Traverse City commissioners expressed support Monday night for a proposed payment-in-lieu-of-taxes (PILOT) arrangement with The Woda Group that could bring 64 affordable housing units to the corner of Pine and Front streets.

Rather than a traditional tax bill, the arrangement would allow The Woda Group to pay taxing jurisdictions six percent of the apartment rental rates for a 16-year period, or an estimated $20,000 annually. Payments would be audited annually, and the developer would be required to meet Michigan State Housing Development Authority (MSHDA) standards for workforce/affordable rental rates. All other parts of the development, including non-workforce residential units, would be taxed at the normal rate. The Woda Group Senior Vice President P. Craig Patterson told commissioners “it’s doubtful (the project) would work” without the PILOT.

Commissioner Gary Howe said the project offered “an opportunity for affordable and accessible housing (to be) integrated into our core area, which is supported in the community." Agreed Commissioner Ross Richardson: “I am certainly supportive of the PILOT. We keep talking about affordable housing, but don’t have much to show for it. Here’s something…it’s a good project.”

Commissioners did not vote to officially approve the PILOT Monday, since they were in study session, but the measure is scheduled to come back for approval at an upcoming meeting. The affordable housing project is also contingent upon a special land use permit (SLUP) request by the developer to build up to 100 feet on the property, rather than the 60 feet allowed by right. A public hearing for that request is scheduled for August 4 in front of the Traverse City Planning Commission.