Traverse City Record-Eagle

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February 18, 2012

New life for delayed Garfield Twp. affordable-housing project

'It's looking positive, but it's not a sure deal,' developer says

BY BRIAN McGILLIVARY bmcgillivary@record-eagle.com

TRAVERSE CITY — A stalled affordable housing development in Garfield Township appears to have new life.

The sour economy quashed the 72-unit Brookside Commons apartment project on the corner of North Long Lake and Zimmerman roads that won township approval in 2009 after a 19-month review. But a buyer has emerged for available tax credits; so too has a developer for what's planned as a subsidized housing project.

The would-be developer is The Woda Group LLC, an Ohio-based organization with extensive experience building and managing low-income housing projects, including one in Frankfort.

"It's looking positive, but it's not a sure deal," said Scott Norris, who plans to develop a commercial wing of the 21.5-acre property.

Woda applied for tax credits through the Michigan State Housing Development Authority, which provides developers tax credits that they in turn sell to subsidize construction costs.

The developer also wants Garfield Township to grant a property tax break, known as a payment in lieu of taxes. Instead of paying a millage rate based on the property's assessed value, Woda would pay the township 4 percent of its gross rent receipts.

That's a standard requirement of subsidized housing projects, said Garfield Supervisor Chuck Korn. The state wants a local buy-in before it will put up state and federal housing dollars, he said.

Owners and investors in neighboring upscale subdivisions opposed the Brookside project and argued low-income housing would increase crime and lower property values.

By the time township officials settled the debate, the economy collapsed and killed the project, Norris said.

"By the time we got it approved, the economy was so bad nobody had need for the tax credits; we couldn't find a buyer," he said.

The township board will hold a public hearing on the tax request when it meets Feb. 28 at 6 p.m. in the township hall. Korn said the township board has approved similar requests and he expects this one to earn approval.

The project's close proximity to the township's largest retail commercial area was key to the board's project approval in 2009, and likely will influence its tax request decision, Korn said.

"There's not a lot of affordable housing in that area," Korn said. "There's a lot of work force, but there's not a lot of work force housing near the South Airport Road and U.S. 31 Intersection."

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