WHITEHALL TOWNSHIP — A proposal that could help keep the Hickory Place housing development moving forward took a step ahead during a special Whitehall Township Board meeting on June 9, as township officials agreed to continue reviewing a housing related Brownfield Tax Increment Financing plan and schedule a public hearing.
The discussion centered on a request from Hickory Place Development to utilize a state approved financing tool that would allow a portion of future property tax growth generated by the development to reimburse infrastructure costs associated with the project.
No final approval was granted during the meeting. Instead, the board voted to move the process forward, allowing a formal Brownfield plan to be prepared and presented for public review at a future meeting.
Why the Request Matters
The discussion highlighted a challenge facing housing developments across Michigan: rising construction costs.
Kyle Johnson of Hickory Place Development told board members that costs for fuel, materials, labor, and infrastructure have climbed significantly since planning for the project began several years ago. He said the increasing costs have placed pressure on the financial viability of the development.
According to Johnson, the first phase is already operating at a loss, and without some form of assistance, continuing future phases could become difficult.
“We’re not sitting here asking to get money back in our pockets,” Johnson told the board. “It’s to allow us to continue the development and bring the housing into the area that’s needed.”
The Hickory Place project is planned as a 72 unit owner occupied residential neighborhood, with homes expected to sell in the approximately $300,000 to $350,000 range.
What Is a Housing Brownfield?
One of the biggest points of discussion involved the use of the term “Brownfield.”
Traditionally, Brownfield programs have been associated with contaminated, blighted, or obsolete properties. However, state lawmakers amended Michigan’s Brownfield law in 2023 to allow certain housing developments to qualify for the same financing mechanism in response to housing shortages across the state.
Jennifer Hodges, Muskegon County Housing Coordinator, explained that the change was designed to encourage public and private partnerships that can help create new housing.
Under the proposed arrangement, Hickory Place would finance eligible infrastructure improvements up front. As homes are built and property values increase, a portion of the new tax revenue generated by those homes could be used to reimburse those costs over time. Existing tax revenues would continue flowing to local governments as they do today.
Officials emphasized that no reimbursement would occur unless homes are actually built and added to the tax rolls.
“It’s production based,” Johnson said. “If we don’t produce houses, we get nothing.”
How the Financing Would Work
Consultant Roman Wilson, Vice President/Due Diligence and Brownfield Services Director of Fishbeck, outlined preliminary projections showing approximately $2.5 million in eligible infrastructure costs, including roads, utilities, lighting, and other improvements needed to support the neighborhood.
Under current projections, the developer would seek reimbursement over roughly 10 years. An additional five years could be used to build a revolving Brownfield fund that could support future redevelopment projects, although that portion would ultimately depend on decisions made by whichever Brownfield authority oversees the plan.
Wilson noted that the township’s share of the captured tax increment would be approximately $130,000 over the reimbursement period, while more than $2 million would come from other participating taxing jurisdictions. He also noted that school debt millages would continue to be collected and are not eligible for capture under the proposal.
Township Officials Weigh Concerns
Several board members acknowledged that the township’s previous experience with a Brownfield project has left some residents wary of the concept.
Much of the discussion focused on how to explain the proposal to the public and distinguish it from past Brownfield arrangements.
Hodges suggested that residents may better understand the concept if it is viewed as a housing tax increment financing (TIF) tool rather than focusing on the Brownfield label itself.
Board members also raised questions about long term oversight, public input, future tax implications, and whether administration of the program should be handled locally or through Muskegon County’s newly established countywide Brownfield Redevelopment Authority.
Whitehall City Manager Dan Tavener, whose city has experience with multiple Brownfield projects, said the financing mechanism has worked successfully in Whitehall and noted that careful planning and clearly defined reimbursement terms are key to making such projects successful.
What Happens Next
Rather than approving the financing request, the township board voted to continue the process by requesting a formal Brownfield plan and scheduling a public hearing so residents can review the proposal and provide feedback.
The plan is expected to return to the board later this month, where township officials and residents will have an opportunity to examine the details before any final decision is made.
For township leaders, the discussion ultimately centered on balancing two priorities: protecting taxpayer interests while also addressing the growing demand for housing in the White Lake area.
The public hearing will provide residents their first opportunity to weigh in on whether the proposed financing tool is an appropriate path for helping bring the remaining phases of the Hickory Place development to completion.
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