Pennies from Heaven, developer plan Foster School housing

By Rob Alway, Editor-in-Chief

LUDINGTON — Pennies from Heaven Foundation and Keel Capital announced Friday that they are partnering to redevelop the former Foster Elementary School property into workforce housing.

Pennies from Heaven Foundation has purchased the approximately 3-acre property at 504 and 507 E. Foster St., which includes the former school building and the former playground property across Foster Street.

Keel Capital, a Midwest real estate development and investment firm specializing in multifamily and workforce housing, plans to submit a redevelopment proposal to the city of Ludington early next year.

According to Monica Jewell, executive director of Pennies from Heaven Foundation, the proposed development will include a mix of housing for working individuals and families, along with green space, a playground and shared community space. Details such as the number and types of housing units have not yet been announced.

“Pennies from Heaven has a long history of investing in the people and our community,” said Jewell. “Over the last 10 years, housing has remained a priority for us because of how critical it is to a strong community.”

Jewell said the foundation saw the property as an opportunity to return a community asset to productive use.

“When we purchased the Foster School property, we saw an opportunity to put a key community asset back to work,” she said. “We’re excited to partner with Keel Capital on a thoughtful plan for the site and to work with the city and community partners to make sure the development is a good fit for Ludington and the needs of the people who live and work here.”

Keel Capital Managing Principal Tom O’Hare said the project is intended to address workforce housing needs in Ludington.

“Ludington needs housing that working people can afford, and the Foster School site is a rare opportunity to deliver it,” O’Hare said. “We’re thrilled to partner with Pennies from Heaven on this effort, and we look forward to presenting a thoughtful redevelopment proposal to the city and working closely with residents, city leaders, and every stakeholder to create something the whole community can be proud of.”

The partnership is beginning pre-development work. Additional details are expected when the proposal is presented to the city.

The announcement is the latest chapter in several years of attempted redevelopment of the former school property.

Foster Elementary closed in January 2022 following the opening of the new Ludington Elementary School on West Bryant Road in Pere Marquette Township. Ludington Area School District sold the Foster property to Datum Point Real Estate Development of Grand Rapids later that year for $20,000.

Datum Point initially proposed demolishing the school and constructing four townhouse buildings containing 28 units. The company later revised the project to preserve much of the school building and create 38 apartments and loft townhouses, along with another townhouse building on the former playground property across Foster Street.

Ludington City Council approved an Obsolete Property Rehabilitation Act tax exemption for the project in 2023. Construction was initially expected to be completed in March 2024 but never began. City officials later said the developer lacked the capital necessary to cover construction costs before receiving reimbursement through anticipated grant funding.

Mason County foreclosed on the property April 1, 2026, for unpaid 2023 and prior property taxes.

The property had been scheduled for a county tax-foreclosure auction Aug. 27, but Mason County Treasurer Andrew Kmetz IV removed it from the auction after City Council adopted a Housing Incentive Overlay District for the site Aug. 24. The auction was postponed to give prospective purchasers time to evaluate how the new zoning requirements would affect redevelopment plans.

The overlay was created specifically to encourage diverse, attainable and workforce housing on the property. It requires residential redevelopment to contain at least 15 dwelling units per acre. Based on the approximately 3.03-acre site, a project would require about 45 housing units.

Up to 24 units per acre are allowed by right, while density may increase to 28 units per acre if the development includes specified public benefits, including affordable or workforce housing commitments, public open space, pedestrian connections, preservation of historic structures or accessible housing.

Developments containing 15 or more units must include at least three housing types, and at least 15% of the site must be maintained as usable common open space. The ordinance does not require demolition of the former school and allows the existing structure to be incorporated into a redevelopment project.

The oldest portion of the building dates to 1886, when it opened as Central School. It served as Ludington High School until 1957. Oriole Hall, the gymnasium and 16 classrooms were added in 1925. Central School later became the junior high school and eventually Foster Elementary School after the original Foster School building across Foster Street was demolished in 1967. Additional portions of the school were constructed in 1969, 1991 and 2008.

Pennies from Heaven Foundation is a family foundation that supports projects involving basic needs, education, workforce development and community development.

Keel Capital is a Midwest-focused real estate development and investment firm specializing in multifamily and workforce housing.

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