Governor Engler praised Federal Reserve Chairman Alan Greenspan today for his commitment to Detroit, following the announcement of the Fed’s plans to construct a new $90 million office and processing center within a Detroit brownfield site. The new center is the eighth major brownfield redevelopment within the city since the brownfield redevelopment financing act was updated two years ago to include blighted and functionally obsolete properties. These Detroit redevelopment projects are expected to generate more than $680 million in investment.
“Michigan is the number one brownfield redevelopment success story in the nation,” said Governor Engler. “Especially for cities like Detroit, our bottom line is turning brown into green – investment, jobs and paychecks.”
Last week, the Federal Reserve Bank received approval to capture $3.2 million in state and local taxes to prepare the site for the new 260,000 square foot processing center. The Federal Reserve will invest nearly $90 million in the site bounded by Warren, Russell and Forest Avenues.
The other Detroit redevelopment projects that have received tax benefits as a result of the updated brownfield program include:
·American Axle world headquarters: This project involves the construction of a new 176,000 square foot, seven-story office complex on a 19-acre parcel of property. The site is on Holbrook Avenue near I-75. The company plans to invest about $44 million in the project.
·Compuware Corporation headquarters: Construction of this $350 million, 14-story, more than 1,000,000 square foot headquarters in the Campus Martius area is well underway.
·General Motors Riverfront Promenade: The project includes the construction of a walkway designed to provide greater public access to the riverfront from the Renaissance Center.
·General Motors Parking Deck: Connected to the riverfront walkway, this project includes construction of an eight-level, mixed-use parking deck accommodating 1,100 vehicles and allowing for 18,000 square feet of retail space. GM plans to invest a total of up to $83 million in the parking deck and the riverfront promenade project.
·Merchant’s Row: This project will rehabilitate buildings near the Campus Martius area on Woodward Avenue into loft apartments, retail space and a parking garage. The private investment for this project is expected to total up to $17.3 million.
·Lombardo Heritage:This10.5-acre site on Detroit’s far east side will be redeveloped into condominiums for families. Approximately $19.7 million will be invested by the private sector.
·Woodward Millennium Project:Located at 3600 Woodward, this $37 million redevelopment will result in the creation of 180 units of new housing, a parking garage and retail space.
Statewide, 30 contaminated or functionally obsolete properties are being redeveloped through the new brownfield program and are expected to generate more than $3 billion in private investment in Michigan’s core communities.