Keep the space that’s for a community center
By Barb Pert Templeton
Members of the Algonac City Council approved a purchase agreement between the city and Algonac Shores Limited Divided Housing Association Limited Partnership for $196,000 for property at the former Algonac Elementary School.
The Sept. 17 council meeting had the five members present approving the agreement. Council members Dale Williams and Dawn Davey were absent.
Mayor Rocky Gillis read the agreement, provided in a memo to the council by City Manager Denice Gerstenberg into the meeting’s record and it outlined how the agreement was worked out and the dollars involved.
The agreement was to approve the purchase agreement between the city and Algonac Shores Limited Divided Housing Association Limited Partnership who agreed to pay $196,000 for the property at the former Algonac Elementary School that they hope to build on.
Algonac Shores is proposing the construction of 25 senior apartments and 18 family townhomes in what would be a $15 million dollar project.
Members of the Algonac City Council approved a purchase agreement between the city and a project developer who plans to build apartments and townhouses on the old Algonac Elementary School property. The developer will pay $196,000 for that section of the property.
Gillis said the plan is for the developer to demolish the administrative and classroom wings of the school and the city will retain ownership of the one-story existing school for development of a community center with a gymnasium.
The city purchased the property at auction in Dec. 2023. The school had been for sale for seven years and the final purchase price paid by the city at auction was $196,000 which included $165,000 for the auction price and $20,000 for the marketing fees and closing costs.
The memo the mayor read into the record noted that the closing on the purchase agreement would only occur upon the developer obtaining tax credits from the Michigan State Housing Development Authority (MSHDA).
The tax credit application is due Oct. 1 and awards are expected to be announced in Jan. 2025. If the tax credit is awarded to Algonac Shores construction would begin in 2026 with completion in 2027. If the application is not funded this first time the developer may be able to reapply to an April 1 deadline.
City Councilman Michael Bembas said from a real estate and financial point of view it’s a great deal.
“We bought it for a $196,000 and we’re getting $196,000 back and we’re still keeping part of it,” Bembas said. “So, we’re not even selling the whole thing and still getting the full amount of money back.”
Councilwoman Cathy Harris agreed.
“It was tough, Denice stuck her neck out for us when we asked her too, she got the school, purchased, we’re getting our money back plus were retaining the auditorium for us to use so it’s a win win,” Harris said.
Gillis said in addition, the city has been awarded $750,000 in grant money for a community center.
“I’m just very excited to see this community center and everything move forward, after sitting for ten years with nothing on that property, this is big,” he added.
