$1B devleopment in the works?
Developer revives long-held dream
$1B plan would have waterway as linchpin
By Daniel Duggan
After Richard Baron built a career out of St. Louis as a national developer of blighted urban property, he longed to come back to his hometown of Detroit to take on the city's challenges.
So he tried in the 1980s, tried in the 1990s and tried in the early 2000s, but he was never able to find a project that would work with the city's politics.
He pitched an idea for Tiger Stadium, for the former J.L. Hudson Co. building on Campus Martius and for the redevelopment of vacant homes along Woodward.
He had all but given up, focusing instead on the 16,300 units and 1.29 million square feet of commercial space he has developed in 35 cities across the country at a value of $2.45 billion.
But Baron, co-founder of McCormack Baron Salazar Development Inc., is now closer than ever to his dream of building in Detroit.
If the final pieces of financing come together for a $15 million residential and commercial project in Detroit's Midtown, he could have the building under construction next year, with roughly 100 units of mixed-income residential space, able to accommodate disabled people.
The building at John R Street and Palmer Avenue, however, is the least ambitious of Baron's plans for Detroit.
He's also pushing on an almost 30-year-old plan to redevelop 3,000 acres of land from Jefferson Avenue to the General Motors Volt plant, north of I-94 near St. Aubin in an area on the border of Hamtramck and Detroit. The plan would re-create a creek that once flowed through that area and be the backbone for development.
And, Baron said, there are more projects in the planning stages that he can't disclose yet.
"For 20 years I've been trying to get a project going in my hometown," Baron said. "In 2012, I'll be spending a lot of time in Detroit, and I'm going to get these things moving."
"Daylighting' an urban creek
One of Baron's projects carries a history that's as old as the city itself.
And Baron's history with the project goes back to the 1980s when he hired architect Steven Vogel to design an urban housing development.
Vogel, now a professor of architecture at University of Detroit Mercy, told Baron about an unusual concept that he and his business partner came up with: Trace the route of the Bloody Run creek that was covered by concrete at the end of the 19th century. The creek was named Bloody Run after a 1763 battle in which Chief Pontiac and his allied Indian tribes fought the British and the creek was red with blood.
As the area developed with homes over time, creeks were being essentially used as sewers, Vogel said. As a sewer system was developed in Detroit -- to stop the spread of disease from open sewage flowing through the city -- the rainwater that fed many creeks was routed into the sewage system and caused creeks to dry up. Bloody Run, likewise, eventually dried up and disappeared in the developing city.
"Richard was very interested; I told him the story of how we discovered all of this, but nothing came of our discussion," Vogel said.
And then the phone rang two years ago -- roughly 15 years after their initial conversation.
"It was Richard and he said, "Hey, do you remember that plan you had for the creek in Detroit?'" Vogel said. "He said, "I'm interested in that, can you send me some information.' "
Stunned, Vogel made copies of a chapter he wrote for an urban planning book that detailed the project and then mailed it to Baron.
A year later, Baron called again and asked Vogel to come to a meeting.
"I didn't know why I was going to the meeting. I get there and find out that Richard had secured a half-million dollars for the preliminary planning," Vogel said.
That money came from Kresge Foundation to support the planning.
The plan to develop the land is still far off, Vogel said. It's a $1 billion project that would take more than 10 years. But the timing is good, he said, because half of the 3,000 acres is city-owned, and of the remaining 1,500 acres, roughly 80 percent of that is vacant.
Land near the creek route would be developed along a route that is similar to the original route, but adjusted to pass through vacant and city-owned land.
The project starts at the Detroit River, goes north through Elmwood Cemetery, then continues north along a former railroad corridor between Mt. Elliott Street and East Grand Boulevard. At Vernor Highway, the creek would cut west to Chene Street, turn to the north, go past Eastern Market and work its way north to the GM plant.
Runoff from the GM plant roof could start the creek, which would be fed by rainwater and snow melt. That water would not need to be processed in the wastewater treatment plants, Vogel said, instead being cleaned naturally by the soil before finding the Detroit River.
"We'll have 2.7 billion gallons of water cleaned in a natural way, recreating a natural system," he said.
Some commercial uses would be built along the river, as well as some solar power installations and residential development.
Baron said a small phase of the plan could start early next year north of Eastern Market if funding can be raised. Money will be sought from foundations, the federal government and private investors.
"This is something that can take advantage of vacant land and become a transformative effort in an American city," Baron said. "It's something that will really capture the imagination of folks."
Projects with impact
The Bloody Run project is more ambitious than one of Baron's typical projects, said Ronald Ratner, an executive vice president with Cleveland-based developer Forest City Enterprises Inc. overseeing its residential development.
Ratner, who has competed against Baron for projects in cities across the country, said he has a strong reputation for doing projects that impact communities.
"I wish that more people in this industry would follow his example," he said. "He's done well for himself by doing good things."
Ratner also helped pay Baron a compliment in 2004 when he was part of the selection committee to give Baron the Urban Land Institute's J.C. Nichols Prize, among the highest awards the national body gives to a person.
Baron has done the largest portion of his work in St. Louis, but it hasn't been easy, said Michael Roberts, CEO of St. Louis-based Roberts Cos., a development firm that recently bought and renovated the former Omni Hotel into the Roberts
Riverwalk Hotel & Residence in Detroit.
"He's a leading developer; he went into St. Louis at a time when most developers wouldn't," Roberts said. "And not only that, he's been very successful at what he's done."
It's that reputation that is a great boon to the city of Detroit with the current development at John R and Palmer, said Sue Mosey, president of Midtown Detroit Inc., which is a partner in the Palmer project with Baron.
Mosey worked with Baron 20 years ago on his first attempt in Midtown. He had planned to build an urban housing development east of Woodward Avenue, south of Forest Avenue, where the Sugar Hill Arts District is now being built.
The project never happened, but Mosey continued to follow Baron's career.
"He's passionate about this kind of work," Mosey said. "And the breadth of the portfolio he's built over the years really speaks for itself."
Problems with past mayors
Baron was turned away from Detroit developments by former mayors Coleman Young and Dennis Archer. He skipped Kwame Kilpatrick, saying, "I wasn't very excited about his administration."
He responded to an early request for proposals on Tiger Stadium, pitching the idea of a YMCA on the ground level with residential housing built into the upper levels.
He approached the city with a plan for the old Hudson's department store on Woodward, with a hotel and housing, anchored by the University of Detroit Mercy law school. There was never a response from the city on either one.
"After a while, I just gave up," Baron said. "I had so many plans, but nobody wanted to hear them. I was tired, I moved on."
Overall, Baron's projects require participation from all levels of local and state government because of the high level of community impact. Where past administrations have been unwilling to work with him, Baron said, the Dave Bing administration, the Detroit Economic Growth Corp. and Midtown Detroit have been helpful.
"I'm a Detroit guy, I grew up in Palmer Park, I'm from the neighborhoods," Baron said. "At this point, I'm very excited with the idea of working with the city and creating a new community."
Daniel Duggan: [[313) 446-0414, dduggan@crain.com. Twitter: @d_duggan
St. Louis developer's plan to recover creek, build housing
http://www.crainsdetroit.com/article...ong-held-dream
Quote:
If the final pieces of financing come together for a $15 million residential and commercial project in Detroit's Midtown, he could have the building under construction next year, with roughly 100 units of mixed-income residential space, able to accommodate disabled people.
The building at John R Street and Palmer Avenue, however, is the least ambitious of Baron's plans for Detroit.
He's also pushing on an almost 30-year-old plan to redevelop 3,000 acres of land from Jefferson Avenue to the General Motors Volt plant, north of I-94 near St. Aubin in an area on the border of Hamtramck and Detroit. The plan would re-create a creek that once flowed through that area and be the backbone for development.
