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Committee advances commercial rehabilitation certificate for Aria Warren redevelopment on East Warren

2479973 · February 20, 2025
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Summary

The committee recommended approval and sent to formal committee a commercial rehabilitation tax certificate for Aria Warren LLC to convert and add floors at 16621–16653 East Warren, a mixed‑use rehabilitation that includes 7,900 sq ft of commercial space and 32 residential units (targeted at 60–80% AMI).

The Committee of the Whole moved a commercial rehabilitation exemption certificate forward for Aria Warren LLC (developer Emery Matthews / REI) for the redevelopment of 16621–16653 East Warren Avenue. The request covers the commercial portion of a mixed‑use rehabilitation under Public Act 210 (commercial rehabilitation certificate).

Casey Jackson (Detroit Economic Growth Corporation) summarized the financing and expected tax impacts. The developer estimates a $15.7 million capital investment to renovate the former Arthur Murray dance studio, producing approximately 72 construction jobs and eight permanent commercial jobs. The project would create 32 residential units (14 studios, 16 one‑bedrooms, 2 two‑bedrooms) targeted to households at 60–80% area median income, with rents underwritten accordingly. The commercial portion includes about 7,900 square feet of ground‑floor space and 14 dedicated parking spaces.

Developer Emery Matthews described universal design and accessibility commitments: two fully accessible (Type A) units plus all units being adaptable (Type B) to improve accessibility. Matthews said the team prioritized reusing the existing structure and would apply energy‑efficiency upgrades and recycling practices during construction. The petitioners also reported a signed letter of intent with an African‑American‑owned tenant for the commercial ground floor.

Council action: Council moved line item 7 (the 10:25 public hearing commercial rehab certificate) to formal committee with a recommendation to approve; the motion carried by voice without objection.

Why it matters: The project rehabilitates a long‑vacant building in East English Village, adds residential units targeted to lower AMI bands and brings ground‑floor commercial space that the developer says will be locally owned. The certificate reduces taxes on the commercial portion during the abatement period and is part of a broader financing stack (NEZ, Brownfield/TIF and other subsidized sources) the developers said was necessary for feasibility.

What’s next: The item advances to formal committee. If approved, the developer will proceed with permitting, tenant fit‑outs and construction; the developer estimated the long‑term increase in full assessed value and annual property taxes after the abatement period.