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Committee hears Prentice St. NEZ request for 29‑unit Midtown rehab; members seek clarity on tenant protections
Summary
Housing and development staff and Midtown Detroit PropCo asked the committee to establish an NEZ district for 663 Prentice to support a $4.1M rehab of a 29‑unit building; presenters promised a tenant retention agreement limiting current tenant rent increases to 2% and said tax impact modeling shows net fiscal benefit over 15 years.
The Planning & Economic Development Standing Committee heard a public hearing on Sept. 18 on a Neighborhood Enterprise Zone (NEZ) district request for 663 Prentice Street in Midtown, presented by the Housing and Revitalization Department and Detroit Economic Growth/Development staff.
Justice Cook of the Housing and Revitalization Department explained that Midtown Detroit PropCo LLC is seeking a district designation that would allow future application for an NEZ certificate tied to a planned $4,100,000 rehabilitation. David Howell of Detroit GC outlined the project in detail: the building contains 29 residential units (15 studios and 14 one‑bedrooms), is roughly 90% occupied, and would receive facade, roof, window, mechanical and plumbing upgrades.
Howell and Michael Walkmean (development team) said the developer has committed to a tenant retention agreement with HRD that limits rent increases for existing residents to no more than 2% during the renovation process and offers set‑asides at affordability levels: 10% of units at 60% AMI and 10% at 80% AMI (presenters gave example monthly rents of about $1,060 for studios and $1,500 for one‑bedrooms under those AMI levels). The DGC presented projected tax numbers: current taxes on the property were cited as $26,823 and an estimated post‑rehab ad‑valorem (without abatement) of about $142,169; the DGC estimated a projected net benefit to the city over 15 years of about $374,614 with the NEZ applied.
Councilmember Leticia Johnson pressed for clarity about the rents for the six currently vacant units and asked for an explicit timeline. Developers said unoccupied units would be offered at market rates in the $800–$1,100 range and that construction would likely begin in the coming winter or spring after approvals, with a bulk of work completed in a six‑to‑eight‑month window once started.
The committee received public comments from nearby residents raising recycling, accessibility and management concerns; presenters said they would work with city departments to address those operational questions.
Outcome: A committee member moved to bring the NEZ request back as a line item for further committee consideration; the committee set a return date of Nov. 20, 2025 (60 days) and the motion carried with no objections.
Representative quotes: “Current residents will not see an increase from the renovations being contemplated,” David Howell said, and the chair noted the committee will seek additional detail at the return hearing.
What to watch: the Nov. 20 committee meeting for any changes to commitments on tenant protections, the final application for an NEZ certificate and any development conditions attached by HRD or the council.
