granted it's being discussed and has been posted on all types of sub-forums and websites, but the more viewable the better, right?
its from Crain's, so idk if you'll be able to read it, so here it is
Detroit DDA will sell 'air rights' for Book Cadillac garage
The Detroit Downtown Development Authority has entered into an agreement in principle to sell the “air rights” from a parking garage being built as part of the Book Cadillac redevelopment to a firm that wants to build 80 units of condos on top of the garage.
Detroit-based Roxbury Development L.L.C., an arm of The Roxbury Group P.L.L.C., is the developer for this proposed Griswold/Capitol Park project. The company’s offices are in the Stott Building on Griswold.
The 528-space garage will be at 150 Michigan Ave., the site of the soon-to-be-demolished Commerce Building. The Book Cadillac is at Michigan Avenue and Washington Boulevard.
The “air rights,” the ability to develop space above a property, are being sold for the incremental costs the DDA might spend to support the condominium development such as increases in construction or garage design costs. Roxbury estimated this cost to be $750,000 and the DDA will receive the funding on or before the completion of the garage.
Gary Brown, design and construction consultant for Detroit Economic Growth Corp., said the Commerce Building destruction began Dec. 1 and he expects it to be finished by the end of the month. He said the designs of a parking garage supporting a condominium structure on top still aren’t finished. Construction of the garage is expected to start in February, Brown said.
The DDA is a branch of the DEGC, which is a public/private partnership with the city government to attract, retain and govern over business and economic initiatives in Detroit.
Though the deal is still in negotiation, here is the current framework of it:
Roxbury would buy the “air rights.”
Roxbury would buy or lease 120 garage parking spaces at a rate to be determined later.
Both parties agree to share a percentage of the profit from the sale of the condos.
The DDA has to approve the design of the condo development. The deal will be finalized when Roxbury receives more information on project construction and when the development agreement is negotiated and approved by the board. The memorandum of understanding expires next June.
DEGC staff member Brian Holdwick said this memorandum of understanding was important for Roxbury because now the company can obtain third-party financing for the project using the document as proof of ownership of the “air rights.”
The DDA board of directors approved the resolution to enter into an agreement with Roxbury at Wednesday’s development meeting.
David DiRita, president of Roxbury Group, and Brown said this condo project might be the first in Detroit’s central business district that didn’t involve any restoration or conversion of an existing building.
Holdwick said Roxbury has been working with the DDA for about six months on the project. On Aug. 25, the DDA sent a letter to Roxbury allowing them to investigate the feasibility of condo construction project. Holdwick sent a memo regarding the sale of the garage’s air rights to the DDA board of directors Nov. 28.
Mimi Pledl, the DEGC’s brownfield redevelopment associate director, said a key piece of the financing Roxbury hopes to receive will come from a decision at a Dec. 19 Michigan Economic Growth Authority board meeting to grant more than $3.6 million in brownfield tax credits to the company.
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