Above the Cut

above the cut a place to live and work in the community

created and presented by: deVELup Detroit vince mattina elizabeth kreska lin liu

university of detroit mercyschool of architecture

development practicumprofessors dave schervish+virginia stanard

winter 2012

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5

table of contentstopic pages

detroit amenities 6-7

vision+concept 8-11

urban design+planning 13-19

market feasibility 21-33

development/ financial concept 35-59

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Detroit is full of hidden treasures just waiting for you to discover.

One of those treasures is the Bloody Run Creek than runs underneath much of the City. As it is unearthed, we ask for you to be a part of the fantastic changes that the City will undergo. We invite you to enjoy this informational booklet on our development, Above the Cut. You are sure to be amazed at the impact our development and the other in the Eastern Market area will have on the City of Detroit.

Let us begin by reminding you of what a day of living in Detroit would be like...

Good Girls Go to Paris Crepes for breakfast...Walk around the Detroit Institute of Arts...Pick up dinner in Eastern Market...Finish the day by walking to the Riverfront along the Dequindre Cut and watching the sun set....


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detroit amenities

urban design market feasibility development concept

Detroit Amenities

8


5above the cut

a place to live and work in the community

project location-overall map of Detroit


above the cut

detroit context development teamw


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4above the cut

a place to live and work in the community

development team


Project DirectordeVELup Detroit

FinancingVince Mattina

Design/EngineeringUrban Design and Planning:

Lin Liu

Architectural Engineering:Vince Mattina

Elizabeth Kreska

Owner/DeveloperLegal CouselKresge Foundation

Marketing+Economic Feasibility

Elizabeth Kreska

Eastern Market CorporationJim Pellerito

development teamw

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Vision/Concept


vision+concept


play

work

live Above the Cut means to compliment the existing Eastern Market Community

while contributing to the growth of the Bloody Run Project.


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Above the Cut will be a place for people to live and work in the community of Eastern Market.

As the Bloody Run Creek Community grows with the Eastern Market Community, Above the Cut will continue to be a vessel

for creative minds and any who share in a dream for Detroit. Above the Cut especially welcomes all those who pass by the Dequindre Cut level

to engage in our excitement for the community and to be a part of it.

This project will utilize sustainable opportunities through green technologies

provided by the Bloody Run Master Plan.

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urban design+planning

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1.

4.

2.

3.

5.

A catalyst for future development and dynamic quality of life.

AMBASSADOR BRIDGE

BELLE ISLEWINDSOR CBD

I-94

I-75

WO

OD

WA

RD

I-75

GRATIOT

GRATIOT

MACK

WILKINS

JEFFERSON

JEFFERSON

CH

EN

E

E. G

RA

ND

BLV

D.

MT. E

LLIOT

CA

DILLA

C

FOREST

WARREN

CANFIELD

LAYFAYETTE

VERNOR

E. GRAND BLVD.

I-94

I-94

I-75

DE

QU

IND

RE

CU

T

RIVERWALK

M-10

Detroit Collaborative Design Center Urban Resource AllianceAdi ShamirNTH Consultants, Ltd.The Mannik & Smith Group, Inc.Zachary and AssociatesPrepared for Kresge Foundation &McCormack Baron Salazar

Project Boundary

The Bloody Run Creek Greenway Redevelopment Project

Context and Linkages

Mixed Use District

Residential District

Energy and Production District

Linkages

FARNSWORTH

LAFAYETTEPARK

EASTERNMARKET

ELMWOODCEMETERY

MCDOUGALL -HUNT

MCDOUGALL -HUNT

ENTERTAINMENT DISTRICT

TECHTOWN

WAYNE STATEUNIVERSITY

MEDICALCENTER

CULTURALCENTER

Woodw

ard Light Rail

GREEK-TOWN

GM

HENRY FORD

AUTO TECH RESEARCH & DESIGN

ELMWOOD

MEDICAL RESEARCH/

TECH.

MIDTOWNLOOP

GRATIOT HUB

HARBOR TOWN

EAST RIVERFRONT

DOWNTOWN

WEST RIVERFRONT

MIDTOWN

NEWCENTER

GM ASSEMBLY PLANT

I-94 INDUSTRIAL PARK/RENAISSANCE ZONE

VILLAGES

KETTERING

GOLD COAST

BELLE ISLE

NORTHEND

BOSTON EDISON

HAMTRAMCK

WOODBRIDGE

NORTH CORKTOWN

CORKTOWN

Context and Linkages Analysis Diagram

The Vision & Guiding PrinciplesCore principles have been established that will guide the design, planning, and implementation of The Bloody Run Creek Greenway Redevelopment Project. The Guiding Principles for the project include the following:

The Project will be a bold, visionary, and transformative project that will catalyze the City’s redevelopment efforts.

The Project will connect and strengthen the fabric of the community through its accessibility, inclusiveness, and connections to the city.

The Project will champion environmental sustainability through its utilization of innovative green technologies.

The Project will generate jobs.

The Project will set new standards for landscape, environmental, and architectural design.

diagram rendered by:detroit collaborative design center

Vision and Urban Design

The Bloody Run Creek Greenway is envisioned as a new kind of public ecological landscape: a productive landscape that offers a generous and beautiful large-scale public landscape for recre-ation, culture, education, and ecology, creating a unique place of interaction with the creek and land. By using a new storm sewer system, storm water is collected, stored, cleaned, and released into the creek. The development team envisioned a three mile green energy corridor from Detroit River to I-94, a creek cascade at Gratiot crossing, meandering neighborhood assets, ecological destinations converted from abandoned build-ings, wetlands combined with urban life, self-pro-ducing neighborhood, and so on.


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Implementation Strategy: Demonstration Project

The Demonstration Project includes a pond/water feature that �ows into the Dequindre Cut as a waterfall and follows the new bike/pedestrian path for a block and a half to Gratiot Avenue. Eventually the creek will follow the Dequindre Cut to the Detroit River and provide the �rst outlet for Bloody Run Creek. Water in this phase is provided by raw, untreated water from the Detroit River through intercepting a water pipe at Forest Avenue which runs through the Bloody Run Creek area.

Demonstration Project Implementation Schedule - D1 & D2 5 Years

Task

D1 Development Schedule

Pre-developmentPlanningLand AcquisitionFunding

D2 Development Schedule

Pre-developmentPlanningLand AcquisitionFunding

Pre-constructionSurvey, Borings, Environ-mental AssessmentSchematic Design & EngineeringConstruction ManagementConstruction DocumentsPermittingContractor Bidding & Negotiations

ConstructionCleanup & DemolitionCreek ConstructionSewer SeparationStreetscapesTrails & TransportationLandscapingEnergy

Pre-constructionSurvey, Borings, Environ-mental AssessmentSchematic Design & EngineeringConstruction ManagementConstruction DocumentsPermittingContractor Bidding & Negotiations

ConstructionCleanup & DemolitionCreek ConstructionSewer SeparationStreetscapesTrails & TransportationLandscapingEnergy

20132012 20152011 2014 2016

Design & Engineering Elements

CreekDequindre CutSewer SeparationLandscapeBridgesStreetscapeTrailsPublic Amenities/Landscape FeaturesEnergyTransportationLand AssemblyProfessional FeesSubtotal

Total

D1 Cost

$1,000,000$4,860,000$1,800,000$2,072,500

—$2,436,000

$127,500—

$500,000$55,000

—$2,570,200

$15,421,200

$15,421,200

D2 Cost

$1,000,000$1,000,000$6,950,000

$500,000—

$4,755,000$345,000

—$25,000

$250,000—

$2,965,000$17,790,000

$17,790,000

In order to launch the project, test its feasibility, and excite the stakeholders it is proposed that a small demonstration project be built. The Demonstration Project is broken down into two phases, identi�ed as DI, a $15 million project shown above, and D2.

Demonstration Project Implementation

D1 Project scope

View of Cascading Ponds and connection to Dequindre Cut

Demonstration Project (D1 & D2) Creek Engineering and Construction Costs

Exg.Parking

Exg.Parking

Wilkins Adelaide

Gratio

t

Winder

Division

Alfred

Wilkins

St. Aubin

Orleans

WatsonErskine

Pierce

Scott

Hale

Mack

Mack

Gratio

t

Gratio

t

Mack

Canfield

CharlesvoixArndt

BensonHeidelberg

PrestonLudden

Mack

Illinois

Leland

AlexandrineSuperior

Willis

Canfield

St. Joseph

Illinois

LelandAlexandrine

SuperiorWillis

Canfield

Hunt

Hendricks

McD

ougall

McD

ougall

Jos. Cam

pau

Jos. Cam

pau

Grandy

Mitchell

Chene

Chene

St. Aubin

Dubois

St. Aubin

Orleans

DequindreRiopelleRussell

Dubois

I-75

I-375

VernorCharlesvoix

Arndt

Benson

Hunt

Hendricks

Vernor

A

B

C

D

E

O

F

G

G

G

H

H

H

I

K

NJ

L

M

1

2

3

4 FutureDevelopment

Site

1. Private Development/Adaptive Reuse2. Private Development/Adaptive Reuse3. Private Development/Adaptive Reuse4. Private Development/Adaptive Reuse

A. Market Pond at Dequindre CutB. WaterfallC. Creek Channel (Gratiot to Wilkins)D. Division Sewer Separation (Orleans to St. Aubin) E. Landscape at Dequindre Cut (Gratiot to Wilkins)F. Landscape at Market PondG. Landscape Clean-up at adjacent propertiesH. Bridge RehabilitationsI. Division St. Streetscape (Orleans to St. Aubin)J. St. Aubin Streetscape & Entry (Gratiot to Division)K. Trails at Market PondL. Trails at Dequindre Cut (Gratiot to Wilkins)M. Geothermal Field at Dequindre CutN. Solar Lighting and SignalizationO. Bike Corrals & Racks (Multiple Locations)

diagram rendered by:detroit collaborative design center

Phasing

It is proposed that the project be divided into five phases coincides with five zones, and build over a period of ten years. The private development is assumed to continue another fifteen years. Phase one starts in 2011 and phase five starts in 2016.The Demonstration project which is broken down into two phases-D1 and D2- will be completed within five years. This is phase 2. Above the Cut is Building I.

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intuitions community schools churches


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Site

In spite of the dilapidation of Detroit’s Near East Side nowadays, it is still home to the cultural, natural, and community assets of Eastern Market, the Dequindre Cut, and the riverfront as well as strong neighborhoods such as Lafayette Park, McDougall-Hunt, and Farnsworth. Located east of Detroit’s Central Business District and Midtown, the project site is connected to major assets and districts through its interstate and non-motorized linkages, and its future connectivity to a potential privately-funded Woodward Avenue Light Rail line and the proposed Detroit Bus Rapid Transit (BRT) service.

The Bloody Run Creek Green-way Redevelopment Project is about daylighting the long-bur-ied Bloody Run Creek, rede-veloping the area to become a major ecological public landscape and, thus, enhanc-ing the attractiveness of Detroit for businesses, families, and i ndividuals.

Timeline

It is proposed that the project be divided into five phases coincides with five zones, and build over a period of ten years. The private development is assumed to continue another fifteen years. Phase one starts in 2011 and phase five starts in 2016.The Demonstration project which is broken down into two phases-D1 and D2- will be completed within five years.

Market Feasibility

According to national, state, and local level of trends in various employment sectors, the development team forms a site strategy map illustrating a possible land use scenario for the Bloody Run development. In addition to renewal energy and food production system that are inherent to the concept of Bloody Run there is proposed Medical Center and General Motors Volt Assembly Plant related research, technology and manufacturing facilities, eco-housing development, retail development, and the infill and revitalization of existing viable neighborhoods such as McDougall-Hunt and Farnsworth. It is estimated that $ 1 billion in public investment generates approximately $ 3 billion in private investment.

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site circulation

urban design market feasability

Circulation for Above the Cut is designed ina way that automobiles, pedestrians, and cyclers

are compatible with each other. People can enter stores, restaurants, and offices from each

level. Residents can take elevators to theirlofts through indoor parking. In addition,

activities and flow of users can create naturalsurveillance for this area and contribute to

the reduction of incidents and fear of crime in the neighborhood.


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21

market feasibility

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comparable projects-residential

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E&B Brewery Lofts 1551 Winder

Detroit, Michigan 48207On the Corner of Winder & Orleans

$800 - $1450 per monthfor 860 to 2760 square feet

-skyline views of Downtown Detroit-security buzzing system -secured indoor and fenced outdoor parking-security cameras, possible future guards-upper level quality fixtures and finishes-12 to 16 foot ceilings-individual unit thermostat-individual meters for gas and electric

comparables-residential


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comparable projects-residential

5


FD Lofts3434 Russell

Detroit, MichiganCorner of Russell and Erskine

$1050-1500 per monthfor 860 to 2760 square feet

-walking distance to a variety of restaurants-historic charm-industrial character

comparables-residential

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comparable projects-institutional/retail


Axis Music Academy283 Hamilton Row

Birmingham, Michigan

1400 square feet

-front open to a main street-back open to parking garage-private classrooms for music lessons

comparables-institutional


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comparable projects-candy shop


Woodward Avenue Candy Shop

Ferndale, Michigan

1800 square feet

-working place for outside orders “candy buffet”

comparables-candy store

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comparable projects-restaurant


Rosie O’Grady’s Irish Pub

Ferndale, Michigan

2600 square feet

-relaxed-kid-friendly during day-club/bar at night-open doors to let fresh air in and interest passersby. -bike parking

comparables-restaurant


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market trends


market trends

5


nationalurban living

regionalsuburban life-single family housing

local

urban livingwages compared to cost of living

14.6% of Detroit residents are between the ages of 20-29*

city skyline views

15.2% of Detroit residents are between the ages of 30-39*

*according to zipskinny.com

young professionals/young artists moving into Detroit

raw, industrial character

median age of Detroit residents is 24.9 years*

market trends

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user market

hipsters


young professionals

college students empty nestersstartingfamilies

market user groups

How can we use these user markets in our plan for Above the Cut?Let us tell you the story of how their lives are affected by the amenities

of living in Above the Cut.


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user market

urban design market feasability development concept

The Brown family is just starting out. Daryl isworking as head chef at Cut and Served Bar and

Grill. Diamond is a homemaker with her two children, one who is starting kindergarten next year at Detroit Edison Charter School across the street from Above

the Cut. Above the Cut is a great place for the Browns to live, because it is central to all of their needs

as young parents. They enjoy the urban living and having college student neighbor, Becky, babysit for

them whenever they need to have a night out.

Work

Play

Live

Lin’s lovely mapstarting families

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user market

hipsters

urban design market feasability development concept

Stacy and Jim are young artists living in ‘Above the Cut’. Jim is an adjunct professor at

the College of Creative Studies while Stacy owns ‘Cutting Edge Music’ which is on the first

floor of ‘Above the Cut’. Jim and Stacy love walking around Eastern Market on the

weekends and they spend their evenings at Foran’s Pub in Downtown.

Work

Play

Live


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user market


young professionals

Katie is a young professional working in the Renaissance Center

in Downtown. She loves living in‘Above the Cut’ because her commuteis so short. After work, she meets her friends at Greektown Casino for a fun

night out or sees a show at the Fox Theater. Katie loves her proximity to I-75, so she can visit her parents who live in Troy on the weekends.

Work

Play

Live

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user market


college studentsTravis and Becky share a flat in Above the Cut.

They love that they can just ridetheir bikes and be on the

Wayne State Campus in minutes. After classes, they visit the many

museums that Midtown has to offer, like the Science Center, and spend

their weekends working in Abovethe Cut’s newest bar and grill in Eastern Market, Cut and Served.

Work/Learn

Play

Live


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1923

35

development/ financial concept

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part of the Bloody Run Creek Redevelopment it will contain part of the water integration as much of the East Side will. There is a large retention pond and waterfall located to the southern part of the site. With this natural feature within in such close proximity to Above the Cut, it is desirable and walkable. The plot is located between Wilkins and Brewster Street. Currently occupied by Kaps Meats, the space will be transformed to better fit the communities needs. The plot itself is programmed for housing, work, and the third place. Wether that third place is dining, shopping, or broadening ones music ability, Above the Cut has it. This project is to act as a neighbor catalyst. It will become an integral part of the community. It will act as a vessel for creative minds and any who share in a dream for Detroit.

In an area of town that the urban fabric is sightly ripped, damaged, worn, and neglected, the possibilities for reinvestment, reassociation, and revitalization are created. Above the Cut is a design intervention that aims to facilitate those acts of the (re). This site, an important part of the D1 in the Bloody Run Creek Redevelopment Project, can show the possibilities that are conceived through the reestablishment of neighborhood anchors. This building, Above the Cut, can take a role in a neighborhood whose identity can become one of the cities largest assets.

The primary location of the of the site is adjacent to the future expansion of the Dequinder Cut. This expansion will also include a hydrological intervention. As


architectural program

4


Floor 1 6000 sqft Music Studio 6700 sqft Restaurant 6300 sqft Office Space

Floor 2 5400 sqft Residential Parking 7000 sqft Retail (800, 1800, 1100, 1100, 2200 sqft) 5400 sqft Office Space

Floor 3 1800 sqft loft x2 1600 sqft loft x2 1100 sqft loft x5 950 sqft loft x5

architectural program


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With program on all three floors the build offers fourteen loft apartments what range in price and size for many different lifestyles and income levels. Each of the apartments has first priority to covered secure parking located on the second level. Additionally on the second level there is

Above the Cut was first programmed as a large slaughter house. Since that, the building has gone under a variety of architectural program changes. This project is programed in a fashion to accommodate the three places a person needs, housing, working, and the third place.

current dequindre cut photos


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approximately 7000 square feet total of retail space. Currently broken down in to a series of smaller spaces however, the space can be transformed into smaller or larger spaces based on the need of the chain, boutique, or shop that chooses to rent the space. The store fronts face the Dequinder Cut, to enter the store front there is a large cantilevered catwalk that allows people to overlook the Cut and shop all in the same breath. Furthermore, on the second floor is a medium size office. These offices are designed in a similar method to the retail space; where they my be broken up into smaller spaces to meet the needs of the business to enter. The

lowest level’s front door is on the beautiful Dequinder Cut. On this floor the aim is to host an office that is related to this master plan for the area. Wether this program is a non-profit group or community organization, we want the community to have the ability to access the space easily from the Cut. Creating a space for conversation about the neighborhood. Directly next to this space is room for a restaurant. This restaurant can appease anyone who is transversing the Cut or the D1 of the Bloody Run Creek Redevelopment. Lastly, the building will be home to a music studio. This space will give a place for the school children across the street to participate

in music. Even more this state of the art center will also have the ability to host professional musicians to use the facility as a recording studio. This studio can be home to the new future of up and coming talent in Motown, or the past idols of this city. With its location on the Cut, the vision is that on fair weathered days the space will open up and become a space for people to collect and listen to performances. Even further, this could become a place for the collaboration of the arts. With music and food a strolling gallery could be set up in the Cut and this space becomes more than just a bike path, but a collection of talent. This space can begin to facilitate

community engagement, collaboration, and interaction. The Cut what was something that implied and exemplified separation, now is in juxtaposition, where it brings life and togetherness. Above the Cut is a project that can create many opportunities and assets in the neighborhood.

The building was designed in a manor that the spaces begin to separate from public on the level of the Dequinder Cut to private on the most top level. Above the Cut is located above the cut. As sort of a phoenix from the ashes. This project will exemplify the up and coming neighborhood that Eastern Market is turning into.

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current conditions

This site: 1900 Wilikins is currently home to the Kaps Meats headquarters. This 60,000 square feet warehouse, which at its time of occupancy was a slaughter house is currently only occupied in less that 2,000 square feet. The building has a lot of potential and promise. Plans to refacilitate the surrounding plots of land would make this property one of high value in as an anchor. The plan for this building would be to rehab the building to a state that could act as an anchor to the neighborhood and become a destination space for the up and coming Bloody Run Creek Redevelopment


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proposed lease/rent rates


proposed lease/rent rates


residential

office

retail

restaurant

parking14 spots (one for each residential unit) $125/spot/month 1 year rent w/ housing unit

1 space x 6300 $18/s.f./month $113,400/month 5 year lease

1 space x 6700 square feet $15/s.f./month $100,500/month 5 year lease

2 spaces x 1100 $10/s.f./month $11,000/month 5 year lease

5 units x 1100 square feet $1.00/s.f./month $1100/month 1 year rent5 units x 950 square feet $1.00/s.f./month $ 950/month 1 year rent

2 units x 1600 square feet $1.00/s.f./month $1600/month 1 year rent2 units x 1800 square feet $1.00/s.f./month $1800/month 1 year rent

1 space x 5400 $18/s.f./month $97,200/month 5 year lease

1 space x 800 $10/s.f./month $ 8000/month 5 year lease

1 space x 1800 $10/s.f./month $18,000/month 5 year lease1 space x 2200 $10/s.f./month $22,000/month 5 year lease1 space x 6000 $12/s.f./month $72,000/month 5 year lease


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first floor plan


first floor plan


music academy6000 s.f.

restaurant6700 s.f.

office6000 s.f.

residential

commercial

institutional

parking

dequinder cut

wilk

ins

stre

et

brew

ster

stre

et

Scale: 1:40

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second floor plan

parking5400 s.f.

office5400 s.f.

retail800 s.f.

retail1800 s.f.

retail1100 s.f.

retail1100 s.f.

retail2200 s.f.


second floor plan


residential

commercial

institutional

parking

Scale: 1:40


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third floor plan


third floor plan


residential1800 s.f.




residential950 s.f.

residential950 s.f.

residential950 s.f.

residential950 s.f.

residential950 s.f.






residential

commercial

institutional

parking

Scale: 1:40

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Value SummaryGross Revenue $451,228.00Cap Rate 10.00%

S.F. (gross) 20000 S.F. (gross) 6700 Estimated Value $4,512,280.00Non-leasable S.F. 2000 Non-leasable S.F. 0Usable/Leasable S.F. (net) 18000 Usable/Leasable S.F. (net) 6700Operating Income per S.F. $12.00 Operating Income per S.F. $15.00Operating Expenses per S.F. $5.00 Operating Expenses per S.F. $3.00 Land Acquistion Cost $0.00Revenue/Net Income per S.F. $7.00 Revenue/Net Income per S.F. $12.00 Building Acqusition Cost $400,000.00Total Revenue/Net Income $140,000.00 Total Revenue/Net Income $80,400.00 Construction Costs -

Housing ($125.00) $2,500,000.00Office Space Office Space ($90.00) $1,053,000.00S.F. (gross) 11700 S.F. (gross) 5400 Music Studio ($90.00) $540,000.00Non-leasable S.F. 0 Non-leasable S.F. 0 Resturant ($125.00) $837,500.00Usable/Leasable S.F. (net) 4500 Usable/Leasable S.F. (net) 9000 Parking ($75.00) $405,000.00Operating Income per S.F. $18.00 Operating Income per S.F. $0.32 Retail Space ($90.00) $630,000.00Operating Expenses per S.F. $5.00 Operating Expenses per S.F. $0.00 Total $5,965,500.00Revenue/Net Income per S.F. $13.00 Revenue/Net Income per S.F. $0.32 Tenant Improvements $100,000.00Total Revenue/Net Income $152,100.00 Total Revenue/Net Income $1,728.00 Site Work $300,000.00

Estimated Cost $6,765,500.00Music Studio Retail SpaceS.F. (gross) 6000 S.F. (gross) 7000Non-leasable S.F. 0 Non-leasable S.F. 500Usable/Leasable S.F. (net) 6000 Usable/Leasable S.F. (net) 7000 Estimated Value $4,512,280.00Operating Income per S.F. $12.00 Operating Income per S.F. $10.00 Estimated Cost $6,765,500.00Operating Expenses per S.F. $5.00 Operating Expenses per S.F. $5.00 Total Value ($2,253,220.00)Revenue/Net Income per S.F. $7.00 Revenue/Net Income per S.F. $5.00Total Revenue/Net Income $42,000.00 Total Revenue/Net Income $35,000.00 Ratio -0.33

2. Cost Assessment

Housing

3. Feasibility

Restaurant

Parking

1. Value Assessment

back of the envelope


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economic impact

We won’t just take any businesses into our prime commercial spaces. We are passionate about Detroit and want businesses that are too.

That is why we asked Detroit-based and independently owned businesses to open a new set of doors in Above the Cut.

Retail establishments: Candy Store, DuAll Art Supplies, Regeneration Thift Store, Allinosi’s Ice Cream ShopRestaurant establishment: Cut and Served Bar and GrillMusic Academy: Cutting Edge Music Non-profit office: New Detroit Additionally, special consideration for the current owner and occupier of this property, KAPS Meats: Renovated office space with attached retail space for selling product to general public.

We propose that Above the Cut will generate at least 114 new permanent jobs.

Rehabilitation of Above the Cut will create 146 temporary construction jobs. Based on the total hard building cost ($7,300,000) and an average years wage of $50,000.

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Assumptions:

Sources:

1. Urban Retail Loan Fund, is based on their Preferred range of $100,000–$200,000 contribution2. Tax Deduction for Commercial building projects, is based on a deduction of $1.80 per square foot, 31,400 square feet of commercial space including (retail, office,

and music studio).3. Foundation contributions are based on (9.0%)4. Section 108 contribution is based on (~10%)5. TIF funding is based on (8.5%)6. State Development Fund is equated from the dissolved Brownfield Credits and the state historic tax credit. Which at the time could account for more that 20% of the

total project cost. Based on the current holdings we could assume that they would fund less that half of the federal historic tax credits.

Uses:

1. The property acquisition will be given to the development as a soft loan by the owner /city for the greater good of the project. The loan will be a paid back in small increments over the course of a series of years.

2. The site work budget will cover, the direct construction adjacent to the building, i.e access to the cat walk, paver parking adjacent to Wilkins, and some of the outdoor patios for the tenants. Much of the other site work will be absorbed under the Bloody Run Creek Redevelopment Project.

3. The construction costs were totaled based on the back of the envelope, the aim was a total combined cost of building was based roughly on $100.00 a square feet.4. The tenant improvements are strictly for the commercial space, and restaurant, totaling roughly 20,000 square feet, which is roughly $13.00 per square foot. 5. The FF&E budget will account of the mechanical system in the kitchen and some of the specialty equipment in the music studio, totaling roughly 14,000 square feet,

which is roughly $11.00 per square foot. 6. The construction contingency is an additional 10% for any unforeseen problems within the building.

Revenue:

1. Parking revenue is included with the housing revenue since the parking is for the residents.2. The vacancy rate of 10% is considering that the variety of uses in the building, at any time an apartment, office, or retail space may not be filled. 3. The expense us up ~54% of the building’s expenses ($378,000) , so to counter that the tenants are being billed back ~20% of the total expenses ($75,600).4. The debt service coverage is based on a ratio of 1.5

sources and uses


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Development: Operating:

Sources: (liability) Uses: (costs/asset) Basis: Income Expense and Cash Flow (pro-forma)Date: December 31, 2013 Date: For the year ending 2014

Equity: Federal Historic TC Revenue: Square FootingEnhanced Credits

Historic Tax Credit $1,854,900.00 Housing $260,000 20,000 $12.00 sqft/yearlyCash $500,000.00 Property Acquisition $400,000.00 NO Parking 5,400 $125.00 SpaceDeferred Development Fee $1,000,000.00 Site Work $100,000.00 NO Office Space $210,000 11,700 $18.00 sqft/yearlySub Total $3,354,900.00 Total Property/Site $500,000.00 NO Restaurant $120,000 6,700 $15.00 sqft/yearly

Music Studio $72,000 6,000 $12.00 sqft/yearlyDebt: Building Hard Costs: Retail $70,000 7,000 $10.00 sqft/yearly

Construction $5,965,500.00 $5,965,500.00 Loan A $3,500,000.00 Substructure $894,825.00 Loan B - Property (EDC) $500,000.00 Shell $1,193,100.00 Total Rent: $732,000Sub Total $4,000,000.00 Interiros $1,789,650.00 Less Vacancy (10%) $73,200

Services $2,087,925.00 Effect Rent $658,800Other

Tenant Improvements $250,000.00 $250,000.00 Reimbursed Revenue $70,600Smartbuilding Detroit Program $100,000.00 FF&E $150,000.00 $150,000.00Urban Retail Loan Fund $200,000.00 Construction Contingince $650,000.00 $650,000.00 Total Revenue $729,400Foundation (8.5%) $1,056,520.00 Total Hard Building Costs: $7,300,000.00 $7,300,000.00Section 108 $1,200,000.00 Expenses:TIF (8.5%) $1,000,000.00 Building Soft Costs: Real Estate Taxes $60,000State Development Fund $804,580.00 Development Fee $1,500,000.00 $1,500,000.00 Payroll $50,000Sub Total $4,361,100.00 A/E Fee $730,000.00 $730,000.00 Utilities $120,000

Repair/Maint. $60,000Taxes/ Insurance $40,000.00 $40,000.00 Insurance $30,000Prof. Legal Fees/ Accountants $400,000.00 $200,000.00 Mgt. Fee $33,000Appraisal/title $70,000.00 $35,000.00 Total Expenses $353,000Economic Dev. Cons. $200,000.00 $200,000.00

Net OperatingConstruction Interest $250,000.00 $250,000.00 Income (NOI) $376,400Finance Fees $150,000.00 $50,000.00Operating Reserves $120,000.00 NOMarket Fees $100,000.00 NO

Loan B N/ATotal Building Soft Costs: $3,560,000.00 $3,560,000.00Soft Costs Cont (10%) $356,000.00 $178,000.00 Debt Service Coverag 1.50

Sub Total $3,916,000.00 $10,305,000.00 Escrow $376,40020.00%

$2,061,000.00

$0.90$1,854,900.00

Total Sources: 11,716,000$ Total Uses of Funds: 11,716,000$

Rate

Loan A: $35,000,000 @ 6% for 20 YearsDebt Service Payment: $237600.00

50


Major Group Elements Suggested Values Project Specific Values Percentage Cost of Construction

A. Substructure 15% 5% 298,275.00$

B. Shell 25% 16% 954,480.00$

C. Interiors 30% 27% 1,610,685.00$

D. Services 35% 32% 1,908,960.00$

E Equipment and Furnishings FFE FFE 150,000.00$

F Special Construction and Demo 0% 20% 1,193,100.00$

TOTAL 105% 100% 5,965,500.00$

construction cost breakdown


51

Major Group Elements Level 2 Group Elements Price Breakdown Level 3 Elements

A. Substructure A10 Foundations 2% 119,310.00$ A1010 Standard Foundations 0.00% -$ A1020 Special Foundations 2.00% 119,310.00$ A1030 Slab on Grade 0.00% -$

A20 Basement Construction 3% 178,965.00$ A2010 Basement Excavations 0.50% 29,827.50$ A2020 Basement Walls 2.50% 149,137.50$

Total 5% 298,275.00$ 5.00% 298,275.00$

B. Shell B10 Superstructure 2% 119,310.00$ B1010 Floor Construction 1.00% 59,655.00$ B1020 Roof Construction 1.00% 59,655.00$

B20 Exterior Enclosure 12% 715,860.00$ B2010 Exterior Walls 5.00% 298,275.00$ B2020 Exterior Windows 5.00% 289,275.00$ B2030 Exterior Doors 2.00%

B30 Roofing 1% 59,655.00$ B3010 Roof Coverings 0.50% 29,827.50$ B3020 Roof Openings 0.50% 29,827.50$

Total 15% 894,825.00$ 15.00% 766,515.00$

C. Interiors C10 Interior Construction 12% 715,860.00$ C1010 Partitions 8.00% 477,240.00$ C1020 Interior Doors 3.00% 178,965.00$ C1030 Fittings 1.00% 59,655.00$

11% 656,205.00$ C20 Stairs C2010 Stair Construction 8.00% 477,240.00$

C2020 Stair Finishes 3.00% 178,965.00$

C30 Interior Finishes 3% 178,965.00$ C3010 Wall Finishes 1.00% 59,655.00$ C3020 Floor Finishes 1.00% 59,655.00$ C3030 Ceiling Finishes 1.00% 59,655.00$

Total 26% 1,551,030.00$ 26.00% 1,551,030.00$

Percentage of Element Usage Price Brakedown

Percentge of Group Eements

52


Major Group Elements Level 2 Group Elements Eements Price Breakdown Level 3 Elements Element Usage Price Brakedown

D. Services D10 Conveying 8% 477,240.00$ D1010 Elevation & Lifts 8.00% 477,240.00$ D1020 Escalators & Moving Walks 0.00% -$ D1090 Other Conveying Systems 0.00% -$

D20 Plumbing 5% 298,275.00$ D2010 Plumbing Fixtures 2.00% 119,310.00$ D2020 Domestic Water Distribution 1.00% 59,655.00$ D2030 Sanitary Waste 1.00% 59,655.00$ D2040 Rain Water Drainage 0.50% 29,827.50$ D2090 Other Plumbing Systems 0.50% 29,827.50$

D30 HVAC 10% 596,550.00$ D3010 Energy Supply 2.00% $119,310.00D3020 Heat Generating Systems 2.00% $119,310.00D3030 Cooling Generating Systems 2.00% $119,310.00D3040 Distribution Systems 2.00% $119,310.00D3050 Terminal & Package Units 0.50% 29,827.50$ D3060 Controls and Instrumentations 0.75% 44,741.25$ D3070 System Testing and Balancing 0.25% 14,913.75$ D3090 Other HVAC Systems and Equipment 0.50% 29,827.50$

D40 Fire Protection 5% 298,275.00$ D4010 Sprinklers 2.00% $119,310.00D4020 Standpipes 2.00% $119,310.00D4030 Fire Protection Specialties 0.50% 29,827.50$ D4090 Other Fire Protection Systems 0.50% 29,827.50$

D50 Electrical 4% 238,620.00$ D5010 Electrical Service & Distribution 0.50% 29,827.50$ D5020 Lighting & Branch Wiring 2.00% $119,310.00D5030 Communication & Security 1.00% 1.00%D5090 Other Electrical Systems 0.50% 29,827.50$

Total 32% 1,908,960.00$ 32.00% 1,849,305.01$

E Equipment and FurnishingsE10 Equipment 80% 120,000.00$ E1010 Commercial Equipment 30.00% 45,000.00$

E1020 Institutional Equipment 20.00% 30,000.00$ E1030 Vehicular Equipment 20.00% $30,000E10 90 Other Equipment 10.00% $15,000

E20 Furnishings 20% 30,000.00$ E2010 Fixed Furnishings 10.00% $10,000E2020 Movable Furnishings 10.00% $10,000

Total 100% 150,000.00$ 100.00% 140,000.00$


53

Major Group Elements Level 2 Group Elements Eements Price Breakdown Level 3 Elements Element Usage Price Brakedown

F Special Construction and Demolition F10 Special Construction 15% 894,825.00$ F1010 Special Structures 10.00% 596,550.00$ F1020 Integrated Constructions 1.00% 59,655.00$ F1030 Special Construction Systems 2.00% $119,310.00F1040 Special Facilities 1.00% 59,655.00$ F1050 Special Controls and Insturmention 1.00% 59,655.00$

F20 Selective Building Demolition 5% $ 298,275.00 F2010 Building Elements Demolition 3.50% 208,792.50$ F2020 Hazardous Component Abatement 1.50% 89,482.50$

Total 20% 1,193,100.00$ 20.00% 1,193,100.00$

This construction cost breakdown was based on the estimated values provided to us and as we evaluated out project hand-in-hand we developed this schedule. Through our project we were able to make assumptions about the cost the project and how it would be breakdown into further levels according to the UniFormat constructing schedule. We based these numbers largely on the fact that our project is an existing structure so for instance, much of the funds spent in creating a basement could used to build our suspended walkway over the Dequindre Cut. Furthermore, there may need to be some abetment of hazardous materials, ie. Asbestos in some parts of the building that would need to be paid for during this process. We also felt as that some of these systems in the building would need more or less an update to current standards, codes, and retrofitting. The electrical system could use some additional circuits, zones, and meters for the building that could facilitate the completion of the project. In addition the building as inspected during our site visit has a fire suppression system that similar to the electrical system would just need to be expanded to fit the current needs and uses of the building. These adjust a rough estimated guess on the construction cost estimate using some critical thinking and justification behind some of the choices we made.

54


elevations


55above the cut a place to live and work in the community

elevations B+C


N

candy mania

elevation B

elevation C

B

C

elevation c

elevation

56


sections


sections A+B


N

B

A

section A

section Bsection b

section a


57

section b

section a

58



59


Fitness Green at Farnsworth Neighborhood

BasketballCourt

SolarField

VegetatedStream Bank

VistaPoint

Kayaking Phyto-remediation

StormwaterSeparation

Key Plan

What if phytoremediation gardens regenerated the site?

A meandering neighborhood asset.