city needs to approve a PILOT ordinance. Under the planned ordinance, $21,500 would be paid annually in lieu of taxes on the 2.5 acre property and the developer would enter into a municipal services agreement that would pay the city $16,500 per year. Currently, the city makes $5,520 on the 10-acre parcel the development area would be split from.

Council Member Ralph Blasier spoke about the project during Thursday’s meeting.

“There is a need for low-income housing here, because we have more low-income people than we have rooms,” he said.

He also expressed support for the PILOT ordinance.

“I favor it, because it’s going to give jobs to masons, plumbers, electricians, carpenters, and — after a reasonably short period — this building will come under the tax roll at market rates,” Blasier said.

Mayor Pro Tem Peggy O’Connell had some concerns related to the project. Among them were fears the property that would be the site of the apartment complex, which would have to be rezoned from F — Light Manufacturing to C-2 — Residential Planned Unit Development, could become an example of spot zoning.

“We’re about to put in a mid-to-upper-level hotel and a low-income housing project in the same area. We’ve got business mixed with spot zoning of a residential — I have a very difficult time with that,” she said.

Additionally, she was not sure the influx of low-income housing units the project would create would be necessary for the area.

“We’re talking about putting 70 more units when there doesn’t seem to be a 70-unit need,” O’Connell said.

She went on to ask what impact the complex could have on private landlords locally.

Craig Patterson, vice president with Woda Cooper, attended Thursday’s meeting. He said part of the reason North 26th Street was chosen as the proposed location for the complex was so it could be built near Meijer, Walmart and other businesses where people living there could be working.

“We wouldn’t have come west of 41 and 2 if we didn’t think walkable jobs was important — being close so you don’t have to drive, so you don’t have to spend the money,” he said.

In response, Council Member Tyler DuBord asked how single parents and families without vehicles would benefit from the project’s proposed location.

“There’s no daycare facilities within that area or within that region,” he said.

DuBord called for more information on local housing needs before council made a decision on the PILOT ordinance.

“I think we need to continue to do more research on this — market research to make sure there is a complete need of housing within Escanaba and within that area,” he said.

According to Patterson, Woda Cooper is currently having a third-party market study done of the area.

“If a market study comes back and says there is no need, we’re not going to go forward — we’d be idiots,” he said.

A motion to adopt a PILOT ordinance for Bay de Noc Apartments was made by Blasier, but died for lack of a second. Another motion — made by DuBord and seconded by Council Member Karen Moore — to postpone council’s decision on the PILOT ordinance until March 19 so the market study can be completed and the city can do additional research was unanimously approved.

Council’s decision on a municipal services agreement for the North 26th Street property was pushed back to March 19, as well.

A public hearing on the requested rezoning of the property was approved for council’s March 5 meeting. A second reading, public hearing and vote on a building height ordinance related to Bay de Noc Apartments will also take place on that date.

In other business, council:

– unveiled the city of Escanaba’s new logo and website. City Clerk Phil DeMay gave council a brief tour of the website, as well.

– approved a revised public participation plan, as recommended by the planning commission and required by the Redevelopment Ready Communities Program certification process.

– reviewed the planning commission’s annual report and work plan, as presented by Christine Williams.

– approved the hiring of C2AE Engineering of Escanaba to prepare and submit documents for a loan application from the Drinking Water Revolving Loan Fund at a cost not to exceed $30,000.

– approved a zoning map amendment for the re-zoning of parcels in the North Lincoln Road corridor and other areas in north Escanaba on first reading. A second reading, public hearing and vote on the amendment were set for March 5.

– held the second of five planned public hearings to facilitate input on the city’s budget for the 2020-21 fiscal year. No comments were made during the public hearing.

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