Council approves land sale to Shaheen Development to advance downtown "Medical Diamond" plan

The Saginaw City Council voted to approve a purchase and development agreement that clears the way for a mixed‑use downtown project promoted by Shaheen Development as the "Medical Diamond." Pete Shaheen, speaking for Shaheen Development, told the council the planned project would be a $35,000,000 mixed‑use development including health care, housing, restaurants and retail.

City staff and supporters said the agreement transfers several parcels on Washington Avenue to the developer and includes contractual protections the city can use if deliverables are not met. City Manager Tim Morales told the council the development agreement contains standard reconveyance and deliverable clauses to protect the city if a project does not proceed.

Supporters at the meeting framed the project as a long‑planned economic catalyst. Ken Horn, who said he manages growth strategy at the Great Lakes Bay Regional Alliance and co‑chairs the Medical Diamond steering committee, said the project grew from a 25‑year vision and would bring jobs and investment to the downtown riverfront. Pastor Chris Pryor and other local faith and business leaders also spoke in favor.

Opposition at the meeting was limited; council members asked detailed questions about the agreement before voting. Council members pressed staff on which parcels are covered by the contract, whether listed development costs are binding and how the city will enforce performance. City staff said the contract applies to specific city‑owned parcels and that additional privately held adjoining parcels could be included in later transactions, but those properties would not be bound by the present contract's covenants unless acquired and added to it.

The agreement includes provisions requiring the developer to submit architecture, engineered site plans and schedule milestones after closing. The contract also contains a reconveyance clause that allows the city to take property back if agreed deliverables are not met; the city manager said the city has used reconveyance previously when developers did not proceed on agreed projects.

During the discussion Councilwoman Hammond raised the idea of a community benefits approach and asked staff to consider whether commitments could include guaranteed neighborhood benefits beyond the downtown park and riverfront improvements. City staff said they would work with council on potential community benefit language for future agreements.

Outcome: Council approved the purchase and development agreement by voice vote. The motion had a mover and a second; council discussion and a voice vote followed. The development team and city staff said the agreement includes protections and deliverables and that the larger financing plan and building designs will be developed and reviewed after closing.

Why it matters: Supporters said the development will expand medical and behavioral health services, add housing and jobs, activate the riverfront and leverage federal and state investments targeted at downtown revitalization. Council members and staff emphasized the city will monitor developer milestones and that reconveyance provisions exist if the project stalls.

What’s next: The developer and city staff will proceed to finalize design and permitting. The city manager said some development components — including behavioral health clinical space tied to Great Lakes Bay Health — are anticipated for this block and will involve subsequent site plan approvals and coordination with other public‑funding requests.