DBRA, Woodward & Charlotte Brownfield Plan Local Public Hearing
1:05PM Apr 9, 2024
Speakers:
Keywords:
brownfield
developer
part
project
building
questions
state
site
city council
surface parking lots
years
costs
plan
parking
city
charlotte
addison
detroit
existing
request
A Brownfield Redevelopment Authority. Alright, fantastic. All right, good. So we're here today for public hearing for the Woodward in Charlotte brownfield plan. So we'll get into that. Some more, we have presentations from here, also appliance parts to London, colleagues Pora interior as well. And so we're gonna go over this power point here and print it out for everyone. There'll be this negative, developers have a brief presentation that they'll do here. And so I'll go over first the Brownfield process and where we're at talking specifically about this brownfield request, and then developer going to their presentation, we'll have a short q&a session, no less people, this might be your first time hearing about this project. So do that with the developer, or with software staff. And then after that, we will do formal public comment. So every anything that you want to have our public comment, we'll record that. And that will go into the minutes that go to the Brownfield board, as well as go to city council for their review. format for tonight. Any questions? Or get started? All right. Well, good start. So again, my name is Brian Foster. If you have any comments that you want to make later, or questions, maybe you're here, for the group, we're going to be recording back, feel free to send email requests for emails on this packet here. And she'll get that and then she knows the answer. So answer it or she'll ask me or we'll get it from the developer support reporter, if you want to submit a comment after and maybe o'clock club or neighborhood group, reduce the this piece materials are also welcome to email us and we will include those in the packet to see both of those. First one to explain how TIF works. This chart here shows the colored bars and it shows how culture works. And it's the silliest because it explain it. And then it's simple as to see that TIF tax increment financing, whether it's the freezes the taxes at the current undeveloped rate. So that's the blue bars, you've seen, the blue stays mostly flat, whatever represented, the developers are currently paying, or maybe just a little bit more than that. The yellow bars are the amount that comes back to the developer once they complete the project. So if you were to add up all of those yellow bars on there, that would represent the developers brownfield eligible expenses. In this case, the developers requesting the full 30 years is that the state maximum allowed by state law for this project, there's also some captures that happen here for administrative fees state plus a fee for a loan from the thing operate. And then there's some of some of the things like debt service for the city and the school district. If those are not capturable, as well as some other smaller things. Then what happens then is then you're 31. Once the Brownfield plan is over, you'll see the dramatic increase in the blue to the full tax value. So right now it's a little over $200,000 in taxable value in front, taxes paid in the jump to just just under 1.8 million in taxes paid in a year. Third was the brown complaint. So that's the reason why as the city of Detroit offers brownfield plans is to pay for brownfield costs that the developer didn't cause that are that have to be dealt with as part of the project to be developed. So these costs and they can range from environmental issues, to obsolescence issues and things like that. Somebody is going to have to deal with these issues in order to redevelop the site. That's been so that was why Five brownfield TIF is offered by the city as a as a program. Any questions about tech firms
can be somewhat vague, but I can get as detailed as you want. That is how to flex the next part is the process. So
the way that goes, I should also add to the developer has to pay for these costs up front. So you still have developers reimbursed over 30 years. For those costs, they are financing all of those costs up front, we do not provide any of the tax incentive the tax payments in upfront to the developer. And then once the developer has completed those, we review all of those costs and ensure one that they're eligible to make sure that they're reasonable. They're not added padding, the cost of that that's standard construction cost for what they're doing. And we also make sure that they're compliant with all city, state and federal regulations that applies everything from workforce of the day, you have to follow the city's executive order was between the present Detroit residents working on the project, all the way to the following the building permits and environmental regulations, all those sorts of things. So that's the Brownfields process. How that works is we're financing tax incentives for the developer. The next part is the process. So the Brownfield board is a nine member board appointed by the mayor, and city council. There's also a community advisory committee. It's also nine members. Those nine members are also appointed by Mayor by city council, we actually had one of our advisory committee members here by Rosberg. Thank you for coming tonight. Doesn't have to be here, he just chooses to show up to these seats that waiting for us to report that
it's been about what happened. Grant
Yeah, I've been doing a great job.
And so after the Brownfield board, listen to the project as their initial kind of presentation Advisory Committee listens to it. An advisory committee makes a recommendation to the board. The project, we then have this meeting here, which is called the local or the neighborhood public hearing. We're not big Detroit as we know, it's not always practical for everyone to get downtown to come to city council. So we have this meeting here as close as we can to the project location to get the safe locations. Sometimes buildings don't exist in the buildings are unsafe to be in. So it's not uncommon to be a couple of blocks away from the site where we can safely so we'll take every again everything that was said tonight, we'll bring that back to the minutes and I'll go back to our board and our board and have them vote again. That'll be the final vote that they take to vote to the recommend approval and not recommend approval and then goes on the city council. City council have another public hearing at the Planning and Economic Development standing committee which is Thursdays at 10am as we're working out the exact date with this month but looks like it'll be in the May 9 or may 16 If you would like to be informed of when that happens, just let myself know or or no we'll make sure that you are included on the meeting notes for that we will be he'll receive the meeting notes the same time. Our board members students and it comes from a restaurant and then add to public hearing happens at city council. That then goes to the full city council the following Tuesday for the Provo City Council. The city council votes to approve the plan that is officially approved from many times I track developers will choose to go to the state for approval for environmental related cost they will go to Eagle the environment reflects energy which states department of environmental issues or the results the Michigan Strategic Fund, which is staffed by the Michigan Economic Development Corporation, and the naval to the non environmental parts of those that are part of this project. Any questions about the process we're at or anything related to the city or state process
other than changes that was done by the state and that's Over the years, this how we saw by NASA work done is just under the new law, or making Smart Approaches baby to be done on under the tip is that this country reflects the changes that's in the state.
With from a legal standpoint, it follows the latest legal cannabis pirates, what this developers requesting for brownfields, because there they have been a part of this Brownfields program for quite a while, for many years. So this, there was a we may be referencing the housing program that is allowed now that was approved last summer, by by the state. So that's something we are still working on. The guidelines for that the state is saying this month are going to be releasing their guidelines that we follow, after the state locally be able to create our guidelines. Okay, so you're gonna follow this? Yeah, it's
gonna say, okay, yeah,
I would say within the next month or two, we should have our Detroit guidelines for that program should be in place. Any other questions? All right. And I will jump into them the specifics of this project. So that's the one we're in Charlotte Bronco plans for the map.
So this is what works Charlotte brownfield plan. You can see in the red outline, last the project. To the next stage, we'll see the specific parts of Charlotte North North Charlotte, the plan was the existing building right at the corner, that red brick building we're lucky is that building a Stang's not for this development, but the developers learning to be developing the vacant land sections, a vacant surface parking lots around them, as well as one existing historic building, that they'll be incorporating into the development. So the parking lot areas for this project to qualify as what are called facilities and facilities, the legal name to say that it's contaminated. So it does have some low level contamination at the site, which will be excavated as part of removed as part of this development. So those costs related to that are part of the scrub to potential contamination, cost. And then some of the costs related to the existing building, adapting that thermometer and these are also part of the screen. And you can see the next slide that the view for wormers from that view, and Charlotte, Street View, and then the development, the new development, how that will fit in developer, architect. We're here to talk more about that. So I won't get too much into that since the far more information about that tonight. But as part of this development, developers planning on hunting for housing, on the ground floor with the chamber will last last time I heard a perfect score with four very close to that, sir. Okay. We'll be the number of housing units. And then there's ground floor commercial. That and there's also parking structure. As part of that. Just so you're aware of the parking structure is also a part of the Brownfields request. When we redevelop in urban areas, particularly in tight areas like downtown and midtown here, we know that people have to park somewhere. And surface parking lots been a way that a lot of things have been parked here, but we know that to have the density and then the tax generation that you see around us. We can't have surface parking lots everywhere for that. So the Brownfield Act does allow for parts of projects to be included as part of the eligible costs. So altogether on the $66 million project, developers requesting $18.3 million in brownfield TIF includes the environmental studies, the environmental cleanup, as part of that the demolition and maintenance are the demolition of the existing parking lots and the preparation of those, those lots in the infrastructure. And then the the infrastructure is both the sidewalks and the connection to sewers, water lines, that sort of thing. But also in the parking deck, themselves also, contingency we do allow for 15% contingency. Because developers are getting into underground and into old buildings, they even with the best consultants and engineers looking at these buildings, you don't always know what you're going to get into. Once you tear that wall apart, or start your the excavator start digging into the contamination, you don't always know how, how far that contamination is going to stop. So then request for interest on that $18.3 million in total. So it's part two of the Brownfield process, we do underwrite these projects, to make sure that but for this tax incentive, this project would not be financially feasible. So part of reviewing this project will be to look at the financial information for gulper is pulling together for the lenders that they're pursuing for this project. And with the rents that are being charged in our affordable units until the developer talks about, it's part of the mix of things. And there was still a need for the scrum field test to deal with, again, by these costs that are not the developers fault for doing that positive contamination, their developer did not cause one building to become obsolete asbestos in it that needs to be dealt with. And so that's why you're from an underwriting standpoint, so the developer does the testing. So with that, I can pause to make questions about the raffle ticket requests, specifically, the internal development team. Also happy to answer any questions you might have to the development team has done.
Cool, thanks so much. And thank you everybody for being here. Really appreciate it. My name is George Roberts. I'm the Founder and Managing Principal of civic companies. Were one of the partners in developing this project here joined by my partner Kevin Bacevich. And Jemison, who is our advisor consultants on this process, and other things related to executives in zones the game gave them swift hypocrisy, receptionist Brian, a great job of explaining our request and explaining the project. But just wanted to go through a little bit more of the story before in some of that political folks
so this is this is a true sort of infill project that is that is seeking to stitch together urban fabric that that previously existed on these sites. Sometimes it's hard to imagine that these were not surface parking lots. On this lot immediately adjacent to the building, they call the Addison or Lucky's it's called the acid we don't call it that. There used to be another building that was called the attitude you can see on this bottom photo for trout Street was part of the acid complex. That was another hotel could have 450 rooms I just put on my computer to show anybody that wants see the image of that building back in the day. And then on the other side over an avenue where there's this missing tooth in the parking lot, right, right there. Now, there was at least two more buildings, four storey buildings right there on this site. So these these have been surface markers for the last 50 or 60 years. But they weren't always terrible to to restore that density and add more housing or mixed income housing to this block to our greater downtown may create a more vibrant more walkable district here. Just refreshing the site on faces will Woodburn in Charlotte Street. This is the view from the Woodward. That's the view from from Charlotte and the view from Peterborough which is the Street to the north right there. Here's an overhead view of it. So you can see that right now. It's it's 166 and of course Historically, the walker brothers catering building is also incorporated into this project that's the two storey white stone building. So decide whether you've had any significant history there is a catering company of a service, where the vacation restaurant agreements against the real parties and events within this square, do a lot of research on the history. And this is a rendering of the building the moral thing to build and info on these slides. We're calling the building dandy, which is an honor that we're we're paying tribute to the former owner of this property, legendary figure, but anyone who was a pain investor and developer in Detroit, or was the the sample, a series of properties that eventually included pretty much everything from one word to pass a child to Peterborough along with with five or six other schools and properties around the city was one of the first people around town to use the same federal historic tax credit programs to invest in these buildings and pulled off some amazing things like James Scott mentioned, Peterborough that even some of the start start just preservation is probably this one, you could probably get it out job and sell it. They're hoping to carry on his legacy investment in this neighborhood. By investing in a new building that will will stitch back together. Some of these pieces that were demolished,
at similar building codes from a group of 54
apartments. And a good chunk of retail about 13,000 feet. But 100 parking spaces are integrated into the building. Space stands for over a vacated adequate reality was was vacated. Angels time worship. And here's some other facts about it. But those are the big things obviously happy to answer your questions there. And we're working on are things like God the embedded meetings within the building, but we expect this to be a building that will be amenitized in similar ways to some of the the other the other new construction buildings around the city and country with the sort of added dimension that we're really looking at how we can connect some of these problems in the area as part of the
job if you were images of this, here's a view on Woodward Avenue. Sage Lamy in the morning the story. This week, incorporating the accident, really wanted to show folks that it's the building is is designed not to look like a historic building by any means. But to be in context of providing contrast that highlights the beauty of historic building and architecture is designed today and rebuilt at street level. This is your childhood.
You see in the background.
Actually, the entryway to the end of the parking deck. You also see some of our making sure that this is not always contextual. Yes, it is also contextual with the historic orders that have been shot. And you'll also see the new reality. vacated Valley. We're showing as we opened not as a public right away, but reopened so that loading can access what the new apartment building exists in Addison classes revenue. That's a big enough size that acts as a have some ideas about the finishes and the system that Dan, summer exploring. And it just this is just some other studies that we've been able to show you that we've been working through interior to make sure that that really will not overcrowding or putting in shadow or in any way doing a disservice to the neighbors. Yeah, that's that's really the story. Here's some some overhead preview to you a sense of parking details above the second layer with different layers and some ideas about how we laid out their south facing useful use. case we're jumping over affordability mixer for a second. We're just
talking about that there.
Yes, certainly. So we've been working, since really the beginning of looking at affordability components in the projects really trying to stay away from just Kangol studios and as our affordable units. Because, you know, not everybody who, you know, wants to live in this area just wants a one bedroom, small studio apartment. So we've made different revisions to the plans in terms of the mix of the affordability, we have over 20% of the units at affordable rates between 55% Hearing meeting, all the way up to 80% of every meeting. And what that means is we look at data that myshop, the Michigan State Housing Development Authority publishes each year. And they will do comps for the area on what how much essentially somebody making x amount of dollars, shouldn't be paying for an apartment if they're in that 80% hearing, median income qualifying census versus somebody and 50 factors that are. So we've integrated a number of four guides, or I'm sorry, two bedrooms with affordable affordability between 60 and 70%. We also have probably the majority of our one bandits, in that 20% of the last minutes are in the range between 60 and 80% during the human boom. And then we have one studio, that's a 55%. But the majority of our again, she backs quarterbacks are 60% to 80%.
Dan Kennedy, anything else you guys want to add before we open it up? Okay. Thank you very much.
So again, knowing that many of you this might be the first time hearing about this project, just wanted to open up to General q&a. To team My name is Team tax and solutions architect here to answer the question with friends of mine committed to those, as in the Bronco plan together to open up General q&a First, before we do the formal public comments.
On any ADA units, think of
the building, the building will be completely and I'm sorry, there will be dedicated. How many? We don't know. But we planned for that. And if especially if this this is a very early stage. So we do late to
minimum, whatever the city's codes in our federal codes require at least a minimum number as required by law, correct.
Me other questions?
Do you have an allocation for your retail space for the parking that's on the property or is that allocated primarily for the Addison and a new building?
That's a good question. We're we're we're basically creating a parking systems Master Plan between this integrated parking and other surface parking lots that are in the district. And making sure that We have enough space allocated and retail space, please know that we also can satisfy short selling? The answer is yes, we'll have to provide a nice setup for you be honest with our consumers around the city and also with market demand. And fortunately, we have the advantage of being able to incorporate some of the other chips ice
any any delays in the process? What do you think your construction schedule would be? Love to break ground on your flow? And assume meeting notes from from them, to
me by the purpose pilots or any renewable energy,
anything is wonderful to see what's
your question? I think that there will certainly be up charging within the parking deck. The question will be how much it's an interesting thing is very different multi family, charging providers and who's going to be the best person so something we're actively exploring who we want to work with and certainly be a part of it. Get other ceremony features obviously, it's really to answer some of those things and working on managing stormwater on site certainly within the greater rental. Yeah, especially with
the stormwater management is key. And I think that what what's notable is the development itself. And given the existing surface lots, it's hard not to improve the stormwater management because it'd be a different method to manage it. So that would be important but also helps to reduce scale around the site. And I think as as the site comes together through through construction to we don't know yet but we'll have trees and things consistently see seniors which also helped tremendously
and just on my little soapbox, there's nothing more environmentally sustainable and infill density creating workplaces where they can be walking every day to two jobs and meditate on that our site location Our emphasis is the leading edge of our of our sustainability
the other questions they can do as you heard in any any aspect of the project, not just the text
the I saw I know these are just renderings but I see that there's some sort of rooftop on what would be Charlotte Street and there was another one maybe higher up on Woodward for those designed for community spaces in mind or reset just kind of undecided
Yeah, the most of the art that's out there basically. That was the courtyard accommodate that will be a public space for the tenants not for just the public who would attract tenants and yes, yeah.
Yeah, once you got that? Yeah, yeah, it looks like you have to that one and then one on Woodward as well on maybe there's six or
seven floor spaces we're looking at where some might be unit terraces, but the primarily will be American spaces, they'll serve the building and maybe even just
additional questions
there's no other questions, we can go to the public comment portion. So this would be you're going to record it or want to make a formal statement about the project can be anything that you're supported, but you don't support it a specific thing that you like that you don't like. That will go into the minutes which go into report into city council. For anyone that would like to make a comment
wouldn't mind just stating the name or any sort of affiliation And
then my name is Josh Sanders and I'm a resident currently at the Addison I have been for about three years now. One thing that I kind of noticed is, as a Detroit resident and going to Detroit a lot, I understand that the city is nice I understand is I'm here I know where I know that brush Park is the most expensive neighborhood within a couple of mile radius of me, I know that, but people that do not live in Detroit and do not visit tre on a regular basis, don't necessarily understand that they will see one empty lot with a bunch of you know, potato chip bags up against the fence, and they'll judge staff whole area. Due to that, even though that house right next to it is 1.8 million. And they just didn't really get it. So when I go for a walk from let's say the Addison to honest, Jon's I want to get some brunch with a drink. I have to go through areas if I'm taking friends, that they don't necessarily feel uncomfortable, or they don't feel comfortable. And I feel completely fine because I know this whole area is free. It's just areas that haven't been stitched together and kind of filled in the gaps from neighborhood to neighborhood. And I think that this area in particular has a lot of vacant land. If I want to hold Miami or walk down to all the college bars. I have to walk by a lot of areas that are underdeveloped. And it's gonna it's going to take a while to fill those in. So I appreciate that for now
My name is Steven Turner.
I like to projects that real nice. Like Georgia
feel on top is none of these vacant parking structure lane is fantastic. And I want to
give kudos to the community building that Mr. Landy
things would be the right
thing to do with a lot of those minor, minor so thank you.
Public comment
that preceded the agenda. So we'll wrap up the meeting, Kevin and Kevin any additional questions? If you'd like to be included on notices the future meetings, grab my card or the PowerPoint presentation as far as email, we will make sure you're added to future meeting room systems. Also to have additional comments that you want to send in, feel free to send those to us and some community groups definitely want to send those thank you so much.