Michigan Locations

Ilitch and Ross Propose Hotel Development Near Little Caesars Arena

The Downtown Development Authority board signed off on a proposal for a new $190.5 million hotel south of Little Caesars Arena. Plans for the hotel have been in the works for a while. The hotel would be 14 stories tall with 290 rooms. The Ilitch family and developer Stephen Ross submitted the development plan. Together, they would ground-lease the land from an Olympia-owned entity. The hotel, food, beverage and other amenities will create a variety of jobs and attract people to the region. The project would cost $137.3 million. Ilitch and Ross have partnered on projects in the Ilitch family’s District Detroit area in the last year.

Federal Grant Allows I-375 Project to Move Ahead Sooner

A $104 million federal grant, an allotment that’s part of $1.5 billion from the infrastructure for Rebuilding competitive grant program, will allow the I-375 Interstate project to begin two years early. The state will replace the 1-mile sunken freeway that connects I-75 to Jefferson Avenue with a wide street. Michigan had asked for $180 million, and Governor Whitmer had requested monies from the new federal Reconnecting Communities program. The estimated cost of the project is $300 million. The project should be completed in 2028.

Homeownership On The Rise In Detroit

For the first time in a decade, the majority of Detroit residents are home owners, according to new Census data. Data from the American Community Survey shows a large increase in the number of vacant units in the city. Detroit’s homeownership peak was in 1970 when 60 percent of the city’s residents were homeowners. Thirty years later, that figure had fallen to 55 percent. Foreclosures and population loss impacted 2012 data, dropping the data to 49.9 percent. By 2014, homeownership dropped again to 46.3 percent of residents. Increasing home ownership has been one of Mayor Mike Duggan’s goals since taking office.

Classic Transportation & Warehousing Plans Expansion

Classic Transportation & Warehousing is construction a new 172,000-square-foot warehouse and third-party logistics facility near Wayland.  The employee-owned firm will spend over $8.4 million. The move is expected to create 6-12 jobs. Leighton Township supports the project and has approved a 12-year industrial facilities tax exemption. Rod Cooper, president and CEO of the company, said the company’s employee owners are pleased with the expansion.

Michigan’s Rental Aid is Backlogged as Need Continues Rise

173,000 tenants have applied for the statewide rent aid program that was launched to help renters avoid eviction and meet their payments. Wayne County makes up about one-third of the applicants. Detroiters make up 22% of the rent help applicants. According to the chief operating officer of the Wayne Metropolitan Community Action Agency, they continue to see high numbers of requests for support. The Census Bureau’s Household Pulse Survey reports that between Dec. 1 and Dec. 13,  more than 100,000 Michiganders said they were behind on rent or mortgage payments. Less than half of the applications for assistance were approved as of January 7. Statewide, wait time between application and approval averages 35 to 40 days. In Wayne County, that wait time may take as long as 10 weeks. MSHDA has hired staff combat the backlog and high numbers of applications in Wayne County

Car Wash Manufacturer to Build New Headquarters

Car wash manufacturer, Tommy Car Wash Systems, is building a new headquarters and manufacturing facility in Holland. The $32.6 million facility will centralize the company’s operations. The expansion site has sat vacant for more than 20 years. The 245,000 square-foot building will house production space, an assembly area, office space and a demonstration center. The project promises to create or preserve 300 new full-time equivalent jobs. The federal New Markets Tax Credit program will enable Tommy Car Wash Systems to provide advancement opportunities with lower levels of education.  Michigan Community Capital, Old National Bank, and Cinnaire are investors in the project. The project should be complete by the summer of 2023.

State Suspends Novi Dealership’s License

The Michigan Department of State has suspended the license for Carvana LLC, located in Novi. Several alleged violations of the Michigan Vehicle Code led to the suspension. The violations were found during an investigation of multiple no-title complaints from consumers. The violations include failure to make application for title and registration within 15 days, fraudulently selling and dealing in vehicles whose title applications and sale documents were destroyed by employees and then accepting the return of the vehicles, failure to maintain odometer records, improperly issuing temporary registrations, failure to supply records for inspection, possession of improper odometer disclosure records, and 127 instances of probation agreement violations. According to MDOS, the continued violations pose an imminent threat to the public’s health, safety and welfare

Soured Chicago Land Deal Upsets Public

Justin Ishbia, the brother of the CEO of Pontiac-based United Wholesale Mortgage, has reneged on a land swap deal with a suburban Chicago park district. Ishbia and his wife bought the 261 Sheridan Road property in November 2020. The property  stands between Elder Lane park and Centennial park. They negotiated a land swap deal with the Winnetka Park District officials, promising to turn the Sheridan Road property over to park district officials in exchange for the southern section of Centennial Park. Residents are urging park district officials to take the multimillion-dollar lakefront parcel by eminent domain. The land swap deal fell apart under public scrutiny of the deal the park officials made with Ishbia.

Mercedes-Benz Financial Services Celebrates New Headquarters

Mercedes-Benz Financial Services USA (MBFS) has opened its new corporate campus in Farmington Hills. The headquarters are designed to support a new hybrid workforce model. The 3-story headquarters building is located on 35 acres at 35555 W. 12 Mile Road. The new workspaces encompasses 200,000 square feet. Olympia Development of Michigan, KIRCO MANIX and Gensler Detroit partnered with MBFS on the project. Mercedes-Benz Financial Services USA provides brand-specific financing and leasing products and insurance services.

Michigan Legislature May Nix Short-Term Rental Laws

Bills in the Michigan legislature that have bipartisan support would nix local laws that ban or limit short-term rentals through zoning. The bills are controversial and have garnered heated debate. Proponents like Airbnb, realtors, and lawmakers from both parties say the proposed changes to state law are about personal property rights and do not prevent cities from regulating short-term rentals. Opponents, which include leaders from cities all over the state and hoteliers, say they do not support an outright ban on short-term rentals. They feel that local leaders should have the power to decide what rules are most effective for their communities.

Human Migratory Habits Change Post Pandemic

Although offices are beginning to reopen as vaccinations climb, many employers are still allowing employees to work remotely from home indefinitely. Those who are able to continue working remotely at least part of the time are heading for greener pastures, literally. Real estate company Redfin reported this month that online searching for homes in suburbs and rural areas has increased since the first quarter of 2020 in most major U.S. metro areas. Before the pandemic, a bigger house might not have seemed worth the commute, but if that commute is cut down to 1-2 days a week, the story changes.

Lobbyists Push to Ease Gravel Mining Restrictions

Gravel miners and other business groups are pushing to make it easier to open sand and gravel mines in residential areas. Senate Minority Leader, Jim Ananich, is sponsoring a package of bills that a senate committee will consider on Thursday. The bills would take the approval of gravel mining permits away from local governments and give it to the Department of Environment, Great Lakes and Energy (EGLE). Critics say this would result in the dust and noise of gravel operations coming to many Michigan residential neighborhoods.

Novel Financing Helps With Inadequate Housing Issues

An inadequate supply of housing is creating problems for businesses and crippling economic development in many communities. As a result, some communities are turning to tax increment financing. Tax increment financing (TIF) enables a developer to regain some of the upfront costs for a project by securing an increase in property taxes for a period of years and diverting them until the spending is repaid. Once the agreed-upon costs are paid off, the higher tax increment goes to local government. TIF has been around for a while but using it to allow new housing to be built that would be affordable to residents is a novel idea. It’s being used where labor and supply costs wouldn’t otherwise allow affordability.

Hefty Price Tag for Bayfront Traverse City Hotel Resorts

Two of Traverse City’s bayfront hotels are for sale. The $47 million price tag includes Sugar Beach and Grand Beach Resort Hotels. Built in the 1990s, both properties would set a record for lodging sales in Traverse City. Mount Pleasant-based LaBelle Management operates both resorts.

Affordable Housing Demand Fills Downtown Muskegon Building

A new TEN21 apartment building in downtown Muskegon is providing affordable housing. Residents began filling the new apartment building last week. The 73-unit building has 60 people waitlisted. The building will be fully occupied by the end of the month. Residents must meet income eligibility rules. One-bedroom rent ranges from $269 to $815 a month, and two bedrooms range from $460 to $950 a month. Each unit is equipped with a washing machine, dryer and kitchen appliances. Community common spaces are included in the development.

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Detroit’s Revitalization Could Have A New Focus

The global pandemic has turned many things upside down. The office markets around the U.S. are one of those things. Congress may offer developers incentives to repurpose old office buildings into residential, institutional, hotel or mixed-use spaces. While Mayor Mike Duggan has come out in support of the Revitalizing Downtowns Act, area developers do not have active plans to utilize it should the law be passed. The number of Detroit’s residential units lags behind other downtown areas. The legislation isn’t limited to downtown redevelopments but could be used to convert old office properties in the suburban locations into new uses as well.

Duggan Predicts Office to Residential Shift

According to Detroit mayor, Mike Duggan, downtown Detroit is in for a dramatic shift in the next 2-3 years. He predicts that Detroit’s office buildings will be repurposed from offices into housing. He believes that this shift will be a national trend. He points to a 16-story apartment building near Greektown as an example. With more construction going on than in the last 50 years, the majority of it is residential, manufacturing and distribution.

Reusing Old Mall Sites Takes a Creative Turn

Redeveloping dead shopping mall sites in the metro Detroit area isn’t about attracting the big box stores. The hottest concepts for reusing old mall sites include warehouses, distribution centers, storage units and middle-income housing. For example, Livonia and Wonderland mall sites have become Livonia Marketplace and Wonderland Village. Experts say that retail-focused approaches are less effective now due to the prevalence of online shopping.