The Detroit Brownfield Redevelopment Authority (DBRA) has approved brownfield tax incentive plans for two projects, representing a potential investment of $10.1 million in Detroit. The projects include a mixed-use development on Cass Avenue in Midtown and the adaptive reuse of the historic James A. Burgess Book, Jr. House on East Jefferson. The brownfield plans for the projects include proposed Michigan Business Tax credits of approximately $2 million.

Brownfield tax incentives are tools to redevelop blighted, functionally obsolete or contaminated properties. Eligible brownfield properties can earn Michigan Business Tax credits, and may be reimbursed for costs such as remediation, demolition, infrastructure and site preparation activities from tax-increment revenues generated by the project.

Auburn
Auburn REO, LLC plans to build a mixed-use development in the 4200 block of Cass Avenue, between Willis and Canfield. The project calls for a new 58-unit apartment complex above approximately 9100 sq. ft. of street-level retail space.  

The total eligible investment for the development is $8.6 million, with an expected 20% MBT credit of approximately $1.7 million.

Historic Book House
Historic Book House, LLC plans to restore and adapt the James A. Burgess Book, Jr. house at 8469 E. Jefferson as the new home of the Ars Poetica Chamber Orchestra. The mixed-use development will also include other offices, a conservatory, an apartment and a retail music store. The building was designed for J.B. Book by one of Detroit's most renown architects, Louis Kamper, and completed in 1911. The developers hope to reopen the Book House in its centennial year, 2011.

Total project investment for the new phase is estimated at $1.5 million, with an expected 20% Michigan Business Tax (MBT) credit of approximately $300,000.
 
"These two projects demonstrate the continuing strength of two important areas of the city, the Midtown University and Cultural District and the East Riverfront-East Jefferson corridor," said Art Papapanos, Detroit Economic Growth Corporation vice president, board administration. "The Book House project is also another great example of how we are supporting the revitalization of historic properties as catalysts for economic growth."

Since 1978 Detroit Economic Growth Corporation (DEGC) has combined the power of private sector expertise with public sector tools to fuel a new economy for the city of Detroit. DEGC is a nonprofit organization that acts as staff for Detroit economic development authorities, including the Detroit Brownfield Redevelopment Authority, the Economic Development Corporation and the Downtown Development Authority. DEGC also works under contract directly for the City of Detroit.

www.degc.org