AMC Headquarters redevelopment advances with brownfield plan approval

Plans to demolish the former AMC Headquarters site on Detroit's west side moved forward Tuesday as the Detroit City Council approved a brownfield plan for the site's redevelopment.

The site’s owner, Missouri-based NorthPoint Development, requested $32.6 million in tax increment financing for demolition and environmental remediation of the 50-acre site at 14250 Plymouth Road.

According to the redevelopment plan, the Missouri-based developer will invest $71 million to redevelop the site to build one or two buildings for warehouse and light assembly tenants. The hard costs are estimated to be $66 million.

Council members approved the plan 9-0.

"We are elated," Tim Condor, vice president of development for NorthPoint, said after the vote. "Very thrilled that the city council approved the brownfield plan, and I just want to say I very much appreciate the time and effort that the council members have taken and the community and all parties involved in getting this project to where it is and the approval today."

Condor said prior to demolition, NorthPoint will seek state brownfield tax incentives next month from the Michigan Economic Development Corporation's Michigan Strategic Fund Board. 

Demolition could start as early as August with the project expected to be complete in the fourth quarter of 2023, Condor said. 

The city council's approval comes as some neighborhood residents voiced concerns about environmental impacts, asking the city council to call for the developer to enter a voluntary community benefits agreement. The project falls short of the $75 million threshold that triggers the city's community benefits ordinance. 

"We're under the threshold of that," Condor said. "We don't trigger the CBO. If we did, we would certainly endeavor to do that, but we didn't so there's nothing really to discuss." 

Condor said the firm has had three meetings between residents and the company's environmental consultants to address concerns. 

During public comment Tuesday, resident Wendy Caldwell said that while she wants to see the building demolished, there are some promises residents want from the developer in writing, including a previously presented pre and post construction environmental impact analysis.

"Residents are also asking that this body require a conflict of interest assessment to be completed for the developer on behalf of the relationship between the environmental impact consultants," she said. "Also, free home air filters and air quality monitoring systems for every home in the impact area, home repair for impact area residents and small business development funding for small businesses along Plymouth Avenue."

Officials from the Detroit Economic Growth Corp. have said the developer has made commitments to the neighborhood, including priority hiring, park renovation and a plan to downgrade the industrial zoning at the site.

Condor said Detroit at Work is coordinating a job fair at the site on July 20 for the demolition and construction work. The fair will be aimed at giving Detroiter a first shot at the jobs, he said.

The former AMC Headquarters has sat abandoned since 2010, becoming an eyesore in the neighborhood.

Resident Cynthia Lowe spoke in favor of the city council approving the brownfield plan. 

"This neighborhood has been so neglected over here," she said. "We really need the eyesore to go. Please understand what happened over here. We were so under trodden and people actually moved their landfill over here and put it over there. Basically in our backyard. We have a filthy landfill over there. It's so large you could actually ski on it. So I'm just asking you to give us the same respect the other Detroiters and other people in the country have. We just want to live like humans over here."

In December, Mayor Mike Duggan announced a plan for NorthPoint to redevelop the site and in February the Detroit City Council voted 9-0 to sell the property to the firm for redevelopment. The project is expected to create 350 permanent jobs and 100 temporary construction jobs, officials said.

The tax incentive request was for $32.6 million, however, it is projected that $21.7 million will be available to reimburse the developer during the 34-year term, officials said.

cwilliams@detroitnews.com

Twitter: @CWilliams_DN