By Kayleigh Rahn
Editor’s Note: The Tuscola City Council works in smaller subcommittees in order to efficiently study issues in-depth, this includes the Tax-Increment Financing Subcommittee. While committees cannot make final decisions on issues, the members make recommendations, on issues they have studied, to the full City Council for final votes on issues. Discussions during these meetings are preliminary notes and discussion topics.
• North Ward lot
The Development and Planning/Tax Increment Financing (TIF) subcommittee of the city council, during its meeting Monday, May 6, considered a proposal for redevelopment of the former North Ward school lot, which the city could sell for $60,000.
The proposed developer is North Ward Square LLC–led by Mike Carroll and Mark Petty–who hope to build 14 to 16, single-family, 1,400-1,600 square foot dwellings on the property, reported city administrator Drew Hoel. They’re projecting an average fair market value of $200,000-$250,000 per house.
“Their idea is that this would be a very nice development that would be themed from the design standpoint,” Hoel said. “Their concept is really what we have been talking about since the beginning of this, which is upscale townhome or condo developments for empty nesters. People whose kids have gone off to school, and mom and dad might be looking to downsize and upscale at the same time. Though there wouldn’t be any regulatory limitations that would just be their target market.”
The $60,000 for the property would be made good through a tiered structure that includes a $20,000 payment up front with a redevelopment agreement that would require them to build homes and pay the balance at $10,000 per lot sold with a guaranteed payment in full at the end of two years, Hoel reported.
No road development is necessary; though, significant infrastructure development will be required. The homes would ring the block with a commons area, or courtyard, in the center. The plan is similar to a recent Hedgerows development in Monticello.
Hoel said the property was appraised at $250,000 several years ago, though four or five developers have shied away from that price point due to the significant infrastructure work needed for water and sewer services to each lot, Hoel noted.
The proposal will be given to the full city council for consideration at an upcoming meeting.
The full story can be found in the Wednesday, May 8, 2019 edition of The Tuscola Journal.