Members of the Northville City Council voted 4-1 to approve the $300 million Downs Development Agreement with Hunter Pasteur of Northville during a meeting this month. Mayor Pro-tem Barbara Moroski-Browne cast the lone no vote on the agreement.
Hunter Pasteur Northville representative Seth Herkowitz told the council members that the company, now operating as Perennial Northville, LLC, was seeking approval of agreement negotiated by the developer and the city administrative team. He said the agreement had undergone extensive legal review and advice.
Herkowitz said the proposed mixed-use development would not only bring new homes and commercial space to the city but would also generate new tax revenue while providing the public benefits of new public parks, a daylighted river, and infrastructure improvements. He outlined the construction schedule that begins with a demolition phase in 2024 and extends to 2027 with project completion.
The developer's final site plan next goes to the Northville Planning Commission for review. There were several conditional items from the preliminary site plan approval that planning commissioners said would be resolved at the next stage. When finalized, the final site plan will become part of the Downs Development Agreement, according to officials.
The council also established a Commercial Rehabilitation District (also known as P.A. 210) -following a public hearing and a council vote. Moroski-Brown also cast the only no vote on this motion.
Following approval of P.A. 210, Perennial Northville, LLC, submitted an application for issuance of a Commercial Rehabilitation Exemption Certificate for the property. The city and company entered into the agreement for the purpose of setting forth the terms and conditions under which the certificate would be approved and issued by the State Tax Commission for the property proposed to be exempt from real property taxes.
The tax abatement offsets development costs for public benefits, officials said. The plan calls for the developer to pay $1.6 million in up-front costs for three infrastructure items: $550,000 for the roundabout at Seven Mile and Sheldon; $300,000 for street rehabilitation at Seven Mile and Northville and at Seven Mile and S. Main Street, $263,000 for a new 12-inch water main on Cady Street and $500,000 for 'gap' funding.
Those funds included those needed to cover additional costs for these projects and/or to pay for other infrastructure impacted by the Downs development. Councilman Andrew Krenz pointed out that the $3.5 million tax abatement that the developer will receive over a 12-year period will not raise taxes on residents.
This motion was also approved by a 4-1 vote with Moroski-Browne casting the no vote.
