Plan to demolish Cadillac Stamping Plant and rebuild moves forward with tax credits

Tax incentives for the demolition of the former Cadillac Stamping Plant in Detroit and the construction of a new multi-tenant industrial and manufacturing facility were approved Tuesday by the Michigan Economic Development Corp.’s Michigan Strategic Fund board.

The $3.3 million in brownfield tax credits were granted to Missouri-based NorthPoint Development which plans to target a new 684,000-square-foot facility toward automotive suppliers and advanced manufacturing and logistics, officials said. Tenants have not been named.

The building, which sits on the city’s east side at 9501 Conner, is expected to be operational in January 2022, according to the Michigan Economic Development Corporation. 

The project is expected create $47.9 million in private investment and create 450 full-time jobs, according to NorthPoint Development and Farmington Hills-based LoPatin & Co. The developer said it plans to work with Detroit at Work program with the commitment to give hiring reference to Detroit residents.

“This abandoned industrial site will be remediated of hazardous materials, the structure will be demolished and the new building will create hundreds of jobs and tax revenue for the City, County and State,” NorthPoint Development Director of Development Tim Conder said in a statement Tuesday.

Conder has said previously the site’s location is ideal for auto suppliers: It is near General Motors Co.’s Detroit-Hamtramck plant and Fiat Chrysler’s Jefferson North plant.

The brownfield tax credits will offset the environmental costs to overhaul the contaminated site which has had manufacturing uses dating back to the early 1900s. The 915,655-square-foot building has been vacant since 2015. The project will also include improving 5,800 square feet of public sidewalks.

“The extraordinary costs required to demolish the existing structures and safely develop the site has created a $26.5 million expense deterring development of the property,” MEDC staff wrote in a briefing memo. “Due to the extensive environmental remediation and demolition costs, the total development costs are such that the developer is unable to underwrite a return large enough to attract investors to the project without financial assistance.”

The project comes as the City of Detroit works to meet the demand for industrial land. Of the approximately 520 million square feet in the Metro Detroit industrial market, there are only seven large buildings available that meet a 30-foot clear-height requirement, according to the MEDC.

The city of Detroit is supporting the project with $4.6 million in local tax incentives through an Act 381 Work Plan and an anticipated 12-year Industrial Facilities Tax Exemption valued at $8 million. 

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