St. Clair Shores council approves brownfield plan for former St. Mary’s site, authorizes 14-year tax-capture reimbursement

St. Clair Shores City Council on April 20 approved a brownfield redevelopment plan for 22601 East Nine Mile Road, the long-vacant former St. Mary’s nursing home, authorizing reimbursement of up to $365,261 in eligible expenses over a 14‑year period. The motion passed 6–1.

The brownfield plan covers environmental and demolition work that the developer says is needed to clear the site for redevelopment. “The total project cost that we’re seeking reimbursement for is $295,879 plus a 15% contingency,” consultant Luke Bonner told the council, citing roughly $246,000 for demolition and about $20,000 for asbestos abatement; with the contingency the eligible amount is $365,261. Bonner identified himself as a principal with the Bonner Advisory Group.

The nut of the council’s decision was that making the site financially feasible requires allowing the developer to recoup eligible cleanup costs through incremental tax capture. Jordan Chapman, owner and developer with Allrig USA (the project’s developer), told the council the plan would support a retail redevelopment of roughly 19,000 square feet anchored by Panera Bread and Chipotle, replacing the existing dilapidated building. Chapman said lease negotiations were advanced: “The Panera lease is out for execution right now. And then Chipotle, we’re negotiating the lease,” and added that without the brownfield reimbursement the project’s rents and feasibility would be adversely affected.

City staff and brownfield authority members emphasized that the plan uses tax increment capture rather than the general fund. Denise Pike, director of the city’s Community Development and Inspections (CDI) department, said the Downtown Development Authority agreed to relinquish its capture for this parcel and transfer those revenues to the Brownfield Redevelopment Authority for reimbursement. Pike told council that arrangement means “this particular proposal has no impact on the general fund.”

Council members asked several technical questions about the site and the capture schedule. Staff said the contaminated parcel is a city-owned corner lot (22501 East Nine Mile) adjacent to the former nursing-home parcel, and that the brownfield plan’s reimbursement schedule uses the December 31 valuation as the baseline; as property valuation increases, the incremental tax capture would be used to reimburse eligible expenses. Pike and consultant Bonner said higher-than-projected valuations could shorten the reimbursement period; the approved 14‑year period is an outside limit.

Councilmember concerns centered on precedent and the impact on the DDA. Councilmember Kieran asked whether the current taxable value and the two-mill DDA capture were reflected in the tables; staff agreed to update the table to show the DDA two-mill capture and noted the DDA board had already signed off. Councilmember Vitale and others noted historical uses of the site — including a filling station and dry cleaner — as part of the justification for brownfield eligibility.

The council voted to approve the brownfield plan; the motion as recorded was moved by Mr. Rebello and seconded by Mr. Frederick. The vote was recorded as 6 in favor, 1 opposed; council did not record individual roll-call votes in the transcript. Staff said the developer carries upfront costs and is reimbursed over time after submitting eligible expense documentation to the Brownfield Redevelopment Authority, which must approve reimbursements before payment.

Why it matters: Council and staff said the property has been derelict for about a decade and that redevelopment—if feasible—would improve a stretch of Nine Mile Road that the Downtown Development Authority seeks to revitalize. The plan shifts DDA capture to brownfield reimbursement for the approved period and, according to staff, aims to return the site to productive use without drawing on the city’s general fund.

What’s next: Staff said an amended site plan is scheduled for the May planning commission meeting and will return to council for attendance; if the redevelopment proceeds, the developer expects to begin work in summer 2025 and complete construction in summer 2026. Eligible expenses will be reviewed and approved by the Brownfield Redevelopment Authority and CDI before any reimbursement is paid.