The Chelsea City Council had a packed agenda Monday night, Sept. 19, which included the adoption of a special assessment resolution for Cavanaugh Investments/Zou Zou’s to be part of the Chelsea Downtown Development Authority’s REU program.
The program includes establishing a special assessment district for the specific properties at 101 N. Main and 106 W. Middle St. (the former Chelsea In Design space) next door to the current Zou Zou’s location.
The proposed expansion for the new restaurant is about 2,200 square feet on the first floor of the building and the total cost for the more intense water and sewer use is about $30,215.
The agreement for utility upgrade assistance is for about $3,021 per year for 10 years.
This is the second time the DDA’s REU program has been used. Smokehouse 52 also used this program.
On second reading, the City Council also unanimously approved a tax exemption for Sharon Ann Apartments.
Avalon Housing requested that the city approve a payment in lieu of taxes (PILOT) for the redevelopment of the property at 533 N. Main St. Avalon Housing plans to rehabilitate and operate the housing project and the city has agreed to “accept payment of an annual service charge for public services in lieu of all ad valorem property taxes.”
This is contingent on the project receiving a mortgage loan and the annual service charge shall be equal to 4 percent of the annual rents collected by the housing project. The project could begin in the spring if the funding is approved by the state.
In addition, the City Council unanimously approved a change in the city’s information technology support vendor. Previously, the city utilized services provided by the City of Ann Arbor and is transitioning to a company called I.T. Right that specializes in local government IT services.
The City Council approved the change through the remainder of the budget year, which is expected to cost about $8,600, a savings of about $20,000 annually.
It should be noted that the switch was mutually agreed upon between the two cities and Ann Arbor has agreed to assist I.T. Right during the transition.
The City Council also adopted a resolution of support in concept for a Chelsea Area Community Center.
The city’s parks planning steering committee adopted a draft resolution on Sept. 13. The concept is part of the Parks and Recreation Master Plan and includes a facility of about 85,000 square feet with an estimated cost of about $15-$20 million.
The resolution summarizes the steps taken to date, which include the completion of a feasibility and needs assessment study, continued work on identifying an appropriate site and potential funding sources and the positive impact such a center would have on the Chelsea area.
The City Council also discussed a policy for appointment to boards, committees and commissions, made changes to the recommendations and is expected to discuss this topic at the next meeting.
To view the full meeting video, please click here.
REU stands for?
Residential equivalency unit. It’s a unit of measurement used to equate non-residential or multi-family residential water use. Restaurants use a lot more water than say a retail store or a homeowner. The city charges businesses for the amount of water that’s used.