Baldwin House SLUP, PILOT approved
By Grace Lovins
Discussions on a special land use permit (SLUP) amendment and PILOT (Payment-in-lieu-of-Taxes) program for Birmingham’s affordable living Baldwin House, located at 200 S Chester Street, came to a close during the Monday, November 18, city commission meeting with both agreements unanimously approved by commissioners.
Talks about amending Baldwin House’s SLUP and the PILOT program have been ongoing since August with the first public hearing on the SLUP amendment. After the initial hearing, the topic has been the subject of a workshop and presented at multiple meetings.
Going over changes to the agreement’s since the commission’s last discussion, city planner Brooks Cowan explained that there are now 14 units at a 30 percent of the surrounding area median income (AMI), 39 units at a 50 percent AMI, and 25 units at 60 percent AMI. There are 53 units considered by-right, meaning they will be market rate and could have an uncapped rent charge.
With the changes, the number of affordable units has increased from 53 units to 78 units, which Cowan said is now reflected in the drafted parking agreement and PILOT agreement.
During the last meeting, Cowan also explained that Baldwin House was in the process of trying to pursue a loan with the Michigan State Housing Development Authority. He said that MSDHA and Freddie Mac, the Federal Home Loan Mortgage Company, want the SLUP agreement to be approved before finalizing the loan.
Cowan also explained that the drafted parking agreement reflects the commission’s comment about waiving half of the parking space requirement for each affordable unit provided. A resident living in one of the affordable units would go straight to the city for a free parking pass.
Since there will be 78 affordable units, the city agreed to payment in lieu of parking for 39 spaces. Baldwin House will still need to lease 16 parking spaces from the Chester Street Parking Garage, which Cowan said was approximately $31,000.
Adding on to Cowan’s explanation, city attorney Mary Kucharek informed the commission of an agreement made between the city and owners of Baldwin House to ensure that their management team will carry out everything in the SLUP and PILOT.
“We have it baked in the SLUP that there will be an annual review of this agreement and how things are working out at Baldwin House, not differently than we do SLUPs with liquor licenses,” Kucharek said.
A number of other clauses were included in the agreement to help the residents of Baldwin House. One ensures that some residents currently receiving free parking without living in affordable units will keep that parking. Another adds that outdoor seating will be maintained at Baldwin House within 60 days of the SLUP execution and that affordable units will not have an increase in rent over five percent per year. Further, a church advisory board is now being replaced by an advisory board comprising community members and residents of the Baldwin House.
Owners of the Baldwin House, sons of Gregory Schwartz who owns the investment advisory firm of Gregory J. Schwartz & Company in Bloomfield Township, have also agreed to restore some amenities for residents such as a meal plan, in-house activities and a van with a wheelchair lift, a complaint registered in city commission meetings during this past summer.
Following the presentation of the drafted agreements, the commission commended those who were involved in developing the agreements over the course of months and said they were pleased with the outcome that was before them.
“I think that it is commendable where we are from where we started, so nice job all around,” said mayor Therese Longe.
Commissioners voted 6-0 to permit special purpose housing and independent senior living, approve the parking agreement between Baldwin House and the city and to approve the PILOT agreement.
The Baldwin House has been at the center of controversy since it was first proposed in the 1970s. As an affordable housing unit, it was made possible through government financing. When it was first proposed, a faction in the city opposed the concept out of concern that it would draw non-white residents to Birmingham and opponents organized a recall of then-mayor Dorothy Conrad who helped develop the idea of subsidized housing. The city was eventually sued in federal court under the Fair Housing Act and was ordered by the court to establish the affordable housing development.
