A proposed new development in the South University area of Ann Arbor is showing signs of life after a few years of hibernation, thanks to an extension of tax credits for the project.
The Michigan Economic Growth Authority granted a two-year extension of brownfield tax credits to complete redevelopment of 601 Forest. The $4.7 million in credits was originally approved in 2008. The extension comes about, according to MEGA documents, because
of difficulties securing financing as a result of the economy. However,
demolition has to begin by Jan. 12.
The project will replace the hodgepodge of small buildings at the Village Corner Party Store corner of S. Forest and University streets. The footprint consists of four parcels on S. Forest and one on S. University that are occupied by two convenience stores, a laundromat, and a bicycle shop. Those will be demolished to make way for a 14-story, L-shaped building with ground-floor retail, mixed office and residential on the second floor, and residential above. Plans include about 175 apartments, significantly smaller than original plans from two years ago, with parking in a two-story, below-ground garage.
The development was billed as a "Green Urban Living Redevelopment Project," and will pursue either gold or silver LEED certification. The project appeared dead on arrival after it received approval two years ago. The financial crisis soon followed and the developers sued each other. That all seems to be behind it now as the development team has quietly been reaching out to local officials about potentially breaking ground this year.
Last month, the MEGA board also approved a Michigan Business Tax credit of $10 million. The project is estimated to give rise to 70-80 permanent new jobs and a total capital investment of $82.8 million.
Source: Michigan Economic Development Corp.
Writer: Kristin Lukowski
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