April 22, 2013 Category: Commercial Real Estate
There is certain infrastructure which is required to make a condo development a viable endeavor as well as a profitable investment. Since individuals and families will be living in any proposed residential development or complex, they will need proper roads, lighting and other types of infrastructure needed for everyday living. One city in Michigan recognizes this and has promised to pay for this essential infrastructure in order to help a multimillion dollar condo development project move forward.
The city says it is planning on taking out a $250,000 loan to help with the essential infrastructure to make the residential development a viable enterprise. The planned condo development will be located right next to a local golf club. Thirty-four condominium units are planned to be included in the proposed project, which will be implemented by American Village Builders. The location is currently a foreclosed, partially developed project abandoned by a previous developer.
The city council had originally agreed to a $125,000 contribution to develop the necessary infrastructure. However, the council wanted to ensure the developer would choose this particular site, since the developer was also considering other sites to develop. This is why the council decided to double its promised contribution. The development is expected to generate a minimum of $170,000 per year in additional tax revenue.
Along with the proper infrastructure to attract residents wishing to live in the condo development in Michigan, the developers must also educate themselves on the local legal regulations for residential properties. This will help to avoid any fines which may be incurred as a result of violating any local laws. It may also prevent any future civil lawsuits which could be caused by potential safety violations.
Source: mlive.com, ” Vicksburg agrees to increase funding to help develop unfinished condos near Angels Crossing Golf Club ,” Tom Haroldson, April 5, 2013