The developer of the BayView project in the Village of Suttons Bay may be able to pay off part of a $100,000 debt to the village by donating two lots in a new phase of the development to a county-sponsored affordable housing program.

The Village Council held a special meeting Friday and voted unanimously to adopt a resolution approving the sale of two lots from the Village of Suttons Bay to the Leelanau County Board of Commissioners.

According to minutes of the May 10 meeting, village president Larry Mawby explained that the two lots were acquired by the village from the developer as an “in kind” payment for the village’s expenses related to infrastructure engineering for the development.

The village had paid the Traverse City engineering firm Gosling-Czubak to oversee infrastructure engineering for the development with the cost to be passed on to the developer.

“Near the end of 2006 these charges were around $100,000 so the developer deeded these lots to the village for the amount of $40,000 per lot reducing his (the developer’s) debt to the village to $20,000,” according to meeting minutes. “It was noted as part of the approval process, the developer was required to set aside 50 units in the three phases to create an affordable housing program within the village.

“The condition was the developer would sell the units to the village at a reduced and pre-designated fixed price; this price was later established as $40,000 per unit,” the minutes continued. “The developer was required to set aside 15 units in phase II, 20 units in Phase III and 15 units in phase IV.”

Phase I of the BayView project consists of residential condominiums, mixed use and other buildings along M-22 north of M-204 in the Village of Suttons Bay. The following phases, known as “Leelanau Hills,” are located west of M-22 and are currently accessed via Scott Hill Road off M-204. The Leelanau Hills development is planned to extend as far north as Dumas Road.
Combined, the BayView and Leelanau Hills developments are planned to add more than 500 new housing units to the Village of Suttons Bay. So far, construction on three new homes has begun in the Leelanau Hills development. Those homes are not included in the county’s “affordable housing” program, however.

Leelanau County housing coordinator Ron Crummel said that village and county officials hoped to close on the transfer of two lots in Leelanau Hills for the affordable housing program on Friday, May 18.

However, Crummel said this week that the closing date may be changed.

“There is a question on liens on the property and if this section is affected,” Crummel said.

Meanwhile, the developer has apparently paid off a landscaping contractor who filed suit in January, claiming that he had not been paid $78,052 the developer owed him for materials and labor on Phase I of the BayView project.

Jeff Keith, the owner of Northport Nursery, Inc., said this week that he withdrew his suit against Suttons Pointe Development L.L.C. on May 1 having received payment in full, plus interest, from the developer.