Lowell, Lowell Charter Township Approve Cooperation Agreement for Development that Will Bring Investment and Jobs

The Lowell City Council and Lowell Charter Township Board have approved a land use agreement that will pave the way for the development of Covenant Business Park and bring investment and jobs to the community.

The Public Act 425 cooperation agreement allows for a conditional land use transfer that will benefit both communities. The agreement covers property at Covenant Business Park, which is located in Lowell Charter Township at the interchange of I-96 and Alden Nash Avenue SE. The 237-acre parcel, which is zoned for industrial and commercial use, has been planned for future growth for decades.

The Lowell City Council approved the cooperation agreement on Oct. 21, followed by Lowell Township Board approval on Monday.

“This cooperation agreement is a big win for the entire Lowell community,” Lowell City Manager Mike Burns said. “It paves the way for significant investment, tax revenue and jobs to both the city and the township and demonstrates what local governments can accomplish when they work together. We appreciate this historic collaboration with Lowell Charter Township and are grateful to our partners at the Michigan Economic Development Corp. and The Right Place for their support of this development project.”

The agreement brings this parcel into the City of Lowell for a period of 50 years. The City will levy 15.7 mills on property owners in the business park, returning 6 mills of revenue to Lowell Charter Township. The Township’s current master plan and zoning will guide development on the site.

“Lowell Charter Township is pleased to have a cooperative agreement in place that enables us to move forward on this parcel,” Lowell Charter Township Supervisor Jerry Hale. “This property has been in our master plan for more than 30 years, but it has been stalled by a lack of infrastructure. We are grateful to the City of Lowell, MEDC and The Right Place for their partnership in helping to bring development at this site one step closer and we look forward to the economic benefits it will bring to the Lowell community.”

As part of the cooperation agreement:

• The City of Lowell will be responsible for police, fire and emergency services, assessing property in the business park and levying taxes.
• Lowell Charter Township will be responsible for code enforcement, special assessments and water and wastewater lines.

The cooperation agreement could potentially be renewed for another 50 years if both the City and Township agree. Once the agreement ends, the property goes back to Lowell Charter Township.

In January, the MEDC awarded The Right Place a $17.5 million grant to prepare the site. Funds from the MEDC’s Strategic Site Readiness Program will allow work on infrastructure needed for the site.

“The Right Place applauds the City of Lowell and Lowell Charter Township for their successful collaboration,” said Randy Thelen, president and CEO of The Right Place. “This innovative partnership will create new opportunities for future generations.”

The city council and township board approved the cooperation agreement following robust public input opportunities, which included an informational meeting, open houses and public hearings over the past two months as well as three open houses earlier this year. Additionally, the City and the Township have provided answers to frequently asked questions on their websites.

The City of Lowell is working to expand its water and wastewater treatment facilities in order to accommodate current and future needs of users, including the business park. The City and the Township are in discussions for water and wastewater agreements that will run in conjunction with the cooperation agreement. The 425 cooperation agreement will not become effective until the City and the Township approve new water and wastewater agreements.