Plans call for the billionaire Ilitch family's real estate development arm, Olympia Development of Michigan, along with Lansing-based housing finance firm Cinnaire Solutions to redevelop a total of "170 residential units into a mixed-use, mixed-income project in the Midtown neighborhood of Detroit," according to a briefing memo from the Michigan Economic Development Corp. to the Michigan Strategic Fund, which controls the state's economic development funding.
https://www.crainsdetroit.com/real-e...65m-loan-stateThe redevelopment of the seven buildings near Henry Street and Cass Avenue, within the Ilitches' long-stalled District Detroit development would include 84 apartment units reserved for those making 60% of the area median income — about $39,780, according to figures from the Michigan State Housing Development Authority — with the rest of the units being rented at market rates. The $6.5 million loan from the state's Michigan Community Revitalization Program would add to the capital stack for only the market rate component of the redevelopment, according to the memo.
"Market conditions in the City of Detroit continue to make development challenging," reads the briefing memo, explaining the "demonstrated need" for the public funding. "Market rate rents have continued to lag construction inflation costs."
Henry Street Renaissance LLC, an Ilitch-owned entity, would wholly own the market rate component of the planned project.
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