Detroit Developer to Repurpose Shipping Containers into Energy Efficient Condominiums

By Veronica Grecu, Associate Editor

Three Squared Inc., a local real estate developer specializing in cargo-based construction, will soon break ground on one of the most innovative multifamily projects in Detroit: a four-story condominium complex built entirely from empty shipping containers.

This ambitious project was first proposed in 2008 but had to be put on hold because of the real estate crash. With the construction industry visibly picking up in Detroit, the developer is now able to resume the $3.4 million project at Warren Avenue and Rosa Parks Boulevard, near Wayne State University.

Estimated to complete in April 2013, the planned “Exceptional Green Living on Rosa Parks” housing complex was designed by local architecture firm Steven C. Flum, Inc., and will use 93 retired shipping containers as the primary framing for the structure. According to the architecture firm, it is estimated that 21,000 shipping containers are brought to the United States every day, especially from China where it’s cheaper to build new containers rather than shipping them back for reuse.

Totaling 26,000 square feet of space, the innovative housing development will include 17 condominiums, studio, one- and two-bedroom units ranging from 850 to 1,920 square feet, as reported by Detroit Free Press. According to the news source, Three Squared Chief Executive Office Leslie Horn hopes to implement similar housing developments in other U.S. cities if the Detroit project proves to be a success

Earlier this month Leslie Horn told MHN that a three-story sales center with model units will be created by the end of the year close to the Rosa Parks site to promote the master project’s high level of energy efficient amenities that would cut down energy costs by 80 percent. The developer plans to pre-sell the Rosa Parks units at about five percent less than market rate condominiums of similar sizes.

This is the second shipping container project underway in Detroit. As previously reported by MHN City Pages, developer Shel Kimen will build a 36-room boutique hotel in the Eastern Market district using the same type of technology.

Rendering of “Exceptional Green Living on Rosa Parks” housing project courtesy of Steven C. Flum, Inc.

Former Lincoln Park Adult Movie Theater Goes Residential

By Veronica Grecu, Associate Editor

Wayne Metropolitan Community Action Agency (WMCAA), a non-profit organization that provides youth and family services and homeless prevention programs to low- and moderate-income individuals and families in Wayne County, is breaking ground this month on a new mixed-use development that would replace the once famous Park Theater in the City of Lincoln Park.  

Designed by architect C. Howard Crane as a 600-seat art venue, the historic structure was completed in 1925 and has had various uses over the years. It served as a movie theater from its opening until the 1970s, then it became a concert venue for nearly ten years. For almost three decades, from the 1980s to 2008, it ran adult movies and peep shows.

As previously reported by The News-Herald, WMCAA purchased the building from the Hustler Club for $1 in 2008 following a lawsuit settlement between the City of Lincoln Park and Larry Flint’s adult entertainment chain. After also acquiring the vacant land owned by Memphis-based auto parts and accessories retailer AutoZone, WMCAA contracted Sarnacki & Associates Architects Inc. of Wyandotte and started working on a multimillion  dollar redevelopment project aiming to convert the vacant property into 12 residential lofts with two retail spaces on the ground floor.

According to WMCAA, the project will cost $11.7 million and the funds are a combination of tax credits and grants coming from the Michigan State Housing Development Authority, the U.S. Department of Housing and Urban Development, the Corporation for Supportive Housing, Key Bank, Michigan Department of Human Services, National Equity Fund, Inc., and the City of Lincoln Park’s Downtown Development Authority. The project also calls for a second residential building with 26 rental units that will be developed behind the theater. Both buildings are expected to be completed by the end of 2013.

Click here for an in-depth market report on Detroit.

Rendering of Lincoln Park Lofts courtesy of Wayne Metropolitan Community Action Agency

Dan Gilbert’s Rock Ventures Breaks Ground on 10-Story Garage/Retail Facility in Downtown Detroit

By Veronica Grecu, Associate Editor

Rock Ventures LLC, the real estate development arm of Dan Gilbert’s Quicken Loans, is building a 1,300-square-foot parking garage and 33,000 square feet of retail space in an effort to provide more parking, more restaurants and more shops to the growing number of people who work in Detroit’s Central Business District.

Construction is already underway on the 535,000-square-foot Z-shaped development and the company says it will be completed by the end of 2013. Surrounded by Broadway and Library streets and East Grand River and Gratiot avenues, the project will occupy two adjacent surface parking lots. Rock Ventures has hired Southfield-based Neumann/Smith Architecture to create a state-of-the-art design that will camouflage the rigid, garage-like façade of the structure by using an innovative combination of color, glass and original artwork.

As reported by Detroit Free Press, the retail space at the ground floor of the 10-story garage will be large enough for 10 to 20 new retail stores which are expected to create a unique shopping experience in Downtown Detroit. While no retail chains have been named yet, a number of high-end retailers similar to those found at suburban malls could lease space in the new building and Apple Store would be on top of this list.

According to a recent market report by Marcus & Millichap, approximately 400,000 square feet of retail space will be completed in Detroit by the end of 2012. Dan Gilbert’s new garage/retail project adds to the first major shopping center to be built in the city in 50 years: the 500,000-square-foot Michigan State Fairgrounds that should re-open in fall 2013 as a thriving mixed-use redevelopment.

For an in-depth market report on Detroit, please click here.

Rendering courtesy of Rock Ventures LLC

Chart credits to Marcus & Millichap

$10 Million Rehab Project Brings Shelter for the Homeless

By Veronica Grecu, Associate Editor

Cass Community Social Services (CCSS), a Detroit-based non-profit organization that strives to provide basic needs, including affordable housing and food to the homeless and elderly in Southeast Michigan and Wayne County, announced last week a redevelopment project that would transform the derelict building located at 1584 Elmhurst Street at Woodrow Wilson Street into permanent supportive housing for the homeless.

The $10 million rehab project will be developed in a joint venture with MHT Housing Inc., an affordable housing developer headquartered in Bingham Farms, MI, under plans designed by Fusco, Shaffer & Pappas Inc. Architects and Planners in Farmington Hills. According to The Detroit News, the project is being financed through a combination of state and federal grants, low-income tax credits and sponsorships from banks.

Scheduled for completion at the end of 2013 as part of CCSS’ Arthur Antisdel Apartments project, the renovated 34,500-square-foot building will be the first homeless housing project to feature a geothermal heating/cooling system in Michigan. It will include 41 one-bedroom apartments meant to offer permanent supportive housing and a sense of community to some of the estimated 19,000 homeless men and women in Detroit. In addition to the housing units, the facility will feature a shared recreational space for residents, a computer room and office space.

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Image via Google Maps

Chart courtesy of Marcus & Millichap

New Mental Health Center Opens at Former Saratoga Hospital; Developer to Use Shipping Containers for Eastern Market Hotel

By Veronica Grecu, Associate Editor

Behavioral Centers of America (BCA), a mental health chain based in Nashville, has selected a formerly bankrupt Detroit hospital for a multi-million dollar master campus investment that would balance out the need for mental health services in Metro Detroit and Michigan. The newly renovated StoneCrest Center is the only acute mental health hospital in the city of Detroit.

The $20 million investment that would transform the former Saratoga Hospital into an inpatient mental health center is about halfway through, said BCA CEO Buddy Turner in an official statement. Located at 15000 Gratiot Avenue on Detroit’s east side, the StoneCrest Center currently provides psychiatric programs for adults, adolescents, seniors and the developmentally delayed. A substance abuse and addiction program is under construction with an estimated completion date set for early 2013.

In November 2008 BCA acquired the license of Circle of Life, a mental health care facility that used to operate at the Saratoga Hospital. The building and land were purchased in January 2012 for an undisclosed amount and BCA began renovating and expanding the facility right after closing the transaction.

In further commercial real estate news, developer Shel Kimen plans to build a 36-room boutique hotel in the Eastern Market district, on an unnamed piece of land currently owned by the City of Detroit. Construction is expected to begin as soon as the developer purchases the land and the hotel could open in fall 2013, according to Hotel News Resource.

What’s new about this hotel is that it will be constructed from shipping containers, which are about 30 percent faster to build, are more sustainable and cost less than standard building materials. Shel Kimen, who was born in Detroit and is the founder of an organization called Collision Works—which promotes co-working space and event venues in the Eastern Market district—hopes to acquire the containers locally or from Chicago. The developer is working with architects at KOOP Architecture & Media for the design and construction

Click here for a detailed market report on Detroit.

Rendering of StoneCrest Healthcare Center courtesy of PRNewsFoto/StoneCrest Center

Rendering of Eastern Market Hotel courtesy of the Detroit Collaborative Design Center for Collision Works via Curbed Detroi

WSU Expands with $93 Million Biomedical Research Center in Midtown

By Veronica Grecu, Associate Editor

On Thursday, October 25, Wayne State University (WSU) will break ground on a new biomedical facility meant to encourage collaboration between various scientific areas and translate new discoveries to improve human health and society.

The $93 million Multidisciplinary Biomedical Research Building (MBRB) is the university’s largest-ever construction project and will be located at 6187 Woodward Avenue, between the Detroit Medical Center and Henry Ford Hospital; the board attracted a $30 million grant from the state while the remaining $63 million is a mix of private donations and debt collection.

As revealed by WSU in a recent press statement, the 200,000-square-foot building will include wet and dry laboratories, faculty offices and clinical space, and it will accommodate up to 500 researchers and staff members and 68 principal investigators. The facility will be 93 percent occupied by WSU, and the remaining space will house partners from the Henry Ford Health System.

As reported previously, development plans call for reconstruction of the Dalgleish Cadillac building, a 127,000-square-foot structure designed by architect Albert Kahn in 1902, as well as the addition of a new 70,000-square-foot structure on the north side facing Woodward Avenue.

Architecture firm Harley Ellis Devereaux, which also designed the university’s A. Paul Schaap Chemistry Building, designed the project in collaboration with contractor Barton Malow of Southfield, MI.  When fully operational in early 2015, the biomedical building will seek LEED Silver certification form the United States Green Building Council (USGBC). The project will create hundreds of temporary and permanent jobs and will generate nearly $40 million in new earnings in Michigan.

WSU’s new biomedical research facility is likely to increase the need for additional medical office space in Metro Detroit in the following months, according to a recent market report by Marcus & Millichap. In the first half of 2012 medical office vacancy in the Metro area decreased to 14.9 percent as compared to nearly 25 percent recorded during the same period in 2011.

Click here for a more detailed market report on Detroit.

Rendering of the Multidisciplinary Biotech Medical Building courtesy of Wayne State University

Chart credits to Marcus & Millichap Research Services

Historic Globe Building Embarks On $12.8 Million Redevelopment Project

By Veronica Grecu, Associate Editor

On Saturday, October 6, Governor Rick Snyder announced a complex plan to revitalize one of Detroit’s gems: the historic Globe Building, formerly known as the Globe Trading Co. Building and the Detroit Dry Dock Engine Works, where young Henry Ford worked as an apprentice.

The long-vacant building is located on the east riverfront at 1801-1803 Atwater at Orleans and 1900 Atwater in the Rivertown Neighborhood of Detroit between the Renaissance Center and Belle Isle. In the late 1960s the facility was occupied by the Globe Trading Company, a wholesaler dealer of machinery and equipment, hence the name of the building. After several unsuccessful attempts to redevelop the property into lofts or even casinos, the state Department of Natural Resources (DNR)—which owns the building—has awarded $12.8 million to build a public adventure and education center at the site.

Construction is scheduled to begin later this year, according to Detroit Free Press, and the revamped Globe facility should be open to the public in late 2013 or early 2014. Visitors will then have access to a climbing wall, an archery range, a kayaking water sports simulator, science classrooms and demonstrations on Michigan’s historic lumber industry, reveals the same source.

Detroit-based developer the Roxbury Group has been designated the project’s contractor; the private company is under contract to purchase the Globe Building from the city’s Economic Development Corporation for $1. The DNR will buy the redeveloped building for $11 million via a grant that will be offered by the Michigan Natural Resources Trust Fund.

Under the newly announced redevelopment plans, almost half of the west side of the building will be replaced by a modern structure that will blend perfectly with the east elevation.

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Rendering courtesy of the DNR website

DEGC Looking for Developer for Foreclosed Lafayette Towers

By Veronica Grecu, Associate Editor

In an effort to balance out the shrinking apartment occupancy rates in Downtown, The Detroit Economic Growth Corporation (DEGC), acting on behalf of the City of Detroit, is requesting creative proposals for the purchase and redevelopment of two iconic buildings in the Lafayette Park Residential District into a market rate property.

The twin Lafayette Towers located at 1301 & 21 Orleans Street were built in 1963 by famed German architect Ludwig Mies van der Rohe and stand at 22 stories height, with a total of 584 apartment units. In 1996 both aluminum and glass towers were added to the National Register of Historic places; 12 years later the buildings were foreclosed

According to an official statement issued by DEGC, the foreclosed buildings are cleared to be purchased by the City from the U.S. Department of Housing and Urban Development (HUD), who will then sell them to a selected entity that has the financial capacity and proven experience to start redeveloping the properties. The City is requiring a minimum bid of $5,849,330 and a $10 million investment in repairs and improvements that HUD requires to be completed within 18 months of purchase date. The winning bidder will also be required to maintain the existing rents for very-low income tenants residing at any of the two properties on the date of sale.

Proposals are accepted until October 24, with a preliminary meeting already set for October 10, and the transaction is scheduled to close on November 16.

Click here for a detailed report on Detroit multifamily activity.

Picture of Lafayette Towers credits to Corine Vermeulen for Design Observer

Detroit Housing Occupancy Level Tightens as Chrysler Opens New Office, Relocates Employees

By Veronica Grecu, Associate Editor

More than one year has passed since the U.S. Department of Housing and Urban Development (HUD) removed Detroit from the “troubled designation list” due to improvements in the housing status and added it to the list of standard performing cities. Detroit’s revival plans have been focused around two major incentive programs – Live Downtown and Live Midtown.

Backed by some of the city’s most prominent companies such as the Detroit Medical Center, Henry Ford Health System, Blue Cross Blue Shield of Michigan, Quicken Loans Inc., Strategic Staffing Solutions, DTE Energy, Compuware Corp., Wayne State University, the programs have been offering financial help to employees wishing to relocate downtown or to the Corktown, Eastern Market, Lafayette Park, Midtown and Woobridge areas.

Under these programs, applicants would receive $2,500 in annual rent assistance or $20,000 as down payment on a home purchase. According to MLive.com, about $2 million has been spent so far and sources estimate that over the next four years the programs will spend an additional $8 million. With almost 700 young professionals having already received housing incentives, occupancy levels in the Downtown and Midtown areas of Detroit have reached unprecedented levels (97 percent and 96 percent, respectively).

Vacancy rates are expected to tighten even more now that Auburn Hills, MI-based Chrysler Group LLC has opened its new Detroit office at 719 Griswold Street in the former Dime Building, which is owned by Dan Gilbert’s Rock Ventures. Chrysler Group leased nearly 33,000 square feet of space on the building’s top two floors to accommodate nearly 70 employees from the company’s Great Lakes Business Center in Auburn Hills, as well as a large training room, a state-of-the-art board room and a kitchen. The newly relocated staff adds to the company’s almost 4,000 existing employees in the City of Detroit, where Chrysler operates the Jefferson North and Conner Avenue Assembly Plants and the Mack Avenue Engine Complex on St. Jean Street.

A recent report by Marcus & Millichap estimates that vacancy rates in Metro Detroit will fall 90 basis points to 4.5 percent by the end of 2012 as new job opportunities and low rent prices will persuade young professionals to relocate to the area, while new construction projects will keep a slow pace.

Click here for a more detailed report on Detroit multifamily activity.

Chart courtesy of Marcus & Millichap

Renovated Bell Building Welcomes First Wave of Residents

By Veronica Grecu, Associate Editor

Detroit’s Neighborhood Service Organization (NSO), a private non-profit human service agency looking to provide shelter to homeless people, announced that the first group of residents has moved into the former Michigan Bell Telephone Co. building as a complex revitalization process is nearing completion at the site.

Back in April, NSO broke ground on a $50 million renovation project at the historic structure at 882 Oakman Boulevard through a combination of private donations, equity financing, tax credits, loans and federal grants. Now known as the NSO Bell Building according to MLive.com, the 255,000-square-foot property includes 155 one-bedroom apartments for homeless adults and offices for NSO staff members who are expected to move in by mid-2013. Unlike other housing facilities for less fortunate residents, the NSO Bell Building offers treatment for drug addiction, mental-health counseling and case management services, a library, arts and computer rooms, a gym and fitness center, a chapel, a laundry facility and recreational space.

As previously reported, each unit is equipped with a refrigerator, stove, garbage disposal, dishwasher, internet connection and central air conditioning, and 90 apartments are fully furnished. All residents must qualify for the Housing and Urban Development voucher; if eligible, they will pay one third of their income for an apartment in the building (or around $650 per month).

The Bell Building was built in 1929 by Western Electric; since then it has been used for a variety of businesses including a warehouse, office, garage and even a publishing house. In 2009 the building was listed on the National Register of Historic Places.

Asking rents for Class B/C properties in Detroit have recorded a 2.3% rise in Q3, reaching $722 per month. According to Marcus & Millichap, it is estimated that in the following months effective rents will climb 2.9% to $778 per month, while average concessions will be reduced by two days of free rent.

Click here for a complete Detroit market report.

NSO Bell Building images courtesy of www.nso-mi.org

Chart credits to Marcus & Millichap

“Magic” Johnson Backs Up Michigan State Fairgrounds Mixed-Use Redevelopment

By Veronica Grecu, Associate Editor

Basketball star Earvin “Magic” Johnson—a Lansing native now turned entrepreneur—has teamed up with businessmen  Joel Ferguson, also of Lansing, and Marvin Beatty of Detroit in one of the most ambitious revitalization projects proposed in Detroit in the past years.

The venture plans to acquire the former State Fairgrounds site at Woodward Avenue and 8 Mile Road, a 164-acre property owned by the state of Michigan, and transform it into a mixed-use development that would feature an upscale theater complex, retail and office space, several restaurants, multifamily townhomes, senior housing and an Amtrak station. The 500,000-square-foot development proposal also calls for a recreational park along State Fairgrounds Road. An exact sale price is yet to be disclosed, according to Deadline Detroit.

Due to lack of funds, the property has been vacant for almost four years. In April 2012 Gov. Rick Snyder visited the fairgrounds site to sign a bill that allowed the state government to sell the property under the close supervision of an advisory committee made up of area representatives.

According to MLive.com, most of the existing buildings—except the Coliseum, Joe Dumar’s Fieldhouse, the State Fair Band shell and the Dodge pavilion—will be demolished to make room for Johnson’s project, which is currently being reviewed by the Michigan Land Bank Fast Track Authority (MLBFTA). If approved, the project would generate more than 2,000 full- and part-time jobs, as well as around 1,800 construction jobs.

For an in-depth look at the Detroit market, please click here.

Image credits to Flickr user gbyrne2 

Historic State Savings Bank Building to be Replaced by Parking Garage?

By Veronica Grecu, Associate Editor

Canadian entrepreneur and real estate investor Andreas Apostolopoulos has caused quite a stir among architectural preservationists after revealing tentative plans to create more parking space in Detroit’s Financial District by tearing down one of the city’s historic buildings.

Located at 151 Fort Street, the State Savings Bank structure was built in two separate phases in 1900 by McKim, Mead and White architects of New York; and 1915 by local architectural firm Donaldson and Meier in the Beaux Arts style that illustrates McKim’s work during that time. The building served as a bank for eight decades until 1980, when it was acquired by 151 Partnership and became the world headquarters of Silvers, Inc., an office supply company. In 1982 the State Savings Bank building was listed on the National Register of Historic Places.

As reported by Detroit Free Press, the building was purchased earlier this month by Triple Properties, a Toronto-based real estate company owned by Apostolopoulos. Triple Properties, which also owns the Pontiac Superdome and the iconic Penobscot Building located next to the State Savings Bank facility, paid $700,000 to Torre & Bruglio, a Pontiac-based contracting firm. According to the Free Press, Apostolopoulos is in the early phases of finding ways to create a parking garage within the bank building so that the façade would not be altered. The investor is ready to spend around $20 million in this project that would bring much-needed parking spaces to Downtown Detroit.

According to city regulations, Apostolopoulos would need to try to sell the building for a year before the Detroit Historic District Commission would approve the demolition.

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Image credits to author Andrew Jameson for Wikipedia

Nabisco Becomes U-Haul Self-Storage Location; Urban Farm Receives Grant for Solar System

By Veronica Grecu, Associate Editor

AMERCO Real Estate, the parent company that owns U-Haul International based in Phoenix, AZ, has recently acquired one of Detroit’s historic buildings, the 250,000-square-foot National Biscuit Company (Nabisco) located at 899 West Baltimore Street, expanding its network of self-storage locations in the city.

The company’s acquisition is part of the U-Haul Detroit Revitalization project that aims to expand and invest in Detroit by buying and repurposing existing historic buildings.  “U-Haul wants to give back to the great city of Detroit by expanding and investing in it,” says U-Haul International Chairman Hoe Shoen.

The seven-story Nabisco building (pictured), which was built in 1920 as a bakery, will have more than 930 indoor, single-level storage rooms with nearly 63,000 square foot of self-storage. The facility is expected to become fully operational in mid-2013, when the renovation project is completed.

In other news, Detroit Free Press reports that a four-acre urban farm will be run on solar power thanks to a grant from GOOD magazine. The magazine’s “Use Technology for GOOD” challenge for ideas of a project that fuels social change through technology resulted in a $2,500 grant that was offered to farm owner Noah Link, who received most votes for his project, Off Grid Solar System for an Urban Farm. The farm began in 2011 in the Highland Park area and over the course of one year it has harvested a big amount of organic produce for the surrounding community and has built good relationships with its neighbors.

According to GOOD magazine, a four-person team has been working to design and implement the solar system’s components, which cost $8,000. The system installation will be completed by the end of the month and will provide energy for farming and day-to-day living throughout the year.

Click here for more market data on Detroit.

Nabisco building image courtesy of U-Haul website; solar system installation image credits to GOOD magazine

Private Investment Venture Snags All Foreclosed Properties in Macomb County for $4.9 M

By Veronica Grecu, Associate Editor

Former yacht dealer and millionaire Bill McMachen and an unnamed partner snapped up all foreclosed properties in Macomb County at a public auction held last week at Freedom Hill in Sterling Heights. For $4.9 million or an average of $7,500 per property, the two buyers acquired an unprecedented lot of almost 650 properties, including 403 residential properties and a large commercial building, The Huffington Post reports.

This is McMachen’s first real estate business deal and while some voices criticize him for buying the properties for the minimum bid before any of the 285 bidders had a chance to offer higher prices, county officials agree that the investor put an end to 12 years of auctions for unwanted assets. Also, the deal allowed the county to collect 100 percent of unpaid taxes for the sold properties.

According to Business Insider, McMachen and his partner have no plans to rent the properties. Instead, they want to resell some homes to local investors and donate others to families who otherwise wouldn’t afford to buy one.

In June 2012 there were 7,057 new foreclosures in Macomb County and one in every 529 housing units received a foreclosure filing across the entire state of Michigan, according to RealtyTrac data. Macomb County ranks third statewide in new foreclosure activity, with 1,023 filings.

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Image courtesy of www.realtytrac.com

Title Source Moves 1,500 Employees to Downtown Detroit

By Veronica Grecu, Associate Editor

Dan Gilbert’s family of companies continues to consolidate its presence in Detroit’s Central Business District as Title Source, a Rock Ventures-affiliated company, has started relocating 1,500 of its Michigan-based employees to the First National Building, a Class A office tower located at 660 Woodward Ave.

Built in 1930 under famed architect Albert Kahn’s design, the 25-story structure occupies an entire city block along Cadillac Square next to Campus Martius Park. In August 2011, the 800,000-square-foot tower was acquired by Quicken Loans and, in the past six months, it has undergone extensive renovations that complemented the structure’s elegant historical features of the original Neoclassical architectural design.

According to an official statement released last week, Troy-based Title Source has already moved 500 employees to the new headquarters. When fully relocated in about six months, the company will occupy more than 330,000 square feet of space (or more than 40 percent) across 10 floors of the First National Building. With the new Title Source addition, the office building is now 93 percent occupied; other tenants include the United Way of Southeastern Michigan and the law firm of Honigman, Miller, Schwartz and Cohn.

Rock Ventures started relocating all Michigan-based workers in Detroit in August 2010, when Quicken Loans and five sister companies moved 1,700 employees in the Compuware Building. It is expected that by early 2013, Rock Ventures will have more than 6,500 employees working in Downtown Detroit.

Since August 2010, more than 6 companies have occupied space in several office buildings—such as the fully leased M@dison Building or the Chrysler House—owned by Rock Ventures throughout Detroit.

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Image credits to Michael Russell

$44 Million Grant Helps Detroit RiverWalk Redevelopment

By Veronica Grecu, Associate Editor

In an effort to wrap up the remaking of the 5.5 mile RiverWalk that connects the Ambassador Bridge and Belle Isle, the city of Detroit received a total of $44 million in state and federal grants as financial support for the final stage of construction.

According to Detroit Free Press, the Detroit Riverfront Conservancy (a nonprofit agency that operates and maintains the Detroit RiverWalk) received a $15 million grant from the Michigan Natural Resources Trust Fund, followed by a $29 million federal highway appropriation from the state’s Department of Transportation.

Part of the $44 million funding will be used to redevelop Mount Elliott Park, which will get a new Great Lakes Schooner theme park by the end of 2013, as well as a separate play area, new landscaping, LED lighting and an open pavilion. Also included in the project’s last stage are some updates at the Gabriel Richard Park, where developers will add a new parking lot and a bicycle path. Two small parcels of land on either side of the Chene Park will be redeveloped and integrated in the RiverWalk so that visitors will not have to take a detour to get to Atwater Street, notes the Free Press.

The city’s RiverWalk is part of the Detroit International Riverfront that borders the Detroit River and includes several public parks, restaurants, shops and residential and commercial buildings. For decades the area had been a soaring view for Detroiters because of its vacant and decrepit structures, but in recent years the conservancy agency has been focusing on transforming the Detroit Riverfront into a new recreational space for city dwellers with financial help coming from private investors—such as General Motors who, in 2002, awarded $135 for the redevelopment project—and federal grants.

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Photo Courtesy of KevinSnyder.info

Woodward Gardens Block Development to Utilize Clean Energy from Detroit Thermal

By Veronica Grecu, Associate Editor

Detroit Thermal (DT), a key component of the city’s clean energy infrastructure, announced the addition of Woodward Gardens to its network of over 140 greater downtown area properties that utilize steam energy.

Located on Woodward between Mack and Warren, Woodward Gardens Block Development is a four-phased, mixed-use project that aims to revitalize this derelict part of the neighborhood. In 2009 Woodward SA-PK LLC, the development team behind the venture, completed the first phase of construction, which called for a 302-space parking structure; Phase II, which involved the rehabilitation of the historic Blue Moon building for retail and office use, as well as a new commercial building, was completed in the same year.

The project’s third phase has already kicked off with the renovation of the historic Garden Theater, a 32,505-square-foot arts venue located at 3919-33 Woodward; this phase also calls for a new commercial facility comprising approximately 31,000 square feet next to the theater. According to an official statement, the Garden Theater revitalization project will receive a $1 million grant in city and state loans to transform the space into an energy-efficient performance, retail and conference center. An estimated completion date was set for 2013. Phase IV calls for a 47-unit apartment building with more than 30,000 square feet of ground floor retail space.

As stated by Detroit Thermal President Rick Pucak, the Woodward Gardens Block Development is a great opportunity for the city to maximize its assets and demonstrate its forward thinking by using DT’s renewable energy solutions at no additional costs.

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Photo courtesy of Woodward Gardens Detroit website

Could a Zombie Theme Park Bring Back Detroit’s Vacant Properties?

By Veronica Grecu, Associate Editor

Over the last couple of years the subject of vacant properties has created a myriad of debates among Detroiters and city officials alike. Various revitalization initiatives and programs have been proposed to reduce the ‘eye soaring’ effect of these abandoned sites and breathe new life into places that once used to be vibrant and livable.

The solutions varied from the Detroit Vacant Property Campaign led by Community Legal Resources (CLR) to Mayor Dave Bing’s plan to demolish more than 10,000 derelict and dangerous homes during his administration. But the most creative idea comes from local entrepreneur Mark Siwak, who wants to transform an approximately 200-acrea neglected area into a zombie themed experience.

Designed as a radical rethinking of urban redevelopment, Z World Detroit would be placed on a large urban property.

The project is still in the design stages but the investors behind it have already started promoting the idea online to attract financial support. According to WXYZ 7 Action News, the campaign aims to raise $145,000 by August 10 so that the zombie amusement park can move from the preliminary phase to developing specific site designs on a clearly designated urban area. Most likely the “living” will have to pay an admission fee in return of being chased by the “dead” but so far no details have been disclosed on the amount.

Michigan to Auction 140 State Properties

By Veronica Grecu, Associate Editor

The Michigan Department of Natural Resources (DNR) and the Michigan Land Bank Fast Track Authority (MLB) jointly announced the sale of 140 properties located throughout the state—but primarily in northern Michigan—in a sealed-bid auction that started on June 20. 

Comprising more than 2,400 acres, the properties are suitable for a variety of uses such as hunting, camping and development. According to an official statement, DNR had already tried to auction off many of the properties. By partnering with MLB and offering lower, more affordable starting bids, DNR now hopes to attract a larger number of potential buyers. All bids must be postmarked by August 1, 2012, which will be the last day of auction.

The list of properties includes:

-     Four sites in the Sugar Springs community of Gladwin County, totaling over 4,000 acres of recreational space

-       A 10-acre property suitable for recreational build in Cheboygan County

-       A one-acre site in Benton Township zoned for residential development, but also suitable for commercial or industrial use

-       200 acres of forest land in Chippewa County

-       1.4 acres with 100 feet of Lake Michigan frontage on Beaver Island

-       A forest and marsh site in Iosco County

All revenue generated by this auction procedure will be used by MLB to improve stabilization and economic development throughout the state of Michigan.

Michigan, Canada Officials Announce New Detroit-Windsor Bridge

By Veronica Grecu, Associate Editor

On June 15 Michigan Gov. Rick Snyder and Canadian Prime Minister Stephen Harper announced plans for a new bridge linking Detroit and Windsor, Ontario. First proposed nearly ten years ago, work on the new six-lane bridge could start in 2013 or 2014 and it would take at least four years to complete.

The New International Trade Crossing (NITC) will relieve the traffic congestion on the privately owned Ambassador Bridge that has been serving as the main commercial connection between Detroit and Canada for over 80 years. It is estimated that the bridge is crossed daily by 8,000 to 10,000 trucks carrying almost $500 million in trade.

As reported by Reuters, the project’s total price tag—including construction, customs inspection plazas, interstate interchanges and other related work—is expected to be $3.92 billion. Canada will pay $2.1 billion covering all costs of land acquisition in Michigan and Canada and construction itself, and another $550 million for an interchange that would link the bridge to I-75 in Detroit.

One interesting fact about this venture is that all toll booths will be placed on the Canadian side of the bridge, which means that Michigan tax payers will not have to carry the financial burden for the structure for about four or five decades following the completion date, when the Canadian government will be fully reimbursed the funds invested in the building process.

Half of the NITC will be owned by Canada, and half by Michigan, according to Crain’s Detroit Business. Under the deal, a private Canadian entity called the Crossing Authority will oversee the design, construction, finance, operation and maintenance of the NITC.

The project will have a tremendous economic impact on the region. 10,000 to 15,000 jobs are expected to be created in Michigan and Ontario, along with new investment opportunities that could help Michigan establish as a global transportation hub. New global markets for farmers, entrepreneurs and manufacturers will be opened across the state, minimizing the likelihood of an economic disaster.

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Rendering courtesy of the Michigan Department of Transportation