40 Hague, Detroit, Michigan

The former Packard Automotive Showroom in Detroit’s North End neighborhood is undergoing a residential redevelopment. 

The two-story building, which was constructed in the early 1920s and designed by architect Albert Kahn, will be rehabilitated into 38 loft-style apartments. The redevelopment will honor the building’s history by preserving the showroom feel through industrial-style windows and preservation of the original columns. Eight of the apartment units will be reserved as affordable, at 60% Area Median Income (AMI). The $8 million redevelopment will incorporate greenspaces throughout the property, including a newly constructed interior courtyard to feature eating areas and plantings, offering a unique place for residents to relax and entertain. The project will create approximately 18 construction jobs and one full time equivalent (FTE) job associated with property management. 

PM Environmental was engaged by the developer to provide Brownfield & Economic Incentives Services for the project. PM secured over $730,000 in Act 381 tax increment financing reimbursement for eligible activities, including environmental remediation and public alley, landscaping and sidewalk improvements. An Obsolete Property Rehabilitation Act tax abatement with an estimated value of $1.4 million was also secured to assist in creating a viable project. The Michigan Strategic Fund (MSF) approved a $1.4 million loan through its Michigan Community Revitalization Program.

“This project is the epitome of the types of projects that PM and I love to be involved in. It included environmental challenges, collaboration between numerous stakeholders and a development that truly could not have happened if not for the incentive programs available to it,” said Jessica DeBone, National Manager of Brownfield and Economic Incentives at PM. 

PM also provided environmental services for the project. A Phase I Environmental Site Assessment (ESA) identified a Recognized Environmental Condition (REC) associated with two former 1,000-gallon gasoline Underground Storage Tanks (USTs). A subsequent Phase II ESA detected soil contamination and a Baseline Environmental Assessment (BEA) was filed with the state. Additionally, PM performed Asbestos Containing Materials (ACM) and Lead Paint Surveys prior to redevelopment activities. Due the ongoing redevelopment activities, PM has provided direction, oversight and associated sampling to ensure contamination was remediated. 

The redevelopment kicked off in the late summer of 2019 and is expected to be completed in early 2021.