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Three Towers brownfield plan heads to Michigan Strategic Fund after minor adjustments; Magellan joins development team
Summary
City staff said the Three Towers brownfield plan is being finalized for an anticipated Oct. 28 Michigan Strategic Fund review, with Magellan named to the development team and a minor $5 million difference flagged by the project underwriter.
City staff provided a verbal update on the Three Towers development and related brownfield plan that the city and development team have been preparing for the Michigan Strategic Fund (MSF).
Staff said they have participated in biweekly calls with the development team and the Michigan Economic Development Corporation (MEDC) to ready a transformational brownfield plan for MSF consideration. The plan is expected to be presented to the Michigan Strategic Fund board on Oct. 28, subject to conditions in Lansing.
Staff said the plan has seen minor, nonmaterial changes such as updated timelines and employment projections. The development team added Magellan, a Chicago-based high-rise real estate developer, to the team; that addition was publicized recently in local media. Staff said a third-party underwriter (SP Friedman) reviewed assumptions and identified a difference between the city’s approved eligible-activities amount (~$565,000,000) and the underwriter’s cap (about $560,000,000), a roughly $5 million difference; staff characterized that difference as not requiring action from the city but noted it arose from the underwriter’s pressure-testing of costs.
Staff said there were no changes to unit counts or AMI (area median income) targeting in the latest plan iteration. The update was informational; staff invited questions and will provide further details as MSF review proceeds.
