Gauthier Woods-2105 N US31 south

Gauthier Woods is a Housing Property involving Housing Tax Increment Financing.

Michigan Public Act 90 of 2023, an amendment to Act 381 that went into effect on July 19, 2023, provides new opportunities to support certain housing development activities using tax increment revenues (“Housing Tax Increment Financing” or “HTIF”) by adding new terms to the definition of both Eligible Property and Eligible Activities, as these terms are defined in Section 2 of Act 381, specific to projects including housing (rental and/or for-sale). 

Specifically, Housing Property (as defined below) that is located in a community that has identified a specific housing need and has absorption data or job growth data included in the Plan is now an Eligible Property and the cost of Housing Development Activities (as defined below) associated with such Housing Property maybe supported by HTIF under a Plan or amendment to a Plan.

Project Summary

Keel Capital has a purchase agreement in place with the James E. and Phyllis A. Gauthier Trust for the acquisition of the Gauthier property located at 2105 N. US 31 South for the development of 149 workforce housing units. Closing is anticipated on June 24, 2024.

This Brownfield Plan will provide incremental tax revenues to repay certain Eligible Activities, including Baseline Environmental Assessment (BEA) and due care (known as Department Specific Activities), lead and asbestos abatement, demolition, and housing development activities that are critical to the economic viability of the redevelopment. 

Environmental investigations have identified the presence of contaminants in soil and groundwater exceeding EGLE Generic Cleanup Residential Criteria and a Baseline Environmental Assessment has been prepared and will be submitted to EGLE. As a result, the property is a Part 201 Facility and qualifies as Brownfield Eligible Property under Act 381. The property also qualifies as Brownfield Eligible Property under the definition of Housing Property, which is the main purpose of this Brownfield Plan.

Redevelopment

The proposed redevelopment will remove the existing building, conduct preparation activities, and construct three buildings with a total of 149 rental units with rental rates targeted at 100% of the Area Median Income(AMI), published by MDHDA and adjusted on an annual basis. 

The development of the Gauthier Property into a 149-Unit Apartment Complex for moderate income individuals and families will meet a critical community need for affordable and workforce housing.  

Development Agreement-Signed(PDF)

Act 381 Plan(PDF)

Gauthier Presentation(PDF)