The long-vacant former Austin School on North Clinton Street would contain 15 three-bedroom apartments under the proposed Austin School Lofts development, with another 32 units planned in a new building on the same property. Albion City Council approved first reading of a PILOT ordinance needed for the project’s state housing application, with a special meeting expected Monday, March 23, before the April 1 funding deadline.
By Maggie LaNoue, Contributing Writer
A proposal to redevelop Albion’s long-vacant former Austin School into mixed-income housing moved forward Monday night after Albion City Council approved the first reading of Ordinance 2026-04 in a split vote, establishing a tax structure needed for the project’s state housing application.
The ordinance creates a Payment in Lieu of Taxes (PILOT) arrangement for the proposed Austin School Lofts development at 709 and 713 N. Clinton St. Instead of standard property taxes, the project would pay the city an annual service charge equal to 7 percent of shelter rents collected, for up to 45 years, if state financing is approved.
The redevelopment plan, presented earlier this month by Dane Truscott of Pivotal Housing Partners, would create 47 apartments on the former school property. Fifteen three-bedroom units would be built inside the original school building, with another 32 units constructed in a new adjacent building. Unit sizes would range from one to three bedrooms, aimed at households qualifying under income guidelines tied to state affordable housing programs.
The project depends on competitive Low-Income Housing Tax Credits through Michigan State Housing Development Authority, with applications due April 1. Because city ordinances require two readings before adoption, the council scheduled a special meeting on Monday, March 23, at 7 p.m. to complete the second reading before the state deadline.
During the discussion, Interim City Manager Doug Terry said the administration supports the proposal because it would restore a major vacant historic building that has sat unused for roughly three decades.
“We have an opportunity to take a building that has sat vacant for 30 years and turn it into mixed-use,” Terry told the council. He added that while he would be reluctant to recommend similar long-term tax treatment for vacant land, restoring former school buildings such as Austin and Washington Gardner creates a different public benefit.
A second Albion school redevelopment project, Washington Gardner School, applied for the same state tax credit program last fall but was not selected. Community Housing Network, the nonprofit behind that proposal, is expected to apply again in the current round, meaning both projects could be competing for the same limited pool of funding. Terry acknowledged the dynamic, noting that only one project would likely receive an award — if either does.
C. J. Frost voted against the ordinance after questioning whether Albion should negotiate stronger terms. Frost said that in similar projects elsewhere, developers typically pay around 9 percent of shelter rents — not the 7 percent being offered here — and that PILOT terms in those communities average 30 years rather than 45. “I don’t know why we push these so quickly and give away the farm,” Frost said, adding that he still wants to see housing development in Albion but believes the city could negotiate a better deal.
Other council members argued that Albion’s urgent housing shortage justified moving ahead. Donivan Williams pointed to Oak Meadows, a local development that recently shifted from affordable to market-rate rents, with some units now running as high as $1,400 a month. He said a cousin received a letter saying her rent would jump from $700 to $1,400 in just two months. “I think that would force a lot of people out in this community,” Williams said. Mayor Victoria Garcia Snyder, a lifelong Albion resident, added that she has never seen new housing development in the city during her lifetime. “I don’t remember seeing housing development in our community in my lifetime,” she said, calling PILOT agreements a necessary tool to attract developers to Albion.
Council approved the first reading with Frost casting the only dissenting vote. Final adoption next week would allow the developer’s state funding application to proceed before the April deadline.
