Title
Resolution to Approve Amendment #1 to the Brownfield Plan for 300-312 E. Huron St. (AC Hotel)
Memorandum
The proposed resolution would approve Amendment #1 to the Brownfield Plan for 300-312 E. Huron Street, now developed as the AC Hotel. City Council approved the original Brownfield Plan on October 7, 2024, through Resolution R-24-393. The project involved redevelopment of a surface parking lot at the southeast corner of Huron Street and Fifth Avenue into a six-story, 139-room hotel.
The site was designated a “facility” due to contamination associated with a historic gas station. The original Brownfield Plan, therefore, approved $1,167,448.00 in environmental remediation costs for tax increment financing. Because only local millages will be captured, however, reimbursement is limited to the portion attributable to those millages, reducing the maximum developer reimbursement to $749,529.00.
The project is now complete and operational. During construction, however, total project costs increased from an estimated $16 million to approximately $17.75 million. These additional costs resulted from a combination of unforeseen conditions, delays, and regulatory requirements encountered after construction was underway, at a point when suspending work to pursue a Brownfield Plan amendment would have created additional delay and financial risk.
A portion of the increased costs relates to public right-of-way utility extensions, streetscape improvements, and stormwater infrastructure eligible for reimbursement through the Brownfield Plan. Amendment #1 adds approximately $551,000.00 in eligible public infrastructure costs. Because only local millages will be captured, reimbursement is limited to the proportion attributable to those millages. The amendment therefore authorizes an additional $338,590.00 in reimbursement, bringing the total developer reimbursement under the original plan and Amendment #1 to $1,088,119.00.
The completed project created 35 full-time equ...
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