The Dirt: Where developments are happening, and where they’re stalled

There was probably a run on fancy shovels and giant scissors in Detroit this past week, with several projects hosting groundbreaking ceremonies. Construction started on the first building of $3 billion Future of Health development in New Center, an apartment building for older adults on the northwest side and a new marketplace on the far eastside. But development can still be a challenging prospect in the city, especially if you’re trying to buy a vacant lot from the Detroit Land Bank Authority or redevelop a historic building.

Why you can’t buy that vacant lot

If you’re struggling to purchase a property from the Detroit Land Bank Authority, it may be because it’s reserved for development . The Land Bank designates sections of the city as “land review areas” and can put a hold on the sale of vacant lots there for months at a time. Nearly half of all the Land Bank’s 60,823 vacant lots are currently in these areas, though around 23% of those (or 6,600) are still for sale.

The Land Bank says it pauses sales in areas with a higher likelihood of development or that lack affordable housing. That policy frequently conflicts with residents’ goals; the Land Bank has regularly been accused of hoarding property . Some City Councilmembers and activists say the policy favors developers over residents.

To inquire about a Land Bank property that isn’t for sale, fill out a form online , send an email to inquire@detroitlandbank.org or call the Land Bank at 313-974-6869 . (BridgeDetroit, Detroit Land Bank Authority)

Where development has stalled

Michigan Central Station is considered the “holy grail” of historic preservation in Detroit (paywalled), showing that it’s possible to redevelop long-neglected buildings.

But many other older buildings remain undeveloped because they sit in neighborhoods that haven’t attracted the same level of investment as Corktown and downtown. For these properties, one development expert told The Detroit News, “There is no reasonable return on investment.” That includes dozens of abandoned former public schools , the Belle Isle Boathouse and many others scattered throughout Detroit’s neighborhoods.

Some developments even in high-profile neighborhoods have stalled for more than a year (paywalled). They include two buildings owned by the Ilitch family near Little Caesars Arena, a proposed hotel in Midtown and a downtown skyscraper. The owners cite various reasons for the delays, like the increased cost of construction and ownership disputes. (Detroit News, Outlier Media, Crain’s Detroit Business)

Who’s holding up spending

A 10-year, $6 billion economic development proposal from Michigan Democrats is currently stalled in Lansing . House Democrats Dylan Wegela and Emily Dievendorf said they wouldn’t vote for the bill as written because it ties investment in transportation projects to a controversial business incentive fund. The bill would allocate an additional $2.5 billion to the Strategic Outreach and Attraction Reserve Fund, which has come under scrutiny for lack of oversight and middling results.

Democrats have a slim 56-54 vote majority in the chamber. Speaker Joe Tate wouldn’t say whether he plans to bring the bill up for a vote. With summer recess looming at the start of July, it might not come before the House until the fall. (Bridge Michigan)

Future of the Future of Health

Henry Ford Health and Michigan State University broke ground on a new $335 million research facility on Third Street in New Center. It will house more than 500 employees conducting research on diseases including cancer and hypertension. It’s expected to open in 2027.

The facility is the first of many projects that are part of the $3 billion Future of Health development , a collaboration with Detroit Pistons owner Tom Gores that will feature a major expansion of Henry Ford Hospital and several apartment buildings. Construction on a parking garage for the hospital is expected to start later this year. Officials have not yet announced a groundbreaking for the hospital expansion, but crews are currently clearing the site of the old Health Alliance Plan building , where the complex will be built.

A Pistons-related entity recently put out a request for proposals (paywalled) seeking “emerging developers” to partner on its multifamily buildings. Gores expects to start construction on a new six-story apartment building early next year. (Urbanize Detroit, Freep, Outlier, Crain’s)

Development news quick-hitters

At least two residents of Morton Manor high-rise near 8 Mile Road and Outer Drive were hospitalized after air conditioning went out for four days in their senior apartment building just as the heat wave hit the city. A city inspector recorded an indoor temperature of 89 degrees . Residents say the air conditioning was restored on Friday, after management was contacted by the city’s buildings department. (WDIV)

Construction began on a $29.3 million apartment building for older adults last week. The Dr. Violet T. Lewis Village is being built on the site of the former Pensole Lewis College of Business, Michigan’s only historically Black college or university. It will have 73 apartments with rents ranging from 30% to 80% of the area median income. (Fox 2, Crain’s)

One more groundbreaking to report from last week! The $5.5 million East Warren Public Market will feature 10,000 square feet of retail space , a small grocery store and farmers market, community space, and offices for the E. Warren Development Corp. (Crain’s, Urbanize Detroit)

The Dirt: Where developments are happening, and where they’re stalled · Outlier Media