The Garden City Downtown Development Authority voted Aug. 27 to support preliminary steps for a proposed four‑story mixed‑use redevelopment at the former Orange Jewelers site and to allow the developer to pursue tax increment financing through a brownfield plan and an interlocal agreement with the Wayne County Brownfield Redevelopment Authority.
The authority’s action authorizes staff and the developer to continue drafting a brownfield plan and the interlocal agreement that would let the Brownfield Redevelopment Authority capture tax increment revenue to reimburse eligible site costs. The motion was moved by Mayor Jacobs and supported by Trustee Berry; board discussion recorded the vote as passing with three yes votes and one abstention. The board emphasized the step is procedural — not final site‑plan approval and not a vote on exact financial terms.
Consultant Trudy Gala of Fishback and Associates told the board the proposal calls for demolition of three existing buildings and construction of a roughly 66–72 foot, four‑story building with about 20,000 square feet of ground‑floor commercial space and roughly 60 residential units on the upper floors. Gala said the project team plans to use a brownfield housing TIF (HTIF) and other incentives, plus private and bank financing, to close the financing gap for income‑restricted units.
Gala explained the statutory mechanics to the board: under the amended Act 381 housing provisions, a brownfield plan must show an eligible site and eligible activities (for example, demolition, environmental due diligence, site work and infrastructure) and then capture the tax increment — the difference between predevelopment taxes and postdevelopment taxes — to reimburse the developer for approved costs. She emphasized MSHDA rules require annual income verification and that HTIF only covers the shortfall for units restricted at or below 120% of county area median income.
"So you have a housing gap, and you use TIF to fill that housing gap," Gala told the board, describing how the HTIF calculation is limited to the number of income‑restricted units and the eligible site costs associated with those units.
Board members pressed staff and the consultant on how long the TIF capture could last and on what revenue the DDA would continue to receive during the plan’s life. Gala said terms vary but most plans run 15 years or longer and may extend up to 30 years; she also said an interlocal agreement can be drafted so the DDA retains the portion of revenue it currently receives, and that the county board must hold a public hearing before final approval. City staff said they would follow up with a written clarification on the DDA revenue question.
The board and staff stressed that the DDA motion authorizes only the next steps: drafting the brownfield plan and negotiating the interlocal agreement with the Wayne County Brownfield Redevelopment Authority. If the plan proceeds, it will require recommendation by the Brownfield Redevelopment Authority and final approval by the county board after the required public hearing. If state taxes are included, an additional Act 381 work plan is submitted to MSHDA to allow capture of state school taxes, which can accelerate reimbursement.
Next steps described by staff and the consultant include completion of a pro‑forma and MSHDA submission, drafting of the brownfield plan and a reimbursement agreement that spells out invoice and documentation requirements for developer reimbursements, and public‑hearing notices to taxing jurisdictions. The project will return to Garden City for any required local approvals, including final site plan review.
Details not yet set by the developer include the exact number of income‑restricted units and the final TIF term and dollar amounts; staff said those specifics will be in the brownfield plan and pro‑forma and will be presented to the DDA and the city for review before any final interlocal agreement is executed.