Summary
The Northport Village Council met on July 17, 2025, and took significant action on attainable housing initiatives, adopting both Ordinance 141 (Attainable Housing Facilities Exemption District) and Ordinance 140 (PILOT - Payment in Lieu of Taxes) on second reading. The Council also adopted Resolution 2025-09, Resolution 2025-10 (a sewer debt collection rate increase), and Resolution 2025-11 (Public Participation Plan). A lengthy public hearing preceded the vote on Ordinance 141, with numerous residents raising questions and concerns. Routine business including approval of prior meeting minutes, staff reports, and payment of bills was also conducted.
Public Comments
During the public hearing on Ordinance 141, the following residents spoke:
- Larry Mawby thanked the Council and noted Northport would be the first municipality in Leelanau County to adopt such a provision, clarifying the ordinance does not commit the Village to any specific project.
- Karen Puschel requested clarification on how the ordinance would affect property owners and expressed confusion about its purpose.
- George Wyss questioned the level of public outreach and low attendance at the hearing, asking how it had been publicized.
- Gerald Schatz supported the ordinance and suggested it explicitly include "workforce" housing as a purpose, while not limiting it solely to that goal.
- Chris Irvine asked whether adoption would expedite the development process or if traditional zoning steps would still apply.
- Joanne Swanson raised concerns about zoning integrity and urged the Council to more narrowly define district boundaries, cautioning against including environmentally sensitive areas.
- Sam Madison encouraged the Village to consider relief on water and sewer fees to further support housing projects under the ordinance.
- Alan Woods asked the Council to delay adoption to allow additional public discussion, citing unanswered questions and limited engagement.
- Barbara Weber raised twelve questions regarding zoning compliance, the need for the ordinance, and impacts on the wastewater system and infrastructure.
- John Weber raised concerns about the certified letter notification process, stating some property owners had not received notice.
- Beth Mooney asked how the ordinance aligns with Northport's long-term vision, expressed concern about reduced property tax revenue, and encouraged strategies to attract younger residents.
- John Lesperance noted many residents only learned of the ordinance through a single newspaper article and felt more information/discussion was needed.
- Gerald Woods asked how long tax exemptions would last and what strategies existed to offset lost tax revenue.
The Council responded to these concerns following the hearing (see Affordable Housing Initiatives below), and the public hearing was closed at 7:59 p.m.
During the general public comment period, Larry Mawby (Peninsula Housing) spoke in support of Ordinance 140 (PILOT), explaining the mechanism and encouraging adoption. John Lesperance asked whether implementing the housing programs would require hiring additional Village staff for eligibility oversight and administration. Joanne Swanson addressed a proposed transfer of a 1.2-acre parcel on Seventh Street to the Land Bank Authority, expressing concern that alternative public uses (including allowing the site to revert to a natural state) had not been adequately considered; she cited a recent bear sighting as evidence of the site's ecological value and urged the Council to reconsider transferring or splitting the parcel without broader discussion. This was a proposal by Ms. Swanson, not a Council decision.
Later in the meeting, under public comments on bills/other business, Gerald Woods sought assurance that the attainable housing ordinance would not affect residents who do not wish to rent their homes, which was confirmed by the Council. He also expressed concern the program might attract retirees rather than families, potentially affecting school enrollment. Elizabeth Mallek asked how the ordinance would affect owner-occupied properties with accessory dwelling units and how sewer/utility fees would apply in such cases.
Correspondence was also received: a memorandum from Village Attorney Ross Hammersley outlining a collaborative effort with the City of Frankfort on housing incentive strategies, and correspondence from William Harper regarding a potentially dangerous tree.
Affordable Housing Initiatives
The Council held a public hearing and subsequently adopted Ordinance 141, establishing an Attainable Housing Facilities Exemption District under Public Act 236 of 2022. The entire Village would be designated as the exemption district, though individual exemptions require application and Council approval on a case-by-case basis. Key details:
- Targets rental housing (1-4 units) for households earning 60-120% of area median income (approximately $85,000 for a two-person household).
- Would reduce tax burden by roughly 50%, applying to both new and rehabilitated buildings; at least $5,000 in improvements required to qualify for existing structures.
- Tax exemptions may last up to 12 years.
- Village's total taxable value has grown from $65 million to $85 million over the past two years; a statutory 5% cap applies to the value of properties receiving exemptions.
- Eligibility is based on income, not employment location, per Trustee Harper.
- Trustee Cavendish clarified the ordinance does not override zoning; multi-family housing remains disallowed in R-1 zones and all projects must comply with existing zoning regulations.
- The Council characterized the ordinance as a tool, not a mandate, with every proposal evaluated individually for zoning compliance, financial impact, and community alignment.
Vote: President McCann moved, supported by Trustee Harper, to adopt Ordinance 141. Motion carried.
The Council also adopted Resolution 2025-09 (President McCann moved, supported by Trustee Ager; Roll Call Vote: Yeas 6, Nays 0, Absent 1; Motion Carried, Resolution Declared Adopted).
Separately, the Council held the second reading of Ordinance 140 (PILOT - Payment in Lieu of Taxes), following prior discussion at the July 3 work session. Village Manager Ottenwess explained the ordinance is minimal by design, aligning with state law while allowing the Council to set a payment rate of 0-10% of annual shelter rent for approved projects. He recommended developing policies and an application process for evaluating future PILOT requests, and the Council agreed such a framework would ensure consistent decisions.
Vote: President McCann moved, supported by Trustee Harper, to adopt Ordinance 140 as presented. Roll Call Vote: Yeas (6) Nays (0) Absent (1). Motion Carried.
Attorney Ross Hammersley's memorandum described a collaborative effort with the City of Frankfort to pursue housing incentives, intended to guide future policy discussions.
Trustee Harper addressed concerns that the program might attract retirees rather than families, noting that similar programs like REACH have supported families and that the properties involved are more family-oriented.
Infrastructure Projects
The Council discussed and approved Resolution 2025-10, authorizing a $20.69 quarterly increase to the sewer debt service fee for the next 11 quarters, effective immediately, to address a projected $118,000 shortfall and ensure the sewer bond debt is retired by 2028. This raises the current debt service fee from $87, equivalent to an $82.76 annual increase per REU, and applies only to the debt portion of sewer bills. Trustees emphasized acting now to avoid larger future increases. Village Manager Ottenwess confirmed investment returns are already included in financial projections.
Vote: Trustee Ager moved, supported by Trustee Cavendish, to approve Resolution 2025-10. Roll Call Vote: Yeas (6) Nays (0) Absent (1). Motion Carried. Resolution Declared Adopted.
President McCann delivered the NLTUA report, noting the Authority did not meet in the previous month; however, he signed the contract for the capacity and growth study, expected to begin soon, with results to be presented to Council as each phase is completed.
Other Business
The Planning Commission approved a bylaw amendment requiring a 30-day advance submission for site plans and similar reviews. The Commission is actively reviewing and revising the Master Plan to make sections more Northport-specific. The public property rubric evaluation continues, with the Village Manager assisting in gathering infrastructure data. The Public Participation Plan was brought to Council after it was discovered it had not been formally approved; Resolution 2025-11 adopted this plan as the Village's official policy guiding community engagement in planning and development matters, authorizing the Village Manager and Planning Commission to implement, monitor, and recommend updates to it.
Vote: Trustee Harper moved, supported by Trustee Ruble, to approve Resolution 2025-11. Roll Call Vote: Yeas (6) Nays (0) Absent (1). Motion Carried. Resolution Declared Adopted.
Village Manager Jered Ottenwess reported the launch of the Village's new Facebook page, noted three eligible businesses are currently permitted and operating in the social district, and mentioned short-term rentals will be a focus of the next work session.
The Council approved the June 19, 2025 regular meeting minutes and the July 3, 2025 work session meeting minutes (Trustee Ager moved, supported by Trustee Harper, for both; Motion Carried both times). The agenda was approved by consensus.