Rush Creek Brownfield TIF
On Tuesday April 22, we will be voting on a proposed Brownfield Plan Amendment for The Landings at Rush Creek. The project proposes to redevelop a 7-acre parcel, vacant since the early 2000s, into 84 one-bedroom townhomes under Michigan’s 381 Brownfield Act, totaling a not-to-exceed Tax Increment Financing (TIF) of $6,299,313 over 21 years. I voted in favor of the proposal in Finance Committee and will be voting in favor at Tuesday’s BOC for the following reasons.
The Project Addresses a Critical Housing Shortage with Affordable Units
Hudsonville has identified a specific housing need, and The Landings at Rush Creek fits that needs by committing 12 of its 84 units (14%) to households earning no more than 90% of the Area Median Income ($64,800 for one person, $74,070 for two) for the entire 21-year TIF term. This ensures affordable housing for lower- and middle-income residents, such as young professionals, seniors, or small families, who might otherwise struggle in a tight housing market. By increasing housing supply—particularly affordable options—the project helps stabilize rents and home prices, benefiting the broader community. Without this development, the site remains a missed opportunity to house dozens of families and ease pressure on Hudsonville’s housing stock.
It Revitalizes a Dormant Property
The 7-acre parcel, formerly a garden center, has sat vacant for over two decades, contributing negligible property taxes and no economic activity. Its underutilized state is a deterrent to Hudsonville’s potential and its efforts to create a vibrant downtown setting. Brownfield redevelopment often involves overcoming environmental or economic barriers that deter private investment without public incentives. By approving the TIF, Ottawa County enables the developer, LaCati Group LLC, to tackle these challenges, and ensure the site becomes a productive asset rather than a long term liability.
It Generates Long-Term Tax Revenue
While the TIF redirects $6,299,313 in incremental taxes over 21 years—including $375,915 from the county operating millage—the project’s completion will significantly boost the property’s taxable value. A vacant lot generates minimal revenue; 84 townhomes, by contrast, will create a robust tax base. After the TIF expires in approximately 2046, Ottawa County, Hudsonville, and other taxing entities (e.g., schools) will collect the full property tax revenue from this enhanced value, far exceeding what the site would yield if left undeveloped.
It Stimulates Economic Growth
The project’s economic impact extends beyond property taxes. Construction of 84 units will create jobs for local contractors, suppliers, and service providers during the development phase. Once occupied, the townhomes could house 100–150 residents, who will spend money at Hudsonville businesses, from grocery stores to restaurants, boosting sales tax revenue and supporting jobs. This ripple effect strengthens the local economy, making Hudsonville a more attractive place to live and invest. Moreover, the $514,960 allocated to the Local Brownfield Revolving Fund can seed future projects in Ottawa County, amplifying the public’s return on investment. The $501,842 to the State Brownfield Revolving Fund similarly supports redevelopment statewide, reinforcing Michigan’s commitment to growth.
It Aligns with Community Priorities
The Hudsonville City Council’s concurrence on March 11, 2025, signals strong local support, reflecting the project’s alignment with community goals. Hudsonville City leaders recognize that housing and economic development are critical to Hudsonville’s future, especially as Ottawa County grows. By approving the TIF, the county validates this local priority, fostering a partnership that ensures Hudsonville remains competitive in attracting residents and businesses. The administrative allocation of $125,688 ensures the Brownfield Authority can oversee the project effectively, safeguarding taxpayer interests.
It Mitigates Risks with a Proven Framework
Critics might worry about the TIF’s cost or the risk of project failure. However, Michigan’s Act 381 is a well-established tool designed to minimize such risks. The TIF only captures incremental revenue generated by the project itself—no taxes are diverted unless the development increases the property’s value. If LaCati Group fails to deliver, the TIF simply doesn’t materialize, protecting taxpayers from upfront losses. Furthermore, LaCati’s commitment to 12 affordable units for 21 years is legally binding under the Brownfield Plan, ensuring accountability. The modest county contribution is a low-risk investment compared to the potential upside of a revitalized site.
It Seizes a Time-Sensitive Opportunity
The alternative—leaving the parcel vacant—offers no benefits. Without TIF, private developers are unlikely to tackle a Brownfield site with potential remediation costs or economic hurdles. The land could remain idle for another decade, generating zero taxes, housing, or jobs. Approving the amendment now capitalizes on LaCati Group’s readiness to invest, Hudsonville’s housing demand, and favorable market conditions. Delaying risks losing momentum and escalating costs, as construction prices continue to rise (U.S. construction costs increased 6.7% from 2023–2024). Acting decisively ensures taxpayers reap the rewards sooner.
I believe the Landings at Rush Creek will be a positive for Hudsonville’s growth, Ottawa County’s prosperity, and taxpayer value. By approving the Brownfield Plan Amendment, the Board will be able to unlock affordable housing, economic vitality, and a stronger tax base, all while transforming an unused parcel into a community asset. The TIF’s $6,299,313 investment, including the county’s $375,915 share, is a fair tradeoff for benefits that will accrue for decades. This project has earned the support of Hudsonville’s leaders and deserves the county’s endorsement to move forward.
