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Developer seeks tax-exemption district for Denbigh laundromat-café; council sends item to formal review
Summary
Attorney-developer Marcia Spivey and city staff presented a $1.5 million plan to convert a vacant bank at 12400 Kelly Road into a 4,500 sq ft Hub Laundromat & Cafe. Council moved the item to formal consideration after presentations and public comment, with city staff noting eligibility under the Commercial Facilities Exemption process.
Detroit — City staff and the developer behind the Hub Laundromat & Cafe asked the Committee of the Whole on July 25 to establish a commercial redevelopment district for 12400 Kelly Road in the Denbigh neighborhood, a first step in receiving a future tax-exemption certificate.
The proposal, presented by Elton Williams of DEGC, describes a roughly $1,500,000 renovation of an existing city-owned building into about 4,500 square feet of laundromat, café and community event space. Williams said projected taxes after the project is complete would leave the developer responsible for about $3,000 a year in year one while the abated portion would be approximately $6,500 a year; after the abatement term ends the annual tax bill would be roughly $11,000 in the model shown.
Why it matters: Establishing a district is the procedural step that enables property owners to apply for an exemption certificate; it does not itself grant a tax break. If granted later, council approval and State Tax Commission sign-off would be required, city staff said.
Developer Marcia Spivey introduced herself as a longtime Detroit resident and described community engagement that included Invest Detroit (listed as primary lender), the Whittier Business Association and Denbigh neighborhood organizations. "I am committed to making sure this project lives on beyond all of us," Spivey said, noting prior participation in Building Community Value programs and grants from Great Communities Now and TechTown.
Architect Laura Walker said the plan emphasizes accessibility and sustainability: barrier-free restrooms and washers/dryers, a wheelchair-accessible entry, about 28 parking spaces with two accessible stalls, upgraded insulation, energy-efficient rooftop equipment and use of reclaimed materials where feasible.
Public reaction was mixed. Supporters — including representatives of Building Community Value and the Whittier Business Association — said the project would activate a corridor and help small businesses. Other callers raised procedural concerns: shortened public-comment windows, requests for more transparency about a related memorandum of understanding and questions about construction routes, recycling of materials and whether the project would oversaturate the market for laundromats.
Spivey addressed those concerns at the end of the hearing, saying she is not related to former councilmember Andre Spivey and that the development team will retain civil and mechanical engineers, hire locally where possible and manage debris and accessibility needs. She said accessible laundry machines are expensive but that the project will include them.
Council action: Council member Leticia Johnson moved to send line item 5 to formal with a recommendation to approve. Chair recorded no objections and the motion carried by unanimous consent; the move advances the district request to the formal docket for further consideration.
Next steps: The district designation request now moves to formal council review; any tax-exemption certificate would be a later, separate council decision and would also require state approval.
