Allegan County News & Union Enterprise News

Otsego receives $4.8 million loan for lead service line replacement

The annual charity basketball game will once again be part of the Gus Macker festivities when the tournament returns to Otsego on Friday, Aug. 21. (File photo)

By Jason Wesseldyk
Sports Editor

The City of Otsego recently received some welcome news when it comes to replacing its lead service lines.
Actually, make that some really welcome news.
The city was awarded a $4.8 million loan to replace lead service lines throughout Otsego, with 10 percent of the principal being forgiven and the remainder financed at zero-percent interest for 40 years.
That was among the updates City Manager Aaron Mitchell shared with residents in his August newsletter.
The city applied for the funding in June as it works to comply with Michigan Department of Environment, Great Lakes and Energy mandates. Rather than replacing lead service lines incrementally during the next decade, the funding will allow Otsego to complete the work at current prices.
There was no guarantee, however, that the city’s application would be approved.
“We received some really, really great news recently,” Mitchell said.
And the news got better from there.
The city will receive $480,000 in principal forgiveness, essentially turning that portion of the funding into a grant.
Otsego had also anticipated borrowing the remainder at 2.75 percent interest over 40 years. Because the project consists solely of lead service line replacements, however, the city qualified for zero-percent financing.
Mitchell said the difference will save the city more than $2 million over the life of the loan.
The funding comes at an important time for Otsego’s water fund, which Mitchell said has been stretched thin and recently required significant water-rate increases that took effect July 1.
City officials had initially questioned whether to pursue the loan because doing so required spending money on engineering work needed for the application.
“That decision to pursue this application will make a significant difference in the trajectory of the water fund for the foreseeable future,” Mitchell said.
The project is currently in the permitting process, with construction expected to begin in June 2027.
Gus Macker returns to Otsego
August will also bring one of Otsego’s largest annual events, as the Gus Macker 3-on-3 basketball tournament returns Aug. 21-23.
Otsego has hosted the tournament for more than a decade and routinely ranks as the second-highest attended Gus Macker event in the country, trailing only Ludington.
Recent Otsego tournaments have drawn approximately 425 teams, which Mitchell said is approaching the maximum number the city can accommodate.
And Otsego’s version of Gus Macker has another distinction.
It is the only tournament location where all games are played on residential neighborhood streets, providing a throwback to the original Gus Macker tournament in Belding.
Mitchell acknowledged the inconvenience the event can create for residents who live in the affected neighborhoods.
“The inconvenience is not lost on the city or TOP,” he said, encouraging residents to reach out if there is something organizers can do to help during the weekend.
The festivities also include fundraiser games Friday night at Center Court featuring teams from local schools and the city, with proceeds benefiting a local nonprofit.
Local organizations can also benefit by volunteering during the tournament.
TOP — Together Otsego Prospers — donates money to participating organizations based on the number of volunteer hours they provide. Mitchell said the arrangement has benefited Otsego Public Schools athletic programs needing money for equipment and uniforms, while organizations such as Boy Scouts and Rotary are also eligible.
Those interested in volunteering can watch for information on TOP’s Facebook page or contact Otsego City Hall.
City approves accessory dwelling units
Otsego residents now have another housing option available to them following a recent change to the city’s zoning ordinance.
The Planning Commission amended the ordinance in July to allow accessory dwelling units, commonly known as ADUs, in the city’s Single Family Residential and Single and Two Family Residential districts.
ADUs provide a secondary housing option on an existing residential property.
Mitchell said one example could be a smaller housing unit for an aging parent or an adult child who isn’t yet ready for independent living.
“ADUs are growing in popularity due to the extremely high costs of rent and home sales,” he said.
Mitchell said the Planning Commission worked to create regulations allowing ADUs while maintaining the existing character of Otsego neighborhoods.
Residents interested in learning more about the requirements can contact City Hall.
Other city updates
Otsego is also seeking a resident to fill a vacancy on the Planning Commission.
The commission handles zoning and land-use matters, considers amendments to the zoning ordinance and plays a role in developing and approving the city’s master plan.
Meetings are held on the fourth Monday of each month. Letters of interest will be accepted through Sept. 1, with the City Commission expected to consider applicants in September.
Mitchell also highlighted the city’s kayak launch at Riverfront Park as work continues to restore the Kalamazoo River.
The launch, located near the Community Pavilion, provides access for small- and medium-sized kayaks. Those looking for a shorter trip can enter there and exit near the Pine Creek Dam in Otsego Township.
Mitchell said continued work along the river is moving toward the eventual goal of allowing kayakers to travel from the D Avenue launch all the way to the City of Allegan.
Meanwhile, the city’s recent stretch of wet weather has also resulted in more attention being paid to something considerably less recreational: long grass.
Mitchell said the Otsego Police Department sent 104 letters to property owners shortly after July 4 regarding long-grass violations.
Most recipients subsequently mowed their properties and came into compliance.
If a property remains in violation 10 days after the owner receives a letter, the city’s Department of Public Works can mow the property, with the cost added to the following year’s tax bill as a single-premise assessment.
The August update also looked back at TOP’s Summer Fun Series, which recently concluded. The final Tuesday Summer Fun Night featured a beach-themed event that included sand and a slip-and-slide down the sledding hill, while more than 900 backpacks were distributed during the final Wednesday event.
TOP is already looking for volunteers interested in helping with future Summer Fun Series events, including both planning and working at the events themselves. Interested residents can contact City Hall for information.
Finally, Mitchell highlighted the city’s partnership with Lakeshore Advantage, which provides economic-development services in Allegan and Ottawa counties.
Otsego also employs part-time economic developer Marty Bennett, who works directly with current and prospective businesses. Mitchell said Lakeshore Advantage complements Bennett’s work by assisting with areas such as regional data and statewide programs.
“I have found Lakeshore Advantage to bring an incredibly professional and knowledgeable approach to support our business owners and prospective business owners,” Mitchell said.
Business owners interested in expanding or seeking other assistance can contact the Holland-based organization for additional information.

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