SkyVue on Michigan Brownfield Redevelopment
The 3.37-acre property was formerly developed with commercial buildings used for automobile sales and servicing, but operations at the property ceased in 2008, leaving a large underutilized property along the main thoroughfare between Lansing and East Lansing, Michigan.
RISE Real Estate (RISE), a highly experienced national real estate financing, development and management company, proposed to demolish the existing development, remediate suspected environmental contamination, and redevelop the property with a 9-story mixed-use retail and rental residential building with on-site parking. The new construction would include an estimated 341 apartment units, 4,075 square feet of first floor retail space and an integrated multi-story parking structure.
AKT Peerless’ environmental team conducted a Phase II Environmental Site Assessment and prepared a Baseline Environmental Assessment for the property’s anticipated new owner. AKT Peerless also completed an asbestos and hazardous material survey of the existing buildings on the property in preparation for demolition. The environmental team also prepared the necessary due care compliance documents including a site-specific health and safety plan.
AKT Peerless’ incentives team conducted an assessment of available economic incentives, and proceeded with the application process for Brownfield tax increment financing (TIF). AKT Peerless prepared a Brownfield Plan and MDEQ & MSF Non-Environmental Act 381 Work Plan for the approval of both local and state tax increment revenue capture. Total eligible activities costs of over $25 million were approved for reimbursement.
RISE anticipates investing over $80 million to redevelop the property. Once complete, the project will have successfully transformed a long-vacant, contaminated property into a iconic mixed-use development. An estimated 9 full time equivalent jobs are anticipated to be created by the retail portion of the project. Additionally, over $25 million approved for reimbursement through state and local Brownfield tax increment financing.