Corktown developer seeks PA 147 break and Brownfield TIF for 1728 Michigan Ave; council delays decision after affordability, parking and union concerns

A developer proposing a nine‑story, mixed‑use building at 1728 Michigan Avenue in Corktown asked the Planning & Economic Development Standing Committee on Thursday for a PA 147 neighborhood enterprise zone and Brownfield tax‑increment financing to support a roughly $31.4 million investment and required environmental cleanup.

The project team told the committee the building would contain 60 apartments, about 1,100 square feet of ground‑floor retail and 14 on‑site parking spaces plus a long‑term lease for 44 off‑site spaces. David Howell, senior vice president of the Detroit Economic Growth Corporation, said the developer is committing 20% of units at 80% of area median income for the 15‑year incentive period: “The exemption may be approved for up to 15 years,” Howell said, and the assessor’s office confirmed eligibility.

Why it matters: Council members said the stated affordability level may not meet Detroit residents’ needs and pressed the developer on labor, parking costs and environmental cleanup. Council member Gabriela Santiago Romero said, “80% AMI is not affordable to the average Detroiter,” and asked whether the project could deliver deeper affordability or shorten the 15‑year abatement window. Members also repeatedly asked whether construction jobs would be union jobs and how the long‑term leased parking would be guaranteed.

Project details and the city’s case: The DEGC and the development consultant presented the city’s analysis showing a projected net fiscal benefit to the city during the abatement period and estimated roughly 165 temporary construction jobs and one permanent property‑management position. The developer said 12 units (20%) will be income‑restricted at 80% AMI and that the off‑site parking lease will be long‑term and repaved, lit and secured; 12 of the leased spaces are to be offered at a discounted rate to affordable unit tenants.

Environmental and Brownfield points: The developer described Phase 1–3 environmental testing that documented elevated levels of metals on the site and said remediation would include excavation and disposal at a licensed facility; those cleanup activities are listed as eligible under the Brownfield plan. Cora Kepler of the Detroit Brownfield Redevelopment Authority said the DBRA would reimburse approved eligible costs from captured tax increment revenues and that the Brownfield capture period would be coordinated with the NEZ and its phase‑out years.

Council response and next steps: Members requested community support letters and the developer agreed to provide them. Several residents and neighborhood groups spoke during the public hearing—some in favor, some raising parking and process concerns. Committee leadership moved to return the NEZ item as a line item in one week for additional review and to bring the Brownfield plan back as a line item in two weeks; the chair noted the delays would push the developer’s ground‑breaking a few weeks later but accepted the committee’s requests.

What remains unresolved: Council asked the developer to report back on (1) whether construction work would be performed under union agreements or other guaranteed local‑hire arrangements; (2) a more detailed parking plan and the length/terms of the off‑site lease; (3) copies of community support letters referenced by the applicant; and (4) confirmation of remediation cost estimates and MSHDA environmental affidavits required for the housing TIF. The committee did not vote to approve incentives on Thursday and will revisit the items at the re‑listed meetings.