The City of Detroit and the Detroit Building Authority announced today that they are seeking proposals to redevelop Lee Plaza and Woodland Apartments, two historic apartment buildings located in some of the fastest growing areas of the city.
The two projects would include nearly 250 mixed-income units in total. The city is requiring developers to set aside more than 20 percent of the units in each building for individuals making $38,000 a year or less at Woodland Apartments and Lee Plaza.
“For years these buildings have been seen as a symbol of our city’s decline. In partnership with developers in the community, they will become examples of the city’s resurgence that is now reaching into more neighborhoods and becoming more accessible to people of all income levels,” said Mayor Mike Duggan. “We’ve seen progress in the areas around both Lee Plaza and Woodland Apartments. While these are challenging projects, these buildings can become major anchors in these communities.”
The redevelopment requests come after a $1.7 million transaction earlier this year with the Detroit Housing Commission that transferred Lee Plaza and Woodland Apartment buildings to the Detroit Building Authority, as well as 127 single family properties to the Detroit Land Bank Authority. Many of the vacant single family homes couldn’t be sold under DHC guidelines, but under the deal, they are being added to the Land Bank’s auction website. The deal also positioned the DHC to become a high-performing commission, which gives it more flexibility to apply for federal and state programs.
Lee Plaza
Lee Plaza was constructed in 1928 as a luxury apartment hotel, featuring hotel-like amenities for residents such as a concierge and room service. While it has been vacant since 1997, Lee Plaza continues to be one of the most architecturally significant towers in Detroit, built with elaborate detail. Lee Plaza is located in the NW Goldberg neighborhood, near New Center, the Henry Ford Health System campus and other growing neighborhoods like LaSalle Gardens and Woodbridge.
The rehabilitation of Lee Plaza, with its approximately 200 units, and the adjacent vacant lots could be an opportunity to build upon activity in these areas and expand development to the entire West Grand Boulevard corridor spanning from M-10 to I-96. The city is asking $295,000 for the building and surrounding land that could be used for parking or other development, totaling about 1.68 acres.
More than twenty percent of the redeveloped units in Lee Plaza will be reserved as affordable units for those making 80 percent of the area median income. Affordable units would go for about $900 a month. The city expects the Lee Plaza redevelopment to take between 2-5 years.
“This redevelopment is part of our strategy to grow the city in a way that is equitable and includes everyone,” said Arthur Jemison, Director of Housing and Revitalization. “Our goal here is to attract new residents with newly renovated apartments that include affordable rents and retain long-time residents in the area by supporting projects that will spur additional investment and create strong anchors in the neighborhoods.”
Woodland Apartments
The Woodland Apartments building sits in the Gateway Community neighborhood on Woodland Street just east of Woodward, north of the Boston Edison neighborhood. The four story, 44-unit building was built in 1923 but has sat vacant since the 1990s.
The city is looking for developers who will renovate the existing building or potentially demolish and redevelop the site. The development will be required to make more than 20 percent of the total units affordable at 80 percent of the area median income, or about $1000 for a one bedroom and $1200 for a two bedroom. The City expects the redevelopment will spur additional investment in the area and spread new projects past Boston Edison and into adjacent neighborhoods.
The city is also encouraging developers to consider the site for permanent supportive housing for individuals experiencing homelessness. The city expects the redevelopment of the Woodland Apartments to take between 1-3 years.
Both projects will be encouraged to apply for Low Income Housing Tax Credits and the city is considering investment in both properties with federal HOME and CDBG funds and other funds from the Housing and Revitalization Department. Given its status on the National Register of historic Places, Lee Plaza additionally qualifies for Federal Historic Tax Credits.
About Post Author
