Philip H. DeVoe | Collegian
Smoker’s Club Beer and Wine was demolished in late December 2016 to make way for two apartment buildings for senior citizens, a project undertaken by current owners Excel Realty and supported by the city of Hillsdale. Joe Tomina, who operated Smoker’s Club, moved the store to Carleton Road, next door to Hungry Howie’s, under the name Smokin Joe’Z.
Center City, the name of the new apartment complex, will contain 40 one- and two-bedroom apartments and offer rent at rates under the average for the Hillsdale County market area. Tenants must be more than 55 years of age and make under 60 percent of the median family income.
These conditions stem from the property’s status as a tax credit program, a Michigan State Housing Development Authority scheme that gives a financial break to properties fulfilling a need in a certain area. According to Excel Realty Accounting Manager Debby Olsen, a MSHDA study of the Hillsdale market conducted in 2011 found a two percent growth in that demographic in the Hillsdale area.
“Center City will address the growing demand for affordable senior housing,” said Excel President and CEO Peter Jobson. “This will be a modern affordable senior independent living community, and a great addition to Hillsdale’s downtown area.”
Excel broke ground on the two buildings of Center City after demolition of Smoker’s Club, in early January 2017. Jobson said he and Excel are excited to begin constructing the building, which won’t be the company’s first in the Hillsdale County area.
The Cleveland-based realty development company also built the Armory Arts apartments in Jackson and Heritage Lane in Jonesville, which is how they became interested in investing in Hillsdale.
Mary Wolfram, director of economic development for the city of Hillsdale, said she worked with Excel to find available property for potential development and eventually settled on Smoker’s Club, whose owner, Casey Suwaiz, was willing to sell. Excel reached an option agreement — conditional upon Excel securing MSHDA tax credit program status — with Suwaiz in March 2015 and completed the purchase by the end of 2016.
Wolfram said the city was supportive of Excel’s intention to turn the property into homes providing needy seniors close access to downtown Hillsdale.
“We said ‘Yes, this is a good idea for our city,’ especially considering we didn’t need to financially support it, as it would all be private investiture,” Wolfram said.
Center City is not Section 8 or government subsidized housing, so all tenants must pay their own rent, but the rent will be decreased exponentially according to each tenant’s income and the Hillsdale market area average. Fifteen of the apartments will be reserved for those at 30 percent of the median family income, 10 for those at 40, six at 50, and 19 at 60.
The average rent for a one-bedroom apartment in the Hillsdale market area is $650 and $719 for two bedrooms. The highest rent possible — the rent charged for the highest bracket — set at $580 for the one-bedroom and $695 for the two-bedroom.
“I think it’s filling a real need. One one hand, for housing, and on another, it’s providing a nice set of consumers living downtown, within walking distance of shops,” Wolfram said. “Some people in the country do want to downsize and move into the city, and this will give them a great opportunity to do that.”
After Excel purchased the Smoker’s Club property at the end of 2016, Tomina began plans to relocate to an empty building in the strip mall containing Hungry Howie’s, on Carleton Road. He said the name change has to do with his relationship with his customers.
“Nobody called Smoker’s Club by its real name; most people just called it Joe’s or Joe’s Smoke Shop,” Tomina said. “So I and some others decided it would make sense just to call it Smokin Joe’Z.”
He moved into the building Monday and said business has been steady, with many of his regular customers returning despite the change.