The Suttons Bay Township board considered requests from Larry Mawby, founder and president of the nonprofit land trust Peninsula Housing, at their June regular meeting last Wednesday.
Mawby said that neither of his two requests would require immediate action from the township, but would make his organization’s task of increasing affordable housing options in the area easier.
The board reviewed an ordinance that would allow them to collect a payment in lieu of taxes (PILOT) on workforce housing projects. The township board said the document is under review by their attorney, Tim Figura, and they will consider passing it at a future meeting.
The nonprofit organization presenting the ordinance hopes they will pass it by Nov. 1, the cutoff date for the next tax year.
By entering into a PILOT agreement, the township would agree to collecting an annual service charge rather than the usual property taxes. According to the ordinance, this agreement would be effective during construction or rehabilitation on a property to make the project more economically feasible.
Mawby presented the draft ordinance to the board. Peninsula Housing is looking to develop a 10-acre farmstead and a neighboring parcel on Herman Road in the township.
As a land trust, Peninsula would retain ownership of the land and lease the land for a “nominal yearly fee.” The ordinance says they aim to make housing options that are reasonably affordable to households that make less than 120% of the area median income.
Mawby stressed that he is not asking the township to enter into a PILOT agreement now, but passing this ordinance would enable them to enter into such agreements in the future. The Michigan State Housing Development Authority used to be the sole administrator of these agreements, but as of 2023, local units of government can enter them with developers as well, Mawby said.
Mawby also requested that the township enter into an intergovernmental agreement with Suttons Bay Village that would allow the village to extend water and sewer services into the township on a caseby-case basis.
Mawby said he does not expect the village to extend these services to the township because their water and sewer systems do not have the capacity. However, he said Peninsula Housing making the effort to use village utilities on their projects will improve their chances of getting federal tax dollars. The board said they will consult with their attorney and the Michigan Townships Association on this.
The township board also agreed to reschedule their regular meetings from 5:15 p.m. to 6 p.m. on the second Wednesday of each month, starting July 10, to accommodate zoning administrator Steve Patmore’s schedule.
