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EGLE grant will help bring new affordable housing to Bay City

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is awarding a $400,000 Brownfield Redevelopment Grant to a project that will bring 89 units of new affordable housing to downtown Bay City.

The site is made up of three parcels of land. 114 First Street was used for commercial, residential, industrial, and warehousing developments. 1201 Washington Avenue hosted a theater. 1210 North Water Street was used for commercial and laboratory operations. All three are now vacant.

Site investigations paid for with EGLE Brownfield Site Assessment funds showed soil and groundwater at the site are contaminated with metals and organic compounds. The EGLE Brownfield Redevelopment Grant will pay for additional site assessments, transportation and disposal of contaminated soil, and management of contaminated groundwater and remaining soil.

Bay City is providing a $500,000 loan from its Local Brownfield Revolving Fund. The city also is asking the Michigan State Housing Development Authority to approve Tax Increment Financing (TIF) of a little more than $1 million. TIF allows the increase in property tax revenue on the finished project to go to the developer until the developer has recouped its eligible costs.

The $23.4 million Water Street Lofts project will create an 86,368 square foot, three-story apartment building with commercial space on the ground floor and 88 affordable “missing middle” housing units priced at 120% of the Area Median Income. The redevelopment will be two blocks from downtown Bay City, walking distance from the Saginaw River riverwalk, and is in a primary investment area in the city’s master plan. Construction is expected to be finished by 2027.

 

More than half of EGLE’s annual budget supports local projects, protects public health and the environment, and helps create economic growth and jobs for Michigan workers. Redevelopment increases the value of brownfield sites and other nearby properties. In 2024 EGLE awarded $25.1 million in brownfield incentives to 87 projects around Michigan.