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Stafford House wins committee support for NEZ review for North End rehab

2167620 ยท January 16, 2025
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Summary

Stafford House Inc. requested a Neighborhood Enterprise Zone (NEZ) for 9301 Oakland Ave.; committee moved the item to a March 17 line-item for formal consideration after presenters described a $3.2 million mixed-use rehab with affordable units and community tenants.

Stafford House Inc. asked the Planning & Economic Development committee to establish a Neighborhood Enterprise Zone for a mixed-use renovation at 9301 Oakland Ave. in the North End, telling council the project will create 10 affordable apartments and roughly 5,200 square feet of commercial space and that the NEZ is necessary to complete the financing.

City development staff and Stafford House representatives said the 1925 building has been vacant for about a decade and requires a full gut renovation. Casey Jackson of the Detroit Economic Growth Corporation explained how the NEZ would abate the portion of increased ad valorem tax attributable to the new investment for the first 12 years and then phase out in years 13โ€“15. Jackson said Stafford Houseโ€™s team assembled a capital stack that includes grant funding and roughly $1.35 million in debt; she said the project would not be financially feasible without the combined tax incentive package.

Stafford House Executive Director Patricia Dockery and developer Linden Crosby described plans for 10 units at 60โ€“70% area median income (studios at $1,100; one-bedroom units at roughly $1,250โ€“$1,300), 4 commercial spaces (committed tenants include Next Level Engineering, BlueCar enrichment for Detroit Public Schools, and a coffee shop), 17 secured parking spaces, and ADA upgrades funded through a city grant for the commercial floor. Crosby said construction could begin in March 2025 with completion in about nine months.

Committee members and public commenters expressed broad support for converting a long-vacant building to affordable housing and neighborhood-serving commercial space. One public commenter called the proposal โ€œexactly the type of project we should be spending our tax dollars on.โ€ Committee staff noted a minor discrepancy in the cityโ€™s net-benefit numbers and planned to reconcile the calculation with the applicant before formal consideration.

After public comment, the committee voted to bring item 5 (the 10:15 public hearing) back as a formal line item on March 17 so the full council can consider certification. The vote was taken by unanimous voice; no roll-call tally was recorded.