[animatedmartian]

Eastern Market projects could add more than 210 residential units to area
By KIRK PINHO. Crain's Detroit. October 7, 2015.



A pair of large mixed-use projects — one a new development, another a redevelopment of several buildings and construction of a new one — in the Eastern Market area are working their way through Detroit City Council approvals, with more than 210 new residential units possible for the greater downtown enclave.

The first project, which is what a source said is expected to cost $35 million to $40 million, is planned for the area generally bounded by Gratiot Avenue to the north and Rivard, Russell and Maple streets.

According to a memo to City Council, there are six buildings — five of which are vacant — as well as surface parking lots and vacant land on the site. Plans include new construction of a 170,000-square-foot residential and/or hotel building consisting of 154 apartments and/or 160 hotel rooms plus 28 commercial tenant spaces. The plan also calls for demolition of “several” of the existing buildings.

If the project is residential, some of the units would be designated affordable housing. The existing brick paved alleys of the area would be used for “a walkable, year-round community hub,” the memo says.

The development is proposed by Detroit-based Town Real Estate LLC, which is registered to Jordan Wolfe, a 2011 Crain’s 20 in their 20s honoree for his work as director of the CommunityNext program of the Jewish Federation of Metropolitan Detroit. Kyle Polk, who declined comment, is also a principal of Town Real Estate.

The project developers are seeking from City Council the establishment of a commercial rehabilitation district, established under Public Act 210 of 2005, which allows for the abatement of property taxes generated by new investment for up to 10 years.

A public hearing is pending.

The project would also include the renovation and reuse of the building at 1400 Gratiot Ave. for loft apartments with first-floor retail space; the rehabilitation of a warehouse at 1350-1366 Service St. into a “mixed-use, food-oriented centerpiece” with a food hall and exhibition space, according to the memo.

The first renovation work would begin early next year, according to the memo, which also says the project would create about 70 short-term construction jobs and 40 full- and 20 part-time jobs long-term.

The 23 parcels involved in the project are owned by Busy Bee Detroit LLC, Stroh Properties Inc., Historic Trinity Lutheran Church and the city, according to the memo.

The second project, proposed by Joey Jonna, is the construction of a new four-story, 80,000-square-foot mixed-use building with about 10,000 square feet of retail space on the first floor, 10,000 square feet of flex space on the second floor and the remaining two floors devoted to about 60 multifamily units, according to Jonna.

He said Wednesday that he is still working on the site plan process.

The city council referred the sale of two parcels near Rivard and Alfred streets to Jonna for about $32,000 to the public hearing process, which has not yet been scheduled, according to the clerk.

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