Skip to main content

EGLE grant will help turn contaminated site into affordable housing for substance abuse recovery

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) is awarding a $1 million grant to the William Schma House brownfield redevelopment project. The $19 million project will turn vacant property at 1900 Belford Street in the city of Kalamazoo into three new buildings with a total of 48 apartments plus space for support services like coaching and counseling.

The 6.64-acre site was part of a paper mill operation for nearly a century, hosting a mill building and a power plant. The mill shut down in 1997 and was left idle until the city began preparing it for redevelopment in 2010. Funding from EGLE and the U.S. Environmental Protection Agency was used to demolish the building, remove 12,000 tons of contaminated soil, restore the floodplain, and realign the section of Portage Creek that runs through the property.

The site is still contaminated with petroleum, metals, and chlorinated solvents. The $1 million EGLE Brownfield Redevelopment Grant will be used for:

  • Additional environmental assessments.
  • Removal of additional contaminated soil.
  • Design, installation, and commissioning of vapor mitigation systems for the new buildings.
  • Installation of liners beneath stormwater retention ponds.
  • Installation of a layer of clean soil over any remaining contamination.

The city is entering into a 50-year Payment in Lieu of Taxes (PILOT) arrangement with the developer. 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 redevelopment will be affordable to people making up to 50% of the Area Median Income. Residents will have access to “wrap-around” recovery services including mental health care, recovery coaching, and workforce training. The city of Kalamazoo and Kalamazoo County are providing more than $5 million in project funding. Construction is scheduled to be finished in the fall of 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 2025, the EGLE Brownfield program provided more than $23 million in brownfield incentives to 76 projects in 52 Michigan communities. These projects are projected to create more than 440 housing units, 600 jobs, and result in more than $675 million in capital investment.

Media Contact: