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Council approves Brownfield/TIF support for West 11 Mile redevelopment converting vacant office towers to 305 apartments
Summary
Council approved a brownfield redevelopment and tax-increment financing plan for the former Blue Cross Blue Shield campus at 27200/27300 W. 11 Mile that would convert long-vacant office towers into 305 apartments and reserve at least 10% of units as affordable for the life of the project; the developer seeks up to about $27 million in TIF reimbursements to cover escalated renovation costs.
The Southfield City Council voted June 29 to approve a brownfield redevelopment plan and tax-increment financing (TIF) reimbursement agreement for the former Blue Cross Blue Shield campus at 27200 and 27300 West 11 Mile Road.
Ben Capori, head of development for Brady Sullivan Properties, said the adaptive-reuse project will convert the existing office towers into 305 residential units (85 one-bedroom, 131 two-bedroom, 87 three-bedroom and two four-bedroom units) and retain at least one building for commercial tenants. The company estimated total project investments at about $65 million and asked the city to cap brownfield/TIF reimbursements at roughly $27 million to cover higher-than-anticipated plumbing, HVAC and electrical costs.
Luke Bonner, with Bonner Advisory Group, said the project qualifies under the amended brownfield law as a housing-driven redevelopment and that the developer's market analysis targets residents at about 120% of area median income, with a market-rate product and a 10% set-aside of affordable units for the life of the plan.
Council and staff emphasized oversight: the developer must submit documentation of eligible renovation expenses for city review and the Brownfield Redevelopment Authority will monitor compliance, including annual verification that affordable units meet income requirements. City staff said administrative fees and revolving-fund captures over the plan's life will help support future redevelopment work.
Several residents asked about rent levels, site landscaping and whether materials stored on-site would be visible from units; the petitioner replied rents derive from Oakland County rent charts for the AMI bands the project targets and pledged to work with the city on site screening and senior-access programs.
Council members and the mayor framed the vote as a strategy to reposition long-vacant office inventory into housing and to reduce the city's office vacancy rate. The motion to approve the brownfield plan, the TIF financing plan and the development/reimbursement agreement passed following a standard vote.
The developer said demolition and phased interior work have begun on select floors and that a phased certificate-of-occupancy approach could open initial floors within months after construction permits are processed.
