The Michigan Economic Development Corp. (MEDC) announced Tuesday that the Michigan Strategic Fund (MSF) is supporting projects for growth and economic recovery in Detroit and Traverse City that are expected to generate a total capital investment of $35.7 million.
The MSF also approved rules for the new State Historic Tax Program. When finalized, the credits will help support place-based projects and promoting the preservation of Michigan’s historic resources throughout the entire state.
“Today’s MSF approvals demonstrate our continued focus on innovative placemaking efforts in communities throughout the state, laying the foundation for long-term economic resiliency for Michiganders,” says Amanda Bright McClanahan, COO of the MEDC. “By focusing on traditional downtown districts, revitalizing public spaces, and preserving historic resources, we are helping to establish vibrant, unique places where people want to live, work, visit and play.”
One project by 7303 West McNichols LLC will see the construction of a new mixed-use building between Prairie and Monica streets in the Bagley and Fitzgerald neighborhoods on the west died of Detroit. The facility will have commercial space available on the first floor, along with 38 affordable residential units on the two top floors.
“As a development team, our interest is to bring affordable housing and innovative design which has all the attributes of market-rate offerings. The Bagley and Fitzgerald communities have a strong foundation, and our project will only enhance its strength and be an anchor institution like the Marygrove Conservancy, the University of Detroit Mercy and their students from all over the world,” says George N’Namdi, at partner at 7303 West McNichols.
“This project will be complemented by 6,000 square feet of retail offerings for the community. As with many projects in Detroit, our project would not be possible without the support of our state, local and philanthropic partners, like MEDC.”
The project is expected to generate $10.4 million in total capital investment and create 25 full-time equivalent jobs, resulting in a $1.25 million Michigan Community Revitalization (MCRP) performance-based loan. The project will bring retailers and residents to a currently abandoned location.
The City of Detroit Brownfield Redevelopment Authority also received MSF approval of $228,537 in state tax capture for the reimbursement of brownfield alleviation activities. The city of Detroit is supporting the project through the approval of the local portion of the Brownfield TIF valued at $295,755, an anticipated property tax abatement valued at $119,235 and an anticipated Neighborhood Enterprise Zone tax abatement valued at $727,416.
GLC Northern Michigan Pine LLC is planning a similar build, which will also feature first-floor retail space, along with 91 units of mixed-income residential rental housing and underground parking, located on Front Street in downtown Traverse City.
The project is expected to generate $25.3 million in total capital investment and create 24 full-time equivalent jobs, resulting in a $2.9 million MCRP loan. The location has been vacant for years, and the project will bring much-needed housing to attract new businesses.
The city is supporting the project with approval Traverse City is supporting the project with approval of the local portion of an existing brownfield work plan valued at $243,700 and a Downtown Development Authority contribution of $3.5 million to support the creation of public sidewalk systems, streetscape, front street bridge repair, buried power lines and the long-term creation of a new public parking deck.