Nonprofits, city strike depot deal

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William Merry, executive director of Homestretch Nonprofit Housing Corp., stands at the site of a proposed development to include affordable housing. City commissioners this week agreed to sell the property located near the depot close to Woodmere Avenue and Eighth Street for a project that also includes Habitat for Humanity-Grand Traverse Region homes and possible commercial development. Record-Eagle/Vanessa McCray

March 24, 2012

Nonprofits, city strike depot deal

By vanessa Mccray vmccray@record-eagle.com The Record Eagle Sat Mar 24, 2012, 07:14 AM EDT

TRAVERSE CITY-- City and nonprofit officials finally reached a deal for the depot property.

But what exactly will be built at the 2.5-acre site near the Traverse City corner of Woodmere Avenue and Eighth Street remains to be finalized.

Habitat for Humanity-Grand Traverse Region and HomeStretch Nonprofit Housing Corp. plan to build at least 21 housing units, with 10 or more qualifying as affordable housing under terms approved this week by city commissioners.

Plans call for the eastern portion of the property to be sold to an adjacent property owner, and commercial development could occur there.

City commissioners approved the sale of the city-owned property for $290,667 to the Depot Neighborhood, LLC, comprised of two local nonprofit housing agencies.

The purchase agreement gives developers "flexibility" to pursue a mix of housing should funders and planners ask for it, said William Merry, HomeStretch executive director.

The project's mix of affordable and market-rate homes is under review. An earlier plan called for all 21 homes to be sold as affordable units, but some market-rate homes could be added depending on planning discussions that involve the Michigan State Housing Development Authority.

The authority is one of HomeStretch's potential project funders and encourages mixed-income developments. It has also looked at the city's master plan to see if a higher density of units fits.

"We would support bringing in a mix of incomes, whatever that mix might be," said Jim Tischler, director of MSHDA's Community Development Division.

Merry said groups will work with city and county planners as well as project funders over the next few months to figure out development details. HomeStretch aims to build affordable units priced under $100,000.

"We're there to build affordable housing, and we are going to build as many units as we can," he said.

Habitat's current vision is to build a "pocket neighborhood" that creates a community within the development, said its executive director, the Rev. Pam Doty-Nation. Houses would face each other and a common area with play space would be in the middle, she said.

The houses will be "extremely energy efficient," and proximity to the library, trails and Boardman Lake will make it pedestrian and bike friendly.

"It's going to be really quite interactive, both internally with the neighbors but also externally," she said.

City Commissioner Jim Carruthers continues to support the property sale and project despite uncertainty over just how many of the units might qualify as "affordable."

"I just frankly would like to see something move," he said. "We've got a big piece of property that's still available. Let's let these groups have a chance at doing something."

About an acre on the property's east side will be sold to help make the project feasible for the housing agencies. Commercial development is possible on that part.

City Manager Ben Bifoss said the city backs a plan to locate an early childhood center there but has "no ability to control that."

The city agreement requires the first five housing units to be finished by Sept. 30, 2014. The purchase agreement calls for the property sale to close within 90 days of its execution.