Traverse City commissioners will tackle a busy agenda tonight (Monday), including a proposed senior housing development, an amended water service agreement with Elmwood Township, equipment upgrades at Hickory Hills and the sewer plant, and state disaster funding.

Depot Commons PILOT
After first learning of a proposed senior housing development in the Depot neighborhood at a September 14 study session, commissioners tonight will vote on a tax abatement request to move the project forward.

Craig Patterson of The Woda Group is hoping to build 60 affordable-rate apartments – targeted specifically at seniors age 55 and up – at 520 Railroad Avenue. The five-story development, tentatively called Depot Commons, would include 21 one-bedroom and 39 two-bedroom units, a community room and energy-efficient amenities. Patterson says the "restricted but affordable" apartments will help seniors “obtain quality, safe and energy-efficient housing in Traverse City."

Rather than pay traditional taxes on the development – estimated at $188,400, of which $38,300 would go to the city – Patterson is seeking a payment-in-lieu-of-taxes (PILOT) agreement to pay six percent of rental income annually over a 16-year period. The PILOT amount is estimated at $18,200 annually at full occupancy, of which $3,300 would go to the city. Woda Group would also pay an additional $12,000 to the city for municipal services.

Patterson is seeking approval of the PILOT tonight in order to meet an October 1 deadline to apply for Michigan State Housing Development Authority (MSHD) funding. Under the PILOT agreement, Woda Group will have to comply with MSHDA requirements for tenant income levels and also submit to annual third-party audits. Patterson told commissioners on September 14 that the Woda Group was pledging to maintain affordable rental rates at the development for a minimum of 45 years – a covenant that would run with the deed on the property.

Elmwood Township Water Services
Confusion over how water service will be provided to a 44-acre, 95-home development now under construction could be resolved with an amended water service agreement tonight. Commissioners will consider amending the city’s agreement with Elmwood Township to extend service to The Moorings development site. Elmwood Township pays the city to provide up to 750,000 gallons of water per day to the Greilickville area; however, The Moorings is outside the existing service boundaries.

In a memo to commissioners, City Attorney Lauren Trible-Laucht noted the township’s water usage is “well below” capacity, and that the township is invoiced monthly based on its actual usage. The city-township contract terms would therefore remain unchanged except for the addition of The Moorings site to the service area, said Trible-Laucht.

Equipment Upgrades
After a motion to spend nearly $500,000 for two new snow groomers for Hickory Hills Ski Area narrowly failed at a September 8 meeting, three commissioners requested the expenditure come back for consideration again tonight. Commissioners Jeanine Easterday, Tim Werner and Gary Howe – who was absent September 8 – asked City Manager Marty Colburn to put the funding request on tonight’s agenda.

Though the snow groomers were approved in the city’s 2015-16 budget, commissioners took issue earlier this month with an attached $10,000 request to cover storing the groomers out-of-state during the off-season. Easterday advised Director of Public Services Dave Green to “find a storage area somewhere in the city so that the maintenance/storage contract is not needed.” The storage contract has been eliminated from tonight’s funding request.

Commissioners will also consider authorizing nearly $400,000 for three major wastewater treatment plant projects. Scheduled repairs include replacing four gate valves on the plant’s membrane system, removing and replacing two pumps at the Traverse Bay Area Intermediate School District (TBAISD) lift station, and screw pump replacement. The city will contract with CH2M Hill to complete the work.

Disaster Funding
Finally, the city could seek up to $100,000 from the state for disaster relief funding if commissioners approve a grant resolution tonight. Colburn says the city is eligible for state reimbursement for “payment to contractors for the tree removal and processing, significant overtime of staff personnel and fuel costs” caused by the August 2 storm. If approved, funds could be allocated from the state’s Disaster Contingency Fund to cover the city’s losses.