Michigan EGLE approves funding to redevelop historic automotive site in Detroit
(CBS DETROIT) - The Michigan Department of Environment, Great Lakes and Energy (EGLE) approved the funding to support the redevelopment of the former Studebaker factory in Detroit.
According to a press release, the redevelopment at 411 Piquette Ave. would be a four-story building with 161 new studio and one-bedroom apartments (71 studios and 90 one-bedroom apartments).
The project is part of the Piquette Avenue Industrial Historic District, which also includes Detroit's Piquette Square development that was turned into housing for homeless veterans.
The site was used by Studebaker, Cadillac, Kaltz Evacuation and 3M over the years.
"It is now contaminated with metals and various chemical and organic compounds. Although there has been remediation work at this site in the past the contamination levels still exceed the threshold for direct contact and for potential vapor migration into the building," EGLE said.
EGLE approved reimbursement up to $714,943 to the development for an environmental assessment, pre-demolition work, removing and disposing contaminated soil, and installing and maintaining a vapor-mitigation system.
The reimbursement will come from tax increment financing (TIF), which will allow the increase in property tax revenue.
The Michigan Strategic Fund approved up to $1.3 million for TIF reimbursement.
Officials say the land has a taxable value of $388,662 and is estimated to go up to $4 million when the project is complete.