Residents gather at Tennant Hall for the August 11 Albion City Council study session, filling the room to hear debate over the future of Washington Gardner School.
By MAGGIE LANOUE
Contributing Writer
Taxes were on the minds of some property owners at Albion’s City Council study session about Washington Gardner School on Monday, Aug. 11. For others, housing concerns took priority. Mayor Victoria Garcia-Snyder called the meeting to order in a full room of about 60 people at Tennant Hall.
Interim City Manager Doug Terry opened by thanking everyone for attending and emphasizing the need for respectful dialogue among neighbors. He noted the importance of understanding the challenges of repurposing a historic school building.
C.J. Felton, director of Real Estate Development for the Troy-based Community Housing Network, praised Albion’s turnout, saying he had “never seen the kind of participation in the room we’ve had for the last two meetings” in all his work across Michigan. CHN is a nonprofit housing developer and service organization founded in 2001 that operates or is building about 400 affordable housing units in 11 communities statewide, with an annual budget of $20 million and a staff of 110. Felton explained that CHN was brought into the Washington Gardner project late last fall by Tim Honeycutt, CEO and founder of the Michigan-based nonprofit development group Zero Day.
Zero Day began working with Albion College on potential redevelopment concepts for Washington Gardner School well before their formal agreement in November 2023. Over nearly two years, the partners have explored options for senior housing, community use, and job training programs at the site. Zero Day’s most recent IRS filings show a rapidly growing operation with more than $1 million in annual revenue. For this Albion project, the organization partnered with CHN and secured the involvement of Cinnaire, a major Michigan tax credit investor whose $9.3 billion in community impact includes tens of thousands of housing units statewide.
CHN’s team includes a general contractor and architect experienced in school redevelopment, having completed similar projects in Sault Ste. Marie and Oak Park, and a demolition-and-rebuild in East Point. Following the introductory comments from CJ Felton, council members began directing questions to him, seeking clarity on how the proposal would function in practice and its impact on the community.
Councilmember C.J. Frost asked for clarification on the $17,000–$65,000 income range, with Felton explaining that $65,000 is HUD’s maximum allowable income for a family of four under affordable housing guidelines, and noting there is no Section 8 component.
Donivan Williams added that many Albion College and City employees fall within this range, and Felton said applicants must pass criminal, credit, and rental history checks, with residents allowed to remain if their income later increases.
Andy French pointed out that Albion has lost 100 residents in the past year and 1,000 over the past decade, adding that the addition of 52 mixed-income apartments would not require hiring more police officers or water department staff, keeping the city’s real costs low. Police Chief Aaron Phipps agreed, noting that cost per service would be minimal and stressing that good property management is key to reducing calls for service, with lease violations remaining the property owner’s responsibility.
Williams also referenced the city’s $30 million in water infrastructure investment, much of it underground. On Michigan Avenue, for example, only half the roadway was rebuilt because that was where the water main and sewer work occurred — projects funded through the water fund, not road funds.
Felton described a major shift in housing demand over the past decade. “When we first started doing multi-family development, we built a lot of three- and four-bedroom units, and they leased quickly. But about six or seven years ago, we started seeing a shift. Now, in most markets across the state, there’s an extreme shortage of one-bedroom apartments. That’s just where the market has evolved, and I don’t anticipate any problem leasing the majority of one-bedroom units here.”
Councilmember Vivian Davis suggested forming a formal advisory group to provide community input, saying transparency would help reduce rumors and misinformation. Felton welcomed the idea, noting the building’s brick walls limit reconfigurations but praising the auditorium as a potential community space that must remain intact due to its historic status.
Councilmember Lenn Reid asked whether the development would include a place for children to play. Felton replied that while they would not operate such programs directly, the site could support outdoor play areas and maintain the existing community garden. He noted that other CHN communities have included large community rooms, gyms for after-school activities, and partnerships with the YMCA for fitness programs and summer meals.
When Councilmember Jim Stuart asked Felton to explain “Low-Income Housing Tax Credit,” Felton replied that the name comes from state housing ordinance language unchanged for about 16 years. “It’s a bad term, but that is the name of the funding, and I don’t like it,” he said, noting that in their proposal, LIHTC equity accounts for roughly $17.8 million of the $24.5 million project cost. He prefers the term “attainable housing,” reflecting the goal of offering options that meet the needs of the entire community, not just one income bracket.
During discussion, Frost urged the city to seek developers who bring in property taxes to help fund roads and reduce debt. “Bring back the financial contributions,” he said. Williams responded that the building has never paid taxes and is now asking for a PILOT, calling it a public–private partnership that would generate income taxes and state revenue sharing, while housing local residents instead of leaving the building vacant. He added that other federal funding is tied to the city’s population.
Public comment began with Bruce Nelson, interim director of the Albion Economic Development Corporation, who praised Albion College for preserving Washington Gardner and seeking ways to reuse it. Nelson, a housing advocate since returning to Albion nine years ago, said all types of housing are in demand, but attracting outside developers is difficult. “I’ve had developers who don’t even return calls, even after a beautiful tour of Albion and the properties available,” he said, calling the idea of an outside developer putting $25 million into market-rate housing at Washington Gardner “wishful thinking.”
Bill Dobbins, a major investor in Albion’s downtown and neighborhoods, said he and his family have invested $8–10 million in multiple projects over the last five years. This week alone, he wrote a property tax check for nearly $90,000 — an investment back into the community, he said. But the proposed 45 years of tax abatement for 52 units, far longer than the typical 12-year OPRA or brownfield support, “makes me pissed off.” Calling his approach “social impact investing,” Dobbins said his projects aim to return the investment while creating positive community impact, and urged council to vote “no.”
For perspective, Dobbins may be one of the two largest individual private investors in downtown Albion, alongside Sam Shaheen, who backed the Courtyard by Marriott project. Each has invested roughly $10 million. The Washington Gardner proposal is a larger single project, with the city’s new water tower costing even more at $30 million. Regionally, the Blue Oval Battery Park in nearby Marshall is a $3 billion project expected to bring new workers to the area. Albion has some new manufactured housing at Wildflower Gardens — homes in the $100,000 range that bring in income tax and help with water costs — but because the land is rented for $450 a month, even owners of these homes do not pay property tax on the structures.
Garrett Brown reminded the audience that Albion’s industrial boom in the late 19th and early 20th centuries drew Eastern European immigrants until World War I, and later brought African American families north for factory jobs. “That’s part of the reason we have an income tax,” he said, noting that only 24 Michigan cities levy one. Without that history, Albion wouldn’t have that revenue source. Brown thanked Williams for clarifying that residents of the proposed project would still be paying income tax.
Takala Williams said Albion’s housing shortage is pushing out longtime residents. “Affordable housing is not a dirty word — it means raising the opportunity for people to live here, work here, and contribute without drowning in rent.” She said empty buildings cost the city more in lost revenue than redeveloping them and cited other Michigan towns where old schools became housing. “We don’t have a housing problem — we have a courage problem. Washington Gardner could be homes, hope, and a future.”
Emily Verbeke opposed the 45-year PILOT, calling it “extreme” and out of step with most Michigan agreements. She urged council to negotiate a shorter term with clear reporting and accountability, saying the proposal “gives away too much for too long with too little in return.”
Tim Kurtz spoke passionately in support. “I support this project with every fiber in me. We can’t let the conversation turn into classism — telling people to pull themselves up by their bootstraps while closing the boot factory. Albion needs to be known as a place that opens doors for everyone, so that future generations will say we acted when it mattered.”
Councilmember Jim Stuart closed by noting three points of agreement: Albion needs more housing of all types, residents value Washington Gardner and don’t want to see it lost, and the city is special and worth protecting for the next 30 to 50 years. He urged thinking beyond short-term pressures and making decisions that will strengthen the city’s future, adding that a diversity of opinions makes the council stronger.
By the end of the night, the differences in perspective were clear, but so was a shared sense that the decision will shape Albion’s path forward. Supporters saw the project as a chance to meet urgent housing needs and save a historic building with a $24.5 million investment. Critics saw the long-term tax abatement as too costly without enough safeguards. The debate reflected a broader question: how to balance the city’s need for new housing with the responsibility to protect its tax base.
The City Council will meet again on Monday, Aug. 18, to vote on the proposal. The time and location will be announced later this week, but it is expected to be at the Opportunity School at 7 p.m.
