The Pontiac City Council conducted a first reading and voted to advance a proposed community benefits ordinance that would require developers seeking sizable city incentives to provide affordable housing units, local hiring percentages and procurement targets.

The ordinance creates three tiers of projects: Tier 1 applies to large private investment ($10 million or more) or financial incentives above a high threshold and would require, among other items, that not less than 20% of new residential units be priced at 80% of area median income (or a cash equivalent), a construction labor-hours target for Pontiac residents, and procurement thresholds for local small businesses.

Economic Development Manager Deborah Younger described the tiers and the specific targets. "The intent is that any city incentive, be it tax abatement, land sales, direct subsidies would invoke a community benefit," she said, adding the city will retain discretion to waive or modify requirements on a case-by-case basis.

Why it matters: The ordinance is intended to ensure that public subsidies and city assistance generate measurable local returns: affordable housing, permanent jobs, construction hiring and purchases from Pontiac small businesses.

Key features:
- Tiered approach: larger projects face more stringent benefits; smaller projects have lower thresholds.
- Affordable housing targets and alternatives: e.g., 20% at 80% AMI or a contribution to a housing fund.
- Local hiring and procurement goals with monetary alternatives where targets cannot be met.
- Council retains authority to waive or modify requirements.

Council members credited staff and several council members for extensive drafting work. Pro Tem Carrington said the ordinance will help local contractors and insisted the requirements be enforceable. "If we cannot meet the 20% threshold, it requires these developers to put money into an attainable housing fund, workforce development fund, and it's mandatory," he said.

Councilwoman Jones and others urged broad public engagement; Councilwoman Jones said a town hall will be held Wednesday, Oct. 8 at 6 p.m. at the Ruth Peterson Senior Center, and asked residents to bring ideas. Councilwoman Jones also noted the ordinance can be amended after adoption to reflect lessons learned from implementation.

The vote on the first reading was 7-0 to move forward; a second reading and further committee review were scheduled so council and the public can review details before a final adoption.

What comes next: The council will host the Oct. 8 town hall and the ordinance will return for additional readings and potential modification. Staff and council members asked residents and business owners to review the draft and submit questions through committee channels in advance.