City taps affordable housing developer for old River District site

An affordable housing firm will have two years to begin construction on a massive residential complex at Port Huron’s old River District Market property under a new proposed agreement the city announced Thursday.

"It was about four years ago that James (Freed) invited us down to take a look at the city, and my, how things have changed," Craig Patterson, Woda Cooper Companies senior vice president, said during a press conference along the Connor Street Corridor. "That is one of the reasons why we're here today to announce a 58-unit, two and three-bedroom condos-for-sale in a four story building."

Woda Cooper Companies, which has a presence in 16 states, is poised to buy the site for $1 just over three months after the city first closed on the property at 3550 Electric Ave.

The agreement is on tap for City Council approval on Monday and would require a new development of at least 50 new for-sale condo units and an investment of at least $9.5 million.

The River District site has been unoccupied since a 2013 fire burned down the South Park grocery store. Now, local leaders said they hope the latest deal will help revitalize the southside and Conner Street neighborhood with an influx of new residents — and future businesses and amenities to accommodate them.

“It’s a really good step toward that,” Mayor Pauline Repp said this week. “I think these are going to be very nice price-wise and quality-wise.

“… So, as much as people would have liked to see a grocery store back there, there really has been no need or no one has come forward willing to do so. This really adds to the housing stock on the southern end of the city, and I think that’s a good thing.”

City officials have long prioritized finding new housing stock, particularly amid a larger shortage, citing it as both a recent goal for council members and in talks to purchase property for future housing developments with American Rescue Plan dollars.

Included in the latter, the city used $550,000 in COVID stimulus to close on 3550 Electric in late May. Two other parcels near St. Clair County Community College went for $60,000 each.

And officials admit there’s a reason they’re taking the financial loss on the deal with Woda.

City Manager James Freed said it was a measure of maintaining negotiating authority and eliminating variables in determining the future use of the property.

It’s also a choice to incentivize purchase over mechanisms like abatements, he said, “so once this is built, it will be fully taxed.”

Repp added that while it loses money initially, “in the long run, you’re not.”

Who are these new residential units for?

Under its proposed agreement with the city, Woda would have to give the property back to the city if it falls short of starting construction within 24 months.

Among the other requirements is that condo units would have to be sold to parties who make 185% to 300% of the federal poverty guidelines. The 2022 income poverty threshold puts that range at $25,142 to $40,770 annually for a one-person household, $33,874 to $54,930 for two people, and $42,606 to $69,090 for a family of three.

Freed said those guidelines are considered middle income and fall under the target of what economic development organizers have credited as the “missing middle.”

"These are the missing middle residents, and stakeholders, and entrepreneurs, and business owners, and retail workers that are already in this community or who desire to move to Port Huron in this beautiful community," Patterson said.

Patterson added that units will be comprised of 24 two-bedrooms units, and 34 three-bedroom units.

The last major housing study for the demographic in the city came in 2017, and the vast majority of that target market was considered renters.

“Because there’s not another option for them to go,” Freed said of middle-income workers. Instead, referring to more options like for-sale condos, he said, “It will relieve pressure on the housing stock elsewhere. It’s a giant game of musical chairs.”

How did the city pick Woda Cooper Companies?

According to its website, Woda Cooper Companies was founded in 1990 as a construction and development group to build single-family homes and apartments, expanding in the early 2000s to utilize emerging low-income housing tax credit programming. It lists roughly 30 sites, varying to individual homes to larger residential facilities, in Michigan.

Patterson described the persistence of city staff and the commitment of the city council that made "things happen."

"It's really how the city has been transformed," Patterson added.

"That to me is indicative of what's happening, young people coming and wanting to start their careers and their families."

Although they’ve met with other developers on the local site, Freed said Woda's variety and reach were part of the draw.

“They have done pretty impressive projects in Sault St. Marie, all over the state of Michigan and comparable markets, as well,” he said, “and they’re very experienced working with MSHDA.”

The city first met with the group two or three years ago to look at multiple sites, Freed said.

“And we still are looking at multiple sites,” he said.

What will the project mean for the neighborhood?

Local leaders said the River District site sale also benefits other residents in the surrounding neighborhood. That includes the ongoing push to establish a Conner Street improvement district, as 3550 Electric sits just north of Conner Street and businesses established there.

Earlier this year, City Council members turned a focus to the corridor and are slated to weigh starting a tax-increment finance district to capture revenue and fund upgrades ranging from infrastructure improvements to branding the neighborhood at large.

Moving forward, Freed said they’d host community engagement sessions starting in October to help put a wider development plan together. Joe Bixler, a member of the Southside Initiative, said he’d expect the organization, which formed earlier this year, to play a role in that process.

“Government can do lots of things, but they can’t do everything. It’s time for the folks in this neighborhood to grab the brace ring and run with it,” Bixler said.

Patterson said he looks forward to community engagement and working with the city and it's leadership on getting the project started describing it as "...getting the shovel in the ground faster."

On Wednesday, Bixler said he was excited about the Woda development, calling it the “catalyst of other things to come.”

“I would anticipate small business starting to rally around the complex," he said, "and I see it (as) the beginnings as maybe the epicenter of a comeback for South Park.”

Contact Jackie Smith at (810) 989-6270 or jssmith@gannett.com. Follow her on Twitter @Jackie20Smith.

This article originally appeared on Port Huron Times Herald: Port Huron taps affordable housing developer for River District site