Garfield Township Approves PILOT Ordinance, River East Contract; Talks Next Steps for Red Drive, South Airport

Garfield Township trustees Tuesday approved a new ordinance to offer payment-in-lieu-of-taxes (PILOT) agreements, or tax breaks for housing projects geared toward tenants earning under 120 percent of the area median income (AMI). Commissioners also approved a contract to expand the parking lot and sidewalk system at River East Recreation Area and discussed next steps for the future of Red Drive and South Airport Road.

PILOT Ordinance
Garfield Township now has a new ordinance in place that will allow developers to apply for tax breaks if they’re building housing for tenants who earn under 120 percent AMI.

Instead of normal property taxes, a developer under a PILOT agreement pays a defined percentage of net shelter rents to the local municipality.  Garfield Township’s policy defaults to 10 percent, though developers can request and trustees can approve a lower amount. Developers must enter into a municipal services agreement to pay for additional costs related to township services. The PILOT agreement remains in place for a certain number of years – typically 15 – during which time the units covered by the agreement must be maintained for tenants within the defined income range.

PILOT agreements also go to Grand Traverse County commissioners for approval. Township Trustee Chuck Korn noted county commissioners recently determined they’d only approve PILOTs if they’re geared toward residents earning a maximum 100 percent AMI. That make Garfield Township’s 120 percent range “moot,” he said, as the county has “veto power” and could reject those applications. Other trustees worried that the mismatch would cause confusion or believed the township didn’t need to incentivize housing with lower taxes for the higher income range of tenants.

But Township Supervisor Joe McManus noted that the 120 percent ceiling matches state law. He said he’d rather “put the pressure on the county” to similarly mirror state law than align the township’s policy with the county’s. Township Manager Chris Barsheff pointed out the county could also change its policy in the future, which would then require the township to update its ordinance.

Trustees decide to leave the township’s ceiling at 120 percent AMI. They also established a new Community Development Committee consisting of the township manager, supervisor, planning director, assessor and one trustee – Laurie Lapp was chosen first for the role – that will be responsible for reviewing PILOT and other housing incentive applications, such as brownfield requests.

Next Steps for Roads
Trustees are leaning toward permanently closing off a section of Red Drive at The Village of Grand Traverse Commons to vehicle traffic, allowing only walkers and bikers and occasional golf carts to use the corridor.

The unpaved section of Red Drive has been closed since spring due to flooding from a failed culvert (pictured). While that stretch of Red Drive is on Garfield Township property, townships don’t typically maintain roads in Michigan (that falls to either cities or road commissions). Trustees have therefore been reluctant to take on upgrading Red Drive and becoming responsible for perpetual repairs to a roadway built in wetlands with unstable soil. However, numerous Village stakeholders hope to keep Red Drive open as a key part of the traffic circulation pattern on the property.

Trustees Tuesday reviewed cost options to upgrade Red Drive with asphalt or gravel, including with or without a new culvert. McManus said that because of the wetlands, the Michigan Department of Environment, Great Lakes, and Energy (EGLE) will likely require the township to replace the culvert as part of any work. Doing so with a gravel road is estimated at $92,000; doing so with asphalt is estimated at $210,000.

While the 2010 Grand Traverse Commons Master Plan and 2017 Development Regulations envision Red Drive as a “Type A street to be shared by pedestrians and vehicular traffic,” according to Barsheff, most trustees supported gating the unpaved stretch and restricting car access. Golf carts could still be used to bring visitors up to the Barns for events, but Lapp said it would add “to the nature and the beauty of the place to not have it be a road.” She added it’s not “that far to drive around” for vehicles to detour around Red Drive. McManus said township officials plan to meet with Village stakeholders this week for input and return to trustees soon for action, noting it’s “ultimately this board’s decision” what happens to Red Drive.

Also related to roads: Trustees expressed support for a new committee spearheaded by the Grand Traverse County Road Commission to determine solutions for the South Airport Road crossing near Logan’s Landing. McManus and Trustee Denise Schmukal will serve as the township representatives on the committee, which will also include two road commissioners, two county commissioners, and the county drain commissioner. The remaining representatives are expected to be named shortly, with the committee to potentially start meeting in June.

Park Projects
Finally, trustees Tuesday approved a $373,826 contract with AJ’s Excavating for improvements to River East Recreation Area that will include expanding the parking lot and sidewalk system. Though AJ’s wasn’t the lowest bidder, the firm offered the fastest turnaround time on the work – starting in June and finishing before the Fourth of July. That was important to trustees since the park will need to be closed during the construction work. The township is also expected to review bids soon for installing a bathroom facility at River East.

Commissioners also discussed bids for a new universally accessible trail loop on the northern portion of the Grand Traverse Commons Natural Area. The two bids for that project came in at $1.1 million and $1.5 million, more than double the township’s initial budget. McManus said “EGLE really complicated matters” with unanticipated regulatory requirements in some areas, including two boardwalks that had to be converted to bridges. Township officials will work with contractors to identify potential cost savings and try to bring the budget down before approving a contract in June. The township is slated to receive $300,000 in DNR grant funding for the new trail.