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Motorists using the Ilitch-owned parking lot next to the United Artists Building downtown will need to find alternative accommodations next month to allow the construction company working on the building to take it over.

According to an email from Olympia Development of Michigan sent Thursday night to monthly parkers obtained by Crain’s on Friday.

“This closure is unfortunate and inconvenient for all of our customers,” the email reads. “We would like to try our best to provide you with monthly parking at another parking lot (Olympia Development of Michigan Parking) that you find convenient.”

Detroit-based LS Brinker is the general contractor for the project, which would bring 148 new residential units to the Grand Circus Park building at Bagley and Clifford streets.

Emmett Moten Jr. is the lead developer. Other investors in the project are Richard Hosey, Scott Allen, Jim and Joni Thrower, Roy Roberts, Larry Brinker Sr. and Tom Goss.

An email was sent to a spokesperson for Olympia Development as well as the company’s parking manager seeking comment on Friday.

In late December, Crain’s announced that the Moten Development Group was seeking additional public funding of $6 million to fund the project in the form of a $4.6 million loan to the development entity responsible for the redevelopment. , Bagley Development Group LLC, and a new $1.4 million loan. to the managing member of this group, 150 Bagley Managing Member LLC, to fill a funding gap.

A memo from the Downtown Development Authority’s finance committee at the time said that in July 2020, the DDA authorized a loan of $2.5 million for the project. Approval of the new application brings this loan to $7.1 million and grants another loan of $1.4 million for a total of $8.5 million on the project.

Development costs have increased, largely due to construction and labor costs, according to the memo.

To “mitigate these increases,” the DDA memo says, a number of financing changes were made, including restructuring 70-year ground lease payments to Olympia Development of Michigan from the Ilitch family, which owns the property. through an affiliated company; waive developer fees; additional financing of $2 million by loan from the Michigan Strategic Fund; and another $1 million in block grants for Detroit Community Development through the U.S. Department of Housing and Urban Development.

Funding for the project, pegged in the DDA memo at just under $73.7 million, is expected to come from $42.3 million in a pair of HUD program 221(d)(4) loans, which provides a 40-year multi-family construction loan. it requires HUD assessment of market, demand and other issues; $3 million in block grants for community development; nearly $12.9 million in developer equity and historical tax credits; and $15.5 million from DDA and MSF loans. The project also has approximately $2.43 million in municipal tax relief.

Cost estimates for the project have fluctuated over the years, ranging from $56 million as recently as October 2019, when municipal tax abatements were requested, to $85.6 million at the end of May 2021, cited in a note from MSF.

It is expected to include approximately 10,500 square feet of retail space on the first floor. Designed by C.Howard Crane United Artists Theatre, which opened in 1928 and is attached behind the 18-story building which opened the same year, is set to be demolished.

Twenty percent of residential units are reserved for those earning 80 percent or less than the area’s median income.

Housing affordability is a thorny issue in Detroit, in part because whether a home is deemed affordable is measured based on the AMI, a federally designated measure that takes into account household incomes. in suburban Detroit, which skews this figure upwards for lower-income Detroiters. The AMI for the area (and Detroit) is $64,000 for a two-person household and $80,000 for a four-person household. Eighty percent of the AMI is $51,200 for a two-person household and $64,000 for a four-person household.

The redevelopment was announced in May 2017 as part of what was then a $160 million plan to bring 686 residential units to the Ilitch family’s Detroit District area. Construction of the building was supposed to begin in 2017, but the project struggled to secure funding.

The District Detroit, unveiled in July 2014 as a 45-50 block neighborhood of residences, offices, entertainment, bars, restaurants and green space, has largely been unsuccessful to date. Much of the area remains vacant buildings and surface parking lots.

The development area’s first apartments in the former Eddystone Hotel – which was also one of the multi-family redevelopments proposed in May 2017 – welcomed their first residents in December after a protracted redevelopment that required takeover threats from the city.

Also in December, the District of Detroit received a big boost in the form of a commitment from billionaire developer Stephen Ross to locate his proposed University of Michigan graduate campus called the Detroit Center for Innovation within walking distance. blocks from Little Caesars Arena on what is currently a four-acre property that houses surface parking and the Loyal Order of the Moose Lodge building.