Developer says tax incentives are essential for Detroit 5 & Dime reuse; council delays final action pending ADA/technical details

Casey Jackson, real estate manager with the Detroit Economic Growth Corporation, told the Planning & Economic Development Committee that Detroit 5 & Dime LLC plans a $3.4 million renovation of a vacant 1947 two‑story building at 3703 3rd Avenue to create ground‑floor retail and a small residential component. Jackson said the developer is requesting a commercial facilities exemption certificate under Public Act 255 to abate the tax increase caused by the rehabilitation and recommended a 12‑year term for the abatement.

"With the $2.55 incentive it really is an incentive to promote the rehabilitation of existing structures," Jackson said, explaining that the property owner now pays roughly $3,000 a year and that reassessment after improvements would raise taxes; the abatement would exempt 100% of that increase during the agreed term. The presentation projected the property tax increase after improvements to be just under $35,000 annually initially and estimated an eventual annual tax near $45,000 after the abatement expires.

Developer Jonathan Hart described the project as a small mixed‑use building modeled on his Detroit Shipping Company concept, saying the plan includes five commercial tenants (four food vendors and a bar) and 10 residential units above. Hart said his firm plans to work with Detroit at Work to help local residents access jobs created by the project.

During public comment and committee questioning, residents and council members raised several concerns: whether an elevator is required for the two‑story building under ADA and Michigan code, how construction truck routing will be handled, whether the project has considered rooftop or on‑site solar, and what community benefits will accompany a 12‑year abatement. Councilmember Leticia Johnson asked about composting for food vendors; Hart said vendors would be encouraged to pursue composting if it fits their business model.

City staff acknowledged gaps in the hearing's record. Jackson and Housing & Revitalization Department staff told the committee they would provide the legal and code citations that explain when an elevator is required. After the questions, the committee recessed the 10:15 public hearing and moved the item to the end of the agenda to allow staff to deliver the requested information.

The committee did not take a final vote on the certificate at the meeting; after staff provides the ADA/code clarifications and other requested details the committee is expected to reconsider the application. The public hearing remains open to callers who asked to speak on the item; the chair said the item will return to committee once the materials are available.