City may switch to single-family home development for vacant land

GAYLORD — A developer wants to turn an 18-acre vacant parcel of land in the city of Gaylord into a housing development with 41 single-family homes over the next two years.

It's the same land that the Michigan State Police (MSP) wants to construct new buildings to house a state police post, district headquarters and possibly a forensic laboratory. In January, the city council voted to move ahead with that proposal.

P. Craig Patterson, a senior vice president with the Woda Cooper Companies, told the council Monday night his firm wants to build the homes on the city-owned land between West Street and I-75.

"We want to build 41 homes with three and four bedrooms, along with garages and all but 13 will have two or two and half baths," Patterson said. "Right now we are thinking these homes will cost anywhere from $215,000 to about $295,000, depending on the square footage and the number of bedrooms."

"We are hoping that when we submit an application to MSHDA (Michigan State Housing Development Authority) on Sept. 1 we are successful in getting funding that we need to pull everything together," added Patterson.

Patterson said his company will request about $70,000 per home through the MSHDA "Missing Middle" program and they hope to complete the project in the next two years.

"We can build it out in two years. We have built these type of homes in other states and in this state. We know how to build them and we already have the plans. I think we can get the permitting done to start building in the spring," he said.

The MSP is still interested in the land, according to city manager Kim Awrey.

"I did have a discussion with the real estate department from the state of Michigan today (Monday) and yes they indicated they are still interested in the parcel. They would like council to wait until they come through with an offer," said Awrey.

The state may have to hurry with a decision considering Patterson said his company have to apply for the MSHDA grant by Sept. 1. That prompted a discussion among council members to consider a tentative price for the land.

Awrey said that city assessor Holly Franckowiak placed a value of approximately $337,000 on the 18 acres. The city acquired the land in the 1990s when a developer exchanged it for a city-owned lot on Main Street that now houses a Huntington Bank branch.

Noting that the city has collected nothing in property taxes on the property for many years and the need for middle income housing, council member Bob Wilson suggested that the city seek $290,000 for the land to expedite the process.

Council agreed and city attorney Paul Slough will attempt to work out a purchase agreement with Patterson and Woda Cooper based on that price by the next council meeting on Aug. 28.

Awrey said a $200,000 home would produce about $2,100 a year in property taxes for the city. Assuming all 41 homes have at least a $200,000 price, the city could expect at least $90,000 a year in property taxes, noted Awrey.

Lisa McComb, executive director of the Otsego County Economic Alliance, said the Woda Cooper proposal is at least a start in addressing the housing shortfall in the county.

"What it will do is open up those other units that people aren't moving from that they don't need, like the larger family homes where people want to downsize and they can't find anything to downsize to," McComb said.

She said it would also help renters "who are paying way too much in rent that could instead be used to build equity in a home purchase."

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While the price range of $215,000 to $295,000 at first glance might seem high, McComb said it reflects the new reality of the housing market.

"When you look at what is for sale on the market right now, Realtors have told me there are wait lists of buyers for homes at that level," she said.

According to its website, Woda Cooper is an employee-owned, vertically-integrated affordable housing firm with over 700 employees. The firm operates in 16 states in the Midwest, Mid-Atlantic and Southeast, and has a development portfolio of $1.5 billion. The company is based in Columbus, Ohio and has an office in Mackinaw City.

— Contact Paul Welitzkin at pwelitzkin@gaylordheraldtimes.com.

This article originally appeared on The Petoskey News-Review: City may switch to single-family home development for vacant land