Sturgis being able to “punch above its weight,” attracting more people as it spurrs more development, fascinates John Carmichael.

Carmichael, now 47, was Sturgis’ youngest mayor when he took office in 2008. Thirteen years after leaving office, he’s still passionate about his hometown community. The passion continues with The Watershed, which opens to residents Sunday, September 15.

A five-story building with 23 studio, one-bedroom and two-bedroom apartments, The Watershed is located at 108 W. Chicago Rd. in Sturgis. It is a completely new, approximately $11.5 million building, a multi-use development including a third-story community room. Amendment, a 4,700-square-foot steakhouse, is scheduled for an early 2025 opening.

“One of the goals was placemaking in downtown Sturgis,” Carmichael said. “We wanted a place for downtown residents to live and also interact with each other. I’m hoping this is a catalyst project for further investment in the downtown, and that we can grow the community in that way.”

Work on The Watershed began in earnest in August 2022. Demolition of buildings from the 1850s was done carefully, especially once artifacts were discovered.

“This used to be a bank,” Carmichael said while walking through what will become Amendment. “When we were demolishing, we found an old ‘Wanted’ poster. There was a Yale vault from the 1870s, a beautiful steel vault. We pulled it out – it weighed 53,000 pounds – and we restored one of the vault doors. It’s going to be a focal point here.”

Checking out the views from the community room’s outdoor patio, and later, a fifth-floor balcony, Carmichael said he hopes they will be nice places for residents to gather, socialize, and enjoy the outdoors.

“I kind of hoped they could stand out here and watch the parades,” he said about the patio.

Carmichael expects The Watershed’s apartments will most appeal to young people living in their own residence for the first time, but also older people who are downsizing.

“The city is redoing one of its parking lots in the back,” he said. “Part of the financing for the project comes from Brownfield redevelopment funds. These are some of the infrastructure improvements that the project has helped facilitate.”

While The Watershed building itself was constructed for approximately $11.5 million, the final cost for Amendment will be determined after its development. Financing for The Watershed came from multiple sources, including the City of Sturgis, the non-profit Michigan Community Capital, which specializes in furthering affordable housing, and the Michigan Economic Development Corporation.

“There’s a housing crisis around the country. It’s acutely felt in the state of Michigan, particularly in small towns like Sturgis. Finding a solution to the housing crisis is very difficult. Sometimes the economics of construction and housing just don’t work out. It really takes public and private partnerships to achieve projects like this,” Carmichael said.

As of late August, The Watershed had enough people approved and positioned to sign leases for about 75% of the 23 apartments. Residents and the project itself will benefit from the New Market Tax Credits program.

“I have guaranteed that at least six of the apartments will be affordable for people who are earning 80% of the average area median income (AMI),” Carmichael said. “Those apartments will always be affordable for people who are ‘low income.’ The fact is, market rate in Sturgis more or less approximates with the 80% AMI standard anyway, so if you look at the rents that I’m charging, I’m charging affordable rates. They just happen to be the market rates in Sturgis. That kind of speaks to the economic difficulties of creating housing in small communities.”

In addition to The Watershed, Carmichael also owns Root and Branch Real Estate, the development’s property manager. He is also an investor in the Moso Village mixed-use development and has spent the last 20 years building GT Independence, which he co-founded. The company is nationally known for supporting people with disabilities, and long-term care needs in their ability to live independently.

“My entire career, I hope, has been about serving people,” Carmichael said. “That’s a really important thing to me. I was really passionate about serving people with disabilities because of my older brother Ben, who has an intellectual disability.”

Whether he’s working on the challenges of local economics or transforming the health care system for people with disabilities, Carmichael is driven by a passion for service and a belief in the power of community.

“My driving motivation will continue to be the opportunity to be part of a talented team, with a shared vision, striving towards a future where everyone is included and in control of their own destiny,” he said.

Frank Stanko is a staff writer for Watershed Voice.

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