The project site, which included five parcels, previously housed vacant, blighted storefronts. Roofs had caved in, and a large tree was growing out of the top of one of the buildings. These and other Brownfield issues, including asbestos in the buildings and petroleum-contaminated soils, had stymied several previous attempts to develop the site. In the face of these monumental challenges, Shaheen Development has been able to pull off an extremely ambitious project. The $22.7 million building currently under construction will be five stories with heated underground parking and will boast 65,000 square feet of retail, office, and luxury condominiums. So why has this redevelopment initiative succeeded where so many others failed? In part, because of the creative use of economic development incentives. Shaheen Development enlisted the services of AKT Peerless to identify and apply for the optimal package of financial incentives. Along with the City of Midland and the Michigan Economic Development Corporation (MEDC), AKT Peerless secured:
- A $4.8 million Michigan Community Revitalization Program (CRP) performance based loan, backed by Brownfield tax increment revenue. Upon completion of the project, $1 million of the loan funding is forgivable.
- $8,404,740 in tax increment financing reimbursement to address Brownfield conditions, including environmental activities, demolition, site preparation, and infrastructure improvements.
Since the incentives approvals, the site has been remediated, and the new structure is going vertical. Set for completion in early 2016, the redevelopment is expected to feature a ground-floor restaurant, in addition to other office and retail tenants. The project is generating a new energy in the City’s downtown district and is expected to be a catalyst in Midland’s ongoing urban revival. AKT Peerless is proud to be a part of such a preeminent and transformative project. We are equally pleased to be able to partner with clients like Shaheen Development to help fulfill their goals and visions for community development. We like to say we help build sustainable communities – and help to make visionary projects viable. This is an excellent example of our mission in action. Can we do the same for you? Please call us at 800-985-7633 for a free consultation.
About AKT Peerless
We are environmental consultants, building scientists and redevelopment experts who are proud to help build sustainable communities. We provide environmental, energy and sustainability, economic development, and construction loan services that are tailored to the needs of each of our clients, private and public sectors alike. And we empower our people to engage, at work and in our communities, to make a difference. Call us at 800-985-7633 to arrange a free consultation.
About the Author
Bret Stuntz is an attorney and a geologist. He is AKT Peerless’ Regional Manager for Mid & West Michigan and the company’s service line leader for Economic Development.