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Detroit City Council Planning Economics 07-23-2026
Published: Jul 23, 2026
NEZ Tax Incentive for 1350 Michigan Ave Rehabilitation Project Moves to Formal Session
The Planning and Economic Development Standing Committee discussed a Neighborhood Enterprise Zone (NEZ) tax incentive for a mixed-use project at 1350 Michigan Avenue in the Corktown neighborhood. The project, led by Roger Basmajan of Bosco, Detroit, involves the rehabilitation of the historic Spalding Electric Building into 17 residential units (four of which will be affordable at 80% AMI) and ground-floor commercial retail space with 18 parking spaces. The developer is requesting a PA 147 NEZ tax incentive for the residential portion. The project has an estimated investment of $11 million and is projected to save the developer $1.3 million in taxes over 15 years, while generating a positive cost benefit of $439,213 for the city. The developer highlighted community reinvestment, financial accessibility, the "but for" requirement for the incentive, and the reuse of an existing historic building. Public comments raised concerns about profit margins, the duration of affordability, and the potential for rent increases after the abatement period. The committee acknowledged the project's focus on community reinvestment and accessibility, and the need for a 60-day gestation period for NEZs before moving to formal session.
Committee Approves Rezoning for Aviation Trade School at City Airport
The committee reviewed a resolution to amend zoning district maps for various properties, including a rezoning of specific parcels to B4 for a commercial trade school at the Detroit City Airport. The Aviation Institute of Maintenance (AIM) plans to operate the school, with concerns raised about noise and environmental impacts. AIM addressed noise concerns by detailing limited hours for engine run-ups and willingness to build sound walls. An environmental study is underway. The lease is still being negotiated. The committee also considered a rezoning from R3 to B4 for airport property to allow for greater development flexibility. The committee voted to send the rezoning for the trade school to formal session with a recommendation to approve.
Committee Approves $30 Million in Contracts for Alley Sewer Repair Projects
The committee approved two contracts totaling $5 million and $25 million for alley sewer repair projects, funded by CDBG DR. The first contract, for $5 million with DMC Consultants, will cover inspection, rehabilitation, and replacement of private connections to public sewer mains, including restoration of impacted alley surfaces. The second contract, for $25 million with Precision Infrastructure, also focuses on alley sewer repair. Precision Infrastructure is making a significant investment in Detroit, establishing a facility on Rosa Parks Boulevard and committing to hiring Detroit residents. The total project cost for alley sewer repair is $184 million. Outreach to affected residents and block clubs will be conducted before work begins.
DLBA Acquires and Plans to Rehabilitate 16 Homes for Veterans Lease
The committee discussed the Detroit Land Bank Authority's (DLBA) acquisition of 16 homes through the solar equity fund from homeowners who did not have their neighborhoods selected as solar finalists. These homes were acquired through a promise made to offer relocation options. The DLBA initially planned to demolish the homes but decided to sell them after determining they were viable. The properties will be rehabilitated by Mr. Price with the goal of leasing them to veterans. The discussion also touched upon the rationale for acquiring homes even if the area wasn't selected for a solar array and the need for a comprehensive homeless services contract matrix. The committee voted to bring line item 10.6 back for further discussion on September 10th.
Rezoning for Michigan First Credit Union Drive-Through Approved by Committee
The Planning and Economic Development Standing Committee considered a rezoning request for properties at 2801 Trumbull Street, currently zoned ST1, to B2. This change is requested by Michigan First Credit Union (MFCU) to integrate a drive-through facility at their existing bank branch, which also absorbed Teamsters Credit Union operations. The project involves renovating the existing building, including adding a drive-through, expanding vehicular parking, and improving circulation. MFCU emphasized that this is a rezoning request, not a tax abatement request, and that the project is an $8.5 million investment with zero city incentives. They highlighted the importance of drive-through services for accessibility, particularly for individuals with disabilities and seniors. The committee also noted that the project will include on-site stormwater detention and requires a special land use hearing for the parking lot. Public comments questioned the necessity of the drive-through, the preservation of trees, solar panel potential, and the number of Black individuals involved in the project and its benefits to the Black community. The committee voted to send the item to formal session with a recommendation to approve.
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The Detroit News archive
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