Boardman Building- 412 Webster St

Boardman Building 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 may be supported by HTIF under a Plan or amendment to a Plan.

Site History

The Boardman School building was constructed in 1913 and is Traverse City’s oldest school structure. It served as a school until 1970 and was then converted to the Traverse City Area Public Schools’ (TCAPS) administration building. The old Boardman School building was renamed in 1994 for a long-time Traverse City educator, Ida Tompkins.

Redevelopment

After studying both the housing and downtown office space markets, owners Ken Richmond and Eric Gerstner developed a plan for the 23,500-square foot Boardman Building’s reuse. 

-Provided brownfield tax increment financing (TIF) is approved to help cover project costs, the lowest (garden) level will be renovated into five studio apartments, six one-bedroom apartments, and one two-bedroom apartment (a total of 12 income-qualified residential units). These apartments will all be affordable for renters earning between 60% and 100% of Grand Traverse County’s Area Median Income (AMI). Rents are expected to be $1,000 a month for a studio, $1,200 a month for a small one-bedroom unit, and $1,575 for a large one-bedroom or two-bedroom unit. If the brownfield TIF is approved, rents will be kept at or below rates affordable for residents earning up to 100% of AMI for the duration of brownfield TIF reimbursement.

-The middle floor will be built as a “white box” office space and sold as a condominium to an investor who will lease the space out to one or more tenants.

-The renovated building’s top floor will have four 1,881-square foot condominium units that will be sold at market rate.

Development Agreement(PDF)

Brownfield Plan(PDF)

MSHDA Review Response Letter(PDF)

Boardman Building Project Summary(PDF)

Boardman Building Presentation(PDF)