Brush and Watson FAQs

Does the development have to go the Historic District Commission for approval?

 

Yes, the site is located within the Brush Park Local Historic District and will require local Historic District Commission review and approval. More Information can be found here.

 Does the development have to go through site plan approval?

 

Yes, the Brush & Watson development must go through the City’s typical approval process for new construction development. Specifically, it will have to go through a Planned Development zoning process that involves approval from the City Planning Commission and City Council. The PD application is available here

 How does the Community Benefits Ordinance apply to the Brush & Watson development?

 

The application of the Community Benefits Ordinance will depend on the respondent’s proposal. More information about the ordinance.

 Is there any soil testing information available for the site?

 

No, there is not.

 Are there specific affordability requirements / minimums for the Brush Park neighborhood?

 

There are no specific thresholds for affordability in Brush Park neighborhood that the City has outlined beyond a need for 20% of rental units to be affordable for households at 80% AMI within a specific development. However, deeper affordability is preferred at the Brush & Watson site.

 What is 80% AMI for Detroit?

Here to the State of Michigan’s AMI information:

 If the Brush Park Form Based Code is not passed, does it still apply to the Brush & Watson site?

Yes, the Brush Park Form Based code applies to this development

 Can the public alley be reconfigured or vacated?

 

Portions of the two public alleys may be able to be reconfigured or vacated. There are two privately held parcels (429 Wilkins and 437 Wilkins) that will be considered when evaluating an alley vacation, etc.

 What available Gap Financing Tools are available?

Two types of Gap Financing Tools are available.  

First, is an operating subsidy in the form of real estate tax abatements.  Three abatement programs are most applicable for mixed-use development, including PA 210 (Commercial Rehabilitation Act), OPRA (Obsolete Rehabilitation Act), and NEZ (Neighborhood Enterprise Zone), which decrease the total real estate taxable value by approximately 65-67%, 67-69%, and 60-62%, respectively. 

Second, the Michigan Economic Development Corporation (MEDC) Community Revitalization Program (CRP) is another source of subsidy that is included in the capital stack.  This program is a discretionary subsidy in the form of a loan and/or grant.  The loan is either the lesser of 20% of eligible costs or $10 MM.  Generally, the terms of the debt are favorable and below market.  The grant program generally does not exceed $750,000. 

 How is the use of Brownfield Tax Incremental Financing (TIF) applicable for this Request for Proposal?

High-level, Brownfield TIF is utilized as an annual reimbursement that spans a period of 30-years based on the incremental real estate taxes generated from the new, vertical development.  The Brownfield Plan and the utilization of the annual reimbursement are based on Eligible Costs, including, but not limited to, environmental remediation, soft costs, and above- and below-grade parking structures.  

 What are other types of financing mechanisms are available for mixed-use developments?

Several Community Development Financial Institutions (CDFI) exist in the City of Detroit.  Included in the CDFI list is Invest Detroit and JP Morgan Chase Capital Impact Partners (CIP).  Both CDFI’s provide several construction, retail tenant improvements, and permanent debt, as well as mezzanine equity products for mixed-use developments.