Michigan Strategic Fund OKs $5M loan for old Studebaker site in Detroit

The Michigan Strategic Fund approved Tuesday a $5 million state program loan for the redevelopment of a former Studebaker building in Detroit into a 161-unit apartment complex.

The board also approved the City of Detroit brownfield redevelopment authority’s request for $882,821 in state brownfield tax incentive reimbursement for the project.Detroit-based The Platform’s entity, 411 Piquette LLC, requested the Michigan Community Revitalization Program loan to support the historic rehabilitation of the 108,000-square-foot building at 411 Piquette, the former Studebaker sales and service center.

Developers have said the $40 million project, known as the Piquette Flats, is expected to meet demand for workforce housing stock in the Milwaukee Junction neighborhood and create a more walkable community.The project is a “creative solution to one of the many industrial sites in the community by reimagining a historic industrial building adjacent to the historic Ford Piquette Avenue Plant Museum, which highlights the history of the neighborhood,” said Josh Hundt, MEDC’s chief projects officer and executive vice president of strategic accounts.Rents will range from between 60% and 120% of the area median income, according to a Michigan Economic Development Corporation briefing memo. The project will also feature 190 surface parking spots and is expected to be completed in 2023.The State Historic Preservation Office is reviewing the project design, according to the MEDC.Under the terms of the $5 million MCRP loan, the developer will pay 1% interest for up to 72 months with interest-only payable for 36 months.For the brownfield tax incentive, the projected state tax capture of $882,821 will cover MSF eligible costs including, demolition, asbestos abatement and site preparation. The amount is capped at the tax increment revenue projected to be generated in 18 years, according to the MEDC.The City of Detroit previously approved an Obsolete Property Rehabilitation Act Tax Exemption for the project valued at $3.03 million and brownfield tax increment financing valued at $473,534, according to the briefing memo.

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