X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

TROY, MI-Both the state and the city have approved financial assistance to Diamond Troy JV LLC to build the $320 million, mixed-use Pavilions of Troy project at the former Kmart headquarters complex here. The LLC, a venture between Richardson Development Group, Boorn Partners and New York City-based BlackRock, plans to replace the 900,000-sf HQ complex, using brownfield funding, to build up to 440,000 sf of retail 132 multifamily units, a theater and more.

In April, the Troy City Council approved a resolution to reimburse the venture, through a TIF, up to $13.2 million for approved activities to remediate the property, including demolition of the current complex. The eligible activities under the city’s brownfield plan include the “demolition of structures and lead and asbestos abatement, on eligible properties that are functionally obsolete,” according to the resolution.

Kmart moved its 5,000 employees out after the company was acquired by Sears in 2005. Troy officials have approved of the redevelopment project because it will help make a downtown for the large Detroit suburb, which has two large enclosed malls, Oakland and Somerset, but no walkable lifestyle retail center. City officials have sought for years to achieve a downtown, after several failed attempts to bring retail and a theater to the city’s public campus at Interstate 75 and Big Beaver Road. Troy officials could not be reached for this story, and Hunter Richardson, president of his self-named firm, did not return calls for comment. His Web site for the project has not been updated since last year.

Some of the funding for Pavilions’ tax incentives will come through state coffers, using the Lansing, MI-based Michigan Economic Development Corp. The corporation, as well as the Michigan State Housing Development Authority and the Michigan Economic Growth Authority, announced funds for 10 projects recently that are scheduled to generate $417 million for the state. “We will continue to go anywhere and do anything to bring new jobs here,” said Gov. Jennifer Granholm in an MEDC statement.

The rest of the corporation-funded projects include:

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.