COLDWATER, MI (WTVB) – There are plans to redevelop the Old Mill Race Apartments at 517 West Chicago and the Coldwater City Council will be requested Monday night to approve the introduction of an ordinance that, if adopted, would implement a Payment In Lieu of Tax policy.
The policy is also known as a PILOT. City Manager Keith Baker says the proposed project would include CRA Development Group of Lansing spending $2-point-5 million to upgrade the 48 units and all of the buildings.
The property owners feel the renovations are long overdue.
Old Mill Race was built almost 40 years ago and is targeted to low and moderate income families. The property is zoned A3 Multiple-Family Residential District.
Baker says a PILOT is an alternative to the traditional calculation for payment of local property taxes for eligible multiple family and other special residential projects.
The development pays a percentage of its net revenues instead of the standard property tax millage rate in exchange for a public benefit.
The city can negotiate the percentage rate up to the full amount of what the property tax would have otherwise been.
The city has previously approved PILOT’s for the two phases at Whispering Pines Apartments and most recently for the Meadowview Senior Apartments.
PILOT’s were also approved for two other projects that were subsequently not built.
If the ordinance is introduced Monday night, it would be considered for second reading and adoption at the council’s meeting on Monday, May 23, 2022.
Comments