City Club Apartments CBD Detroit City Club Apartments

Former Statler Hotel site development receives $1 million brownfield funds

The plan to build 288 apartments on the site of former Statler Hotel in downtown Detroit is getting a $1 million boost from the state.

The Detroit/Wayne County Port Authority received $1 million in brownfield funding from the Michigan Department of Environmental Quality to clean up the vacant lot on Washington Boulevard and Park Avenue for a mixed-use development, according to a MDEQ news release.

The MEDQ's $750,000 grant and $250,000 loan will help make way for Jonathan Holtzman's City Club Apartments to build the City Club Apartments CBD Detroit residential and retail complex with underground parking. Plans also call for 12,000 square feet of retail and restaurant space. The project includes a green roof and meets National Green Building Standards, the release said.

The project will create about 58 jobs and bring 400 tenants to the apartments.

MDEQ Brownfield Coordinator Michelle Bakun expects cleanup to begin in the coming weeks. Plymouth-based Soil and Materials Engineers Inc. was contracted to do the work, for which the developer must submit invoices to the Port Authority for reimbursement approval.

The Port Authority will formalize the plans at its Monday board meeting, Deputy Director Kyle Burleson said.

The authority's main focus is on freight transportation and distribution projects, but its relationship with the MDEQ and brownfield scope opens it to development projects beyond the waterfront.

The Statler Hotel building was abandoned in 1975 before being demolished in 2005.

The Detroit City Council approved the development in 2015 and it was expected to be completed by the fourth quarter of this year. It was first said to cost $35 million to $40 million, but the estimated costs increased to about $70 million, Crain's reported in May.

A request for comment from the developer was not immediately returned.

Holtzman is the former CEO of Farmington Hills-based multifamily real estate giant Village Green Cos. He is CEO and co-owner of Farmington Hills-based City Club Apartments LLC.

Article by Tyler Clifford

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