Up To $156 Million in New Investment in Detroit Announced
The Michigan Economic Development Corporation (MEDC) provided assistance today for five major brownfield redevelopment projects in Detroit.The projects are expected to generate over $156 million in private investment, create about 210 permanent jobs and help redevelop long blighted areas of the city.The incentives were offered to Merchant’s Row Redevelopment Project, the Woodward Millennium project, Lombardo Heritage, LLC and General Motors(GM).
“These redevelopment projects will continue Detroit’s road to prosperity,” said Doug Rothwell, president & CEO of the Michigan Economic Development Corporation.“The credits will facilitate private investment in obsolete properties that have been underutilized for years. The housing and jobs created will help further revitalize the city.”
The Merchant’s Row project was granted a brownfield single business tax credit of up to $1.7 million to rehabilitate buildings near the Campus Martius area on Woodward Avenue.The buildings, which have been mostly vacant since the mid-1980s, will be redeveloped to accommodate loft apartments, retail space and a parking garage.The private investment for this project is expected to total up to $17.3 million.
The Woodward Millennium Project, also known as 3600 Woodward, received approval for brownfield tax increment financing to prepare the site for redevelopment.The cost of the demolition and public infrastructure improvements, estimated at $718,000, will be reimbursed through the capture of local and state property taxes.The project is located at the northeast corner of Woodward and Mack Avenues.
The clean up of the property will ultimately result in the creation of 180 units of new housing, a parking garage and retail space.In addition to construction jobs, 30 retail jobs are expected to be created.The private investment in the project is estimated at $37 million.
The Lombardo Heritage project was granted a brownfield tax credit of up to $1.7 million to help redevelop blighted property on Detroit’s far east side.A private investment of approximately $19.7 million will build condominiums targeting family occupancy.The 10.5-acre property bordered by East Jefferson, Newport, Drexel and Freud, is abandoned today and generates very little tax revenue.As a result of the complete build out of the project, the city anticipates approximately $300,000 in new tax revenues to the city.
Two brownfield Single Business Tax Credits totaling up to $8.3 million were awarded to General Motors (GM) for two separate developments involving substantial renovations and improvements at the Renaissance Center and the surrounding area.General Motors acquired the Renaissance Center in 1996 and consolidated its worldwide headquarters there.GM plans to invest a total of up to $83 million on the two projects.
One credit was awarded for GM’s Riverfront Promenade project.The up to $2 million tax credit will help facilitate the construction of a walkway designed to provide greater public access to the riverfront from the Renaissance Center.
An additional brownfield tax credit was awarded to GM to construct an eight level, mixed-use parking deck accommodating 1,100 vehicles and allowing for 18,000 square feet of retail space.The parking deck will eventually be connected to the riverfront walkway.The separate brownfield credit for the parking deck will total up to $6.3 million.The two projects are expected to create up to 85 independent construction jobs as well as additional retail jobs upon completion of the projects.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life.