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
3
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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above the cut a place to live and work in the community
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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above the cut a place to live and work in the community
detroit amenities
urban design market feasibility development concept
Detroit Amenities
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above the cut a place to live and work in the community
5above the cut
a place to live and work in the community
project location-overall map of Detroit
urban design market feasibility development concept
above the cut
detroit context development teamw
above the cut a place to live and work in the community
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4above the cut
a place to live and work in the community
development team
urban design market feasibility development concept
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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above the cut a place to live and work in the community
Vision/Concept
above the cut a place to live and work in the community
vision+concept
urban design market feasibility development 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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above the cut a place to live and work in the community
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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above the cut a place to live and work in the community
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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above the cut a place to live and work in the community
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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market feasibility
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above the cut a place to live and work in the community
above the cut a place to live and work in the community
comparable projects-residential
5
urban design market feasibility development concept
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
above the cut a place to live and work in the community
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above the cut a place to live and work in the community
comparable projects-residential
5
urban design market feasibility development concept
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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above the cut a place to live and work in the community
above the cut a place to live and work in the community
comparable projects-institutional/retail
urban design market feasibility development concept
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
above the cut a place to live and work in the community
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above the cut a place to live and work in the community
comparable projects-candy shop
urban design market feasibility development concept
Woodward Avenue Candy Shop
Ferndale, Michigan
1800 square feet
-working place for outside orders “candy buffet”
comparables-candy store
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above the cut a place to live and work in the community
above the cut a place to live and work in the community
comparable projects-restaurant
urban design market feasibility development concept
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
above the cut a place to live and work in the community
market trends
5
urban design market feasibility development concept
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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above the cut a place to live and work in the community
above the cut a place to live and work in the community
user market
hipsters
urban design market feasibility development concept
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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above the cut a place to live and work in the community
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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above the cut a place to live and work in the community
above the cut a place to live and work in the community
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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above the cut a place to live and work in the community
user market
urban design market feasibility development concept
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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above the cut a place to live and work in the community
above the cut a place to live and work in the community
user market
urban design market feasibility development concept
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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above the cut a place to live and work in the community
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
above the cut a place to live and work in the community
architectural program
4
urban design market feasibility development concept
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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above the cut a place to live and work in the community
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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above the cut a place to live and work in the community
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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above the cut a place to live and work in the community
proposed lease/rent rates
above the cut a place to live and work in the community
proposed lease/rent rates
urban design market feasibility development concept
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
above the cut a place to live and work in the community
first floor plan
urban design market feasibility development concept
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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above the cut a place to live and work in the community
second floor plan
parking5400 s.f.
office5400 s.f.
retail800 s.f.
retail1800 s.f.
retail1100 s.f.
retail1100 s.f.
retail2200 s.f.
above the cut a place to live and work in the community
second floor plan
urban design market feasibility development concept
residential
commercial
institutional
parking
Scale: 1:40
above the cut a place to live and work in the community
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third floor plan
above the cut a place to live and work in the community
third floor plan
urban design market feasibility development concept
residential1800 s.f.
residential1800 s.f.
residential1600 s.f.
residential1600 s.f.
residential950 s.f.
residential950 s.f.
residential950 s.f.
residential950 s.f.
residential950 s.f.
residential1100 s.f.
residential1100 s.f.
residential1100 s.f.
residential1100 s.f.
residential1100 s.f.
residential
commercial
institutional
parking
Scale: 1:40
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above the cut a place to live and work in the community
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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above the cut a place to live and work in the community
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: $237600.00
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Major Group Elements Suggested Values Project Specific Values Percentage Cost of Construction
A. Substructure 15% 5% 298,275.00$
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
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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
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above the cut a place to live and work in the community
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$
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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.
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above the cut a place to live and work in the community
elevations
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elevations B+C
urban design market feasibility development concept
N
candy mania
elevation B
elevation C
B
C
elevation c
elevation
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above the cut a place to live and work in the community
sections
above the cut a place to live and work in the community
sections A+B
urban design market feasibility development concept
N
B
A
section A
section Bsection b
section a
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section b
section a
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above the cut a place to live and work in the community
above the cut a place to live and work in the community
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above the cut a place to live and work in the community
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.