For Immediate Release | 06.12.2024
Press contact: Department of Strategic Impact | 616-738-4852

Ottawa County Approves First Housing Brownfield TIF Plan

Terra Station Mixed Use Development to Transform Downtown Hudsonville with New Financing Tool

West Olive, MI - The City of Hudsonville has long had a vision for a vibrant, diverse city center, and with the recent approval of the Terra Station development, they are continuing to realize that dream. Terra Station Ventures LLC requested the use of legislation passed in 2023 that allows for brownfield tax increment financing, or TIF, to now be used to reimburse developers for certain housing development activities. Previously, TIF was allowed only for properties that were contaminated, blighted, functionally obsolete, under the control of a land bank authority, or in a core community. The new legislation opens the door for new and creative means of financing projects to fulfill Ottawa County’s housing needs.

This 12-building mixed use development proposes 141 critically needed rental units along with roughly 4600 square feet of retail space on the first level. In order to utilize tax increment financing for this project, the developer – Veneklasen Development – is required to reserve some rental units at rates for workforce housing. For this project, that equates to 35 units maintained for residents at income levels ranging from 80% - 95% of the established Area Median Income for Ottawa County. According to data from the Michigan Housing Development Authority, an individual making $57,600 or a family making $82,240 could afford to rent these units.

"Michigan's new Residential TIF tool has created an extraordinary opportunity to bring a project to life that would have otherwise been unattainable. The collaboration and forward-thinking leadership of Ottawa County and the City of Hudsonville ensure that we will deliver a remarkable project that will be a source of pride for everyone involved."

Chris Veneklasen, CEO, Veneklasen Development

Renderings of future development, courtesy Integrated Architecture and Veneklasen Development

"Years, no, decades, of city planning efforts are coming to fruition. We are excited to see underutilized property in our downtown become a home to hundreds in a great downtown full of amenities. Hudsonville Has It!"

Mark Northrup, Mayor, City of Hudsonville

Veneklasen Construction will receive reimbursements totaling $4,323,800 in eligible costs from property taxes paid annually over 16 years. This tax increment financing plan, called a Brownfield Plan Amendment, was the first plan approved in Ottawa County that authorized reimbursements for housing development activities. The approval process included reviews by the Ottawa County Brownfield Redevelopment Authority and approval by the City of Hudsonville and the Ottawa County Board of Commissioners. A hearing was held to offer the public an opportunity to participate in this transformational project. The final step will be submission of the Brownfield Plan Amendment to the Michigan State Housing Development Authority for review and approval.

Ottawa County boasts eight local and one countywide Brownfield Redevelopment Authority that can provide access to all of the financial tools available for brownfield redevelopment. The Ottawa County Brownfield Redevelopment Authority (OCBRA) works cooperatively with all cities, villages, and townships in the County. For more information about the brownfield redevelopment, visit our website at: https://www.miottawa.org/brownfields