By Gari Voss
During their August 25, 2025, meeting, the Allegan City Council accepted a Block Grant from the Michigan State Housing Development Authority to create 10 new second story apartments in Downtown Allegan, approved a budget alignment to complete the handicap ramps around town, and heard a plan for extending the Social District. Extra time was spent on an important discussion to review the 2026 projects, the costs, and revenue to cover those costs.
PUBLIC HEARING & ADOPTION OF RESOLUTION
The Council held a Public Hearing then adopted Resolution 25.26 which would approve the Letter of Intent from the Michigan State Housing Development Authority (MSHDA) Community Development Block Grant program for $1,180,000 to create 10 new apartments in Downtown Allegan.
The location of these apartments would include four new apartments at 116 Locust Street (next to Lumberman Lofts), two apartments at 115 Locust Street (old Community Pharmacy), two apartments at 138 Hubbard Street (the Office Center), and two apartments at 145 Brady (old Allegan Event Office). Of these 10 apartments, 6 will be made available for low to moderate income housing. That is, those who earn 80% or less of the area’s median income. The funds can assist with second story development in downtown if above an occupied or “White Box” store front. In other words, a space for commercial use that is ready to be leased.
Resolution 25.26 accepts the Letter of Intent and allows City Manager Joel Dye to be the signatory of all documents, materials, and contracts and to act as the Certifying Officer for the Environmental Review which is part of the funds received. The total cost of the project is $1,580,000. MSHDA will cover $1,180,000 and property owners will provide a total of $400,000.
REPORTS
Downtown Development Authority. Parker Johnson reviewed the DDA notes that included Lunabode, LLC receiving a MEDC $25,000 Match on Main to rehab the old Hunter building. There was a review of the signage to identify the city’s parking lots as part of the wayfinding project. The DDA began considering a new vision statement that better reflects the new downtown.
Public Spaces Commission. Councilmember Carl Canales shared that there would be a Rock the Block event at Rossman Park on Sept. 20th from 9am-noon with a rain date of Sept. 27th. Discussion included the use of the Sports Complex by city youth and others from outside the city limits. The Oakwood Cemetery masonry project should be completed this year. The Cemetery Symposium on August 9th went well. The Friends of Oakwood Cemetery continue to explore Wreaths Across America.
Public Works
Handicap Ramps for Sidewalks. The request to approve PO 26-0833 to Weik Bros Inc. for construction of handicap ramps on Academy Street and Water Street in the amount of $102,219.50, and to approve a budget adjustment of $4,719.50 passed.
Director Doug Kadzban reviewed the plans to construct sidewalk ramps at varied locations to follow the road and streetscape improvements. The city had $97,500 in the budget but had to request a budget adjustment of $4,719.50 to cover the total cost of $102,219.50. Some intersections require all new ramps. Looking forward, as the new elementary school is completed, Academy and Arbor will need sidewalks for walkers. By having the city do much of the work, there will be money saved compared to hiring a contractor.
Administrative Services
Paying Bills. The request to approve accounts payable in the amount of $641,261.32 and payroll in the amount of $122,950.75 for a total disbursement of $764,212.07 passed.
Special Banner. The request from Allegan Community Players to place a banner in front of the Griswold Auditorium to advertise The Lion, the Witch, and the Wardrobe was approved.
Update on 2026 construction projects.
City Manager Dye took time to review the projects slated for 2026 and the funding for these projects.
Rossman Park Neighborhood Infrastructure Project. This project will improve the infrastructure for water lines, sewer mains, and storm sewers along with new road surfaces. A $2.5 million grant from the Michigan Economic Development Corporation (MEDC) was received to assist with the cost. Herkimer and Bond Streets will be adjusted to a T to make the intersection safer. There will be no streetscaping to save costs.
Downtown Infrastructure Project (Walnut, Chestnut, and Trowbridge). The project is estimated to cost $4.4 million plus a bit. Trowbridge will receive the same treatment that the other retail streets received during the Streetscape project. This includes new water mains, sewer mains, water service lines to private properties (replacing lead service lines), storm sewers, manholes, catch basins, road surfaces, sidewalks, pedestrian lights, street trees, and street furniture. Walnut and Chestnut will receive fewer extras. The trees will be removed to replace the bulging sidewalks but will be replaced.
Grand Street Water Main Project. MDOT will be coming to resurface M-222 after 2026. The water main and infrastructure will be replaced before MDOT comes to prevent later costs. The anticipated cost is $480,000.
Sewer Lining Project. To reduce costs in the Rossman Park Neighborhood, Water Street and Grand Street, rather than replacing the existing sewer mains, the mains will be lined. Video is currently being made to confirm the sections that can be lined. The anticipated cost currently is $792,700.
Sludge Thickening. The sludge thickener will be installed at the Water Resource Recovery Facility on North Street. Wade Trim is designing the project that is scheduled to go out for bids this winter with construction in 2026. The cost is projected to be $2,410,000.
The projects will be financed as follows:
The city will utilize $1,974,000 in cash,
$2,500,000 in grant funding
$12,760,375 in water and sewer revenue bonds.
There will be an 8% increase in water rates in 2026, a 6% increase in 2027-2030, then 1.5% from 2031-2035. The sewer rates will increase 1.5% from 2026-2035. This will mean an average annual increase of $28.86 per resident.
The bonding process. Dye wanted to make sure that the council understood the bonding process. A Bond Attorney and a Bond Council will be employed to complete a notice of intent. On October 13th, if approved, the bond process will begin. There is a 45 day bonding period during which time the design project will continue. Bond Resolutions will be approved after the holidays then the city will wait for the bidding on the bonds by bond purchasers. It is expected that the bonding process will be done by Feb. 10, 2026. The bids will have been received in January. Therefore, by February 2026, there should be a good idea that the bonds will cover the costs of the projects. During this time frame, the city staff will continue looking for new money to cover costs.
Meeting Cancellation. The adoption of Resolution 25.27 to cancel the September 8, 2025, regular City Council Meeting passed. This is an annual cancellation so the Council can participate in the Fair Parade.
Social District Expansion. A discussion ensued to consider the request to increase the size of the Downtown Allegan Social District to include Walnut and Trowbridge Streets. The extension of the Social District would complete the loop around the County Courthouse. This route gets people from the current Social District to the Griswold and includes the route for the Holly, Jolly Trolley. Monday’s meeting was just to consider the extension. If it is approved, the expansion amendment will have to be approved by MLCC. It is anticipated that amendments will also need to be made when the new restaurants come on board.
A suggestion was made to add trash cans along all streets because cups are currently being found on the sidewalks where there is a lack of receptacles. Currently, 30 pedestrian sidewalk cans are collected by Republic on Wednesdays. The city staff collects the containers on other days.
Department Reports. The City Manager asked the council how they wanted to receive updates on department activities. Thoughts covered quarterly reports to ensure quality and to inform residents. In addition, thoughts were shared on how best to inform residents that the reports are available. Maybe these reports could be included in the City Manager Tuesday Open Office sessions. Another idea was to rotate department reports monthly so quality meeting time was conserved.
PUBLIC COMMENT
The resident of 329 Monroe St. thought that the costs for sidewalk improvements could be passed on to property owners. He has lived in other communities where this is done, and it worked well. He also felt that if the Social District is extended to Walnut and Trowbridge Streets, the Council may wish to check with churches along those streets.
COMMUNICATIONS FROM THE CITY MANAGER
Manager Dye shared a map that updates the water service connections. 1,029 have been replaced, 637 still need to be replaced, and 157 need to be investigated.
The Rossman Park Party is being assisted by resident Brandon Gumm and City Intern Mohamed Gabow. The plan is to contact all residents with an invitation to the gathering on Sept. 20, 2025.
Monday, Aug. 25th was the last Fork in the Road.
The Tuesday following the Council meeting on the second Monday, City Manager Dye will have Open Office Hours from 10-11am for residents to stop and share thoughts and ideas. The Tuesdays after the fourth Monday of each month, Dye will have Open Office hours from 5-6pm. These are advertised online and will be included in the Water Bill.
ROUNDTABLE DISCUSSION
Councilmember Mike Zeter inquired about the manager of the Village Market Gas Station who at the last meeting had questions about the sale of the county parking lot. Dye shared that the county was taking offers until Aug 29th.
Zeter wondered about the burned out property behind Vitalie’s that has trash around it and an unmowed lawn. Dye shared that this is one of two that should be raised if approved by the City Council.
Zeter also shared that the Allegan Fire Department is receiving the 1951 Fire Ladder Truck that it purchased in 1951 and sold in 1995. Most recently, it was used by the Farmington Fire Department for parades, but the current owner wanted to find a proper place for it.
Zeter’s last query concerned Miner Lake and the conversation to contract with the City of Allegan to connect to the city’s sewer system. Dye suggested contacting Allegan Township regarding the progress of this proposition.
Councilmember Will Walker shared that the Fire Department’s meals were well attended with a nice sum of contributions.
