(Michigan City, IN) - A proposal to build more than 200 new market priced homes is moving forward in Michigan City.

 

The city’s Redevelopment Commission Monday night unanimously approved a memorandum of understanding with Sloane Avenue Group and Redstone

Group of Grand Rapids, Michigan.

 

RDC Attorney Alan Sirinek said the tentative plans call for the construction of eight buildings containing 124 rental units along with 122 townhouse units available for purchase on Tryon Road on the city’s far-east side.

 

Sirinek said there would also be 6,000 square feet of retail space to serve the needs of residents in the proposed development referred to as “Tryon Meadow Housing.”

 

Officials seemed to more than welcome the proposal to help modernize the city’s aging housing stock.

 

“There’s no secret Michigan City needs housing.  So, whenever a developer is proposing a housing development we kind of perk our ears up,” he said.

 

Sirinek said the developers requested the MOU, saying it would help them purchase the property within the short deadline they’re under to secure the land and obtain a lower interest rate on the financing.

 

The MOU also represents a commitment by the city to work with the developers over the next 45 days on an incentive package.

 

Skyler York, the city’s Director of Planning and Development, said the city is being asked to help pay for the expense of constructing roads and extending municipal water and sewer service to the site.

 

York said how much the city would contribute toward the very rough four million dollar estimated cost is among the details yet to be hammered out.

 

The cost of the new infrastructure would be paid for with tax money generated from the new homes increasing the assessed value of the undeveloped land.

 

York said the developers are still in the process of deciding the exact spot along Tryon Road to start constructing the homes.

 

“There’s still a lot of open land over there that they’re looking at,” he said.

 

Mayor Angie Nelson Deuitch said she’s in full support of the project.

 

“I think it’s a wonderful way to not only improve our infrastructure but also to increase our housing stock,” she said.             

 

Officials also seemed impressed with how prepared and committed the developers seem to be about the project.

 

York said one of things the city would like is for some of the new construction to be workforce housing priced at what a good wage earner can afford.

 

“We’ve been working pretty diligently with this group.  They’re been pretty aggressive with respect to doing the things that we asked them to do,” he said.

 

Deuitch also complimented the developers for having their “ducks in a row.  Ready to go without asking for a whole lot,” she said.

 

York said the developers have built thousands of new homes primarily from the Chicago area through northwest Indiana and into southwest Michigan.

 

He said the MOU is an agreement for the city and developers to partner together while moving ahead in the process toward final approval without guarantees or threat of penalty.

 

“We’re going to basically hold hands and move forward,” York said.

 

The cost of rent and sale price are other specifics not decided yet because of the plans being in the preliminary stages. 

 

Sirinek said full details will be shared probably next month or in November if the developers are successful with the land purchase.