Developer outlines Zone 32 Phase 2; commission holds public hearing on NEZ district

The City of Kalamazoo opened a public hearing May 18 to consider creating a Neighborhood Enterprise Zone (NEZ) district for Zone 32 Phase 2, a proposed housing and mixed-use redevelopment on the North Side.

Assistant planner Bobby Durkee and Jamari Bogan, CEO of Bogan Developments, presented the project. Bogan said Phase 2 would add 38 units with rents ranging from 40% to 90% of area median income and outlined a timeline that anticipates finalizing incentives in June, a July groundbreaking/closing and occupancy by August 2027. "This phase now will have 38 new additional units," Bogan said, and described a unit mix and amenities including laundry in units, community space, bicycle storage and an outdoor patio.

Durkee explained how NEZ designation interacts with city policy and state certificate applications: creating the district is the first step; the developer later applies to the state for certificates that can grant tax abatement for up to 15 years even if the district itself is set to sunset after five years. In response to commissioner questions, Bogan said that financing is lined up (MSHDA, county housing millage, Brownfield plan) and that the development anticipates two units at 40% AMI and eight units at or below 60% AMI.

Commissioners also asked whether street reconstruction would include water mains; city staff said the work is surface reconstruction tied to the project and agreed to follow up on whether new mains are required. During the hearing, Northside residents praised Phase 1, asked staff to ensure developer-funded street work meets city standards, and asked the media not to imply homeowners will receive tax cuts because the district is created.

The item is a hearing on district creation; no final vote on tax certificates or abatements occurred May 18. Staff said a formal resolution and subsequent certificate application will return to the commission for action on or after June 15.