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EGLE grant will help bring new housing to Bay City
August 28, 2025
The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is awarding a $1 million Brownfield Redevelopment Grant to a project that will bring up to 116 new middle- and low-income housing units to Bay City.
The redevelopment covers the following addresses:
- 108 Adams Street (including vacated alleys)
- 101-109 North Jefferson Street
- 501 Columbus Avenue
Those properties have been used for many things dating back to 1886 including a power substation, school, store, restaurant, open-air market, drycleaner, YMCA and housing. The properties are currently blighted and vacant.
Contamination comes from its historical uses, and from urban and foundry fill material brought on-site. Investigations using EGLE Brownfield Site Assessment funding found metals and organic compounds in soil. The remaining buildings have asbestos-containing materials that will need to be abated. The EGLE grant will pay for additional site assessments; a portion of demolition and abatement; the excavation, transportation and disposal of contaminated soil; limited site restoration; and a cap and clean fill material to go over remaining contamination.
The $40 million redevelopment will be split into two phases. Phase I will consist of a four-story apartment building with 39 units, as well as 17 townhomes. Phase II is scheduled to begin after Phase I is finished. It’s expected to add another 50-60 apartments and townhomes.
Bay City has approved Payment in Lieu of Taxes (PILOT) for this project. PILOT is a way to encourage the development of low-income housing by allowing developers to pay a service fee instead of property taxes. The Michigan State Land Bank Authority contributed a $2.1 million grant to the redevelopment. The site is walking distance from downtown Bay City and the Saginaw River riverwalk. The city believes redevelopment will bring more people and economic opportunity to downtown. Construction is expected to be finished in 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.
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