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BIRMINGHAM, MI-A developer is evaluating a new project’s viability after the city of Birmingham expressed a desire for upper-end condos in a mixed-use project to replace a closed Jacobson’s department store.Burton-Katzman Development of Bingham Farms, MI, recently went to the city’s Planning Commission to display its plans, which include tearing down the store and building a 100,000-sf mixed-use project, which was to be three stories of offices and retail.

However, the city indicated its wish to include high-priced condominiums in the plan, which the company had not anticipated, said company co-owner Bob Katzman.”That’s what the city would like, but we haven’t had much discussion about it,” he told GlobeSt.com. “We haven’t yet said how changes would be made, if any.”

Katzman said he was aware of the city’s request, but wasn’t aware that it was a requirement for the proposed $25 million project. According to the city, buildings three stories and taller must include a residential component.

“That’s the way they’re interpreting their ordinances, I guess,” Katzman said. “We might have to start again from square one.”He said the final site design is a long way off. “We don’t even own the property yet,” Katzman said.

The new building would replace the former Jacobson’s department store. The retailer filed a Chapter 11 petition for reorganization in January 2002 with the U.S. Bankruptcy Court in Detroit after a loss of more than $57 million in 2001.Ten stores and the headquarters in Jackson were closed in 2002.

Burton-Katzman has put in a $4.3 million bid to buy the Birmingham location, and the bid was approved by the court. The developer plans to close on the property by April 24, Katzman said.The developer has also proposed a $200 million mixed-use project at a former Jacobson’s store in Dearborn.

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