Royal Oak DDA approves up to $600,000 to tear down aging Center Street deck, seeks formal city recognition of DDA role

The Royal Oak Downtown Development Authority voted to authorize up to $600,000 from its reserves to remove the deteriorated, 1970s-era portion of the Center Street parking structure, with funding release contingent on a formal city commission vote recognizing the DDA's role in the redevelopment process.

The vote followed staff briefings and a legal assessment that the older deck presents safety risks and cannot remain open. "At this point the structure has to come down," the city attorney said, framing demolition as urgent. Executive Director Mr. Kramer told the board that demolition cost estimates range widely — "between 570,000 and 1.6 million" — and that a prior low bid from an RFP era bidder now appeared likely to rise to about $630,000 due to increased fuel and recycling costs.

Why it matters: removing the old deck eliminates a known public-safety hazard, but it also reduces parking capacity and triggers a choice about interim uses (surface lot, temporary green space) and how the site should be marketed to developers. The DDA still carries obligations tied to parking-system revenue bonds and is weighing revenue implications: staff noted roughly $3.5 million in parking-system revenue bonds remain payable.

Board debate centered on two questions: whether to invest DDA funds now to clear the site for redevelopment, and whether DDA money should be released only after a clear, formalized partnership with the city on how a developer will be selected. Director Debbuck moved to approve the up-to-$600,000 contribution; after discussion the board amended the motion to require a formal vote of the city commission acknowledging the DDA's role in the process before funds are released. The amended motion passed.

Staff advised the board that removing reserved parking signs and consolidating spaces in the newer portion of the structure will help provide interim capacity while demolition and any interim site improvements proceed. Staff also advised that paving an interim surface lot would add substantial cost (engineer estimates of roughly another $600,000) and would not necessarily generate additional net parking revenue absent a different access configuration.

What's next: the DDA directed its executive director to work with city staff and the mayor to develop the outreach or RFP approach for the site, subject to the commission-level recognition the board requested. Staff said the previously identified bidder indicated the contractor could start within a month or two if funding and agreements are finalized. The board did not set a final redevelopment program beyond demolition and asked staff to pursue partnership options with the city.

Actions recorded: The board approved a motion to commit up to $600,000 for demolition of the older Center Street parking structure, with release of funds tied to a formal vote by the city commission recognizing the DDA's role in the redevelopment selection process. The motion was moved by Director Debbuck and seconded by Director Dunston and was adopted (vote tally not specified in the transcript).

The board asked staff to return to upcoming meetings with an outreach/RFP plan and technical cost estimates for interim options, and to include memoranda of understanding or similar documentation reflecting the partnership terms discussed.