Work continues on SLUP on Baldwin House
By Mark H. Stowers
The Birmingham City Commission took up the amendment to the special land use permit (SLUP) request for the Baldwin House Senior Living, 200 Chester Street, along with its PILOT (Payment in Lieu of Taxes) agreement and parking agreement at their Monday, October 7, meeting where commissioners heard five different contracts and options to consider and decided to continue the public hearing at the Monday, October 28, meeting.
The commissioners directed staff to draft a SLUP amendment, SLUP contract, a PILOT agreement and parking agreement based upon the city commission’s preference for options three and four in the city planner Brooks Cowan's presentation.
Option three includes that of the 131 units, 13 would be at 30 percent of AMI (area median income – a metric to determine eligibility,) 40 units at 50 percent AMI, 25 units at 100 percent AMI and 53 units would be market rate units. The PILOT fee would be $190,051 and the property value would be $17,115,656.
Option four would include the 13 units at 30 percent, 40 at 50 percent and 25 at 100 percent, but 53 units would be 150 percent of AMI. There would be no market rate units and the PILOT fee would be $103,542 and the building value would be $15,580,835.
The ownership is seeking to extend their Low Income Housing Tax Credit agreement for 53 of the 131 units. Those contracts will once again last for 30 years. The extension does not give the owners' income tax credits that were in the original agreement. They are eligible for a PILOT agreement. The ownership group is proposing to lower the age cohort from 62 to 55, and to increase rental rates which have been regulated for the past 30 years. These adjustments are a substantial change to the operation and use regulated by their current SLUP, so the owners have to obtain approval from the city commission for these requests.
The Baldwin House Senior Living property, now rebranded as The Baldwin on Chester, has been appraised by Oakland County Assessor at $25 million dollars, according to city manager Jana Ecker and city planner Brooks Cowan. Prior to Covid, when there was a two-year waiting list for potential residents waiting to move in, now there are 45 units not occupied. During the pandemic and now after, there is a hesitancy for potential residents to move in. according to Baldwin House co-owner Joe Schwartz and his lawyer John Hinkey.
“The 53 low-income units have been full since 1999, but the 78 market rates units are less than half (occupied,)” Schwartz said.
