Lakeview developer a step closer to receiving business tax credit and possibly starting residential
For more than four years, finding a developer for the residential Renaissance Zone lots on Lakeview Street has been like a series of rollercoaster rides. Mayor Beach Hall said the revolving door of developers has provided for several emotional ups and downs, but recent developments have provided some good news. ?Right now we?re on a slight incline up, and hopefully it won?t come down again,? said Hall, who provided an update on the project at Monday?s city council meeting. Mike Uzelac?s company, Federated Capital, is the latest firm interested in constructing homes on the property, commonly called the Lakeview Development. The project is contingent upon Federated receiving a single business tax credit from state officials in Lansing.
?THERE IS a limited pool of dollars available for single business tax credits,? said Hall. ?In order to be eligible, you have to meet a certain criteria. There are various screenings of different committees as you go through the process.? According to Hall, there have been three meetings with the last occurring only 10 days ago, with each one of them providing a significantly higher hurdle.
?Now the matter has been recommended to the final hearing,? said Hall. ?Because it has got this far, we are optimistic that it will be approved.? Uzelac said all that?s needed now for the last stage is formal approval. That could occur in the next 30 days.
THE ROGERS CITY Community Development Authority, the official owner of the property, continues to work with Federated. The Michigan Economic Development Commission also provided some helpful input at the latest hearing. A MEDC spokesman ?spoke very favorably of the development and as a result it did pass.? Uzelac, who was preparing the final application this week, said his company is pleased and excited about moving forward with the laying of a couple of foundations, maybe as early as next month, and then the sale of homes. ?It would be the development as it is laid out,? said
AFTER AN initial delay because of the cleanup of contaminants at the site, Hall said there are three issues which have slowed the development. The first is the size of the project. Developers prefer to take on larger projects of 70 to 200 units. Secondly, Rogers City is off the beaten path and it is difficult for construction supervisors to oversee projects from a distance. ?Lastly, some developers have said they thought it was too risky and that they would not recover their money,? said Hall.
Federated has made a few modifications of the original work of the CDA, but essentially the blueprint remains the same. The residential lots are in one of several Renaissance Zone areas in Presque Isle County which will offer tax-free benefits for the occupants for more than a decade.