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ROSEVILLE — The Roseville City Council is considering a program that would allow a California firm to purchase and rehab an apartment complex on the northeast end of the city.
At its July 22 meeting, Roseville administrative services specialist Jim Gammicchia presented the City Council with details of California-based Standard Communities’ offer and plans to purchase The Meadows on Nardelli Lane, near Interstate 94. The Meadows has 124 units.
If the sale goes through, the new owners would perform various upgrades to the buildings, including increased security; improvements to the electrical, plumbing and heating, ventilating and cooling systems; full kitchen and bathroom remodels, updated lighting; interior and exterior painting; upgrades to common areas; and on-site property management.
However, the purchase will depend on whether or not the city approves a PILOT program for the first time.
The PILOT program — which stands for payment in lieu of taxes — is aimed at incentivizing developers to occupy and revitalize properties that are in need by closing a funding gap. Instead of paying property taxes twice a year, the developer would apply for a PILOT program that would allow the company to pay for municipal services – including police and fire – in one lump sum. This would be Roseville’s first use of a payment in lieu of taxes.
City Attorney Tim Tomlinson said that if the program is approved, the taxes being collected on the property now would be about equal to what Standard Communities would be paying through the program.
“Why it’s important for them to have the PILOT is then it makes them eligible for funding from (the Michigan State Housing Development Authority) and from (the Department of Housing and Urban Development),” he said. “So that’s why there’s the push and request for the PILOT instead of just continuing paying the taxes.”
However, Tomlinson acknowledged that he’s not a fan of PILOT programs. He added that residents of The Meadows often cause problems for city services.
“This particular development, The Meadows, as we all know, it’s subsidized housing,” Tomlinson said. “The clientele often causes problems for our city services. Police and fire are frequently called there.”
But, Tomlinson said, he’s interested in the upgrades, hoping they will allow for a more robust screening process for residents who qualify for subsidized housing.
“I think that would be helpful in assisting us in eliminating some of the concerns,” he said. “A complete, updated security system, which would permit direct access to the Police Department to be able to see what is going on, and obviously, you’re taking an asset and putting some good, significant dollars in it for purposes of upgrading the facility in our community.”
Gammicchia, who added the agenda item at the last minute, said the new vetting process would begin as current tenants move out, so none of the residents who currently live there would be removed. As renovations begin, tenants would be relocated elsewhere in the building for several weeks, until renovations were completed.
“It’s going to displace them for a little bit, but it’s well worth it, I’m sure, to get a whole new apartment out of the deal,” he said.
After some discussion about what City Council’s next steps would be in the process, Gammicchia said the PILOT program would be drafted as an ordinance. Once it has been drafted, there will be a public hearing, he said.
City Council voted unanimously to pass a motion to draft the ordinance.
