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City Council OK’s deal with developer

September 11, 2018 GMT

The Ludington City Council Monday evening approved a municipal service agreement with Depot Apartments, the proposed 52-unit apartment complex for low to moderate-income tenants, which developer Herman & Kittles Properties, Inc. wants to build on the vacant property at 705 S. Madison St.

The municipal services fee will be an estimated $23,277 annually, which covers costs such as police, fire department and other services that may be needed as the property becomes more developed. The agreement will take effect Jan. 1 or when the property begins development.

The developer is also seeking financial assistance from the Michigan State Housing Development Authority (MSHDA). In order to be eligible for the government funds, the project must have the city’s support, and a common way to show that support is with a municipal service agreement.

By law, the city cannot collect property taxes from a development that has MSHDA funding, but the city can collect the services fee and what is called “payment in lieu of taxes,” said City Attorney Richard Wilson. The payment would be an additional estimated $5,819.

Currently, the property taxes for the location are an estimated $1,475, noted Interim City Manager Steve Brock, who recommended the deal with Depot Apartments.

“The developer has come forward with a very typical type of arrangement these days to get these sort of troubled pieces developed ... I see it as a good opportunity to get a property developed with affordable housing,” Brock said.

To read the full story, check out the Ludington Daily News in print or E-editions.