The developer will be making a major investment in City Infrastructure and contributing important future public park and future right-of-way land to the City. Together, the developers infrastructure investment and land contribution have a total value of $11,418,600. This investment does not include the cost to daylight the river, build out the central park and does not include the gap funding committed for the priority offsite roadway and utility improvements.
The Downs Development team will contribute an additional $1,113,000 toward prior offsite roadway and utility improvements including the Cady Street Water Main, Roundabout Design Fees and improvements to Northville Rd./7 Mile and Main/7Mile. Further the developer will contribute an additional $500,000, which can be utilized at the City’s discretion to meet other existing and unmet infrastructure liabilities. In return, Developer will receive a 10 year PA 210 Tax Incentive on the future apartment building. Developers additional $1,613,000 contribution will help address the City’s financial need and cash flow issues by fronting the necessary capital costs, doing so with the burden of risk being carried by the developer.
The Downs project will create one of the most impactful green infrastructure projects and community assets, that being the future daylighted river and 10.44 acre river park. The river project has many significant benefits including plant and habitat restoration, and the capturing of the current 100-year flood plain. It has critical storm water and related environmental benefits that impact not only the City of Northville and the Downs site but the entire downstream riparian Rouge water way. Furthermore, the river project is absolutely necessary to implement the City’s vision of creating an interconnected river walk. The Downs provides the missing ‘link’ within the overall riverwalk pathway, helping to connect the City’s Ford Field on the north end and the potential new Farmers market property to the South, ultimately connecting to the Hines Park Trail System.
Developer is seeking Brownfield Tax Increment Financing for the river project in the amount of $17,787,860. The Brownfield TIF is an economic development tool that is used to encourage private investment to develop projects that have environmental challenges such as environmental contamination, abatement of hazardous materials, demolition of underutilized buildings and geotechnical issues or other soil related conditions. A Brownfield can also be used as a tool to help fund public infrastructure projects such as public green space and stormwater management. All of the aforementioned are present at the Downs.
The Developers financial framework, addresses many of the City’s funding needs, regarding critical infrastructure projects and solves many preexisting infrastructure problems. The financial framework mitigates current and future financial risk to the City, while also creating significant and generational community investment and public benefit.