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City puts out call to re-develop sprawling Herman Kiefer Health Complex

The City of Detroit is looking to redevelop the old Herman Kiefer Health Complex, having recently issued a Request for Proposals. The former home to the city's health department, the complex now sits vacant. Eight buildings are for sale.

The stately brick buildings are spread out across 17.9 acres of land. Visible from the Lodge expressway, the area for sale is bounded by Taylor to the north, US-10 to the east, Blaine to the south, and Byron to the west. 525,937 square feet of floor space is available.

The building most associated with the Herman Kiefer Health Complex is a neo-classic building that dates back to 1909. It was designed by one of Detroit's most famous architects, Albert Kahn, who also designed such notable buildings as Cadillac Place, the Free Press Building, and the Fisher Building. Kahn designed other buildings available on the site. Another distinguished Detroit architect, George D. Mason, also designed a number of the buildings available.

The complex is a designated historic district. As such, it cannot be changed or demolished before submitting to a public hearing and gaining the approval of the Historic District Commission. The RFP suggests that the complex could be transitioned into a mixed use development or even a high density residential district.

According to the RFP, the surrounding neighborhood falls into the Moderate Vacancy 2 category of the Detroit Future City report. The Moderate Vacancy 2 category is for neighborhoods on the edge of losing their residential character.

Proposals are to be submitted by April 18, 2014. A site walk-through is scheduled for Tuesday, March 25 at 9:30 a.m.

The Detroit Department of Health and Wellness Promotion is now located in Suite 200 at 1600 Lafayette.

Source: Herman Kiefer Health Complex RFP
Writer: MJ Galbraith

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Photographer-turned-mechanic opens up shop in Rivertown

There's a new automotive repair shop on Detroit's east riverfront. Chris Lee opened the Straits Garage, located at 217 Joseph Campau St. The garage, in a historic warehouse built in 1880, offers a range of services, from simple oil changes to drivetrain and transmission work.

Though Lee didn't originally plan on locating his garage in Rivertown, he's glad he did. The shop has been busy since opening in late January, revealing an obvious need for the surrounding area. The building's proximity to downtown and a provided shuttle allows commuters to drop off their cars before work and pick them up on the way home.

A photography instructor at Oakland University, Lee has been working on cars since he was a teenager. The idea for a garage hit him about a year or two ago, he says. The Detroit native started to notice that the new residents of downtown and Midtown didn't know where to take their cars in for repairs. Realizing that there just weren't that many options in those immediate neighborhoods, Lee became certified as a mechanic and began the search for his own garage. He was stymied, however, by the landlords in downtown and Midtown.

"I spent the last year trying to find a good space in those neighborhoods," says Lee. "A lot of landlords in Midtown don't want an un-hip mechanic shop. They're looking for bars, cafes."

Lee stumbled on a building in Rivertown that had been a repair shop for decades previous, making for an easy move-in. He was excited, too, by the building's history and character--not to mention it being just blocks from the riverfront. The building offers Lee the ability to expand operations, should he need it.

Source: Chris Lee, owner of the Straits Garage
Writer: MJ Galbraith

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(revolver) co-founder to open new restaurant in Southwest

Goldfinch American, the new restaurant concept from Tunde Wey, will have its first pop-up dinner Monday March 24 at a yet-to-be disclosed location. Wey, who has contributed to Model D in the past, is also the co-owner of the Hamtramck restaurant (revolver).

As he searches for Goldfinch American's permanent home in southwest Detroit, Wey will hold a series of Monday night dinners. Wey says that he has been talking to a number of restaurants in Southwest about hosting his weekly dinner. Goldfinch American will transition from pop-up to permanent once an ideal space for the bar and restaurant is found.

Like (revolver), much of the emphasis of Goldfinch American is placed on the chef. Unlike (revolver), Goldfinch American will feature the work of just one person, James Hayes. Wey says that the new restaurant will be completely chef-driven, giving Hayes the leeway to do whatever he wants with the menu. The two met after Hayes requested to create a course for (revolver).

"I had this faith in his ability and it was validated when I tried his food. It was good," says Wey. "It wasn't just good. It was amazing. He made some bacon dust. He makes bacon and puts it in a coffee grinder, grinds it, and sprinkles it on wedges of apples. Beet gnocchi. Tiny little pieces of--I don't even know how he did it. It melted in my mouth. It was amazing."

While a permanent location has yet to be identified, Wey is certain he wants Goldfinch American to be located in Southwest. He's excited by the juxtaposition of placing a fine dining restaurant in a somewhat rugged neighborhood that is culturally vibrant and diverse.

In the meantime, it will be pop-up city for Wey and Hayes, something that has worked for many a small business owner lately.

Source: Tunde Wey, owner of Goldfinch American
Writer: MJ Galbraith

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Five homes to be rehabilitated, sold, and rented in West Village

The Villages Community Development Corporation has purchased five homes to rehabilitate and put back on the market. The five buildings are located on Seyburn and Van Dyke streets in the West Village neighborhood. The CDC expects the homes to be available within six months.

This is the first time the Villages organization has purchased homes to rehabilitate, an idea they've seen work for other CDCs like the Grandmont Rosedale Development Corporation, says Villages executive director Brian Hurttienne. In emulating the success of the GRDC, the group hopes to spur economic development.

Three single-family homes and two duplexes make up the five structures purchased. Once rehabilitated, the single-family homes will be sold. The CDC will retain ownership of the duplexes and rent the units out.

Construction will soon begin and jobs will first be available to qualified area residents. The buildings, vacant for anywhere between one to eight years, remain in good shape. Hurttienne credits the quality of home construction in the Villages as a key component of the area's stability.

"I'm going to reach out to the neighbors of these properties so they know what's going on with each individual property," says Hurttienne. "We want to make sure the Villages is a stable community."

Though slowed down by the city's bankruptcy uncertainties, a process that began in 2012 was completed in December 2013, ensured by cooperation among community stakeholders and federal and city departments. The Villages identified a number of homes for potential rehabilitation, the Detroit Land Bank Authority purchased and cleared the titles of the homes, and then the Villages bought the buildings from the land bank.

Neighboring residents experienced in the construction trades should contact the Detroit Employment Solutions Corporation for potential employment.

Source: Brian Hurttienne, executive director of the Villages CDC
Writer: MJ Galbraith

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Small business contest begins in West Village

Budding entrepreneurs in search of a storefront are invited to submit their business proposals for a contest that began Monday, March 3. Called Activate: 1417 Van Dyke, the contest is a collaboration between Practice Space, Revolve Detroit, the Villages Community Development Corporation, and the building's owner, Alex Howbert, a contractor and co-owner of the Detroit Institute of Bagels. Submissions are being accepted through March 21.

The building itself is in the West Village neighborhood, a Victorian-style house built in 1895. With a storefront on the first floor and two apartment units above, the commercial space boasts approximately 900 square feet with an additional 220 square feet of deck space in the back yard. Though currently vacant, the storefront served as a market for the majority of its history.

Howbert, who purchased the property last year, joined the Practice Space Incubator program with hopes of finding a suitable tenant for the storefront. Rather than pursue any traditional means of finding tenants, a contest was devised to raise awareness of the property and broaden the pool of applicants. Except for those requiring a commercial kitchen, all other types of businesses are encouraged to apply.

"I'm open to anything," says Howbert. "We all have ideas of what would be cool but I know someone else does too. I don't want the space to be pigeonholed and then miss out on an idea."

Howbert is searching for a permanent business for the commercial space and is reserving the apartments for the winner of the contest, should they want a live/work situation. Rent is negotiable and will depend on how much work will be required to outfit the space for the winning business. Two open houses are planned to view the space, March 9 and 10.

Finalists for 1417 Van Dyke will be announced April 11.

Source: Alex Howbert, 1417 Van Dyke owner
Writer: MJ Galbraith

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Architecture firm Hamilton Anderson celebrates 20 years with new developments, hires

Detroit-based architecture firm Hamilton Anderson is ramping up for a busy year with seven new hires and a search for several more. The firm, which is celebrating its 20th year, has an immediate need for two architects, a designer, and one or two project managers. The firm is involved in a number of projects that will alter the landscape of downtown, the riverfront, and Midtown. A recent conversation with principal, president, co-founder, and CEO Rainy Hamilton reveals updates on some of their more high profile projects.

The firm is working on Orleans Landing, the five block development along the east riverfront. Hamilton Anderson is applying more industrial design influences to the previously released illustrations. Townhomes are planned for the blocks facing the Dequindre Cut. The rest of the development will consist of mid-rise lofts featuring mixed-use and residential units.

Hamilton and co-founder Kent Anderson spent the early part of their careers in an office in Rivertown, making their involvement in the Orleans Landing development extra special to them. "For us to be involved in the first new development in the east riverfront, it's really quite an honor and a thrill," says Hamilton.

Hamilton Anderson has been selected by New York-based SHoP Architects as the local architects to collaborate with on the Hudson's site building. Hamilton says a concept has been presented to Bedrock Real Estate Services and was well-received.

The firm is the design architect and architect of record for the adaptive re-use of the old Strathmore Hotel in Midtown. Hamilton says that an original light well is going to be preserved and that developers are hoping that a new parking structure will be built nearby.

It's looking like Radio One, a national broadcasting company, will move into the Queen Lillian Woodward Office Building at Stimson and Woodward Ave. once completed, says Hamilton.

Source: Rainy Hamilton, president, co-founder, and CEO of Hamilton Anderson
Writer: MJ Galbraith

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State money clears the way for Detroit apartment developments

Two Detroit developments have been named recipients of nearly $5 million in state-awarded money. The Ashley and Strathmore apartment buildings have received approval from the Michigan Strategic Fund for Michigan Community Revitalization Program Incentives. According to the Michigan Economic Development Corporation, the residential developments are expected to create tens of millions of dollars in total capital investment and nearly 30 full-time jobs.

Ashley Owner, LLC is transforming the old Milner Hotel into an apartment building. The flatiron-shaped building is located at 1526 Centre St. in downtown Detroit. Built in 1913 as the Henry Clay Hotel, the currently vacant hotel rooms will be turned into apartments for the first time.

Princeton Domino Investments, LLC and Lamont Street Partners make up Ashley Owner, LLC. The new owners plan 61 apartment units, 5,200 square feet of office space, and two storefronts. The renovation is receiving a Michigan Community Revitalization Program performance-based grant of $1 million and a state school tax capture valued at $482,075 from the City of Detroit Brownfield Redevelopment Authority.

The Ashley renovation is expected to create 25 full-time jobs and $8.2 million in total capital investment.

Another historic hotel, the Strathmore in Midtown, is also experiencing a transformation into apartments. The building at 70 W. Alexandrine is being developed by St. Louis-based McCormack Baron Salazar and designed by Detroit architects Hamilton Anderson. The developers expect construction to begin this spring.

The long-vacant, long-blighted building will be historically renovated to feature 129 apartments and 2,000 square feet of first-floor retail. Strathmore Apartments Limited Dividend Housing Association, LLC is receiving $3.5 million in a performance-based equity contribution from the Michigan Community Revitalization Program.

The Strathmore renovation is expected to created three jobs and $28.4 million in total capital investment.

Source: Michigan Economic Development Corporation press release
Writer: MJ Galbraith

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East riverfront development reserves 20 percent of units for affordable housing

Development company McCormack Baron Salazar is planning on reserving 20 percent of its east riverfront development for affordable work-force housing. The units will be available for those whose income does not exceed 80 percent of the area median income.

The company plans to close on the east riverfront property this summer. It's expected to take 18 months of construction to complete the project. McCormack Baron Salazar chairman and CEO Richard Baron, a Detroit native, has ties to the east riverfront, where he worked at his grandfather's wool company as a young man.

The St. Louis-based developement firm is also involved in a high-profile project in Detroit's Midtown. The company plans to close on the neighborhood's old Strathmore Hotel in the first quarter of 2014. Baron expects that the 129-unit apartment building will also take 18 months before it's ready for residents.

While the Strathmore development is required to provide affordable housing as a result of tax credits used to fund the deal, Baron says that he wanted the riverfront development to provide work-force housing too, even if it didn't demand the same housing requirements. The majority of units in each development will be market-rate rentals.

"It's always been part of what we wanted to do. To have people working for the city and public agencies, to have teachers (be able to) live in the community," says Baron. "It's important for people who are working at public agencies and nonprofits to have opportunities."

The riverfront development will be bordered by Atwater Street to the south, Woodbridge Street to the north, Riopelle Street to the west, and the Dequindre Cut to the east. 291 apartment units are planned for the development.

The Globe Building, which neighbors the future development, is currently being transformed into the Outdoor Adventure & Discovery Center by Michigan's Department of Natural Resources.

Source: Richard Baron, CEO and chairman of McCormack Baron Salazar
Writer: MJ Galbraith

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February development news round-up

February was another busy month for development news in the city. Let's catch up on five stories from the past four weeks.

  • As development projects continue to multiply throughout greater downtown Detroit, people are starting to use the word gentrification more and more. 1217 Griswold, the Capitol Park residence and events loft space, sparked the latest conversation as its residents have been given notice to move out by the end of February. Dan Gilbert's Bedrock Real Estate Services plans to rehab the building, which is badly in need of repairs.
  • Another decades-long Detroit institution of weird, the Cass Corridor's Showcase Collectible, is also getting the boot as a new owner plans to make capital improvements to the building. A tattoo parlor will be one of the new businesses to eventually occupy the old Chinatown building.
  • Beer isn't nearly as controversial as gentrification--or progress, depending on who you're talking to--and Midtown's about to get a whole lot more of it. The Grand Rapids-based HopCat is opening its third craft beer bar in the old Agave location this August.
  • In other apartment news, downtown's Park Apartments building was sold this month for a reported $3.25 million to Joe Barbat, CEO and chairman of Southfield-based Wireless Toyz. Barbat plans over $6 million in renovations to the building, which will include 116 Class A apartment units and ground floor dining. In a nod to the building's nearly 80 years of history, it will be renamed Briggs House Residence.
  • The Detroit Free Press and Detroit News have announced a coming change of address as the two newspapers are moving operations into the Bedrock Real Estate Services-owned Federal Reserve Building in the city's central business district. The move was made in part to keep up with the demands of modern technology.

Writer: MJ Galbraith

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Pop-up turns permanent on Avenue of Fashion

In another Detroit retail success story, the artisan boutique Love Travels Imports has made the transition from pop-up to permanent. Owner and founder Yvette Jenkins has taken her business from the once- to twice-a-week appearance at Eastern Market's Artisan Village to an established online presence to participating in the Revolve Detroit pop-up program along the Avenue of Fashion. Love Travels Imports is now a permanent fixture there.

Love Travels Imports draws its name from Yvette's passions, love, traveling, and artisanal crafts. Her products range from homewares to jewelry and come from artisans as far as South Africa and as near as Mount Clemens. She focuses on Fair Trade products and sees her shop as an extension of that philosophy, saying that it's about helping artisan entrepreneurs get their wares out and into the marketplace in a fair and sustainable manner. She sees Love Travels Imports as her opportunity to directly and positively impact other communities, both locally and abroad.

The Revolve Detroit program placed Love Travels Imports in a Livernois storefront last September. Yvette has since paired up with fellow Revolve Detroit participant and former pop-up neighbor Art in Motion, sharing a space at 19452 Livernois Ave. It's a fitting partnership, one that pairs complementary businesses. When the two were neighbors, Yvette would send her customers over to check out the ceramics next door and vice versa. It's this sort of camaraderie that nurtures the Detroit retail scene.

"There's such a deep history at the Avenue of Fashion," says Yvette. "It used to be the premier shopping district in Detroit. There's a buzz about Livernois again and I encourage people to come over and experience it. It's an exciting time for the city."

Source: Yvette Jenkins, owner of Love Travels Imports
Writer: MJ Galbraith

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I-375 Alternatives Study hosts first public meeting

Business owners, residents, and commuters affected by a potential transformation of I-375 were joined by the otherwise curious Thursday evening, Feb. 13, as the Downtown Development Authority hosted the first of three public meetings. A crowd gathered at Stroh River Place in an open house setting as the DDA and their partners in the study, the Michigan Department of Transportation and the Detroit Riverfront Conservancy, guided visitors through a series of informative stations.

Each station provided data regarding project study areas, ranging from cost estimations to current vehicular usage. One station had a map of the area and visitors were asked to place stickers at the points where they felt unsafe as pedestrians. Another map asked visitors to place stickers at places they thought to be aesthetically unpleasing. Visitors were asked, too, of their overall opinion of I-375 and whether think it should remain an expressway or be transformed for a different use.

The I-375 Alternatives Study is a result of the impending reconstruction of I-375. Current estimates place reconstruction costs at $80 million. MDOT has enlisted the help of area stakeholders to determine whether the land in question could be utilized in a more effective way, such as demolishing the below-grade expressway and transforming it into a street-level boulevard.

Taking into account the information gathered from Thursday's public forum, the group behind the study will craft a number of alternative developments for the project areas. Five alternatives will be crafted for the primary study area, the nearly one-mile stretch of I-375. Two alternatives will be crafted for each of the secondary study areas, the I-75/I-375/Gratiot interchange and the I-375/Jefferson interchange. These alternatives will be presented to the public at a later date this spring.

I-375 was built in 1964.

Source: I-375 Alternatives Study public meeting, Feb. 13, 2014
Writer: MJ Galbraith

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Practice Space works to develop two new businesses

Detroit small business hub Practice Space has accepted two new projects into its Incubator program. One, a retro arcade bar, is searching for the perfect location while the second, a West Village property owner, is searching for the perfect tenant. Practice Space is helping each find what they're looking for.

Practice Space is assisting Donald Behm in opening Offworld Arcade, a retro-themed video game bar. In the four month-long Incubator program, the people at Practice Space are helping Behm articulate his concept and craft his business plan. They're also helping him find a building to purchase. A successful pop-up "barcade" was recently held in Hamtramck.

"One thing we've noticed is we want to work with people who want to collaborate," says Austin Kronig, cultural development director for Practice Space. "Donald realized he did everything he could on his own and now he needs support. He's an accidental entrepreneur. He doesn't have a business plan or a space but he knows the business and is an expert in classic arcade games."

In the second project, Detroit Institute of Bagels co-owner Alex Howbert approached Practice Space about identifying the right use for 1417 Van Dyke in West Village. The late-Victorian house is from the 1880s and features a storefront on the first floor of the building. It's near West Village hangouts like Craft Work, Detroit Vegan Soul, and the seasonal Tashmoo Biergarten pop-up. Practice Space is working with Howbert on architectural and concept designs, identifying the scope and breadth of the project. Kronig says that Howbert is open-minded about tenants as long as they don't need a full commercial kitchen.

This is the second term of Practice Space Incubator programming. Practice Space previously worked with Eleni Zaharopoulos and Jenile Brooks on their North End Store-House project.

Source: Austin Kronig, cultural development director of Practice Space
Writer: MJ Galbraith

Got a development news story to share? Email MJ Galbraith here.

New Corktown gym opens with charity drive

A new gym is opening in Detroit's Corktown neighborhood. The personal fitness club Detroit Tough is celebrating its opening with a benefit for the homeless and under-clothed. Detroit Tough is opening with the help of an Old Tiger Stadium Conservancy grant.

Roger Dyjak is one of the people behind Detroit Tough. He's also responsible for Train like a Savage, a personal training method that uses the pressure of working out within a group to elevate individual performance. This style of personal fitness champions mental toughness as much as it does physical toughness.

Detroit Tough is not a gym in the traditional sense -- there won't be any treadmills or stationary bikes. Instead, it features physical tests like intense obstacle courses to improve fitness. The private club offers tiered training to better fit need and ability.

The gym is celebrating its opening with a charity drive on Saturday, Feb. 15 from 2 p.m. to 10 p.m. Organizers are asking for a $20 donation and clothing or canned food. All money raised will be given to New Life Rescue Mission and Empowerment Plan. Clothing will be donated to the Salvation Army.

Music is scheduled throughout the course of the event, including sets from Band B, Velveteen Rabbit, and Volcano and the New Radio Standard. Fellow Corktowners McShane's Pub will be there roasting a pig. University of Detroit Mercy dental students will be providing free dental screenings to the homeless.

Detroit Tough is the recipient of an OTSC grant. The money was secured by U.S. Sen. Carl Levin to redevelop the area of the old Tiger Stadium site. A total of $800,000 was reserved for businesses in the Corktown neighborhood.

Detroit Tough is located at 1244 Beech.

Source: Detroit Tough press release
Writer: MJ Galbraith

Got a development news story to share? Email MJ Galbraith here.

Federal money to help a number of Corktown businesses open

Nearly all of $800,000 in federal grant money has been spoken for in Corktown, spurring more development in Detroit's oldest neighborhood. The money is part of the larger Old Tiger Stadium Conservancy grant, $3.8 million in federal funds secured by U.S. Sen. Carl Levin in 2009. Though the stadium was eventually razed, efforts to keep the grant money in the neighborhood were successful.

Alexander Zachary is planner and developer for Zachary & Associates. The Detroit-based financial development and planning consultants were charged with the task of managing the $800,000, evaluating proposals and guiding businesses through the application process.

"We're really into sustainability and we've been working with the grantees and getting them connected with DTE Energy for green efficiency credits," says Zachary.

Two businesses recently opened, Two James Spirits and the Detroit Institute of Bagels, were recipients of $50,000 grants, the maximum available.

There are a number of new, yet-to-open businesses that have received approval in their applications for the grant money. These include:

  • Saint Vincent, a "boutique building for startups, freelancers, and mid-sized businesses" located in an abandoned Catholic school.
  • 1701 and 1707 Trumbull, former location of Bagley Trumbull Market. The previous occupant, a party store, took up what was originally two separate store fronts. Zachary says the buildings will be split back into their original configurations with dining in one storefront and retail in the other. Offices and perhaps apartments are planned for the top floors.
  • Detroit Tough, a fitness club located at 1244 Beech St.
  • Gold Cash Gold, located at Michigan Avenue and Wabash, a new restaurant from the Cooleys, owners of Slows Bar BQ.
  • The Detroit Artifactory, an industrial gallery that takes reclaimed industrial products and turns them into functional art and homewares, will open at 2135 Michigan Ave.
  • Lafayette Kitchen and Diner, a new restaurant from the owners of Russell Street Deli in the old Steak Hut Restaurant building.
  • A beer garden is planned for the vacant third of the building occupied by Two James Spirits, the side closest to Michigan Central Station.

Source: Alexander Zachary, planner and developer at Zachary & Associates
Writer: MJ Galbraith

Got a development news story to share? Email MJ Galbraith here.

January development news round-up

Good stuff has been happening in Detroit development to start the new year. Here are several projects that got our attention this month:

• Detroit issued a request for proposals to redevelop nearly nine acres of city-owned property in the historic Brush Park district. The land is split into three available parcels. Parcels A and C contain five historic structures which must be tabbed for "adaptive reuse" in the redevelopment plans. Parcel A is the largest at approximately 7.5 acres. 

• Brush Park is known as much for its Gilded Age mansions as it is for the blight and vacant land that characterize much of the historic district today. The area seems ripe for redevelopment, however, as it is located immediately north of downtown and east of the proposed Detroit Red Wings hockey arena. One of the planned stops of the M-1 Rail streetcar line is at Sibley and Woodward. According to the city's RFPQ Package, Detroit has invested more than $39 million in infrastructure, demolition, acquisition, and historic rehabilitation in Brush Park since 2001. The neighborhood dates back to the 1860s. 

• A new restaurant, Craft Work, has opened in the Parkstone Apartments building on Agnes Street in the West Village neighborhood. Hubert Yaro, he of Royal Oak's Ronin sushi lounge and Birmingham's Commonwealth coffee shop, is the proprietor. Craft Work is open Monday through Saturday from 4 p.m. to midnight. A Sunday brunch is planned come March 2.

• At a public hearing earlier this month, M-1 Rail officials announced that streetcar service is expected to begin in the late summer months of 2016. The light-rail system is projected to carry almost 5,000 riders per day.

• Demand for rentals in the downtown, Midtown, and Corktown neighborhoods is far exceeding supply, driving up rent by $200 to $400 a month in many buildings, says a recent article in the Detroit Free Press. Will demand spur new residential development projects and stabilize rent prices?

Writer: MJ Galbraith

Got a development news story to share? Email MJ Galbraith here.
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