- RFQ requires at least 20% affordable housing at 80% AMI or lower for rental units
- Development sits on the border of Southwest and Corktown neighborhoods, adjacent to Michigan Central Station, Honey Bee Market and other area landmarks
- Development in Strategic Neighborhood Fund area in Southwest Detroit
The City of Detroit is seeking developers to build mixed-use, mixed-income housing on vacant, city-owned land on the border of Southwest Detroit and Corktown. The development, which will bring new retail and affordable housing to the area, aims to build upon the strengths of the commercial corridor and enhance connectivity between the two neighborhoods.
The development, located in the Southwest/West Vernor area, is in one of ten neighborhoods of the Strategic Neighborhood Fund (SNF). SNF is a fund dedicated to comprehensive neighborhood development. Through the Planning and Development Department’s West Vernor planning study process, this property was identified as a development opportunity site.
“As the city’s revitalization spreads into the neighborhoods, we are focused on developing high-quality, well-designed and affordable mixed-use projects that fits in with the existing culture of the neighborhood,” said Donald Rencher, director of Housing and Revitalization for the City of Detroit. “The vacant land at Bagley and 16th is a gap in this thriving area, and we want to make sure that when that gap is filled, it meets the needs of the long-term residents there.”
The city is looking for developers to submit proposals that include both retail space, ideally along Bagley, and at least 20 residential units. The city is also requiring a high-quality site design, given the visibility of the site as a gateway between Southwest and Corktown. Designs must integrate the development with the existing street grid and further the development of the neighborhood as a dense, walkable community.
Building for people of all incomes and backgrounds
Potential developers will also be required by the city to provide an affordable housing program that includes a minimum 20% rental units be set aside for households making 80% of area median income or lower. The area median income at 80 percent, set by federal housing rules, is about $38,000 a year.
Affordable housing offers stability for the city’s low-income residents and provides options to households at a range of incomes in all neighborhoods. The city will work to ensure residents can find quality, affordable housing wherever there is growth, making sure neighborhood redevelopment is inclusive and includes space for people of all incomes and backgrounds.
Growing community ready for new development
The vacant parcel sits adjacent to some of Detroit’s strongest assets, including Honeybee Market, a local landmark grocery store, and Michigan Central Station. The corner parcel is also a major gateway between Corktown and Southwest.
The site is located on a strong, pre-existing commercial corridor with restaurants, bars, a theater, a recreation center and grocery store. Clark Park, several Mexican restaurants and the West Riverfront Park are within a five minute drive from the site. The area surrounding the site has amenities including 3 schools, providing walking distance education.
The Southwest Detroit Business Association is proud to work alongside the City Housing and Revitalization Department on this exciting project for the Mexicantown neighborhood,” said Myrna Segura, SDBA Director of Business District Development and Mexicantown Main Street Program Manager. “We greatly appreciate the opportunity to participate in this meaningful project and share our community perspective in the RFP selection process.”
Comprehensive Neighborhood Investments through the Strategic Neighborhood Fund
The site falls in the boundaries of one of the first three Strategic Neighborhood Fund areas. The $42 million fund began in Southwest Detroit, Livernois-McNichols and Islandview-Villages and provided loans and grants to new developments to support revitalization efforts. In Southwest Detroit, the fund will support 3 – 4 separate projects in the area near the Bagley and 16th site.
The expansion of the Strategic Neighborhood Fund to $130 million will also impact the area. Investments from the expanded fund include park and streetscape improvements. Streetscapes will be improved along Bagley Street from 16th Street to Scotten Street, directly outside the development site, and will include safer crosswalks, street trees, and street lights. Clark Park, a community anchor in Southwest Detroit, will see major improvements, including a splash pad and new lighting.
Submissions due August 14
All submissions must be received by 5:00 P.M. EST on August 14, 2018 and can be submitted via email to email@example.com or in person to the City of Detroit’s Housing and Revitalization Department. For more information, visit detroitmi.gov/HRD and click on the Developers and Contractors tab.
The city expects to select a developer by September 2018 and construction could start as early as 2019, with an expected completion date in 2021.