In a recent government meeting, Joe Agostinelli, managing director of Michigan Growth Advisors, outlined a significant $738 million investment project aimed at transforming a long-vacant site in downtown Michigan. The project, which has been in the planning stages for over two years, is expected to create approximately 1,900 new jobs, primarily high-wage office positions, alongside 671 residential units and 130 hotel rooms.

Agostinelli highlighted the challenges posed by the site's history, noting that it was once part of the Grand River and has since been filled in, leading to substantial geotechnical costs that complicate construction. This has contributed to a lack of high-rise developments in the area over the past two decades, making the transformational brownfield program essential for the project's viability.

The meeting also discussed the financial structure of the project, which relies on a combination of private equity and debt, alongside incentives from the transformational brownfield program. This program is designed to support large-scale developments, requiring a minimum investment of $100 million. Agostinelli emphasized that the incentives are contingent upon the project's successful completion and occupancy.

A key aspect of the project is its commitment to affordable housing. Instead of integrating affordable units directly into the development, the ownership group plans to contribute 6.25% of the transformational brownfield revenue from residential income tax capture—approximately $8.5 million annually—to the city's affordable housing fund. This approach is projected to yield significantly more affordable housing impact than if units were built on-site.

Additionally, the project aims to promote diversity in contracting opportunities, with a goal of allocating $31 million to minority-owned, women-owned, and local businesses. As the project moves forward, the ownership group is focused on ensuring equitable participation in the contracting process.

Overall, the meeting underscored the project's potential to revitalize the downtown area while addressing economic and social challenges, marking a significant step in Michigan's urban development efforts.