An example of a mass timber construction that was included in the Jan. 24 Planning Commission agenda packet. At its Aug. 22 meeting, the DDA recommended an incentive point system that would encourage developers to build mass timber constructions.

DDA Recommends Point System to Encourage Green Building Practices, Affordable Housing

Incentives for affordable housing, mass timber and other environmentally-friendly building practices were discussed by the East Lansing Downtown Development Authority (DDA) at its Thursday, Aug. 22 meeting. 

The DDA board voted to recommend a resolution that gives developers “points” for including desired features in their buildings. These points could then be used to bypass council approval that is usually needed for special use permits to add height to buildings or reduce the minimum lot size requirement. 

If the resolution is eventually passed by council, points will be distributed to developers who make at least half of units affordable, obtain LEED certification (Leadership in Environmental and Energy Design), obtain net zero building certification or build a mass timber structure. 

A table showing how developers can earn “points” if the proposed system is eventually passed. (From DDA meeting agenda)

There are two tiers of affordable housing a developer can provide. The first is “affordable” to people who make 60% of the area median income and earns the developer one point. The second tier earns developers two points and is “affordable” to people making 30% of the area median income. The area median income is $92,300. 

In an email, Bartley explained that affordable housing means that tenants spend no more than 30% of their income to be housed. This means if a development were to appear today, rent and utilities would be capped at $1,385 per month to be in the first tier and $692 per month to be in the second tier. 

Bartley also explained that developers can only obtain points for one of the environmentally-friendly building standards. This means the most points a developer could earn is six. Developers would earn a bonus point if they construct a mass timber building (three points) and meet the second tier for affordable housing (two points). 

There are some restrictions that are still in place. Points can only be spent in developments in certain areas in the city, and most areas of the city have a cap on the number of stories that can be added, depending on how they are zoned. Additionally, lot sizes can be reduced by a maximum of 25% in some areas. Incentives would still need to be vetted by the city’s Planning and Zoning officials. 

A table showing how developers can spend “points” if the proposed system is eventually passed. (From DDA meeting agenda)

Bartley explained at the meeting that in the most dense residential districts and low density business districts, one story can be added. In more dense business districts, two stories can be added, and in the downtown area, developers can add as many stories as points allow, meaning developers could add as many as six stories without a special use permit. 

DDA members seemed satisfied with the system because it incentivized desired outcomes, but did not punish developers who followed more traditional routes. 

The incentives may also be able to convince developers to utilize mass timber buildings – which are constructions made of thick, compressed layers of wood. Mass timber is a more environmentally friendly type of structure, and was recently used to construct the new Michigan State University STEM Teaching and Learning facility.

A photo of the interior of the Michigan State University STEM Teaching and Learning Facility, which was built with mass timber. (From MSU College of Agriculture and Natural Resources)

Mass timber has received plenty of attention at city commission meetings for more than a year. Additionally, last year the city appointed a committee to study the impacts of mass timber. The committee included several city commission members, people who have worked on developments downtown and city staff members. This committee recommended the point system. 

With unanimous recommendation from the DDA, the resolution will next be considered for recommendation by the Planning Commission at tonight’s (Wednesday, Aug. 28) meeting. If the proposal gains Planning Commission recommendation, a public hearing is tentatively set for the Oct. 1 City Council meeting.  

DDA approves Memorandum of Understanding with city for executive director. 

The DDA approved a Memorandum of Understanding (MOU) with City Council to hire a new executive director. The MOU is basically an agreement between the DDA and City Council about hiring and employment details for the new position. 

A previous version of the MOU passed by the DDA was rejected by City Council because some members believed it gave powers to the DDA that should go to the City Manager. The current version addressed those concerns and was approved by council at its Aug.13 meeting. 

The MOU stipulates that the DDA director will be selected by the city manager with input from the DDA. Additionally, the DDA can propose a salary that will be approved by council when it sets its annual budget. 

Other parts of the document state the DDA can do an annual “360 review” of the executive director, the DDA will reimburse the city for funds used to hire the employee and the employee will receive director-level benefits. 

With the approval of the MOU, the DDA is one step closer to hiring an executive director for the first time in its roughly 30 years of existence. Up to this point, the DDA has relied on city employees to carry out its work. 

At the Aug. 22 meeting, City Manager Robert Belleman said DDA Chair Mike Krueger and Vice Chair Luke Hackney had received a sample job posting for the position and he was awaiting feedback.