Kalamazoo Brownfield Redevelopment Authority Votes to Move Three Projects Forward

On September 20, the City of Kalamazoo Brownfield Redevelopment Authority unanimously voted to move three projects forward:

  • The sale of BRA-owned property to Schupan & Sons for the purpose of expanding their facilities
  • An Agreement with Hollander Development Corporation for the development of a mixed-used project at 1101 Portage Street
  • A Purchase and Sale Agreement with Harrison Circle LDHA LP (NOMI Developers, LLC) for the development of a mixed-use project on vacant parcels at 525 and 535 Ransom Street and 617 Harrison Street.

pdf Brownfield Redevelopment Authority, Agenda Packet, September 20, 2018 (864 KB)

Harrison Circle Building

City staff has been working with NOMI Developers, LLC (Developer) on a mixed use project on the vacant parcels owned by the City of Kalamazoo Brownfield Redevelopment Authority at 525 and 535 E Ransom, and 617 Harrison Street. The attached Brownfield Purchase and Sale Agreement (Agreement) was negotiated with the Developer’s attorneys to ensure the terms within the agreement meet the standards required for MSHDA Low Income Housing Tax Credit (LIHTC)* application. The total purchase price for the properties mentioned shall be $130,000.00 with a required $5000.00 deposit.

This would be NOMI Developers’ fourth project built on Brownfield Redevelopment Authority land in the Rivers Edge District at the northwest corner of the roundabout at Ransom and Harrison streets. The developer has invested over $10,000,000 in the Rivers Edge District and the proposed Harrison Circle Building will bring an additional $13,000,000 to $15,000,000 investment along with the potential of two food related businesses.

This new project, Harrison Circle Building, will be a mixed use development. It will consist of potentially two food-related businesses totaling 5,000 square feet and 80 apartments. The apartments will be a mix of LIHTC, Workforce and market rate housing. This approach continues NOMI’s commitment to building a community where people of all walks of life are able to live work and play.

The project will have 80 residential units. Of the 80 units, 64 will be Tenant Area Median Income (AMI) Restricted MSHDA Project Based. This translates into 16 one-bedroom units at 30% AMI with a monthly rent of $313.00; 11 one-bedroom units and 1 two-bedroom unit at 40% AMI with a monthly rent of $443.00 and $530.00 respectively; 15 one-bedroom units and 1 two-bedroom unit at 60% AMI with a monthly rent of $662.00 and $794.00 respectively; 19 one-bedroom units and 1 two-bedroom unit at 80% AMI (Workforce Housing) with a monthly rent of $959.00 and $1150 respectively. There will be 15 one-bedroom units and 1 two-bedroom unit at Market Rate with a monthly rent of $1000.00 and $1500.00 respectively. This project will add much needed Affordable Housing to this up and coming area.

*For purposes of the PILOT and the LIHTC application, Developer established Harrison Circle LDHA L.P., an organization formed to secure Low Income Housing Tax Credits and mortgage financing through the Michigan State Housing Development Authority. Therefore, the attached Agreement is with Harrison Circle LDHA LP with Developer agreeing to fulfill its terms.

The Creamery Project

City staff has been working with Hollander Development Company on a mixed use project on the vacant parcel owned by the Kalamazoo County Land Bank at 1101 Portage Street. The attached Brownfield Plan Development Agreement highlights the complexities of the project by providing affordable housing for 29 of the 48 rental units for which Developer will pay the City a PILOT as approved by the City Commission on August 20th.*

Since the project addresses many needs the City has targeted, further assistance through the capture of tax increment revenues is needed. Therefore, in order for that portion of the project to qualify for TIF, Developer will establish a condominium subdivision for the remaining residential units and commercial spaces – broken down as: (i) 19 market-rate units; (ii) approximately 5800 square feet dedicated for a 24-hour drop in childcare facility; and (iii) approximately 2400 square feet of leasable commercial space. Other key features of the project include indoor bicycle parking, rooftop green space, on-site solar energy and space for public art with the goal to qualify the project as LEED Platinum.

The Agreement covers 16 years with estimated costs for the eligible activities at $ 676,586.

*For purposes of the PILOT, Developer established Kalamazoo Creamery Limited Dividend Housing Association Limited Partnership (Creamery LP), an organization formed to secure Low Income Housing Tax Credits and mortgage financing through the Michigan State Housing Development Authority. Therefore, the attached Agreement may be with Creamery LP with Developer agreeing to fulfill its terms.

4233 Davis Creek Court and 3603 Kilgore Road, Schupan & Sons, Inc.

In 1999 BRA acquired under a quit claim deed from the City vacant approximate 6.8 acres and 0.482 acre parcels of real property with frontage on Davis Creek Court and Kilgore Road, respectively, in the City of Kalamazoo. Schupan owns a manufacturing/recycling facility located at 4200 Davis Creek Court, which abuts the Brownfield Property. Schupan has plans to expand the operations it conducts at their existing location, and its purchase of the Brownfield Property will benefit its expansion plans by utilizing the BRA Parcels for storm water management.

The planned project involves: (i) an addition of approximately 40,000 square feet to the existing building; (ii) landscaping and site improvements to the parking areas on the Schupan Parcel; and (ii) construction of the storm water management system.

With Davis Creek bisecting the 4233 Davis Creek Court Property most of the 6.8 acres is not separately developable. And with the expansion Schupan will create additional well-paying manufacturing jobs. Taken both these factors into account were considered by staff in negotiating the $10,000 sale price.

The Agreement covers 25 years with estimated costs for the eligible activities at $800,000. And this project will require an amendment to the Revised Brownfield Plan as new chapter 52, among other amendments/additional chapters covered in a separate memo.          

 

City of Kalamazoo Clears Encampment From Bronson Park

This morning, the Kalamazoo Department of Public Safety initiated enforcement action in Bronson Park to remove a group of individuals that had been camping in violation of city ordinances. This enforcement action was taken as a last resort after multiple offers to relocate the encampment to safe locations with on-site amenities were declined by protesters.

Under City of Kalamazoo ordinances, camping in any park is prohibited without the written permission of the City. Fires in a grill or otherwise, are also prohibited in Bronson Park. Persons violating city park rules may be required to leave the park for the balance of the day, and persons refusing to leave are subject to arrest for trespassing. No city parks have the amenities to allow camping, which has been prohibited since 2002.

Following a month-long process of outreach and negotiation outlined below, the Kalamazoo Department of Public Safety, with support from the Kalamazoo County Sheriff’s Office and the Michigan State Police, made contact with protesters that were camping beginning at approximately 6:45 a.m. Wednesday morning. Only about 20 tents remained that morning and most individuals peacefully left the park at the request of Public Safety. Officers provided protesters an opportunity to leave voluntarily before issuing citations and also provided plastic totes to help individuals move their belongings. Additional time was provided after issuing a citation for belongings to be packed and moved. Officers made arrests only as a last resort.

As a result of this enforcement action 14 individuals were taken into custody: 10 for Breaking a Police Line (misdemeanor), 1 for Attempted Resisting and Obstruction (misdemeanor), and 3 on various outstanding warrants. Eight citations were issued for illegal camping.

Abandoned property was disposed of and Bronson Park has been temporarily closed to allow City staff to clean the park, remove any remaining debris, and begin to repair sections of the lawn. It is anticipated that the park will be reopened Thursday.

Members of the encampment have been advised call 211 for housing assistance or to relocate to the Kalamazoo Gospel Mission, or to camp on land located just north of the Mission on Edwards Street. These locations make it easy to utilize the services of the Mission and Ministry with Community including water, showers, shelter, food, and laundry.

Actions Taken to Assist those in Bronson Park

Prior to enforcement, the United Way of Battle Creek and Kalamazoo distributed flyers in Bronson Park offering several opportunities to meet with Gryphon Place for help obtaining assistance with housing, health, food, and other critical needs. These events will take place September 19-21 at First Congregational Church and Ministry with Community. Encampment members were also reminded that help is always available by dialing 2-1-1.

Since the encampment began on August 19, City staff and community organizations have made numerous attempts to work with protesters to offer help. These efforts included arranging outreach to homeless individuals camping in the park to connect them with help, the offer of other locations to permit temporary camping, and working with the Kalamazoo Gospel Mission and Ministry with Community to allow individuals that had been banned to return.

City Manager Jim Ritsema initially met with protesters on August 29. This led to an agreement on August 31 which moved the encampment to the former fire station at 116 W Cedar Street and created a working group to offer short-term help for the people of the encampment and work towards better long-term policies to alleviate the problem of homelessness. The protest group determined 116 W Cedar Street was not suitable and returned to Bronson Park on September 4, where they have remained since.

The first meeting of the working group to address homelessness convened on September 5 and has met regularly since, most recently on September 14. This group has included members of the homeless encampment, city officials, and representatives from numerous community organizations including the Kalamazoo Gospel Mission, Ministry with Community, Open Door/Next Door Shelters, Kalamazoo County Community Mental Health & Substance Abuse Services, Housing Resources Inc., Local Initiatives Support Corporation (LISC), United Way of Battle Creek & Kalamazoo, ISAAC, 211/Gryphon Place, the Kalamazoo Community Foundation, and Kalamazoo County.

At the September 5 meeting a list of immediate needs was identified by members of the encampment and options for alternative locations were presented for their consideration. City staff offered to provide tents for shade and toilet facilities at these locations. The Kalamazoo Gospel Mission offered their services for individuals who would choose to camp at a location nearby, even for people who chose not to sleep at the Mission. City staff visited each of these locations with members of the encampment, who rejected these options.

Kalamazoo County Community Mental Health & Substance Abuse Services and Housing Resources, Inc. have also conducted outreach in Bronson Park specifically directed towards individuals in the encampment who could benefit from their services. The City and service agencies worked with individuals in the encampment to find shelter for families with children, and LISC has provided funds for hotel rooms for members of the encampment with children.

The most recent estimate of total beds in all shelters combined is approximately 604. The Kalamazoo Gospel Mission has stated this week they have 118 spaces currently available. The most recent federally mandated “Point In Time” count of homeless which occurred in January, 2018 found 567 homeless individuals in Kalamazoo County.

The City of Kalamazoo is working closely with community partners to improve the help that is offered to all residents in need, homeless or otherwise. The work group that has been formed around this issue will continue to meet and the representatives from the encampment are encouraged to be part of the solutions.

Statement from Kalamazoo City Manager Jim Ritsema Regarding the Encampment in Bronson Park

Under City of Kalamazoo ordinances, camping in any park is prohibited without the written permission of the City. Fires in a grill or otherwise, are prohibited in Bronson Park. And persons violating city park rules may be required to leave the park for the balance of the day. Persons refusing to leave are subject to arrest for trespassing.

The City of Kalamazoo has not granted specific permission for the encampment that presently occupies Bronson Park. The City, through the office of the City Manager, has repeatedly met with representatives of the encampment and although much work remains to be done, the City has endeavored to address the concerns which the homeless population has laid before the City Commission. The City remains committed to an ongoing process to convene the community to seek solutions to these larger problems.

However, the growing encampment in Bronson Park is not a solution to the issues surrounding homelessness. It is a violation of City ordinances and must end. Beginning tomorrow, Tuesday, September 18, individuals at the encampment will be advised to gather their belongings and remove themselves by 7:00 PM. Persons who continue to maintain tents or other indications of camping will be subject to possible arrest and prosecution. Further, persons with warrants will be subject to arrest. Bronson Park is not intended to be, nor is it equipped to be, a camp ground. The limited source of potable water and the absence of sanitary and safe food preparation facilities raise legitimate public health and welfare concerns, requiring the City to
request voluntary compliance with its ordinances.

In taking this action the City remains committed to making Bronson Park welcoming to citizens and visitors alike – whether to find a quiet space in the middle of a busy city, spreading a blanket to enjoy a picnic or to gather peacefully to protest. Bronson Park is the front yard of the City and is available to all, and should not be possessed by any single group.

City of Kalamazoo

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