CADILLAC – Cadillac City Council will hear details Monday of a plan to convert Speeds Automotive’s former property at 423 N. Mitchell St. into a development similar to the Cadillac Lofts.
According to council documents, Lee Richards and Elizabeth Schnettner own the former Speeds Automotive and the adjoining property and are converting it into a mixed-use residential / commercial project.
The development is currently expected to include 14 apartments with a total area of ââ8,828 square meters and commercial / retail space totaling 5,000 square meters.
Estimated private investment in development is $ 2,994,532.
Since the income from the rental income is insufficient to cover the costs of rebuilding the building in addition to the operating costs, the project will only be continued if the city’s economic funding instruments and incentives are used.
âThis investment to redevelop this property will bring residents into the city, which can create economic activity for downtown businesses, commercial space and jobs for new businesses, much-needed new housing, and a spin-off redevelopment of neighboring properties. “Which offers a significant long-term return on investment for the city center and the community,” states the council documents.
To aid redevelopment, the council is considering approving a financial plan to increase the derelict tax and a local tax waiver under an obsolete property redevelopment law.
According to Council documents, the derelict land plan was created to facilitate development by reimbursing the costs of lead and asbestos removal, demolition and infrastructure through the collection of increased taxes caused by the private investments. The eligible activity cost is estimated at $ 386,036.
The project also includes an OPRA tax break, which freezes the value of buildings for 12 years for local taxes, but provides for state taxes to be collected to reimburse eligible activities for derelict land. OPRA was used in the redevelopment of the Cobbs-Mitchell building and is akin to the approvals of the Commercial Redevelopment Act and Commercial Rehabilitation Act that were created and previously used on other projects around the city, council documents show.
When Cadillac Lofts received a Gold Award in the Real Estate Redevelopment and Reuse category from the International Economic Development Council in October, Cadillac City Manager Marcus Peccia mentioned the Speeds Automotive building as an example of a similar renovation project.
âThis kind of development doesn’t happen without all of these levels working together,â Peccia said at the time.
On Monday the Council will vote to set the date for the public hearings of the fallow land and the OPRA for December 20th.
Also on Monday, the council will hold a public hearing to gather feedback on proposed regulation changes that would allow industrial marijuana companies to operate in the city.
According to agenda documents containing the wording of the proposed amendment to the ordinance, âThe city wishes to amend Section 10-2 of the City Code to remove restrictions on marijuana licenses for certain establishments, remove stacking restrictions for recreational marijuana growers in industrial areas, and equivalents to allow “. Licenses for operation at the same location, insofar as this is permitted under state law. “
An almost identical ordinance change has been proposed for medical marijuana facilities: “The city wishes to amend Section 10-3 of the city law to remove the marijuana license caps for facilities other than supply centers, lift the stacking restrictions on medical marijuana growers in industrial areas, and allow equivalent licenses to be operated at the same location, insofar as this is permitted under state law. “
Under the proposed change, each facility or facility will be considered a separate facility or facility if a licensee holds equivalent licenses on a single property.
Equivalent license means one of the following licenses held by a single licensee: one marijuana cultivation license of each class, one marijuana processing license, one marijuana staging center license, one marijuana secure transporter license; and a marijuana safety compliance facility license.
Currently, the city limits the number of Class A, B and C producers to one each. It also limits the number of processors, safe transport companies, and safety compliance facilities to one. The change would allow an unlimited number of these facilities in the city.
The change would allow the approval of stacked producer licenses in facilities in the light industry and general industry zones. Stacked grower licenses are currently banned in the city.
Cadillac City Council members recently saw firsthand how a large marijuana production facility works. Peccia said council members and staff attended an operation about 25 to 30 minutes away, adding that it was “remarkable” to see her up close.
Peccia said the proposed changes to the city’s recreational and medical marijuana regulations would allow such an “industrial facility” to set up a business within the city’s industrial park.