State aid OK’d for community redevelopment projects

LANSING—Projects that will support growth and economic recovery in five communities around Michigan have received support from the board of the Michigan Strategic Fund, officials at the Michigan Economic Development Corp. announced.

In total, the projects are expected to generate a total capital investment of $31.7 million and create or retain 278 jobs.

The Detroit Brownfield Redevelopment Authority received MSF approval of a brownfield work plan that will include $62,333 in state tax capture reimbursement for the Corktown Housing Redevelopment Project-Phase I in the North Corktown neighborhood in Detroit. The project, pictured above, will result in the construction of three three-story structures consisting of 14 two-bedroom for-sale townhomes on the north side of Pine Street between Wabash Avenue and Rosa Parks Boulevard. The project also includes public infrastructure improvements, including a green alley, a pocket park, and installation of a bioswale stormwater system. The developer, Corktown Housing LLC, will be targeting residents with 80-120 percent of average median income.

The project is expected to generate a total capital investment of $3.3 million, and will bring public art and well-maintained community spaces to the neighborhood. The city of Detroit is supporting the project with a Neighborhood Enterprise Zone abatement valued at $332,669 and the local portion of the brownfield work plan valued at $429,253.

The Detroit Brownfield Redevelopment Authority also received MSF approval of a brownfield work plan that will include $606,800 in state tax capture reimbursement for the Junction Redevelopment Project in the Milwaukee Junction neighborhood of Detroit. The project will convert and connect one and three-story buildings on East Grand Boulevard into retail space and 18 residential units, with four of the units to be reserved as affordable at 80 percent of area median income. A third building will be rehabilitated to accommodate creative office space. The project will also include public improvements including curb and gutter, sidewalks and streetlights.

The project is expected to generate a total capital investment of $12.9 million and create 175 full-time equivalent jobs, and will help meet demand for retail and housing stock in Detroit’s Milwaukee Junction District. It will also bring three buildings back to productive use after years of underuse, vacancy and neglect. The additional retail space and residential apartments within the city will bring in additional foot traffic and spur additional economic development in the surrounding neighborhood.

Local support for the project includes the local portion of the Brownfield TIF with an estimated value of $363,494. The development team is also working to transfer an existing Commercial Rehabilitation Act Tax Abatement for the 6540 St. Antoine St. property with an estimated value of $432,946. The development team is also pursuing a 12-year Obsolete Property Rehabilitation (“OPRA”) Tax Abatement for the other two parcels with an estimated value of $589,457.

The Oakland County Brownfield Redevelopment Authority received MSF approval of a brownfield work plan that will include $275,868 in state tax capture reimbursement for the Downtown Clawson Redevelopment Project in Clawson. The project includes rehabilitation and new construction of commercial and residential space in the downtown. The property currently has one vacant building and another building that houses an ACE Hardware store and vacant commercial space. The vacant building will be demolished, and the other building will be rehabilitated into commercial and residential space. When completed, the first floor will include the current hardware store and space for a future tenant. The project also includes public infrastructure improvements.

The project is expected to generate a total capital investment of nearly $10 million and create 20 full-time equivalent jobs, and will increase urban density and provide new commercial attractions for Clawson residents.

Local support for the project includes a 10-year Commercial Rehabilitation Act (CRA) tax abatement valued at $1,388,951. The City of Clawson is engaged in MEDC’s RRC program.

MBSHAW LLC received a $274,482 Michigan Community Revitalization Projgram grant to support a $714,333 project to rehabilitate a vacant, blighted building into a mixed-use development in downtown Grayling. The building will undergo renovations to create a new coffee shop on the first floor and two market-rate residential units on the second floor. The project is expected to generate 13 full-time equivalent jobs.

The city of Grayling has secured EPA assessment services for environmental testing, which is expected to have a value of $40,000.

The Grand Rapids Brownfield Redevelopment Authority received MSF approval of a brownfield work plan that will include $228,939 in state tax capture reimbursement for the Leonard Development project in Grand Rapids. Leonard Development Partners LLC will build a new three-story mixed-use building on the site where three vacant commercial properties were recently demolished. The project, located on Leonard Street in Grand Rapids’ Westside Corridor, will include a mix of commercial office and retail space. When completed, the project will consist of a new three-story mixed-use building that will include commercial and retail space. The project will also include public improvements including the installation and/or repair of the roadway, curbs, gutters and sidewalks.

The project is expected to generate a total capital investment of $4.8 million and consolidate approximately 70 full-time professional jobs from outside the city.

Local support for the project includes the local portion of the Brownfield Tax Increment Financing Plan, valued at $133,536. The city of Grand Rapids is certified with MEDC’s RRC program.

More on the MEDC and its initiatives at www.MichiganBusiness.org.

 

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