A proposed $39 million project to build 120 single-family homes in Royalton Township is moving forward.

The Berrien County Board of Commissioners on Thursday approved a tax increment financing (TIF) plan for the new housing development on land owned by John Nye at the intersection of Glenlord and Hollywood roads.

Developer Allen Edward Holmes is planning the project that would add 120 single-family homes on the 54-acre site across from Roger’s Foodland and next to Grace Lutheran Church. According to project developers and county officials, the plan includes constructing 90 homes for sale, 18 market-rate rentals, and 12 income-restricted rental units for households earning up to 120% of the area median income.

Construction could begin this fall and continue in phases through 2032.

Berrien County Community Development Director Dan Fetty said the TIF would reimburse eligible costs such as $8.3 million in infrastructure, $1.6 million in site preparation, and $2.5 million in rental subsidies over 10 years. Total potential reimbursements are estimated at $19 million over 25 years. The project would be privately financed.

The Berrien County Brownfield Redevelopment Authority and the Royalton Township Board of Trustees both unanimously recommended approval. At a public hearing prior to the TIF approval, commissioners discussed housing needs, land use, and affordability, with some noting the county’s shortage of “missing middle” housing.

With the county approval in place, documentation will be sent to the Michigan State Housing Development Authority for administrative review and approval. Final approval is expected in the next six weeks. 

Approved TIF plans allow developers to recoup a portion of their investment through property taxes while localities continue collecting their existing property tax revenues.