These 3 unique Detroit residential, commercial projects are moving forward

Three unique Detroit residential and commercial developments, including a new "food hub" in Eastern Market, received key approvals Wednesday for millions in incentives and public subsidies from the Michigan Strategic Fund. 

Osi Art Apartments

This new 4½-story building, 3820 Grand River in the Woodbridge neighborhood, would contain 30 rental apartments (studios, one-bedroom and two-bedroom units) and about 5,000 square feet of ground-floor retail space. The site has been empty since the 2018 demolition of a long-vacant industrial building.

The project's developers are Roderick Hardamon and George N’Namdi, founder of the N’Namdi Center for Contemporary Art in Midtown.

In an interview, N’Namdi said he hopes that construction can begin this spring and finish by early 2021. It is too early to know what the future building's asking rents will be, he said. The ground-floor commercial tenants also have yet to be selected.

The Michigan Strategic Fund approved the $6.6-million project for a $1.2-million performance-based loan, plus about $227,000 in captured future state and local taxes for rehabilitating brownfield land. Brownfield properties are generally blighted, contaminated or functionally obsolete sites. 

In a tax capture, money that would ordinarily go to local or state taxes during a period of time is instead redirected to a project's owners.

Eastern Market 'food hub'

A 112,000-square-foot building at 3500 Riopelle St. in Eastern Market would be redeveloped into a mixed-use "food hub" containing a business accelerator for food-based businesses, restaurants and other space for businesses or offices.

There would be solar panels installed on the roof and a nearby 2,000-square-foot building would be demolished to create a 370-space parking lot. 

The $24.1-million project, called Mosaic at Eastern Market, resulted from a city of Detroit request for proposals. The lead developers are Malik Goodwin, Brian Holdwick and former Detroit development chief George Jackson. The building previously housed offices and vehicles for the city's Water & Sewerage Department, but has been empty for years.

The strategic fund approved the project for brownfield development incentives: a $2.2-million state tax capture and $1.4-million local tax capture. In addition, the project is expected to receive a 12-year local tax abatement for obsolete property valued at about $5.2 million.

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Those incentives are needed, according to state development officials, because of high construction costs in southeast Michigan and the poor physical condition of the building.

The redevelopment work could begin this spring and finish by mid-2021, Goodwin said.

Jefferson Van Dyke 2

A $22-million project, tentatively called Jefferson Van Dyke 2, would involve construction of a new building as well as the rehabilitation of several existing buildings along East Jefferson. It is led by developer Michael Higgins.

At 7891 E. Jefferson, a parking structure will be demolished and a new three-story parking structure would be built that also would have 36 residential units and ground-floor commercial space.

At 7903 E. Jefferson, the existing building will be redeveloped into commercial space, including a restaurant. And at 7919 E. Jefferson, the building would be redeveloped into commercial space with a cafe.

In addition, 576 Van Dyke would be redeveloped into six residential units and 578 Van Dyke would become rehabbed commercial space. 

Many of the project's apartments will be set aside at lower rents for people making at or below the area's median income.

The strategic fund approved the project for a $3.3-million performance-based loan and a brownfield state tax capture of $1.6 million. The project was previously approved for local brownfield tax captures of about $2.5 million and an obsolete property tax abatement of about $833,000.

A phone message left for Higgins regarding the project was not returned.

ContactJC Reindl: 313-222-6631 or jcreindl@freepress.com. Follow him on Twitter @jcreindl. Read more on business and sign up for our business newsletter.