Bessemer housing construction may start this summer

By P.J. GLISSON

news@yourdailyglobe.com

Bessemer - A Bessemer housing project that has been years in the making is inching toward the possible start of construction this summer.

Although not on the agenda, the pending project was discussed during the public comment session of Monday's Bessemer City Council meeting.

Project Developer Chad Bucknell specifically informed the city that he is requesting a tax-exempt status for the pending complex south of the Iron Belle Trail, between South Moore and South Clayberg streets.

"We qualify because we're a limited income apartment property," he said of the already named Iron Belle Apartments.

"This all has to be approved before construction, and we hope to get construction going this summer," said Bucknell, referring to Phase 1 of the project, which includes a building of eight units.

Attorney James Bucknell, who is Chad's father, added that project engineering has been completed on the property that he estimated is 200 yards south of the Bessemer City Hall.

He said that funding from the U.S. Department of Housing and Urban Development will help to make it possible.

"It was the only one in the U.P. that was approved," said the attorney, but he added, "There're a whole bunch of federal regulations that we need to work through yet."

James Bucknell said the city has related options for remuneration for tax loss, through the federal PILT program, an acronym for payment in lieu of taxes.

According to the U.S. Department of the Interior, which is in charge of annual PILT payments, the formula used to compute them is determined by population, revenue-sharing payments, and the amount of federal land within the given county.

Both of the Bucknells are from Bessemer, and Chad owns Bessemer Small Engine.

Councilman Adam Zak said that city officials will need to seek legal advice.

"We were led to believe we could collect taxes," said Zak. "We wouldn't have sold the property if we'd thought that we couldn't collect taxes."

"My recommendation to you would be to put this all in writing and get this on the agenda for the next meeting," said councilwoman Linda Nelson to the Bucknells.

City Manager Christopher Frazer added that he will work to resolve any issues.

According to Chad Bucknell, a possible Phase 2 of the project could include another eight units but would require more funding from Michigan's Housing Development Authority.

"There's room for three buildings in the site," he said, adding that is the goal for the site that can be accessed from South Moore Street.

On July 5, 2022, the Bessemer Planning Commission cleared the way for the new housing complex by voting to change the land's zoning from CE (Country Estates) to R-2 (Mixed Density Residential).