Kalamazoo commission opens path for hotel, housing projects, advances $33M in infrastructure bonds

The Kalamazoo City Commission met on Tuesday and approved the creation of redevelopment districts tied to two major projects downtown — a hotel conversion on West Michigan Avenue and new residential units on East Kalamazoo Avenue — while also giving final approval to issue more than $33 million in bonds for water and wastewater improvements.

227 W. Michigan Ave hotel proposal

Commissioners approved a Commercial Redevelopment District for 227 W. Michigan Ave., a step that will allow the developer to seek tax incentives for a plan to transform the historic courthouse into a 120-room hotel with a restaurant and bar.

“It would maintain its historic character,” said Jamie McCarthy, development manager for the City of Kalamazoo. “Taking courthouses and turning them into hotels, giving them a new life.”

McCarthy explained that creating the district “freezes the taxes for now,” but the city expects to see growth in the tax base in the long term, alongside the creation of jobs.

261 E. Kalamazoo Ave. housing conversion

Commissioners held a public hearing and approved a Commercial Rehabilitation District at 261 E. Kalamazoo Ave., where developers plan to convert office space into 57 residential units.

Commissioner Jeanne Decker welcomed the prospect of new housing but pressed for clarity on affordability.

“I’m always excited when there are new residential units that are coming,” Decker said. “But what income?”

McCarthy responded that the applicant is working on an affordable housing agreement with the city, though it is too early to specify rent levels.

“Hopefully the developers really take that into account,” Decker said, pointing to the city’s need for affordable housing.

Commissioner Eric Praedel emphasized the value of reusing historic buildings in the city.

“I particularly think it’s exciting because these are creative uses of historic structures,” Praedel said. “The likelihood is they would sit there for decades before something else happened or they were just completely demolished.”

Mayor David Anderson reminded attendees that Tuesday’s vote was not a project approval.

“This is not approving a project,” Anderson said. “All that we are doing in this hearing is establishing a district. Multiple steps are still going to have to fall in place in order for this to happen.”

Water and wastewater financing

In regular business, commissioners adopted ordinances authorizing $22.1 million in water supply revenue bonds and $11.44 million in wastewater system bonds, part of the city’s capital improvement program.

“We are taking this money and investing in city infrastructure,” Anderson said.

City Manager James Ritsema added, “This is carrying out the funding piece to fund the projects that are being proposed in our water and wastewater, so those two items will begin the process of issuing these bonds.”

Other actions

The commission also approved the city’s purchase of a vacant lot at 808 Simpson Street.

“One more unit of housing going up,” Decker said, noting the city’s plans for the parcel.

City manager search update

Commissioners also received an update on the city manager search. Applications are being accepted through September 12 and will be reviewed immediately.

On October 6, commissioners will hold a closed session to narrow the pool to five finalists, who will be named publicly at the end of the meeting. A community meet-and-greet with the finalists is scheduled for October 14 from 5–6:30 p.m. at the Catalyst Center, followed by commission interviews on October 15.

The commission expects to select a new city manager on October 20, with contract negotiations to follow.

Maxwell Knauer is a staff writer for Watershed Voice.