Allen Edwin Breaks Ground on Three Meadows Subdivision

The 3- to 5-bedroom homes will sell at “market rates” of between $280,000 and $350,000.

Three Meadows—Parrish Excavating has broken ground on Allen Edwin’s housing project in the Three Meadows subdivision.

As the excavating crew moved earth, members of the Hillsdale City Council and the city staff attended a groundbreaking ceremony at 300 Hidden Meadows Drive on Thursday, May 15th.

The Agreement

In November 2024, the City Council, in a 5-3 vote, approved a 25-year tax incentive for Allen Edwin Homes through the Brownfield Development Authority.

The agreement will allow the developer to collect up to $7,032,663 in property taxes from properties in the district.

Allen Edwin plans to build 62 single-family detached homes in the subdivision, sell 49 at market rates, and rent the remaining 13 homes.

The 3- to 5-bedroom homes will sell at “market rates” of between $280,000 and $350,000. The median household income in Hillsdale is about $48,000, according to Allen Edwin’s housing study.

After 25 years, the city will begin to collect property taxes, which are estimated to be $228,935 in annual revenue.

Allen Edwin’s 25-year tax-collection period will likely begin in 2027, when the organization predicts that the development will be completed. In that case, the city would see tax revenue from the development in 2052.

In exchange for the tax-capture district, Allen Edwin will invest $1,779,784 to build infrastructure for the new homes.

The Housing Market

The Three Meadows development came in response to concerns about a “housing crisis” in Hillsdale and throughout Michigan.

Data from the Michigan Statewide Housing Plan claimed that Hillsdale County had a 0.9% vacancy rate in 2022, indicating a tight housing and rental market. Some argued that this market necessitates government subsidies.

But the population in the city and county of Hillsdale has fallen over the past 20 years.

The city of Hillsdale recorded 8,305 residents in the 2010 census and 8,036 in the 2020 census, a 3% decline. As of July 2024, the U.S. Census Bureau estimated a population of 7,983.

Likewise, Hillsdale County’s population declined more than 2% in the past 15 years, from 46,688 in 2010 to 45,746 in 2020. The population has since fallen to 45,587.

The trend is not likely to reverse.

The Michigan Center for Data and Analytics predicts a 7% population decline in Hillsdale County from 2025 to 2050.

This decline would accelerate if the county continues on its current trajectory. Over the same 25-year period, the declining population would be accompanied by a 28.5% fall in birth rates and a 30.6% increase in deaths.

Hillsdale County, like Michigan, also has net-zero or net-negative migration flows in most years.

While there might have been a tight housing market for a period, the trends indicate a long-term decline in housing demand.

The Land

The development will cover 22.636 acres of land that the EDC purchased in 1999.

Allen Edwin has purchased 9.96 acres for Phase 1 of the project.

In March 2023, the Economic Development Corporation granted Allen Edwin an exclusive option for the purchase of the land. Under the original purchase agreement, the developer had until June 2025 to buy the land.

Allen Edwin requested an extension of the exclusive option to purchase the remaining 12.67 acres, which will be the site of Phase 2 of the project. EDC granted the request, giving the company until June 2026 to buy the remaining land.

Allen Edwin has also completed a rent-controlled 6-unit duplex project near the entrance to the Three Meadows subdivision at 440 & 450 Hidden Meadows.

Joshua Paladino

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Related Links:

EDC Extends Allen Edwin's Exclusive Option for Land Purchases at Three Meadows

Economic Development in Hillsdale

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