On Monday night, the board approved a letter of support for The Village at Rosy Mound’s Michigan State Housing Development Authority P.I.L.O.T. (payment in lieu of taxes) program.
Reenders Inc. has plans to build the complex on Ottawa County Road Commission property along the south side of Rosy Mound Drive, between Lakeshore Drive and U.S. 31. Reenders Inc. is the principal owner of Grand Pines Assisted Living Center and Villas at the Pines in Grand Haven, and several other senior housing communities in Michigan.
“Development plans for The Village at Rosy Mound provide for the construction of a 116-unit senior congregate apartment building,” Township Manager Bill Cargo said. “Financing for the development will be applied for from MSHDA under the Gap Financing Program.”
The Gap Financing Program — through which MSHDA awards money on a limited, competitive basis — provides funding through a combination of funds and tax credits. Part of this process, officials say, is the P.I.L.O.T. program, which would exempt the Rosy Mound development from all real property taxes.
“The P.I.L.O.T. we’re talking about would be for the term of the bond or mortgage that they would have for this project,” Cargo said.
According to Cargo, the township would receive an annual payment equal to a percentage of annual rent, typically from 4-10 percent. MSHDA senior housing projects in the City of Grand Haven and Spring Lake Township have provided P.I.L.O.T. programs at the 4 percent level.
“The P.I.L.O.T. monies collected are estimated to be about $56,500 at the 4 percent of rent level when the project is completed,” Cargo said.
According to township officials, the funds must be distributed to all of the taxing units based on the current percentage of property taxes distributed.
“For example, the portion of Grand Haven Charter Township property taxes (i.e., General, Fire/Rescue, Police, Transit, Debt) collected equals about 8.9 percent of the total,” Cargo explained. “Therefore, if the $56,500 projected P.I.L.O.T. monies are collected, the township would receive about $5,025.”
If The Village at Rosy Mound is selected for the MSHDA Gap Financing Program, an actual P.I.L.O.T. ordinance specific to the development would need to be adopted by the Township Board next year, Cargo said.