Lake Center Housing Task Force

CITY OF PORTAGE:  The most recent plan that has been developed for the project off Portage Road between Stanley and Woodbine is dated June 1, 2023, and was posted on the city website on June 8 after the City Council voted to approve the creation of the Lake Center Housing Task Force.

Portage Road Lake Center Housing Development Concept Drawings

At the direction of Mayor Patricia Randall at the June 6, 2023, Portage City Council meeting, all staff work on this project has subsequently been on hold. At the time of the project being held in abeyance, the project was and remains at the conceptual level. More detailed plans have not been developed.

CITY OF PORTAGE:  The Portage City Council approved the purchase of the properties with the addresses of 9617 Portage Road and 2010 Woodbine Avenue on July 27, 2021, for a total cost of $265,000. On April 12, 2021, the City Council Housing and Neighborhoods Committee recommended to the City Council that these properties be purchased. These properties are noted in the Lake Center District Corridor and Placemaking Study, accepted by vote of the City Council on July 13, 2021, as a potential future residential development. 

Related Documents

• July 27, 2021 City Council agenda item packet including memo and background documents
• July 27, 2021 City Council meeting minutes
• A graphic showing the dimensions of the entire property
• 9617 Portage Road Deed Documents
• 2010 Woodbine Deed Documents

CITY OF PORTAGE:  The June 1, 2023, concept drawing for the Stanley/Woodbine project lists the parties involved in putting together the concept, including the City of Portage, AVB, and Hurley & Stewart working as a subcontractor to AVB. The concept drawing was posted on the city website on June 8, 2023.

Portage Road Lake Center Housing Development Concept Drawings

CITY OF PORTAGE: The City of Portage received five responses to an initial Request for Qualifications and three responses to a subsequent RFP issued to secure a development partner for this Stanley / Woodbine project. AVB was the selected development partner. The RFQ and RFP as well as all of the responses to both, the RFP response scoring materials and evaluation, and the recommendation to City Council, approved at the March 21, 2023, Council meeting, are provided.

Related Documents

• Allen Edwin RFP Response
• AVB RFQ Response,  AVB RFP Response
• Interra RFQ Response, Interra RFP Response
• PlazaCorp RFQ Response
• Roberts RFQ Response
• Weiner RFQ Response

CITY OF PORTAGE: The city has not developed any sales agreement for the homes in this project. The city intends to work with Kalamazoo Neighborhood Housing Services (KNHS), an established housing counseling agency with an excellent track record, to conduct homebuyer education and connect eligible purchasers with homes. 

CITY OF PORTAGE: At the time of the pause on the project, there was not an executed development agreement with AVB. A development agreement was in the process of being drafted by the city. A copy of the preliminary draft agreement is provided, as is the License Agreement with AVB.  

The calculations quoted in the above question did not come from the City of Portage.   Such specific costs are not even available yet at this conceptual stage of this proposed project.  

To assist in financing the project, the City, so far, has the following funding available:

• $1 million of federal ARPA dollars distributed to Portage and $500,000 in Kalamazoo County ARPA dollars have been allocated by the City of Portage toward infrastructure costs
• Up to $3 million has been allocated by Kalamazoo County Commissioners through the “Housing for All” Millage dollars.
• $150,000 has been allocated by Kalamazoo County for downpayment assistance to qualified homebuyers 

Additional outside grant funding sources would likely be sought. 

There would be revenue from the home purchasers as each lot is sold but that amount is not yet able to be determined at this stage in the project.

If or when the project proceeds, more detailed cost and revenue calculations including a financial pro forma, based on whatever development layout may be agreed upon, will be developed for the project.

CITY OF PORTAGE:  As the proposed project is still at a conceptual stage, a financial pro forma for the project has not been performed.  In order to obtain the Kalamazoo County Housing for All Millage grant, the city was required to submit to the county a very preliminary pro forma document dated February 1, 2023, which is provided.

CITY OF PORTAGE: There are no such records. At the time of the pause in the project, the conceptual approach for the Stanley/Woodbine project was to pursue a Planned Development for the property, an option that is permitted under the city zoning code. A Planned Development application would need to be considered first by the Planning Commission after proper and advanced legal notice of an official public hearing that would be held before the Planning Commission.

CITY OF PORTAGE: The city undertakes such projects with a team approach.  The city’s Housing Specialist, Economic Development Director, Chief Development Officer, and City Manager are all part of the team who have worked on this project. Each of these individuals brings a broad range of experience and talent in the real estate, housing, and development arena and in the program administration required for such a project.

CITY OF PORTAGE: The proposed Stanley/Woodbine project is at a preliminary concept stage.  As noted in the response to question 7, such specific costs are not even available yet at this conceptual stage.  The cost of the homes to the purchaser will be affordable to individuals or families in the 80-120% range of Area Median Income.

CITY OF PORTAGE: The proposed Stanley/Woodbine project is at a preliminary concept stage. It has not been submitted to the Planning Commission for review.  It is at that stage that a detailed zoning review would take place.  However, it is the intent of the City to ensure that whatever development plan that may be submitted for this project in the future, if any, would be able to obtain Planning Commission approval under the applicable City rules and procedures as well as state laws.

CITY OF PORTAGE:  The proposed target purchaser of the homes in the Stanley/Woodbine project is intended to be people considered to be in the “workforce” housing category. It is not a low-income project or a Section 8 project. Workforce housing is considered “middle income” and is people in the 80^th to 120^th percentile of this area’s median income as calculated by the State of Michigan. This target market is to create opportunities for people who work here --- making in the middle range of incomes -- to be able to afford to purchase homes here.  The annual income figures to qualify for workforce housing are shown here:

The cost of constructing the homes in this development has not yet been determined.  If the cost to purchase the homes is higher than a person or family in the workforce housing range can afford, the plan is to use the Kalamazoo County “Housing for All” millage grant funds to offset the cost to the homeowner to the point of affordability for those prospective homebuyers. It should be noted that the city does expect that the Housing for All millage grant will be needed to bridge the affordability gap.  This is the crux of the housing affordability problem that led to the creation of the County millage, and the City’s adoption of the Portage Attainable Housing Plan adopted by Council on December 20, 2022.  The cost of housing construction and the cost to purchase homes has risen to such a degree that people in Portage with the typical middle income cannot afford to live here, even though they may work here.  The intent of this project is to create an opportunity for people to be able to move into a quality home that is affordable to them.

CITY OF PORTAGE: The concept for this potential Stanley/Woodbine project, to date, was not to have a homeowners association or create areas for the city to maintain, other than the infrastructure. The purchaser would get a loan for the home, own it, be taxed on it at market value, and have typical rights, responsibilities, and risks of homeownership. But to preserve the affordability of the development in the future, an additional aspect for the homeowners is the Community Land Trust (CLT) model, which has been adopted in similar projects in Michigan and across the country. This approach will allow the homes to be sold at affordable prices to middle-income homebuyers and ensure the same level of affordability through future sales. The CLT rules will also allow homebuyers to benefit from appreciation of value over time. The CLT rules will also preclude the homebuyer from renting to others the house they purchase.

CITY OF PORTAGE:  In response to questions #15 - #19 regarding city zoning codes and ordinances, the city notes, as previously stated, that the proposed Stanley/Woodbine project is at a preliminary concept stage. It has not been submitted to the Planning Commission for review. It is at that stage that a detailed zoning compliance review would take place. However, it is the intent of the city to ensure that whatever development plan that may be submitted for this project in the future, would be able to obtain Planning Commission approval under the applicable city rules and procedures as well as state laws, which may include seeking approval as a Planned Development.

CITY OF PORTAGE:  In response to questions #15 - #19 regarding city zoning codes and ordinances, the city notes, as previously stated, that the proposed Stanley/Woodbine project is at a preliminary concept stage. It has not been submitted to the Planning Commission for review. It is at that stage that a detailed zoning compliance review would take place. However, it is the intent of the city to ensure that whatever development plan that may be submitted for this project in the future, would be able to obtain Planning Commission approval under the applicable city rules and procedures as well as state laws, which may include seeking approval as a Planned Development.

CITY OF PORTAGE:  In response to questions #15 - #19 regarding city zoning codes and ordinances, the city notes, as previously stated, that the proposed Stanley/Woodbine project is at a preliminary concept stage. It has not been submitted to the Planning Commission for review. It is at that stage that a detailed zoning compliance review would take place. However, it is the intent of the city to ensure that whatever development plan that may be submitted for this project in the future, would be able to obtain Planning Commission approval under the applicable city rules and procedures as well as state laws, which may include seeking approval as a Planned Development.

CITY OF PORTAGE:  In response to questions #15 - #19 regarding city zoning codes and ordinances, the city notes, as previously stated, that the proposed Stanley/Woodbine project is at a preliminary concept stage. It has not been submitted to the Planning Commission for review. It is at that stage that a detailed zoning compliance review would take place. However, it is the intent of the city to ensure that whatever development plan that may be submitted for this project in the future, would be able to obtain Planning Commission approval under the applicable city rules and procedures as well as state laws, which may include seeking approval as a Planned Development.

CITY OF PORTAGE:  In response to questions #15 - #19 regarding city zoning codes and ordinances, the city notes, as previously stated, that the proposed Stanley/Woodbine project is at a preliminary concept stage. It has not been submitted to the Planning Commission for review. It is at that stage that a detailed zoning compliance review would take place. However, it is the intent of the city to ensure that whatever development plan that may be submitted for this project in the future, would be able to obtain Planning Commission approval under the applicable city rules and procedures as well as state laws, which may include seeking approval as a Planned Development.

CITY OF PORTAGE: There are no public records other than the July 25, 2023 letter.

CITY OF PORTAGE: The city does not have any ordinance that would prohibit a property owner from removing trees from private property. The city does have requirements for developers to plant trees and provide landscaping as part of new developments. The city also always encourages developers to retain existing natural features as much as possible as part of their plan development, particularly to take advantage of more mature growth to provide buffers.

Endangered species are protected under state and federal laws. Any development submitted to the city must adhere to state and federal laws protecting endangered species. The Department of Environment, Great Lakes, and Energy (EGLE), an agency of the State of Michigan, does handle wetlands protection but not endangered species. EGLE has not been contacted regarding the two potential project areas but would be during the approval processes if a project appears to impact wetlands.

Environmental issues and other potential impacts of a project can be raised during consideration of a project, particularly during the public hearings. Larger projects typically require public hearings before the Planning Commission and the City Council. These deliberative bodies are charged with the responsibility of taking into account potential impacts and weighing how a proposal fits under City ordinances, state and federal laws, and the goals of the community stated in the City’s Master Plan.

CITY OF PORTAGE: The City of Portage has adopted strenuous regulations contained in the City ordinance and governed by its Storm Water Design Criteria Manual that have been approved to meet State of Michigan requirements from the Department of Environment, Great Lakes, and Energy (EGLE).  The objective is to control and regulate stormwater to protect groundwater and waterways as well as prevent flooding.   To accomplish this, the Manual documents best management practices such as keeping all the stormwater and runoff generated by the project on-site typically through the use of stormwater retention basins.  While the rules are complex, it is the obligation of the developer of a property to submit a stormwater management plan that meets City requirements and ensures that a project does not create groundwater problems or contaminate bodies of water.  The City’s Transportation and Utilities Department reviews the plans during the final plan approval stage for development projects and enforces these regulations.  

CITY OF PORTAGE: The property between Zylman and East Shore Drive and from Highland to Sprinkle Road is not owned by Pfizer. The city is not aware of that property being part of any air quality or noise buffer requirements. The only known environmental restriction on the property relates to the part of the property on which the railroad line formerly existed. 

As stated previously, environmental issues and other potential impacts of projects can be raised during the consideration of a project, particularly during the public hearings.  Larger projects typically require public hearings before the Planning Commission and the City Council. These deliberative bodies are charged with the responsibility of taking into account potential impacts and weighing how a proposal fits under city ordinances, state and federal laws, and the goals of the community stated in the city’s Master Plan.

CITY OF PORTAGE: The only known environmental issue on the property between Zylman and East Shore Drive and from Highland to Sprinkle Road relates to a narrow parcel of land east of Cox with the address of 3700 Zylman that has a restrictive-use covenant. This parcel previously had railroad tracks on it which is the basis for the restrictions. The city will ensure that all the environmental restrictions on the use of the railroad bed property are heeded and only used for a trail or road, sidewalks, pathways, and/or parking lots. If the owner of this property submits another application for the development of this property in the future, the city will require the developer to submit the Phase One environmental study and any other environmental contamination studies as may be necessary to ensure such issues are addressed.

CITY OF PORTAGE: This is a topic not under the purview of the Lake / Center Housing Task Force.  Nonetheless, it should be noted that the City has no plans to do this. 

CITY OF PORTAGE: Wetlands are protected under both state and federal environmental laws.  Any development would adhere to the protections provided under state and federal law.  An agency of the State of Michigan known as EGLE would need to review plans to ensure requirements related to wetlands protection are met.  While the proposal for this property has been withdrawn before a full review was undertaken, it did appear that the withdrawn proposal attempted to avoid disturbing the wetlands west of Cox Drive.

CITY OF PORTAGE: City Manager Pat McGinnis asked the owner of the property, and the owner has indicated he has “no interest” in selling the property to anyone.

CITY OF PORTAGE: In order to become and remain a Tree City USA a community must meet the four standards:

• an active tree board and/or department.
• a public tree care ordinance (governing planting, maintaining, and/or removing trees from streets, parks, or other public spaces).
• a community forestry program with an annual budget of at least $2 per capita.
• an Arbor Day observance and proclamation

The city has met these standards annually for 32 consecutive years and expects to continue to do so.

CITY OF PORTAGE:  Developers of new projects are typically required to construct the infrastructure necessary to serve their commercial buildings or residential areas.  This includes roads, water and sewer mains, and connections needed for their project. The city charges fees for the use of water and sewer services that cover the cost of operation of those systems. New developments generate property taxes which can be used to cover other operational costs to the city. Any single project is likely only to marginally increase operational costs.   Overall, the city regularly reviews the budgetary allocations to ensure the city services are properly provided and are sustained into the future. 

CITY OF PORTAGE: The city’s Planning Commission requires that the developer notify the Portage Public Schools of proposed housing developments during the approval review process.  Proof of acknowledgment from the schools is required. This provides the school district the opportunity to plan for potential enrollment increases and to provide input to the city of any concerns.  City staff is not aware of any instances where the School District has expressed any concerns to the city about new housing projects. In fact, city administrators have had discussions with school district administration about developments in the past and have been assured that school planning routinely considers demographic trends. New subdivisions are an important part of that equation, and the school administration is aware of new neighborhoods and the impact on future enrollment numbers.

CITY OF PORTAGE: The Austin Landings project located between Zylman and South Shore Drive has been withdrawn.  The development did submit a preliminary Traffic Impact Statement for the withdrawn project. 

The city had commissioned a traffic analysis of the concept for the Portage Road project but that study was not completed due to all activity on the city-owned property at Stanley and Woodbine being halted in June when the Task Force was created.

CITY OF PORTAGE:  The City of Portage applied for a federal RAISE grant in early 2023 to complete a number of Portage Road improvements from Centre Avenue to Bacon Avenue.  The grant application was not awarded funding.

CITY OF PORTAGE: This is a topic not under the purview of the Lake Center Housing Task Force.  Portage Parks & Recreation expects to have an updated Lakeview Park improvement plan ready later this year and it will be featured in an article in the December Portager. As noted previously, the city does not have any plans to expand the channel or tunnel/culvert under Portage Road.

CITY OF PORTAGE: As noted previously, the application for a project between Zylman and East Shore Drive and Highland and Sprinkle was withdrawn prior to the public hearing at which comments from businesses, property owners, or residents would be actively solicited. Similarly, the project off Portage Road between Stanley Avenue and Woodbine Avenue was at the preliminary concept level before the city paused all work on the project in May. The city did intend to hold a meeting with the residential and business neighbors of the city-owned property prior to the pause on this project and would do so again before formally submitting consideration of a project by the Planning Commission.

CITY OF PORTAGE: In 2015, the City of Portage adopted a Complete Streets policy that promotes accessibility by multiple modes of transportation including bikes and pedestrians.  It is the city’s position that when streets are reconstructed, they are to be redesigned whenever possible to accommodate the addition of sidewalks as part of the project.  Certainly, safety and accessibility would be improved on East Shore Drive, Stanley Avenue, Woodbine Avenue, and Portage Road with full connectivity to have safe routes to schools, public and recreational facilities, and business districts. 

On East Shore Drive, the city-owned right of way generally does not extend beyond the current width of the street and would not permit the addition of public sidewalks without additional land.  The city has been attempting to acquire easement access or property ownership on the former railroad bed to create an off-road pedestrian and bike trail that would extend along much of the east side of East Shore Drive north of Nash. The goal is to eventually create a trail connecting with the Vicksburg bike trail, with links to Ramona Park, Zylman, and also to other city bike trails at Centre Avenue and Portage Road.

CITY OF PORTAGE:  This question is not particularly clear about what density recommendations are being referred to or how the city is seeking to override them. This answer presumes the question is about the use of Planned Developments for housing projects. A Planned Development is a zoning tool allowed under state law as laid out by city ordinance that sets zoning for a property that is very specific to the site plan proposed by an applicant on a given property. A Planned Development must be built as approved. A Planned Development goes through two main steps for approval: 1) tentative plan and 2) final plan.  The tentative plan is the basic concept for the site and the final plan has much more detail including engineering-related specifications. 

Formal hearings at which public comment is sought are required for the tentative plan before both the Planning Commission and City Council. Public comment is welcome on any project at any time in the process, particularly when it reaches the deliberative bodies of the Planning Commission and City Council. At that time, questions and concerns about density can be raised. There may be a variety of reasons to choose the Planned Development option, but typically it is due to some aspect of the project or the site that does not fit neatly within the underlying zoning. In considering Planned Developments, the Planning Commission and City Council will weigh consistency with the goals of the Master Plan, City Council Housing goals, whether additional density can be supported due to access to public transit, pedestrian and bicycle infrastructure, and adequacy of infrastructure, whether it is in an area where density is desirable, and whether it will negatively impact surrounding neighborhood harmony, among other potential factors. There are many examples of beautiful Portage neighborhoods resulting from Planned Developments, including Woodbridge Hills and Copperleaf. 

With regard to the potential for workforce housing on the city-owned property between Stanley and Woodbine Avenues, given the goal of providing more attainable housing, achieving more units for people who work here to be able to live on the available land the city owns is certainly a factor. Given that the public’s American Rescue Plan Act (ARPA) dollars would be planned to be utilized to construct the infrastructure, it is also a more efficient use of those funds to provide more houses per infrastructure dollars spent.

CITY OF PORTAGE: Under a Community Land Trust (CLT) model, the city would transfer ownership of properties into the trust that would manage the property in perpetuity for the purposes it was established by the City Council.  The houses would be built on individual parcels within the Community Land Trust held property under a long-term land lease with the individual or family that buys and owns the house.  Under Michigan law, even though the land would still be owned by the Trust, the homeowner would pay property taxes on both the house and the land.   

CITY OF PORTAGE: The Community Land Trust (CLT) model ensures affordability in future sales of the home by establishing a resale formula in the ground lease. Typically, this resale formula preserves affordability for the next buyer and gives the CLT homeowner their mortgage principal paid plus a percentage of the market value change. The ground lease can also dictate that the home be sold to only a homebuyer who meets the 80th to 120th percentile of the area’s median income at the time of the sale.  

CITY OF PORTAGE: As noted above, the proposed target purchaser of the homes in the Stanley/Woodbine Avenues project is intended to be a person or family considered to be in the “workforce” housing category. It is not a low-income project or a Section 8 project. Workforce housing is considered “middle income” and is for people in the 80th to 120th percentile of this area’s median income as calculated by the State of Michigan. This target market is to create opportunities for people who work here -- making in the middle range of incomes -- to be able to afford to purchase homes here. The annual income figures to qualify for workforce housing are shown here:

The city would likely partner with Kalamazoo Neighborhood Housing Services (KNHS), as it did for two workforce houses built in 2022-2023 on city-owned vacant parcels on Oakland Drive, to income-qualifying purchasers at the outset to ensure they met the 80% to 120% AMI criteria. The purchaser would participate in KNHS homebuyer education and mortgage coaching services. Hopefully, the homeowner’s income does significantly increase over time after the purchase but will not have an impact on the fact they already own the home.

CITY OF PORTAGE: As shown on the map of the City-owned property, there are two places where it fronts onto Portage Road. The southernmost outlot onto Portage Road has been considered too close to Stanley to add a street safely onto Portage Road without creating additional accident hazards. There is also an electric utility line and easement over that section. In the preliminary concept dated June 1, the more northerly outlet onto Portage Road was left as a potential commercial development location. Evaluation of the northern outlet by a traffic impact study could lend additional information about that as an option for a street connection compared to the two connections shown into the residential development from Stanley and Woodbine Avenues. At least two entryways spaced apart are needed for fire protection in such a residential development.

CITY OF PORTAGE: Endangered species are protected under state and federal laws. Any development must adhere to state and federal laws protecting endangered species. The city understands that the Eastern Box Turtle is not considered an endangered species under federal law, but it is now categorized as a Threatened Species under Michigan law. 

Also, as stated above, environmental issues and other potential impacts of the project can be raised during the consideration of a project, particularly during the formal Public Hearings. Larger projects typically require public hearings before the Planning Commission and the City Council. These deliberative bodies are charged with the responsibility of taking into account potential impacts and weighing how a proposal fits under city ordinances, state and federal laws, and the goals for the community stated in the city’s Master Plan.

CITY OF PORTAGE:  The city has no information about the veracity of the assertion in this question, nor even what project is being referred to in Kalamazoo.

The City of Portage regularly assesses its public safety functions to ensure that it is sufficiently prepared and has the resources to handle the level of calls it may receive. During last year’s budgeting process, for example, the total number of personnel in the Police Division increased by four positions overall and increased the number of sworn personnel authorized to be on the patrol. Regarding the Fire Division, the same process applies. The Department of Public Safety and the Department of Community Development communicate regularly regarding new developments and the number of units so that the Department of Public Safety can plan accordingly. This applies to staffing along with the equipment and training necessary to provide a high level of responsiveness.