By K.D. Norris

ken@wktv.org

With the City of Kentwood planning and approval process complete after more than a year, a developer plans to break ground in early September on a 240-unit affordable workforce housing development.

CityLine Apartments will be located on nearly 12 acres of now vacant property touching Division Avenue and 52nd Street, on land most recently used as a used car sales lot and as a golf driving range. It does not include two existing business locations directly on the corner of Division and 52nd.

The CityLine Apartments project, led by developer Herman & Kittle Prop. Inc., of Indianapolis, Ind., will be a “first” in several ways.

It will be the first Grand Rapids area project for a developer which is no stranger to Michigan. It is the first Kentwood development approved using Form Based Code planning changes recently enacted by both the cities of Kentwood and Wyoming to aid redevelopment of the Division Avenue corridor. And it is the first major affordable workforce housing project focused on taking advantage of the Sliver Line bus route intended to move workers to and from downtown but also supporting businesses near the corridor in both Kentwood and Wyoming.

“West Michigan knows that Kentwood is open for business and is successful by meeting our businesses’ needs on a daily basis,” Kentwood Mayor Stephen Kepley said to WKTV this week. “Vibrant communities like Kentwood know that offering a range of housing opportunities is critical to the success of our businesses. This project will help expand our workforce capacity and serve as a catalyst for development along the Division Avenue corridor.”

That city’s goal of aiding development of workforce housing and redevelopment — some would say economic “revitalization” — of the Division Avenue corridor was echoed by city staff in Kentwood.

“The development of CityLine Apartments will likely represent the largest private investment ever made along the Kentwood portion of the corridor,” Lisa Golder, City of Kentwood Economic Development Planner, said to WKTV. “The development of housing along Division fits perfectly into the city’s plans for the area, as residential development supports both the Bus Rapid Transit (Silver Line) and the business community.

 

“Since the apartments are located directly on the Silver Line route, residents will be able to use transit to get to work, shop and recreate. With 240 housing units being introduced to the area, businesses will likely see an increase in demand for goods and services.”

And recent changes to Kentwood and Wyoming development codes, specifically the so-called Form Based Code, was essential for the development to be approved.

“The CityLine Apartments could not have been developed without the new Form Based Code,” Golder said. “With the Form Based Code, residential development is allowed for the first time along Division Avenue.”

The developer and the development

The CityLine Apartments is currently planned to be eight residential buildings including one, two and three-bedroom apartments, as well as a clubhouse, accessory garage/storage buildings, a pool and playground, and even a dog park for residents of the “pet friendly” complex, according to Caroline Kimmel, CityLine development director for Herman & Kittle Prop. Inc. (HKP).

“The development has been in process since July 2019, HKP needed to rezone a portion of the site, as well as work through the rest of the development and site planning process with the city,” Kimmel said to WKTV. “This development is about a two-year construction period, but the first units will be available in about 16 months, or January/February of 2022.”

The planning approval process “took several meetings with the City as well as multiple public hearings to be finalized,” she said.

CityLine is HKP’s first development in Grand Rapids, Kimmel said, but the company has developments in Kalamazoo, Jackson, Niles, Lansing, and Benton Harbor, “as well as over 130 additional properties in 16 other states.”

And Kimmel said the reason for her company’s interest in the Kentwood development was simply good business.

“The Grand Rapids area is still one of the fastest growing metropolitan areas in the Midwest, and HKP is very excited to be a part of that growth,” Kimmel said. “Our internal and external demand analysis showed that rents are growing faster than incomes, and that we might be able to help balance out that growth with a development geared toward workforce housing.

“The commuter bus line is a highly desirable amenity, especially for residents who may not have the financial means to live in downtown Grand Rapids, but want the ease of access that the Silver Line offers,” she said.

According to information supplied by HKP and City of Kentwood planning documents, the Kentwood development will include 72 one-bedroom units, 120 two-bedroom units, and 48 three-bedroom units. Twelve of the units are designated for people with disabilities.

The larger buildings will have 36 units while the smaller will have 24 units. Three garage buildings will be provided with 18 stalls, including one handicap stall. In total there will be 357 parking spaces provided including 325 standard spaces, 14 handicap parking spaces, and the 18 garage spaces.

“HKP believes this development will attract a mix of one and two parent households with children, as well as single persons who work downtown, but the property is not age restricted,” Kimmel said. “A close proximity to schools will attract families as well, especially with the walkability this location offers.”

Finances for the project; costs for renters

The development is financed through a combination of sources, according to Kimmel, including tax-exempt bonds for construction, a mortgage, and Tax Credit Equity from Michigan State Housing Development Authority (MSHDA).

“The MSHDA Tax Credits provide equity to the development, which allows a reduced mortgage, enabling rents to remain affordable for Kent County residents,” she said.

Residents will be subject to a rent-history screening and criminal background check and other compliance requirements set forth by MSHDA, Kimmel said. Income limits will range from $33,720 for a one-person household, $38,520 for two persons, $43,320 for three persons, $48,120 for four persons, and $52,020 for five persons.

“Lease-up will likely begin in late 2021 or early 2022,” she added. “A leasing trailer will be on site with contact information as soon as we are accepting applications.”

Traffic generation to be monitored

While CityLine’s location on the Silver Line bus route is expected to mitigate the usual vehicular traffic issues a development of this size might normally produce, city documents state that a detailed Traffic Impact Assessment may yet be needed.

“Using Institute of Traffic Engineers trip generation data, a 240-unit apartment development generates 1,317 daily trips and 117-129 peak hour trips,” according to a city planning department report. “If this many trips are anticipated, a Traffic Study would be required. However, the data does not take into account the existence and use of the Silverline BRT, which may reduce the trip generation. The applicant should provide a best estimate of vehicle trips anticipated based on other locations in communities adjacent to a BRT line or light rail.”