By Sterling McGinn
A new senior housing project has been proposed for the vacant land east of the Community Action building in downtown Newberry.
Chippewa Luce Mackinac Community Action Agency (CLMCAA) is partnering with Community Housing Network (CHN) and SMG Development Corp, with assistance from the Luce County EDC, to propose the Newberry Senior Housing project.
The project was discussed at the Luce County Zoning Board meeting on Wednesday, January 8. in the Luce County Government Building.
The project, which has long been in the works, would consist of the construction of 18 rental apartments within a 16,100 square foot complex located on the property currently owned by CLMCAA. The property is the former site of the Longbranch Bar, Novo Theater, the old Gambles store and Spot Restaurant, which were razed in the last 15 years for the proposed building.
“This project is finally getting some momentum now that we have a partner,” said Joe Nolan from CLMCAA. “It fits our niche really well,, being a senior center in general with our congregate meal sites, our meals on wheels program, and in-home services.”
The complex would consist of 14 one-bedroom apartments and four two-bedroom apartments. The parking lot would have 47 spots to park.
The total estimated cost of the project is $7,400,000 and would be financed with low-income housing tax credits.
“We plan on submitting an application April 1 to the State of Michigan to hopefully get some tax credits and sell those to get it invested to get the cash flow to build it,” Nolan said.
Luce County EDC director Tammy Henry has been assisting with the project for five years.
“We had a housing study that was done last spring that supports this project wholeheartedly,” she said.
C. J. Felton, a representative from CHN, said the apartments may allow seniors who want to downsize to sell their homes, leading to more houses available in Newberry.
“This is happening in other places across the state where they have housing shortages—you have seniors looking to downsize,” Felton said. “That frees up currently owner-occupied housing in the village that then theoretically, if they don’t become VRBOs, create more housing stock for people that want to live in Newberry.”
The apartments would fall under senior affordable housing for those 55 and older with an area median income between 30 and 80 percent.
Zoning board Chair Cliff Fossitt asked if there would be restrictions for eligible seniors not from Newberry who may seek housing in the new project.
“There might be some older people that might want to move back to town that may have live in Traverse City or someplace,” Fossitt said. Felton said that Fair Housing would not permit the apartments to be restricted to area residents.
The partners are also seeking tax abatement status from the Village of Newberry and McMillan Township.
CHN will form Luce Housing Partners I, Inc, which will develop, own, and lease the 18-unit facility. CHN is based in Troy, Michigan, with two developments in the Sault and project in Ishpeming, which CHN hopes will be approved for funding.
Fossitt told the CLMCAA board members and CHN representatives in attendance that the site plan would have to be approved through the county zoning board since the Village of Newberry hasn’t approved their zoning ordinance plan yet.
“This will be on the front burner, and we are going to do everything that we can…this is exciting,” said Fossitt.
Felton is very confident that the project will receive the funding needed. He expects it to take two-and-a-half-years to complete.