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| Ordinance | NO. 05-2020 |
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| | | | | | | | | A Proposed Ordinance to amend Section 17 of Chapter 882 Real Estate Taxation, Sophia Square, revising the number of units. | | | |
| | | | | | | | | BATTLE CREEK, MICHIGAN - 4/21/2020 | | | |
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The City of Battle Creek Ordains:
Section 1. A proposed Ordinance to amend Section 17 of Chapter 882 "Real Estate Taxation," revising the number of units in Sophia Square as provided in sub-section (b)(5) as attached hereto and made a part hereof.
Section 2. Should any section, clause or phrase of this Ordinance be declared to be invalid, the same shall not affect the validity of the Ordinance as a whole, or any part thereof, other than the part so declared to be invalid.
Section 3. All ordinances or parts of ordinances, in conflict with any of the provisions of this Ordinance , are hereby repealed, saving any prosecution, criminal or administrative appeal pending on, or violation cited on or before the effective date of this ordinance, which shall remain subject to the ordinance provision existing at the time of the alleged violation.
Section 4. Except as otherwise provided by law, this Ordinance shall take effect ten (10) days from the date of its adoption, in accordance with the provisions of Section 4.3(B) of Chapter 4 of the City Charter.
Section 1. An Ordinance to amend Chapter 882 "Real Estate Taxation" to add section 882.17 entitled "Exemption for Sophia Square" as attached hereto and made a part hereof.
Section 2. Should any section, clause or phrase of this Ordinance be declared to be invalid, the same shall not affect the validity of the Ordinance as a whole, or any part thereof, other than the part so declared to be invalid.
Section 3. All ordinances or parts of ordinances, in conflict with any of the provisions of this Ordinance , are hereby repealed, saving any prosecution, criminal or administrative appeal pending on, or violation cited on or before the effective date of this ordinance, which shall remain subject to the ordinance provision existing at the time of the alleged violation.
Section 4. Except as otherwise provided by law, this Ordinance shall take effect ten (10) days from the date of its adoption, in accordance with the provisions of Section 4.3(B) of Chapter 4 of the City Charter.
I, Victoria Houser, City Clerk of the City of Battle Creek, hereby certify the above and foregoing is a true and correct copy of a Resolution adopted by the Battle Creek City Commission at a Regular meeting held on April 21, 2020.
Victoria Houser
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| | | | | | | | | Battle Creek City Commission
4/21/2020
Action Summary | | | |
| | | | | | | | | | Staff Member: | Jill Humphreys Steele, City Attorney | | Department: | City Attorney |
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| | | | | | | | | SUMMARY
| A Proposed Ordinance to amend Section 17 of Chapter 882 Real Estate Taxation, Sophia Square, revising the number of units.
| BUDGETARY CONSIDERATIONS
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A PILOT is a tax exemption for a housing development, with the Developer/Sponsor being responsible for making an annual payment as compensation for services provided to it, such as police and fire protection and other essential services. Under the amended ordinance presented here, the property owner would be responsible for annual payments of four percent (4%) of the "shelter rents" for all income restricted units, which is anticipated to be all estimated 47 units in the development for forty (40) years. "Shelter rent" means the total collection of all payments from the occupants of the development representing rents or occupancy charges, exclusive of utilities furnished to the occupants by the Developer or Sponsor.
The duration of a PILOT may not exceed fifty (50) years. This proposed PILOT would last for 40 years, the length of the mortgage, provided the Sponsor continues to meet the statutory requirements to be eligible for the abatement, as well as the requirements set out in the proposed ordinance. After the PILOT expires, the property would be assessed at a normal value and tax rate.
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HISTORY, BACKGROUND and DISCUSSION
| Section 17 of Chapter 882 was adopted by the City Commission at the March 17 meeting. At the adoption of this Ordinance, the Sophia Square housing development conceptual plans provided for 50 units. The developer's final conceptual construction budget is forcing consideration of removing one floor from the Sophia Square plans, which would reduce the total number of units from 50 to 47.
This housing development to be known as Sophia Square will provide much needed low-income housing stock to the community. The structure previously located at this location had structural concerns and has been vacant for several years and was demolished last year. The planned housing development will be a visual and community needs improvement.
Although Battle Creek Unlimited currently owns the parcel where this housing development will be built, Hollander Development Company (HDC), the developer, intends to submit for LIHTC to MSHDA at the early funding round, which has been pushed to May as a result of the COVID-19 Pandemic. Thus, they have requested that this ordinance amendment be in place by that date in order to increase their chance of being selected for funding since they would be competing with numerous other projects throughout the state, and most projects do not receive tax credits. If approved for the tax credits, BCU intends to transfer the property in a clean and buildable condition to HDC. HDC proposes to replace it with a likely forty-seven unit, six story, midrise apartment building called Sophia Square.
Sophia Square would add forty-seven apartments to the Northwest end of Battle Creek’s Central Business District in a new six story building. While the building would not contain any commercial space for lease, the façade would be designed to blend visually with neighboring commercial buildings and a front-facing lobby would offer a view into the building consistent with neighboring storefronts. The side(s) of the ground level would include several two-story, three-bedroom urban townhomes and the rear facing the Jackson Parking Lot would include five covered parking spaces for residents. All units would include dishwashers, garbage disposals, washers, dryers, frost free refrigerators, self-cleaning ovens, ceiling fans, and resilient flooring.
Apartments would consist of one-, two- and three-bedroom units and would be rent and income restricted to households earning 30-80% of Calhoun County’s area median income. This project would create new housing options for residents at or below 30%, 40%, 50%, 60%, and 80% of Calhoun County’s area median income. In housing nomenclature this is a truly mixed-income approach, serving extremely low-income, very low-income, low-income, moderate-income, and "workforce" households simultaneously. By siting the buildings directly adjacent to two luxury, market rate apartment buildings (Battle Creek Tower and The Milton) this project would turn Battle Creek’s Central Business District into a model of housing inclusivity.
If approved, the construction on this development must commence by December 31, 2021 and have been substantially completed by December 31, 2023.
| DISCUSSION OF THE ISSUE
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| POSITIONS
| | The City Manager's office supports this housing development, which requires the amendment proposed in this ordinance. |
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