Housing project delay won’t affect new community center plans
By Barb Pert Templeton
A housing project at the former Algonac Elementary School hit a snag when the developers’ credit application to the Michigan State Housing Development Authority (MSHDA) was not awarded as expected.
In a memo to city officials at a March 18 council meeting City Manager Denice Gerstenberg noted that a purchase agreement between the city and the developer, Algonac Shores Limited Dividend Housing Association Limited Partnership was approved in Sept. 2024 but the closing of the agreement was contingent upon the developer obtaining the tax credits.
Now the original agreement has to be adjusted while the developer submits another application for the MSHDA funding. If the funding is awarded this time construction will begin in 2026 with a completion date of 2027.
The proposed Gar Woods development is to include 25 senior apartments and 18 family townhouses on the property at the former Algonac Elementary School. The developer plans to demolish the administration and classroom wings of the school and the city will receive ownership of the gymnasium for the future Algonac Activity Center.
The school didn’t sell after being on the market for seven years so the city purchased it at an auction in Dec. 2023. The final price was $196,000 including the purchase price of $165,000 and $20,000 for marketing fees plus closing costs.
The developer of the Gar Woods complex is purchasing the property from the city for $196,000. In her memo to officials, the city manager noted that the Gar Woods project is a $15 million dollar plus investment in the city.
The city council was unanimous in its approval to update the purchase agreement including changing the agreement date from Sept. 17, 2024 to March 18, 2025, the application date for funding from Oct. 1, 2024 to April 1, 2025 and to amend the closing date of on or before Dec. 31, 2026 to allow two extension periods of six months each.
Council weighs in
Mayor Pro Tem Dawn Davey asked what will happen if the developer doesn’t get funding for the project, is the city’s new activities center completion going to be delayed?
“Am I correct in saying the activities center is not dependent on this development?” Davey asked.
“We’re moving ahead with the activities center regardless of the development,” City Manager Denice Gerstenberg replied.
Davey thanked the city manager for clearing the issue up and said there were people who had questions about that aspect of the project.
“I remember going through all of this from the beginning and this was something that residents wanted, when you asked for a list of things they wanted to see it was a community center,” Davey said.
She said it’s good to just let people know that if an issue arises with the developer of the housing, the activities center will go forward.
Mayor Rocky Gillis said he recalls that when community input was gathered about where they wanted development to take place a vision study (in 2018) reflected 90% of the orange dots marked on the map were at the former Algonac Elementary School.
“I think what’s happening with that school is going to be the best thing we could have done,” Gillis said. “We’re going to have a $13 million dollar facility for about $200,000 in taxpayer dollars, give or take. It’s going to be beautiful.”
“A nice activity center, very nice,” Councilwoman Cathy Harris said.
“It’s nice to see the activity center coming along and I think it’s going to be pretty outstanding,” Councilman Jake Skarbek added.
Davey then noted that the city got $700,000 in state funding plus American Rescue Plan Act (ARPA ) funds to complete the project.
The former Algonac Elementary School is located at 1216 St. Clair Boulevard.
