The 84-year-old building had been the headquarters for S.S. Kresge Co., which later became Kmart.

"There's going to be retail on the ground floor, and a tunnel built underground that leads to a covered parking structure with secured access," Carmody says. The parking structure is known as the Grand Circus Park garage.

His organization has authorized a $2.5-million loan to the joint venture to encourage the development.

"Our take is that the cost for development in Downtown Detroit, in many cases, exceeds the value," Carmody says. "This situation needs incentives to Downtown projects, like this loan, to allow the developers to go ahead with the project."

The city is also providing funding through an abatement, because the property is contaminated and needs to be cleaned up before it is occupied.

The site is also being given more than $2.7 million in historical tax credits, $1.25 million from the Detroit Investment Fund and $400,000 in single-business tax credits, Carmody tells GlobeSt.com. He adds the company plans to begin construction as soon as possible, with the project set to be completed by the end of 2003.

"The tax credits kick in the faster the project is completed," Carmody says.