Commission approves Lincoln Place brownfield plan for 209‑unit downtown redevelopment

The Royal Oak City Commission approved a Brownfield plan and the establishment of a Commercial Rehabilitation District June 23 for Lincoln Place, a proposed 209‑unit multifamily redevelopment at East Lincoln and Troy.

City staff and the petitioner described the plan as a brownfield redevelopment that includes demolition, environmental remediation and construction of a new mixed‑use residential building. "This Brownfield plan is somewhat different than ones that have come before the city commission previously," staff said, noting 2023 state law changes that permit housing development activities as eligible brownfield costs and allow projects to capture tax increment revenues for certain eligible expenses.

Champion Development Group (Michael Nadalski) and consultant Joe Agostinelli presented the project and the site’s contamination history, attributing petroleum migration to a former nearby service station. Nadalski said the design minimizes soil excavation where possible, will remove contaminated soil required for foundations and utilities, and will use vapor barriers and monitoring wells in common on‑grade areas such as parking and capped spaces. "Encapsulating where you can is the preferred method by EGLE," the petitioner said, explaining the approach reduces soil‑movement costs and avoids moving contamination off‑site unnecessarily.

Petitioners and consultants also described the project's financing approach. Rising construction costs and flat rents nationwide have widened the financing gap for affordable housing development, the consultant said, requiring a combination of financing tools, including brownfield reimbursements and Michigan State Housing Development Authority (MSHDA) low‑income housing tax credits (LIHTC). The team said initial proposals to set aside 20% of units as affordable were revised upward through negotiation to 25% (about 52 units) to balance affordability and bankability.

City commissioners asked detailed questions about remediation strategy and long‑term monitoring; the petitioner answered that soil to be disturbed for foundations and utilities will be removed and hauled to certified disposal, groundwater will be managed via dewatering and treatment, and unattended contaminated pockets will be capped with vapor barriers and subjected to monitoring per EGLE guidance.

Commissioner Douglas—who serves on the Brownfield Authority—said the development team provided detailed financial spreadsheets and transparency in negotiations. The Commission approved the Brownfield plan and the commercial rehabilitation district by voice votes; staff noted that EGLE approval will be required for certain captured revenues and that MSHDA signoff is necessary because the project includes housing activities.

The approvals permit the developer to pursue tax‑increment reimbursements for eligible brownfield activities and to move forward with other financing steps, including a separate application for a property tax exemption under Michigan’s Commercial Rehabilitation Act (Public Act 210 of 2005). The Brownfield plan also includes public‑sector safeguards: captured tax increment revenues will reimburse the developer only for eligible costs and the Downtown Development Authority agreed to forego local capture on their portion of incremental revenue for this plan.

Next steps: the developer will proceed with remediation design, finalize financing with MSHDA/LIHTC and return for any required state approvals and implementation agreements. Commissioners said the project aligns with downtown revitalization goals and will add housing choices near transit and amenities.