2005 Section 108 Project Summary - Michigan

Housing Rehabilitation

Redevelopment Park/Wood
BORROWER: WAYNE COUNTY
STATE: MI
SECTION 108 LOAN GUARANTEE AMOUNT: $1,537,000

Wayne County will use its Section 108 Guaranteed Loan proceeds to assist in the redevelopment of an 8.33-acre former Sears Department store site in the city of Highland Park. The City designated the site as a blighted area as defined under the Michigan Blighted Area Rehabilitation Act.

The County will provide the Guaranteed Loan financing to the City of Highland Park, which will, in turn, transfer the funds to the Highland Park Development Company, HP Devco, the City's non-profit Developer. HP Devco acquired the blighted 8.33-acre sitein order to prepare it for redevelopment. . HP Devco will utilize the County's loan to the City to fund on site public facility preparation and installation as well as other public improvements.

Upon completion of all the public improvements, HP Devco will sell the former Sears site to Burton Katzman Development Incorporated (BKG). BKG will redevelop the Site into 125 units of for-sale housing with 25 units being made available to low- to moderate-income persons, and approximately 6,200 square feet of commercial space.

This mixed-use redevelopment will meet a Community Development Block Grant national objective by eliminating the blighting conditions of the former Sears site.