Proposed housing development talks returns
STURGIS - An affordable housing apartment complex in Sturgis, first proposed in 2020, is back on the discussion table.
The Sturgis City Commission on Wednesday heard a report from Sean McMickle, vice president of development with Spire Development and Spire Consulting in central Ohio. Following the presentation, the commission considered a first reading of an ordinance that would accommodate the specialized project.
McMickle updated the city commission on the company's intent to develop St Joseph Street Lofts at the property listed as 303 St. Joseph St., near the corner of Clay Street. The developer three years ago pursued a near-identical project on the property known as the site of the former Paramount Furniture Co.; however, the proposed development stalled after failing to secure grant funding from the state. Over the years, some housing developments have been contingent on receiving funding support through highly competitive programs.
McMickle requested payment in lieu of taxes (PILOT) consideration through the city of Sturgis. Spire Development was seeking funding through the Michigan State Housing Development Authority's (MSHDA) low-income housing tax credit (LIHTC) program for the project, a 50‐unit income-based apartment building.
LIHTC housing developments can only rent units to individuals or families with low to moderate incomes and rent for these units is capped at levels tied to income. The LIHTC program competitively awards tax credits to affordable housing projects based on a number of factors, officials said Wednesday.
Part of the application process for LIHTC tax credits is for the developer to purchase the property, present a site plan review, and have a PILOT agreement set up. The establishment of a PILOT is done through city ordinance, where the property of a qualifying project is exempted from taxes and a PILOT established in its place. The tax credit proceeds help fund the construction project.
The Paramount property is drawing no tax dollars currently and is owned by the city economic development corporation. Recently, the criteria for LIHTC funding through MSHDA has changed, greatly increasing the probability of a project being awarded this year. As such, Spire has renewed efforts to develop the St. Joseph Street Lofts project.
The project manager tied to the proposed development is KMG Prestige, McMickle said. The architect on hand is Berardi and Partners of Columbus, Ohio; and, pending award of funding, Spire will then seek competitive bids on a general contractor.
The Sturgis project is currently being redesigned, with planners looking to add five more units over the 2020 proposal, bringing the total number of units to 50. Most will be one- or two-bedroom apartments, with approximately 10 of them marked for three bedrooms.
The site at the proposed three-story apartment complex would include an outdoor playground, an onsite manager, electric vehicle chargers and in-unit washers and dryers.
Spire's application with MSHDA is due Dec. 1. Funding allocations will be announced in April. If awarded to the Spire project, groundbreaking would be scheduled for next summer and completion expected in the winter of 2025-26, a 15-18 month construction timeline.
A similar project, The Lofts at Milnes Plaza, was recently completed in Coldwater, McMickle said.
Mayor Jeff Mullins said he was happy to see the proposed project revived, as affordable housing in Sturgis is limited yet in high demand.
"I'm glad you're back," he told McMickle.
Commissioner Brandon Kinsey called the proposed project "really exciting."
City officials said St. Joseph Street, which borders the south side of the vacant lot, is tentatively on the docket for resurfacing in 2025. The street is in poor condition but with few occupied properties in that stretch.
This article originally appeared on Sturgis Journal: Proposed housing development talks returns
