Cedar Springs Has The "425 Agreement," But How Does it Work?

To many people in the area, “Cedar Springs” stretches past the 2.03 square miles that make up the city limits.

All of Solon Township shares the Cedar Springs 49319 zip code, and many township residents and businesses are commonly thought of as part of the broader Cedar Springs community. But legally, the City of Cedar Springs and Solon Township are separate local governments, with different boundaries, elected officials, tax structures and service responsibilities.

That distinction is at the center of the city’s 425 agreement with Solon Township.

Cedar Springs became a city in October 1959, a change driven in part by the need to develop municipal water and sanitary sewer systems. As the community grew, the need for water and sewer extended beyond the original village boundaries. In 1999, Cedar Springs and Solon Township entered into a development cooperation agreement. This is commonly known as the "425 agreement," named after Michigan Public Act 425 of 1984.

The agreement is a tool that allows the city and township to cooperate on economic development and share tax revenue. Locally, it provides a framework for how land west of downtown Cedar Springs, especially around the 17 Mile Road and U.S. 131 corridor, may develop as city utilities become available.

For business purposes, Cedar Springs is often viewed in two sections: the traditional downtown along Main Street and nearby side streets, and the “Uptown” or Solon Business District west of downtown. The latter is the area most affected by the 425 agreement.

The agreement covers approximately 771 acres, divided into three areas.

Phase I includes about 48 acres directly east of U.S. 131, bisected by 17 Mile Road and White Creek. These properties have already been transferred to the City of Cedar Springs and will remain in the city after the agreement expires.

Phase II includes about 217 acres east of Phase I and west of the current city limits. These properties remain in Solon Township until a property owner requests water and sewer service for development. Once that request is made, the property may transfer to the City of Cedar Springs through the required process. When the agreement expires, developed Phase II properties that requested water and sewer remain in the city; undeveloped properties remain in the township.

The Service Area includes about 446 acres west of U.S. 131. These properties may connect to city water and sewer if utilities are extended west of the interchange, but they remain under Solon Township jurisdiction.

In simple terms: Phase I is city property. Phase II may become city property if development using city water and sewer occurs. The Service Area may receive city utilities but stays in the township.

The agreement is not just about boundaries. It also shapes what kind of growth occurs near one of the community’s most important corridors. The future land use plan for the 425 area includes highway commercial, light industrial, low, medium, and high-density residential uses.

City planning documents note that Cedar Springs is increasingly influenced by growth from the Grand Rapids metropolitan area. The 425 area, with access to U.S. 131 and proximity to downtown Cedar Springs, is expected to play a major role in future business, housing and industrial development. This is evidenced by the new White Creek Flats apartments on White Creek Avenue north of 17 Mile Road.

The city’s master plan also emphasizes managed, sustainable growth that supports the local economy, expands housing options, protects environmental and historical assets, and preserves Cedar Springs’ sense of place. In the 425 area, that means paying attention to landscaping, traffic circulation, parking, signage, screening and overall appearance as development occurs.

For residents and business owners, the 425 agreement matters because it affects who provides services, who receives tax revenue, and whether certain properties are governed by the city or township.

It also reflects a broader reality: Cedar Springs is both a city with defined legal boundaries and a larger community identity shared by many people outside those boundaries.

As growth continues west of downtown, the 425 agreement will remain one of the key tools shaping the future of the area many know as the Solon Business District, the Uptown area, or simply Cedar Springs.