Council approves Middlepointe transformational brownfield plan for Evergreen/Civic Center
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Summary
The Southfield City Council approved a $210 million transformational brownfield redevelopment and tax-increment financing plan for a mixed-use project at Evergreen Road and Civic Center Drive that developers say will create housing, commercial space and local job training.
The Southfield City Council on March 20 approved a transformational brownfield redevelopment plan and tax-increment financing package for a mixed-use project at Evergreen Road and Civic Center Drive.
The plan, proposed by Middlepointe Investment Group, covers about 8.25 acres and calls for 577 residential units, roughly 42,665 square feet of first-floor commercial space and an associated parking structure. "It's going to consist of 577 residential units, 42,665 square feet of First Floor commercial space in a mixed use building," project owner Hassan Jawad said during the council presentation.
The project is seeking a suite of incentive captures under Michigan's new transformational brownfield provisions, including state income-tax withholding and sales- and use-tax captures in addition to property-tax capture. Jawad told the council the package being pursued from the Michigan Economic Development Corporation totals roughly $131 million and would be paid back through captured tax revenues over the statutory periods. "The project cost is basically $210,000,000 and we are looking to get our approval from the state next month for $131,000,000 in incentive capture," Jawad said.
Council members and staff said the MEDC vetted the project's underwriting. City staff said Anderson Economic Group performed third-party analysis during the state review and that MEDC monitoring and the Michigan Strategic Fund would oversee the state incentives if approved. Shelly, the city's business and economic development director, told council that the city will receive administrative fees during the process that will be returned to a local revolving fund.
The council voted to approve the brownfield redevelopment plan and tax-increment financing plan. Councilwoman Banks moved the approval and Councilwoman Haynes supported the motion; the motion passed with all members present voting in favor.
If approved by the Michigan Strategic Fund, the developer will proceed to construction and coordinate reporting with MEDC as required by the transformational brownfield rules. Officials emphasized that no city general-fund dollars are being advanced; project costs are to be reimbursed from captured taxes generated by new activity on the development site.
The project includes 90 units designated for affordable housing, workforce and market-rate units, and a proposal to include job-training elements in contractor RFPs to create local employment opportunities.
