$14.5 million in grants to add to development of five Detroit projects

Detroit — Developers, construction teams and city representatives were inside an abandoned school in midtown Detroit on Wednesday to highlight development projects that would repurpose blighted structures in five city neighborhoods.

The Detroit Economic Growth Corporation has been awarded $14.5 million to provide "crucial gap financing to support five major mixed-use development projects in downtown Detroit and key neighborhood commercial corridors," according to a release from the City of Detroit.

The DEGC announced the grant funding at a press conference inside the former Jefferson Intermediate School — where construction is underway to turn the building into a multi-tenant office and innovation/co-working space — and was joined by Mayor Mike Duggan, City Council President Marry Sheffield and staff from Invest Detroit and Midtown Inc.

"We have too many vacant school buildings in this city and what you are seeing right here in Midtown is the renovation of the Jefferson School. ... We're going to fill a school building that people have driven by for years," Duggan said.

Jefferson Intermediate School's renovation is expected to be complete this year and will serve as the new Invest Detroit headquarters.

The Midtown school, as well as Broadway Lofts, Fisher 21 Lofts, the Arthur Murray Building and the Deco are getting a total of $255 million investment for conversion into commercial space, market-rate housing and workforce housing.

"With the support today for the Arthur Murray Building and the Deco building, you're going to take two long-vacant buildings on that street and activate them to add to the momentum that's happening on that corridor," said Duggan, referring to the revitalization of East Warren.

"My favorite project of all: I was told from the first day I got here that the old Fisher Body Plant had to be knocked down. It was covered with graffiti, you could see it on the intersection of 94 and 75 ... a building that was going to be demolished is going to have 433 housing units.

"The city of Detroit home prices are now growing at a more rapid rate than Miami ... housing is getting tougher and tougher. In the city, we need those 400 housing units in the city ... we don't need to be knocking down all of these buildings," Duggan said.

The $14.5 million comes from the Michigan Economic Development Corporation through the state Revitalization and Placemaking Program.

"We want progress in Detroit," Sheffield said. "We want the continued revitalization to take place. I truly believe in order to that, we have to focus on how we retain and attract residents into our city and I truly believe that these five projects are contributing to that goal by providing affordable housing to Detroiters, amenities, business opportunities for Detroiters as well, too."

"With the high rise of construction costs, labor costs, often times these developers need some additional assistance," she said. "To be able to develop based on the needs of Detroiters also is difficult. Providing that affordable housing, amenities that reflect the aspirations of the community can be a challenge as well, too, so this gap financing often times is what developers need to get to the finish line."

According to a release from the city, a majority of the projects are being spearheaded by African American developers and will be breaking ground in the first quarter of 2024.

The five projects are:

• Broadway Lofts: The Broadway Lofts development, led by Roger Basmajian, will convert three buildings at 1322, 1326 and 1332 Broadway St. into mixed-use property with ground-floor retail space and mix of market-rate and affordable apartments. The project will receive $4.275 million from a Revitalization and Placemaking Program to construct about 51,000 square feet of housing and 6,600 square feet of retail space.
• Fisher 21 Lofts: The Fisher 21 Lofts project, led by Greg Jackson and Richard Hosey, will convert a 600,000-square-foot building into market rate and affordable apartments, along with retail and coworking space. The project will receive $4.75 million.
• The Arthur Murray Building: The $14.9 million mixed-use development led by Emery Matthews will convert the abandoned 25,242-square-foot Arthur Murray Building into residential apartments and ground-floor retail space. The project will receive $2.128 million.
• Jefferson Intermediate School: In 2018, Midtown Detroit, Inc. (MDI) and Invest Detroit purchased the former school at 950 Selden St. and 960 Frank St. with plans to renovate the building into a multi-tenant office and innovation/co-working space in a $44.4 million project. The development will receive $1.425 million.
• The Deco: The development at 16703 E. Warren, by Brandon Hodges and Damon Dickerson, will be transformed into six new rental apartments and a ground-floor restaurant to be occupied by La Jalisciense Taqueria. It is a $4 million renovation that will receive $1.197 million.

mjohnson@detroitnews.com