The Kalamazoo County Board of Commissioners approved a Brownfield Redevelopment Plan Monday for a housing project on vacant land in the City of Galesburg, clearing the way for new residential development on a site that has been undeveloped for years.
The board voted 7-0-1 to adopt the Michigan Housing Partnership LLC Brownfield Plan, with Commissioner Morales abstaining. The motion was made by Commissioner Wheeler and supported by Vice Chair Taylor.
What the Project Does
The Brownfield plan enables a housing development on currently vacant land in Galesburg by allowing the developer to recapture a portion of new tax revenue generated by the completed project to offset the cost of infrastructure improvements needed to make the development possible.
The developer, Michigan Housing Partnership LLC, is responsible for approximately $1.8 million in new infrastructure — roads, sewer, and water connections that serve the development — plus about $1 million in site preparation costs. The Brownfield plan also includes reimbursement to the City of Galesburg for improvements to adjacent city streets that are not required by the development itself, but which the city is leveraging as an opportunity to invest in existing infrastructure.
The property is currently generating minimal tax revenue as vacant land. Under the Brownfield plan, the new tax value created by the development, not existing revenue, is captured to reimburse eligible project costs over time. The plan runs up to 30 years: 25 years of reimbursement to the developer, followed by a final five-year period during which captured revenue is split between the county Brownfield revolving fund and reimbursement to the city for its street improvements.
The project’s consultant, Joe Agostinelli of Miller Johnson Growth Advisors, clarified during the public hearing that the plan captures only new tax increment revenue resulting from the development — it does not reduce the tax revenue taxing jurisdictions receive today.
Public Hearing and Concerns
The Galesburg Charleston Memorial District Library Director Helena Hayes testified at the public hearing that, while she agreed the property needs development and that Galesburg needs decent housing, she was concerned the Brownfield plan would delay millage revenue the library would otherwise receive from the increased taxable value of a developed property.
The consultant’s response was that the library is not currently receiving revenue from a project that doesn’t exist, and that the Brownfield plan only captures incremental new value, not revenue the library is currently receiving.
The Voucher Question
Commissioner Morales abstained from the vote, citing the need to see a firmer commitment to housing vouchers from the developer. The project originally depended on low-income housing tax credits, but has since shifted to a workforce housing financing structure. When asked at the meeting about vouchers, the project consultant said the developer indicated openness to learning more about the option and was not inherently opposed to entertaining vouchers on the project, but had no experience with them. That response was not sufficient for Morales, who said she needed to see an actual commitment before voting in support.
