Sturgis officials: Apartment developer hits wall
STURGIS — A planned Sturgis apartment development project looking to receive state financial support has met another barrier.
Sturgis City Manager Andrew Kuk told the city commission Wednesday his offices heard from Spire Development. Spire reported to the city they were informed by the state they did not receive funding for the proposed St. Joseph Street Lofts.
St. Joseph Street Lofts is a proposed, high-density apartment complex at 303 St. Joseph St., the former Paramount Furniture Co. site. The property, vacant since 1996, is owned by the city's economic development corporation.
Spire proposed to construct a three-story building with 50 apartments: 12 one-bedroom units, 25 two-bedroom units and 14 three-bedroom units. Spire Development sought funding through the Michigan State Housing Development Authority for the project. Due to the high cost of housing complex construction, projects are contingent of securing state funding, a highly competitive process. The applicants filed paperwork in December and those selected were to be notified around April.
Commissioner Jeff Mullins called Wednesday's announcement "disappointing."
The developer previously applied and was approved for a special land use in 2020. At that time, the property went through the rezoning process and was rezoned to allow for high-density apartments, but the project stalled.
Pending the funding approval, Spire planned to close on the property in late summer and started construction later in the fall, with the apartments to open 14 months later.
Kuk said the city plans to communicate further with Spire to identify anything that may help for future consideration and "get projects (like the Lofts) across the finish line."
In other business, a public hearing on a sidewalk repair special assessment district was adjourned pending a re-examined proposal for costs levied on properties in areas targeted for improvements.
The City of Sturgis Engineering Department is initiating a special assessment district for properties along Main Street north of downtown. The district is being considered in conjunction with the reconstruction of West Main and East Main streets between North Clay and George streets. The intent of the SAD is to repair existing sidewalk segments along both sides of West and East Main streets within the project boundaries. The city makes the repairs, while the property owners are responsible for associated costs.
A letter was sent to each property owner listed in the preliminary assessment district notifying them of the public hearing date and estimated assessment cost.
The amounts, ranging from $80 to $2,270, were estimated but expected at the opening of the public hearing to be a little more based on anticipated bids.
One of those property owners, Courtney Reingardt, attended Wednesday's meeting, questioning the amount proposed for the sidewalk in front of her house. Reingardt's assessment was the highest on the list, and she asked for clarification on how the assessment was made.
City engineer Barry Cox examined the lot information and the number of feet of 4-inch and 6-inch sidewalk, and said he “believes the (cost) assessment is incorrect.”
The figures were calculated by an employee no longer there, Cox said, making it impossible to question that person as to how they arrived at the figure.
Cox said the list will be examined by current staff, and as of Wednesday, it appears the final cost on Reingardt’s property would be “substantially lower” than projected.
Should some property owners be assessed a couple hundred dollars in the end for sidewalk repair or replacement, commissioner Alan Albarran asked if there is program assistance for those who are unable to cover the cost of the assessment.
City clerk Ken Rhodes said some residents do come and explain they have difficulty with meeting the special assessment costs on other sidewalk projects. Immediate options include the assessment being placed on their taxes or making payments across five years.
This article originally appeared on Sturgis Journal: Sturgis officials: Apartment developer hits wall
