KALAMAZOO, MI (WKZO AM/FM) – A group of investors wants to convert the old Vermeulen Building in downtown Kalamazoo from offices to housing, but they say a proposed city policy could derail the project.
Last night City Planner Jamie McCarthy laid out the plan for a new Neighborhood Enterprise Zone policy that would reduce the number of years a project could receive tax breaks from 15 to as few as six years if developers don’t meet certain city priorities.
Attorney Pat Lennon says his client has already worked out the financing on the downtown project and needs the full tax break.
Lennon says right now margins in construction are razor thin, due to high interest rates, supply chain issues, labor shortages, and inflation.
The building on Rose Street. was originally known as the Lawrence and Chapin Building. It was completed in 1872 as an iron implements factory and later became a furniture store. It would be converted to 82 units, with 33% of them reserved for workforce housing.
City Manager Jim Ritzema wanted to pull the policy proposal off the agenda when he heard that developers had a problem so the new policy may be modified between now and when it’s slated for approval next month.
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