LANSING, Mich. – Governor Gretchen Whitmer and the Michigan Strategic Fund (MSF) Board have approved a Transformational Brownfield Plan (TBP) to develop a 20-story, mixed-use high-rise apartment building in Downtown Ann Arbor, bringing 330 units of affordable housing and over 6,500 square feet of commercial space. This project, located at 350 S. Fifth Ave., is expected to generate $209.4 million in total capital investment.
Governor Whitmer emphasized the importance of accessible housing, stating, “Every Michigander deserves a safe and affordable place to call home. This brownfield redevelopment project will build 330 units to address the critical need for more housing in Ann Arbor.” She added that her administration has built or rehabilitated over 90,000 homes across Michigan, more than any previous administration. Quentin L. Messer, Jr., CEO of the MEDC and MSF Board Chair, highlighted the project's alignment with the "Make It in Michigan" economic development strategy, noting that affordable housing is essential for creating economic opportunity.
The TBP incentive package totals $29.98 million, to be reimbursed over 30 years through various tax captures, including local and school property taxes, construction period tax revenues, and post-construction income and sales tax revenues. The new apartment units will consist of one- and two-bedroom configurations, all reserved for individuals and families earning between 30-80% of Ann Arbor’s Area Median Income (AMI). Notably, 120 units will accept project-based vouchers, allowing tenants to pay 30% of their adjusted gross income as rent.
The development, a partnership between Ann Arbor Housing Development Corporation (AAHDC) and Related Midwest, will also integrate with the adjacent Blake Transit Center, enhancing connectivity for residents. Jennifer Hall, executive director of the Ann Arbor Housing Commission, called the transformational brownfield "the critical final gap financing" for this transit-oriented development. Michael Kaplan, VP of Development for Related Midwest, underscored the project's role as "an important piece of economic development infrastructure" for downtown Ann Arbor.
Amy Hovey, CEO and executive director of the Michigan State Housing Development Authority, pointed out Michigan's deficit of over 119,000 housing units, stating, “developments like this are the kind of bold, collaborative investments we need to close that gap.” In addition to this Ann Arbor project, the MSF Board also approved support for expansions by EV manufacturer Slate Auto in Troy, robotic 3D concrete printing company Alquist 3D in Detroit, and Fenton Food and Beverage LLC in Fenton, collectively projected to create 650 new jobs and over $97 million in capital investment.