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Broderick Tower renovation draws tenant complaints and questions about abatements; council continues public hearing
Summary
TRR Equities presented a $45.6 million plan to renovate Broderick Tower into 125 residential units (20% affordable at 60% AMI) and 8,900 sq ft of commercial space. Tenants raised concerns about elevator failures, hot water, potential rent increases and parking; council voted to continue the item for one week for more data.
Detroit — A proposal to renovate the landmark Broderick Tower and seek a commercial rehabilitation district prompted a lengthy public-comment block on July 25, with tenants and advocates raising concerns about building services and whether an abatement is appropriate for a building that is already heavily occupied.
Staff presented a $45.6 million renovation plan reported to include 125 residential units, 25 of which would be offered at 60% of Area Median Income, and approximately 8,900 square feet of commercial space. City staff projected current taxes on the property at roughly $493,000 per year and estimated post-investment taxes near $642,000; the abated portion shown on staff slides was approximately $105,000 in the first year of the model.
Arad Droxen of TRR Equities and the development team said the project will activate multiple floors, preserve an iconic building and commit to not displacing existing low-income residents. They detailed accessibility upgrades, plans to increase hot-water storage to reduce outages, and a phased renovation approach that prioritizes common-area stability and minimizes resident disruption.
Tenants and community members delivered extended public comment: several anonymous and named callers alleged recurring elevator outages and intermittent hot water in the building; others said they feared rent increases and gentrification if the project proceeds. Several callers challenged the developer's ability to control parking rates in the Grand Circus parking garage and questioned the use of advertising on the building’s mural area to offset costs.
Developer responses: Project leads said occupancy is currently about 95%, that new equipment has been installed after prior failures, and that they will increase hot-water storage capacity within the first three to six months of renovation. They also said they will protect the handful of existing below-market tenants from rent increases and that 20% of units will be set at 60% AMI going forward. The developer described the advertising as legally permitted and necessary to help offset rising operating costs, including taxes.
Council action: Because many callers requested more detail on current rents and impacts, Council member Leticia Johnson moved to bring line item 7 back as a line item in one week so staff and the developer could supply comparative rental-rate information and other requested data; the motion passed by unanimous consent and the hearing was continued.
Next steps: The council requested more precise rental-rate data and additional discussion with the developer; the item was continued for follow-up in one week.
