DETROIT MAKE IT HERE
November 15, 2011
By: Daniel Duggan
The state of Michigan has approved a $3.3 million tax incentive for the development of a Meijer Inc. store on the site of the vacant Redford High School in Detroit.
The approval was among $11.4 million in tax incentives OK’d today by the board of the Michigan Economic Growth Authority.
Today’s vote is among the final approvals for the Meijer project, which would be the second store planned for Detroit by the Grand Rapids-based grocery company. Construction will start soon on a Meijer store on Woodward Avenue near Eight Mile Road.
Public incentives are crucial to the $35 million Redford High School project, said Chris Brochert, a partner in the development entity working on the project: Lormax Stern Detroit Development LLC, a subsidiary of West Bloomfield Township-based Lormax Stern Development Co.
Total tax incentives on the project are close to $11 million, he said.
“A project like this would never get done without these kinds of incentives,” Brochert said. “The cost to demolish the building on the site and remediate it is astronomical and would never get done when you compare it to the cost of a greenfield project.”
The Meijer will be built on 25 acres at the southwest corner of Grand River Avenue and McNichols Road. The high school closed in 2007.
Frank Guglielmi, director of public relations for Meijer, said that “while we are definitely considering a store at that site, we are still in the due diligence phase.”
Brochert said demolition on the site could start by next year.
Also today, the MEGA board approved:
• The use of local tax capture totaling $4.7 million to demolish six underused and vacant buildings in Grand Rapids and construct a 130,000 square-foot urban market. (To read Crain’s Michigan Business story about the market,click here.)
• A brownfield tax credit totaling $3.2 million for the redevelopment of a surface parking lot in Kalamazoo into an eight-story mixed-use development that will have residential, office, commercial and retail space.
• The redevelopment of about 7.4 acres at 2810 Baker Road in Dexter. The existing 83,345-square-foot light industrial building will be demolished to make way for a 53,081-square-foot Dexter Wellness Center.
The developer is BST Investments LLC, an Ann Arbor-based entity of which Steven Brouwer is registered agent.
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