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A commercial and residential developer moves a step closer to redeveloping the Chassell Mercantile Bank building. Last evening the Houghton County Board of Commissioners held a public hearing for the Brownfield Plan to redevelop the property at 42108 Wilson Memorial Drive in Chassell. The project, led by T&J Properties, will create 22 residential apartments with a 2,000-square-foot commercial space on the first floor. The property’s developer with help from the Houghton County Land Bank Authority has located additional funding sources with the Michigan Economic Development Corporation’s Revitalization and Placemaking Grant program worth 1.5 million dollars. Ratcliffe says MEDC and other local partners fully support the project.
There is about $42,000 of local support for infrastructure. As well as the value of the site we’re looking at an $850,000 Brownfield tax increment finance. So again this will be tax increment finance will be paid, the taxes paid. And then there’s owner equity and bank financing. Bank financing is in place and owner equity is guaranteed, is committed.– Jeff Ratcliffe, Executive Director, Keweenaw Economic Development Alliance.
KEDA Executive Director Jeff Ratcliffe says the 4.5 million dollar project will take advantage of recent changes by the state to how schools capture tax millage from redeveloped properties.
TIF capture can happen anywhere. And it can be a green field or it can be a site like the Chassell-Mercantile. But again, it allows the Brownfield Act and all of the things that act allows, it allows them to capture all of the taxes. And the key here is that it’s capturing, we’re referring to the capture of not just the local millage, but the school mills. Including local school mills and state education tax. It does not capture any debt millage. The other key provision is that the schools are made whole and so is the intermediate school district. So they are not in a bad position because of a project like this. – Jeff Ratcliffe, Executive Director, Keweenaw Economic Development Alliance
Commission member Keith Meyers added that the project was passed with support from each voting member at the planning commission and board of trustees. The community hopes the development will add to Chassell’s downtown. And allow some older residents to downsize or young families a place to start.
Particularly from the standpoint of our schools, in terms of for building a school-age population for our community. We feel that for two reasons this is a good project; One, there’s going to be an opportunity for new residents to move into the community and to these, or into this location. But we’ve also had several older residents in the community who’ve expressed a strong interest in being able to move into this project and remain in the community. Without having to leave Chassell. And by doing that, it’s going to free up housing, which will then be available for younger families to move into the community. – Keith Meyers, Vice Chairman, Chassell Township Planning Commission
WUPPDR Executive Director Jerry Wuorenmaa says the use of TIFF funds for the project is unique and will be the first project in the western Upper Peninsula to use the program. Like KEDA, WUPPDR is working toward housing solutions for the western Upper Peninsula’s challenges. Wuorenmaa says with the experience KEDA has gained through this project, WUPPDR hopes to use similar strategies in the future.
