ANN ARBOR (WWJ) – The site of a former gas station in downtown Ann Arbor, contaminated by petroleum and an underground storage tank, is getting new life.
The property along Detroit Street, near the corner of Fifth Avenue and Catherine Street, used to be home to a gas station, auto repair shop and car wash. The Michigan Department of Environment, Great Lake and Energy (EGLE) announced this week plans to clean up the property and turn it into a mixed use development.
When finished, the building will feature 14 condos, 1,900 square feet of retail space, as well as above-ground and underground parking. It will be within walking distance of numerous downtown businesses, entertainment and cultural opportunities offered by the city and the University of Michigan.
EGLE officials estimate the development will generate $17 million in private investment and “create much-needed housing in Ann Arbor.”
The property is contaminated with petroleum and an abandoned underground storage tank. The developer will use state brownfield incentives to remove and dispose of the tank and the contaminated soil.
EGLE approved reimbursement for the developer of up to $1.7 million for the work needed to make the site safe to use. The reimbursement will come from Tax Increment Financing, which allows the increase in property tax revenue on the finished project to go to the developer until it has recouped its costs.
The property currently has a taxable value of $304,296. That number is estimated to rise to $9.9 million once redevelopment is finished, according to EGLE.
More than half of EGLE’s budget each year flows into Michigan communities through grants, loans and other spending that supports local projects, protects public health and the environment, ultimately creating economic growth and jobs for Michigan workers.
Redevelopment of brownfields – vacant or abandoned properties with known or suspected contamination – increases property values both on the revitalized site and on other nearby properties.
EGLE provided $20.7 million in brownfield funding to 67 projects statewide last year.
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