Low-income units being built

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Housing developers Bob and Mike Jacobson are creating 29 affordable housing units in Building 36 at the Village at Grand Traverse Commons. Record-Eagle/Jan-Michael Stump

March 31, 2012

Low-income units being built

Building 36 at GT Commons will include 29 apartments

By Bill O'Brien bobrien@record-eagle.com The Record Eagle Sat Mar 31, 2012, 07:14 AM EDT

TRAVERSE CITY — Construction is under way on a second affordable housing project at The Village at Grand Traverse Commons.

The father-son development team of Mike and Bob Jacobson plan 29 more affordable housing units in Cottage 36, on the heels of their 630 Lofts project that opened last year with 39 units of low-income housing in historic Building 50.

Strong response to their original project led developers to pursue a second housing effort they hope to open by late fall on the old state hospital grounds.

"We have a waiting list that's longer than the number of apartments we have available," Bob Jacobson said. "There's really a big demand in Grand Traverse County."

Cottage 36 is a 34,000-square-foot building. Jacobson said it's the only structure never vacated after the state hospital closed in 1989, and was utilized as a day-care center for nearby Munson Medical Center and later as home to the local SEEDS nonprofit group.

The building underwent internal renovations in the 1950s, '60s and '80s, although some of that work will be gutted to qualify the project for state and federal historic tax credits. A porch torn off the building several years ago will be replaced, Jacobson said.

The Jacobsons' 630 Lofts project consumed a full 40,000-square-foot section of Building 50, around one-eighth of the massive former central administration building. The latest project should be less complex, Jacobson said, because it won't be linked with the other commercial and residential uses that are part of Building 50.

"In some fashion, Cottage 36 should be a little easier than Building 50 because it's free-standing," Jacobson said.

The cottage is in somewhat better condition because it's been occupied over the years.

"The surprises shouldn't be too terrible," he said.

Raymond Minervini of The Village at Grand Traverse Commons said owners welcomed a second affordable housing development. They want to see more residents moving to the campus, and the need for local work-force housing remains high.

"Obviously, we wouldn't have worked out another deal with them if we didn't think it was a good thing," Minervini said.

Jacobson said 15 of the units will be available to area residents who earn 40 percent of the area's median income level, with the rest reserved for residents at 60 percent median. Rents will range from less than $500 a month up to nearly $900, depending on the number of bedrooms. Rent totals include utilities.

Developers plan several energy efficient features in the project to qualify it for a LEED — Leadership in Energy and Environmental Design — Silver designation. Jacobson said a "vast majority" of the nearly $10 million development cost will be underwritten by low-income housing tax credits, and state and federal historic tax credits. He did not have a specific amount.

No state brownfield funding is tied to the project.