Cadillac City Council

On Monday night, Cadillac City Council held a public hearing regarding a Cadillac Junction agreement between the city and Clam Lake Township.

CADILLAC — At its meeting on Monday, Cadillac City Council unanimously voted to approve a Cadillac Junction Act 425 agreement with Clam Lake Township.

Cadillac Junction project developer Jim VanderLaan of TeriDee, LLC, spoke during the public comment portion of the public hearing regarding the matter.

“There has been significant interest in Cadillac Junction from potential commercial owners and tenants now that litigation has been settled,” he said. “... It is our continued belief that Cadillac Junction will provide significant new revenue sources to the city of Cadillac and Clam Lake Township, together with hundreds of jobs for the area.

VanderLaan said in a written statement that the regional development of Cadillac Junction is estimated to bring 850 to 1,000 jobs in the area.

He said the development will cost the taxpayers nothing as TeriDee is bearing all the infrastructure cost.

“The proposed development will result in millions of dollars in new taxable value and hundreds of thousands of new tax dollars for the city of Cadillac, Clam Lake Township, schools, county, transit, senior and library,” he said.

Mayor Carla Filkins said this was the final approval the agreement needed. They have to create the joint planning commission still, but once they’re in place, developers can start bringing forward ideas.

This council decision was the culmination of many public hearings and meetings. Cadillac announced the initial settlement agreement in April, Clam Lake Township failed to approve the settlement agreement on April 30, then both townships involved approved the agreement with revisions on May 14.

Last week Clam Lake and Haring townships both voted to end the Act 425 agreement between the two.

The basic framework for the Cadillac Junction settlement between the parties is that the existing 425 agreement with Haring Township be rescinded and replaced with an Act 425 agreement with Clam Lake Township and the city of Cadillac.

An Act 425 agreement is a conditional transfer of property for economic development projects, Cadillac attorney Mike Homier said.

Through the agreement, the TeriDee and Cadillac Investment properties, 750 acres total, will be conditionally transferred to the city by contract for a minimum period of 50 years, but up to 100 years because the agreement provides for up to one term of renewal.

With the agreement, the township will get 2 mills of property tax revenue from the property for the duration of the agreement. After the potentially 50 or 100 years, the property belongs to Cadillac and it no longer has to share the revenue, Homier said.

The agreement also entails that a joint planning commission for the properties be created and have five Cadillac representatives and two from Clam Lake Township. The commission will govern land use and zoning for the property being conditionally transferred, according to city council documents.

Cadillac City Council will hold a public hearing for the formation of the proposed joint planning commission at its meeting scheduled for 6 p.m. on Aug. 19 in the Council Chambers at the City Municipal Complex.

The process for selecting the joint planning commission members will be the same as a regular commission. The mayor will choose members and the council will approve it, Homier said.

Cadillac City Manager Marcus Peccia said Cadillac will choose Cadillac’s members and Clam Lake Township will choose their members and they couldn’t choose or reject the other entity’s members.

Homier said that members can’t live within 1,000 feet of the transferred area so there’s no conflict of interest.

He said there were no additional details available yet on the Cadillac Investment parcels development.

VanderLaan said there are no details available yet on who is interested in coming to Cadillac Junction, but they do expect to make “a major announcement in the near future, one of many such announcements over the coming years.”

Cadillac Junction is a 142-acre parcel located off M-55 near the U.S. 131 interchange.

The property currently is home to a Mobil gas station and Tim Hortons Cafe and Bake Shop, with plans for several big box stores, a residential complex and more.

According to the Act 425 Property Transfer Report, the 2018 total assessed value of the property is currently approximately $2,098,700, with Cadillac Junction valued at $1,683,900 and Cadillac Investment valued at $414,800.

It is expected that the assessed value of the property as a whole will substantially increase once the property is fully developed, according to the report.

The proposed Cadillac Junction phase of the economic development project includes 120 apartment units, 100 senior living units and 20 independent senior living units.

The anticipated residential density is four to five units per acre, which will increase the population in the area from unpopulated to moderately populated, housing approximately 310 people, according to the report.

The full build-out of the Cadillac Junction phase of the economic development project will be completed within 10 years and is imminently planned upon transfer of the property, according to the report.

The Cadillac Investments parcels are planned for additional mixed-use development and multiple-family and single-family residential development.

Expected population growth assumes 2.5 people per unit, three units per acre for the designated single family area, four units per acre for single family/multiple family areas and two units per acre for the mixed-use area, according to the report.

It is anticipated that full build-out of the Cadillac Investments parcels phase of the economic development project will occur within the next 15 to 20 years, if not sooner, according to the report.

Clam Lake Township attorney Ron Redick said in a past interview that development of the properties can legally begin probably sometime mid-August.

However, new development will still need to go through all the official steps with the joint planning commission and Cadillac City Council before it can begin, Homier said.