COLDWATER, MI — On Monday, May 11, the Coldwater City Council introduced an agreement to sell about 17 acres of city-owned land on South Willowbrook Road to Michigan Housing Properties LLC, a division of Allen Edwin Homes, for $180,000.
City Manager Keith Baker said the proposal aims to transform the long-vacant parcel on the city’s south side into a new single-family neighborhood, meeting the growing demand for housing while minimizing financial risk to taxpayers.
The proposal now enters a 30-day review period, as required by the city charter, allowing residents and potential buyers to provide input or submit alternative offers before the final decision on June 22.
The property, situated between the Fawn Run and Sauk River Forest subdivisions, has remained mostly unused since the city acquired it at a tax foreclosure auction in 2000.
It is the remainder of a stalled development from the early 2000s.
The current plan envisions about 36 single-family homes, each ranging from 1,600 to 2,200 square feet, with an attached two-car garage.
Greg Bird, program manager for workforce housing at Allen Edwin Homes, said home sale prices have not yet been discussed.
Bird said the development is expected to offer a mix of market-rate owner-occupied homes, workforce or “missing middle” housing, and market-rate rentals.
The final mix of housing will depend on market conditions and ongoing discussions with the city.
Construction is expected to proceed gradually, with an estimated seven to 10 homes built per year, Bird said. At this pace, the neighborhood would be completed in two to four phases, allowing development to adapt to demand over time.
City leaders emphasized that the proposal allows for housing expansion without significant upfront public infrastructure investment.
Mayor Tom Kramer noted that if the city completed the subdivision independently, it could incur nearly $2 million in debt for roads and sewer infrastructure, with no guarantee that new homes would be built.
Under the agreement, Allen Edwin Homes would finance and build the required infrastructure to city specifications and be reimbursed as homes are completed, shifting most of the development risk away from taxpayers.
The agreement also provides a one-year investigation period for the developer and the city to refine project details.
Additional approvals, such as site plan review and potential brownfield consideration, are required before construction can begin.
The Portage-based home builder also has contracts for lots in Western Meadows, where the city used a Brownfield taxing program to finance improvements.
City attorney Amanda O’Boyle clarified that the proposed sale does not include several city-owned lots farther south along the Sauk River.
Those riverfront lots are less suitable for homes due to recent flood plain map changes, but could be considered for recreational use in the future, the attorney said.
Contact Don Reid, dReid@USATodayCo.Com
This article originally appeared on Coldwater Daily Reporter: Coldwater plans to sell 17 acres off Tanner Run to Allen-Edwin Homes
Reporting by Don Reid, Coldwater Daily Reporter / Coldwater Daily Reporter
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