City of Detroit Brownfield Redevelopment Authority Brownfield Plan for the the Junction Redevelopmentproject

EXHIBIT A

CITY OF DETROIT BROWNFIELD REDEVELOPMENT AUTHORITY

BROWNFIELD PLAN FOR THE THE JUNCTION REDEVELOPMENT PROJECT

2857 and 2863 East Grand Boulevard, 6540 St. Antoine Street, 6545, 6539, 6535, and 6527 Oakland Avenue 627 Milwaukee Avenue

Prepared by:

Method MJ LLC 1510 Surria Court Bloomfield Hills, MI 48304 Contact Person: Rocky Lala, Amelia Zamir Phone: (248) 421-5809

PM Environmental, Inc. 4080 West Eleven Mile Road Berkley, MI 48072 Contact Person: Ryan Higuchi Phone: (248) 414-1432

June ____, 2020

CITY OF DETROIT BROWNFIELD REDEVELOPMENT AUTHORITY BROWNFIELD PLAN

TABLE OF CONTENTS

I. INTRODUCTION I-1

II. GENERAL PROVISIONS

A. Description of Eligible Property II-2

B. Basis of Eligibility II-3

C. Summary of Eligible Activities II-3

D. Estimate of Captured Taxable Value and Tax II-5 Increment Revenues; Impact of Tax Increment Financing on Taxing Jurisdictions

E. Plan of Financing; Maximum Amount II-6 Of Indebtedness

F. Duration of Plan II-7

G. Effective Date of Inclusion II-8

H. Displacement/Relocation of Individuals II-8 On Eligible Property

I. Local Brownfield Revolving Fund (LBRF) II-8

J. Brownfield Redevelopment Fund II-9

K. Developer’s Obligations, Representations and Warrants II-9

III. ATTACHMENTS

A. Site Map A-1

B. Legal Description(s) B-1

C. Project Description C-1

D. Supportive Letters D-1

E. Estimated Cost of Eligible Activities E-1

F. TIF Tables F-1

G. BSEED Acknowledgement and Other Environmental Documents G-1

H. Documentation of Eligibility H-1

I. Incentive Chart I-1

Exhibit A The Junction Brownfield Redevelopment Plan

I. INTRODUCTION

In order to promote the revitalization of environmentally distressed and blighted areas within the boundaries of the City of Detroit, Michigan (the “City”), the City has established the City of Detroit Brownfield Redevelopment Authority (the “DBRA”) pursuant to Michigan Public Act 381 of 1996, as amended (“Act 381”).

The primary purpose of this Brownfield Plan (“Plan”) is to promote the redevelopment of and private investment in certain “brownfield” properties within the City. Inclusion of property within this Plan will facilitate financing of environmental response and other eligible activities at eligible properties and will also provide tax incentives to eligible taxpayers willing to invest in revitalization of eligible sites, commonly referred to as “brownfields.” By facilitating redevelopment of brownfield properties, this Plan is intended to promote economic growth for the benefit of the residents of the City and all taxing units located within and benefited by the DBRA.

This Plan is intended to apply to the eligible property identified in this Plan and, if tax increment revenues are proposed to be captured from that eligible property, to identify and authorize the eligible activities to be funded by such tax increment revenues.

This Plan is intended to be a living document, which may be modified or amended in accordance with the requirements of Act 381, as necessary to achieve the purposes of Act 381. A subsequent change to the identification or designation of developer after the approval of this Plan by the governing body shall not necessitate an amendment to the Plan, affect the application of this Plan to the eligible property or impair the rights available to the DBRA under this Plan. The applicable sections of Act 381 are noted throughout the Plan for reference purposes.

This Plan describes the project to be completed (see Attachment C) and contains all of the information required by Section 13(2) of Act 381.

1 Exhibit A The Junction Brownfield Redevelopment Plan

II. GENERAL PROVISIONS

A. Description of the Eligible Property (Section 13 (2)(h)) and the Project The property comprising the eligible property consists of eight (8) parcel(s). Parcels located at 2857 and 2863 East Grand Boulevard and 6540 St. Antoine are functionally obsolete, and 6545, 6539, 6535, and 6527 Oakland Avenue and 627 Milwaukee Avenue are adjacent and contiguous. The parcels and all tangible personal property located thereon will comprise the eligible property and is collectively referred to herein as the “Property.”

Attachment A includes a site map of the Property. The Property is located in Detroit’s Milwaukee Junction District, on the east side of Detroit, bounded by East Grand Boulevard to the north, Milwaukee Avenue to the south, Oakland Avenue to the east, and St. Antoine Street to the west.

Parcel information is outlined below. Attachment B provides the individual legal descriptions for the Property.

Address Tax ID Owner 2863 East Grand Blvd. 03001790. Method MJ LLC 2857 East Grand Blvd. 03001789. Method MJ LLC 6540 St. Antoine Street 03003271. Method MJ LLC 6545 Oakland Avenue 03003021.003L Method MJ LLC 6539 Oakland Avenue 03003022 Method MJ LLC 6535 Oakland Avenue 03003023 Method MJ LLC 6527 Oakland Avenue 03003024 Method MJ LLC 627 Milwaukee 03001778-83 Method MJ LLC

Method MJ LLC is the owner of the Property and Method Development is the project developer (“Developer”). The project involves the redevelopment of the existing structures into approximately 14 market rate apartments, approximately 4 affordable rate apartments, approximately 47,876 square feet of office space, and approximately 11,631 square feet of retail space. It is currently anticipated that construction will begin in the late summer of 2020 and that all eligible activities will be completed within eighteen (18) months after commencement of construction. The project description provided herein is a summary of the proposed development at the time of the adoption of the Plan. The actual development may vary from the project description provided herein, without necessitating an amendment to this Plan, so long as such variations are not material and/or arise as a result of changes in market and/or financing conditions affecting the project and/or are related to the addition or immaterial removal of amenities to the project. All material changes, as determined by the DBRA in its sole discretion, to the project description are subject to the approval of the DBRA staff and shall be consistent with the overall nature of the proposed development, its proposed public purpose, and the purposes of Act 381.

Attachment C provides a description of the project to be completed at the Property (the “Project”) and Attachment D includes letters of support for the Project.

Exhibit A The Junction Brownfield Redevelopment Plan

B. Basis of Eligibility (Section 13 (2)(h) and Section 2 (o)) The Property is considered “eligible property” as defined by Act 381, Section 2 because (a) the Property was previously utilized for commercial and industrial purposes; (b) it is located within the City of Detroit, a qualified local governmental unit under Act 381; and (c) the parcels comprising the Property are determined to be functionally obsolete, or are adjacent and contiguous to a property that is functionally obsolete and the development of these parcels is estimated to increase the taxable value of those properties.

The buildings located at 2857 and 2863 East Grand Boulevard and 6540 St. Antoine are unable to be used to adequately perform the function for which it was intended due to a substantial loss in value. The requisite affidavit signed by a level 4 assessor certifying the assessor’s expert opinion that these parcels are functionally obsolete is included under Attachment H. Further descriptions of the eligibility of the Property is outlined below.

2857 and 2863 East Grand Boulevard  Repairs needed to the building structure and roof,  Deficiencies in design,  Window and door replacement  The lack of HVAC, plumbing and electrical systems  Elevator replacement

6540 St. Antoine Street  Repairs needed to the building structure,  Deficiencies in design,  Window and door replacement or rehabilitation  The antiquation of HVAC, plumbing and electrical systems  Elevator replacement

Additional addresses: The parcels located at 6545, 6539, 6535, 6527 Oakland Avenue and 627 Milwaukee Avenue are adjacent and contiguous to the above referenced properties and the development of these parcels is estimated to increase the taxable value of those properties.

C. Summary of Eligible Activities and Description of Costs (Section 13 (2)(a),(b)) The “eligible activities” that are intended to be carried out at the Property are considered “eligible activities” as defined by Section 2 of Act 381 and include Baseline Environmental Assessment activities, demolition and lead and asbestos abatement, infrastructure improvements, site preparation activities, and the preparation and implementation of a brownfield plan and Act 381 work plan.

A summary of the eligible activities and the estimated cost of each eligible activity intended to be reimbursed with tax increment revenues from the Property are shown in the table attached hereto as Attachment E. The eligible activities described in Attachment E are not exhaustive. Subject to the approval of DBRA staff in writing, additional eligible activities may be carried out at the Property, without requiring an amendment to this Plan, so long

Exhibit A The Junction Brownfield Redevelopment Plan as such eligible activities are permitted by Act 381 and the performance of such eligible activities does not exceed the total costs stated in Attachment E.

Unless otherwise agreed to in writing by the DBRA, all eligible activities shall commence within eighteen (18) months after the date the governing body approves this Plan and be completed within three (3) years after approval of the Michigan Strategic Fund (“MSF”) work plan, if applicable, or three (3) years after execution of the Reimbursement Agreement (as that term is defined below). Any long-term monitoring or operation and maintenance activities or obligations that may be required will be performed in compliance with the terms of this Plan and any documents prepared pursuant to this Plan.

“Pre-plan” eligible activity costs pertaining to demolition have been incurred. It is anticipated these will fall within 240 days prior to this plan’s approval by Detroit City Council in accordance with DBRA policy. Activities that included demolition, selective interior demolition, and excavation were necessary to address immediate structural and safety issues, prevent further damage from flooding, and support the need for utility work.

The remainder of the eligible activities are anticipated to begin in the late summer of 2020, with completion by Winter 2021.

The Developer desires to be reimbursed for the costs of eligible activities. Tax increment revenue generated by the Property will be captured by the DBRA and used to reimburse the cost of the eligible activities completed on the Property pursuant to the terms of a Reimbursement Agreement to be executed by the DBRA and the Developer after approval of this Plan (the “Reimbursement Agreement”), to the extent permitted by Act 381. In the event this Plan contemplates the capture of tax increment revenue derived from “taxes levied for school operating purposes” (as defined by Section 2(uu) of Act 381 and hereinafter referred to as “School Taxes”), the Developer acknowledges and agrees that DBRA’s obligation to reimburse the Developer for the cost of eligible activities with tax increment revenue derived from Local Taxes, or Specific Taxes that are considered Local Taxes, (as these capitalized terms are defined by Act 381) is contingent upon: (i) the Developer receiving at least the initial applicable work plan approvals by the MSF and the Michigan Department of Environment, Great Lakes and Energy (EGLE), as may be required pursuant to Act 381, or (ii) the Developer providing the DBRA with evidence, satisfactory to DBRA, that the Developer has the financial means to complete the Project without the capture of, and subsequent reimbursement with, the contemplated School Taxes.

The costs listed in Attachment E are estimated costs and may increase or decrease depending on the nature and extent of environmental contamination and other unknown conditions encountered on the Property. The actual cost of those eligible activities encompassed by this Plan that will qualify for reimbursement from tax increment revenues of the DBRA from the Property shall be governed by the terms of the Reimbursement Agreement. No costs of eligible activities will be qualified for reimbursement except to the extent permitted in accordance with the terms and conditions of the Reimbursement Agreement and Act 381. The Reimbursement Agreement and this Plan will dictate the total cost of eligible activities subject to payment or reimbursement, provided that the total

Exhibit A The Junction Brownfield Redevelopment Plan cost of eligible activities subject to payment or reimbursement under the Reimbursement Agreement shall not exceed the estimated costs set forth in Attachment E. As long as the total costs are not exceeded, line item costs of eligible activities may be adjusted after the date this Plan is approved by the governing body, to the extent the adjustments do not violate the terms of the approved EGLE or MSF work plan.

D. Estimate of Captured Taxable Value and Tax Increment Revenues (Section 13(2)(c)); Beginning Date of Capture of Tax Increment Revenues (Section (13)(2)(f); Impact of Tax Increment Financing on Taxing Jurisdictions (Section 13(2)(g)) This Plan anticipates the capture of tax increment revenues to reimburse the Developer for the costs of eligible activities under this Plan in accordance with the Reimbursement Agreement. Subject to Section 13(b)(16) of Act 381, a table of estimated tax increment revenues to be captured is attached to this Plan as Attachment F.

Tax increments are projected to be captured and applied to (i) reimbursement of eligible activity costs and payment of DBRA administrative and operating expenses, (ii) make deposits into the State Brownfield Redevelopment Fund, and (iii) make deposits into the DBRA’s Local Brownfield Revolving Fund, as follows:

Reimbursement Admin. State Local Costs Costs Brownfield Revolving Fund Fund State Education Tax $ 152,450 $ 0 $ 91,144 $ 0 School Operating Tax $ 457,351 $ 0 $ 0 $ 0 Wayne County $ 61,666 $ 48,271 $ 0 $ 54,845 Wayne County Jails $ 8,715 $ 6,822 $ 0 $ 7,751 Wayne County Parks $ 2,284 $ 1,788 $ 0 $ 2,032 Wayne County HCMA $ 1,967 $ 1,539 $ 0 $ 1,749 Wayne County RESA $ 896 $ 702 $ 0 $ 797 Wayne County RESA Sp. $ 31,286 $ 24,490 $ 0 $ 27,826 Wayne County RESA Enh. $ 0.00 $ 0.00 $ 0 $ 0 Wayne County CC $ 30,107 $ 23,567 $ 0 $ 26,776 General City $ 185,352 $145,090 $ 0 $164,849 Library $ 43,019 $ 33,674 $ 0 $ 38,260 TOTALS $ 975,094 $285,944 $ 91,144 $324,884

In addition, the following taxes are projected to be generated but shall not be captured during the life of this Plan:

Debt Service $ 157,512 School Debt $ 227,517 Wayne County DIA $ 1.750 Wayne County Zoo $ 3,500 TOTAL $ 390,280

Exhibit A The Junction Brownfield Redevelopment Plan

The Developer is also pursuing tax abatements under Public Act 146, the Obsolete Property Rehabilitation Act (OPRA) for the properties located at 2857 and 2863 East Grand Boulevard. The Developer also intends to transfer an existing certificate for tax abatements under Public Act 210, the Commercial Rehabilitation Act, for the property located at 6540 St. Antoine Street. If approved, these abatements will reduce the property tax obligations of the Property for the periods applicable under the tax abatement certificates, thereby reducing the amount of tax increment revenues available pursuant to this Plan. These abatements are included in the tax capture assumptions provided with this Plan in Attachment F.

In no event shall the duration of this Plan exceed thirty-five (35) years following the date of the governing body’s resolution approving this Plan, nor shall the duration of the tax capture exceed the lesser of the period authorized under subsection (5) of Section 13 of Act 381 or 30 years. Further, in no event shall the beginning date of the capture of tax increment revenues be later than five (5) years after the date of the governing body’s resolution approving this Plan.

E. Plan of Financing (Section 13(2)(d)); Maximum Amount of Indebtedness (Section 13(2)(e)) The eligible activities are to be financed solely by the Developer. The DBRA will reimburse the Developer for the cost of approved eligible activities, but only from tax increment revenues generated from the Property. No advances have been or shall be made by the City or the DBRA for the costs of eligible activities under this Plan.

All reimbursements authorized under this Plan shall be governed by the Reimbursement Agreement. The inclusion of eligible activities and estimates of costs to be reimbursed in this Plan are intended to authorize the DBRA to fund such reimbursements and does not obligate the DBRA or the City to fund any reimbursement or to enter into the Reimbursement Agreement providing for the reimbursement of any costs for which tax increment revenues may be captured under this Plan, or which are permitted to be reimbursed under this Plan. The amount and source of any tax increment revenues that will be used for purposes authorized by this Plan, and the terms and conditions for such use and upon any reimbursement of the expenses permitted by this Plan, will be provided solely under the Reimbursement Agreement contemplated by this Plan.

Unless otherwise agreed upon by the Developer, the DBRA, and the State of Michigan, the DBRA shall not incur any note or bonded indebtedness to finance the purposes of this Plan.

Interest shall be paid under this Plan as provided in the Reimbursement Agreement, provided that to the extent that the MSF or EGLE does not approve the payment of interest on an eligible activity with school taxes, interest shall not accrue or be paid under this Plan with respect to the cost of such eligible activity. Unless otherwise agreed upon by the Developer, the DBRA, and the State of Michigan, the DBRA may approve interest on the local portion of the reimbursement to the extent that the projected internal rate of return to the Developer does not exceed twenty (20%), as more specifically stated in the Reimbursement Agreement.

Exhibit A The Junction Brownfield Redevelopment Plan

Reimbursements under the Reimbursement Agreement shall not exceed the cost of eligible activities permitted under this Plan.

F. Duration of Plan (Section 13(2)(f))

Subject to Section 13b(16) of Act 381, the beginning date of capture of tax increment revenues for the Property shall occur in accordance with the TIF table described in Attachment F. In no event, however, shall this Plan extend beyond the maximum term allowed by Section 13(2)(f) of Act 381 for the duration of this Plan.

Furthermore, this Plan, or any subsequent amendment thereto, may be abolished or terminated in accordance with Section 14(8) of Act 381 in the event of any of the following: a. The governing body may abolish this Plan (or any subsequent amendment thereto) when it finds that the purposes for which this Plan was established have been accomplished. b. The governing body may terminate this Plan (or any subsequent amendment thereto) if the project for which eligible activities were identified in this Plan (or any subsequent amendment thereto) fails to occur with respect to the eligible property for at least two (2) years following the date of the governing body resolution approving this Plan (or any subsequent amendment thereto), provided that the governing body first does both of the following: (i) gives 30 days’ written notice to the Developer at its last known address by certified mail or other method that documents proof of delivery attempted; and (ii) provides the Developer with an opportunity to be heard at a public meeting. Notwithstanding anything in this subsection to the contrary, this Plan (or any subsequent amendment thereto) shall not be abolished or terminated until the principal and interest on bonds, if any, issued under Section 17 of Act 381 and all other obligations to which the tax increment revenues are pledged have been paid or funds sufficient to make the payment have been identified or segregated.

G. Effective Date of Inclusion in Brownfield Plan The Property will become a part of this Plan on the date this Plan is approved by the governing body.

H. Displacement/Relocation of Individuals on Eligible Property (Section 13(2)(i-l)) There are no persons or businesses residing on the eligible property and no occupied residences will be acquired or cleared. Therefore, there will be no displacement or relocation of persons or businesses under this Plan.

I. Local Brownfield Revolving Fund (“LBRF”) (Section 8; Section 13(2)(m)) The DBRA has established a Local Brownfield Revolving Fund (LBRF). The LBRF will consist of all tax increment revenues authorized to be captured and deposited in the LBRF, as specified in Section 13(5) of Act 381, under this Plan and any other plan of the DBRA. It may also include funds appropriated or otherwise made available from public or private sources.

Exhibit A The Junction Brownfield Redevelopment Plan

The amount of tax increment revenue authorized for capture and deposit in the LBRF is estimated at $324,884. All funds, if any, deposited in the LBRF shall be used in accordance with Section 8 of Act 381. J. Brownfield Redevelopment Fund (Section 8a; Section 13(2)(m)) The DBRA shall pay to the Department of Treasury at least once annually an amount equal to fifty percent of the taxes levied under the state education tax, 1993 PA 331, MCL 211.901 to 211.906, that are captured under this Plan for up to the first twenty-five (25) years of the duration of capture of tax increment revenues for each eligible property included in this Plan. If the DBRA pays an amount equal to fifty percent of the taxes levied under the state education tax, 1993 PA 331, MCL 211.901 to 211.906, on a parcel of eligible property to the Department of Treasury under Section 13b(14) of Act 381, the percentage of local taxes levied on that parcel and used to reimburse eligible activities for the Project under this Plan shall not exceed the percentage of local taxes levied on that parcel that would have been used to reimburse eligible activities for the Project under this Plan if fifty percent of the taxes levied under the state education tax, 1993 PA 331, MCL 211.901 to 211.906, on that parcel were not paid to the Department of Treasury under Section 13b(14) of Act 381.

K. Developer’s Obligations, Representations and Warrants The Developer and its affiliates shall comply with all applicable laws, ordinances, executive orders, or other regulations imposed by the City or any other properly constituted governmental authority with respect to the Property and shall use the Property in accordance with this Plan.

The Developer, at its sole cost and expense, shall be solely responsible for and shall fully comply with all applicable federal, state, and local relocation requirements in implementing this Plan.

The Developer represents and warrants that a Phase I Environmental Site Assessment (“ESA”), a Phase II ESA, baseline environmental assessment, and due care plan, pursuant to Part 201 of Michigan’s Natural Resources and Environmental Protection Act (MCL 324.20101 et seq.), have been performed on the Property (“Environmental Documents”). Attached hereto as Attachment G is the City of Detroit’s Department of Buildings, Safety Engineering and Environmental acknowledgement of its receipt of the Environmental Documents.

The Developer further represents and warrants that the Project does not and will not include a City of Detroit Land Bank Authority, Wayne County Land Bank Authority or State of Michigan Land Bank financing component.

Except as otherwise agreed to by the DBRA, any breach of a representation or warranty contained in this Plan shall render the Plan invalid, subject to the Developer’s reasonable opportunity to cure as described in the Reimbursement Agreement.

#3708938 v9

Exhibit A The Junction Brownfield Redevelopment Plan

III. ATTACHMENTS

Exhibit A The Junction Brownfield Redevelopment Plan

ATTACHMENT A

Site Map

Wayne County Parcel Viewer

March 13, 2020 1:2,257 0 0.02 0.04 0.07mi

0 0.03 0.06 0.12km

Sources: Esri, HERE, Garmin, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), (c) OpenStreetMap contributors, and the GIS User Community Exhibit A The Junction Brownfield Redevelopment Plan

ATTACHMENT B

Legal Descriptions of Eligible Property to which the Plan Applies

ATTACHMENT B LEGAL DESCRIPTIONS 2863 East Grand Boulevard Parcel ID: 03001790.

S--E GRAND BLVD 231&232 E 15 FT 233 FRISBIE & FOXENS SUB L6 P78 PLATS, W C R 3/84 75 X 110

2857 East Grand Boulevard Parcel ID: 03001789.

S GRAND BLVD E 229-230 FRISBIE & FOXENS L6 P78 PLATS, W C R 3/84 51.9 X 110

6540 St. Antoine Parcel ID: 03003271. (also listed as 23002015.025F & 23002015.025N)

E ST ANTOINE 87 THRU 84 AND W 10 FT VAC ALLEY ADJ FRISBIE & FOXENS L6 P78 PLATS W C R 3/84 15,257 SQ FT CRA CERTIFICATE C2015-025 EXPIRES 12/30/2027 RELATED AD VALOREM PARCEL 03003271. AND 03003272.

6545 Oakland Parcel ID: 03003021.003L

W OAKLAND 99 AND E 10 FT VAC ALLEY ADJ FRISBIE & FOXENS L6 P78 PLATS, W C R 3/84 28.53 X 131.9

6539 Oakland Parcel ID: 03003022

W OAKLAND 98 AND E 10 FT VAC ALLEY ADJ FRISBIE & FOXENS L6 P78 PLATS, W C R 3/84 30 X 131.9

6535 Oakland Parcel ID: 03003023

W OAKLAND 97 AND E 10 FT VAC ALLEY ADJ FRISBIE & FOXENS L6 P78 PLATS, W C R 3/84 30 X 131.9

6527 Oakland Parcel ID: 03003024

W OAKLAND 96 AND E 10 FT VAC ALLEY ADJ FRISBIE & FOXENS L6 P78 PLATS, W C R 3/84 30 X 131.9 627 East Milwaukee Parcel ID: 03001778-83

N MILWAUKEE E 19.10 FT OF 4 5 THRU 9SUB OF LOTS 88 TO 95 OF FRISBEE & FOXENS SUB L8 P78 PLATS, WCR 3/85 164.6 X 104

Exhibit A The Junction Brownfield Redevelopment Plan

ATTACHMENT C

Project Description

The Junction 2857 and 2863 East Grand Boulevard, 6540 St. Antoine Street, 6545, 6539, 6535, and 6527 Oakland Avenue, and 627 Milwaukee Avenue

PROJECT DESCRIPTION

Development Team and Company Synopsis

Method MJ LLC (Developer) is a real estate investment and development company, founded in 2014 to participate in Detroit's 21st century renaissance. The founding principles are dedicated to creatively reactivating obsolete buildings across the City. Method acquires and re-positions properties in a deliberate manner, which embraces the immediate surroundings to create a long- lasting, positive impact on the local community. With over 20 years of combined experience in real estate development, acquisitions, and asset management, the Developer’s portfolio includes residential, co-work and retail space with unique historic character in prime locations close to transportation and the Riverfront.

The development team has selected Stonefield Engineering and Design as the civil engineering consultant and Rok Construction Services as the General Contractor, both of whom are Detroit based. Oombra Architects, LLC is the consulting architect for the project.

Project Synopsis

The Developer intends to renovate two adjoining commercial buildings consisting of one and three stories, and an adjacent four-story, commercial building located in Detroit’s Milwaukee Junction District. The three buildings have been used for a variety of uses that include various lithographic and printing operations, general office, machine shops, and storage purposes.

The two connected buildings located at 2857 and 2863 East Grand Boulevard, formerly known as the Fox Maurice Building, totals 29,656 square feet and was constructed in approximately 1921. The building located at 6540 St. Antoine Street totals 62,585 square feet and was constructed in approximately 1929. The parcels located at 6527-6545 Oakland Avenue and 627 Milwaukee Avenue have been vacant since at least 1972 and are currently used for parking.

The project will convert the buildings located at 2857 and 2863 East Grand Boulevard into retail and residential use. Totaling approximately 11,631 square feet, the retail component, which will include a restaurant/bar and retail shops was incorporated into the development plan as a result of a collaborative decision with the local community and will be featured on the ground floor. Residential apartments will occupy the stories above, totaling approximately 16,000 square feet. Apartment accommodations will create an estimated 18 units, offering studio, 1-bedroom, and 2-bedroom layouts. Four (4) of the residential units will be reserved as affordable units at 80% Area Median Income (AMI).

The four-story building located at 6540 St. Antoine Street, totaling 47,876 square feet, will be renovated to accommodate creative office space.

Building renovations will incorporate essential considerations specific to modern urban living. Specifically, the rehabilitation of the properties includes selective demolition to address structure issues, the repair or replacement of deteriorated and/or damaged plaster, masonry, brick and stone, and electrical, plumbing and HVAC upgrades. Upon completion, this project will bring functionally obsolete buildings back to productive use, addressing the growing demand for residential, office and retail space in the Milwaukee Junction District of Detroit, and will further catalyze economic development in the area.

Attachment C Page 1

In addition, the Junction Development will feature improvements to the alleyways, which includes the creation of a community gathering space, as well as the resurfacing of parking areas. The space will include artfully crafted lighting and public seating areas with raised bed landscaping. The repaving of alleyways and sidewalks, in addition to improved façade lighting will make the property more accessible to the public.

Project Investment Estimates

Capital Cost Total Cost Acquisition Cost $ 3,577,488 Renovation/Rehabilitation $ 8,537,145 Soft Costs $ 847,736 Total Capital Costs $ 12,962,369

Additional Financing Incentives Associated with the Redevelopment

Substantial investment is necessary to rehabilitate the existing buildings. In efforts to grow this project into a viable, long-term redevelopment, the Developer will also apply for a transfer for an existing Commercial Rehabilitation Act (PA 210) Tax Abatement for the 6540 St. Antoine Street property (expires 12/2027), and an Obsolete Property Rehabilitation (ORPA) Tax Abatement for the 2857 and 2863 East Grand Boulevard properties, both of which are currently in progress.

Cost/Benefit Analysis

The proposed project will help meet demand for retail and housing stock in Detroit’s Milwaukee Junction District and bring three buildings back to productive use after years of underuse, vacancy and neglect. The additional retail and residential apartments within the City will contribute to new income tax for Detroit as a result of the creation of private investment. The project will provide opportunities for retail and catalyze economic development in the surrounding area. Local businesses in the area will benefit from an influx of new jobs into the area and an increase in spinoff consumer spending.

On a short-term basis, approximately 120 construction jobs will be needed over the course of the estimated 18-month construction period. As a result of this project, the developer intends to add 1 FTE to the development team. The FTE will most likely be a real estate analyst or controller and will be a priority to be filled with a Detroit resident. On a long-term basis the proposed redevelopment associated with the project will create approximately 150 full-time equivalent (FTE) office jobs and 135 FTE retail jobs. The development team intends to solicit bidders and garner opportunities to employ Detroit residents.

Following the expiration of the 12-year OPRA and PA 210 abatements, the buildings will deliver a significant increase in tax revenue. Preliminary projections indicate that the project will foster an increase of approximately $183,000 in additional property taxes annually.

Attachment C Page 2

Exhibit A The Junction Brownfield Redevelopment Plan

ATTACHMENT D

Supportive Letters

Coleman A. Young Municipal Center Phone: 313.224.1339 2 Woodward Avenue, Suite 808 Fax: 313.224.1310 Detroit, Michigan 48226 www.detroitmi.gov/pdd

April 9, 2020

Ms. Jennifer Kanalos Authorized Agent Detroit Brownfield Redevelopment Authority 500 Griswold, Suite 2200 Detroit, Michigan 48226

RE: Milwaukee Junction Brownfield Redevelopment Plan

Dear Ms. Kanalos,

The Detroit Brownfield Redevelopment Authority (DBRA) has asked that the Planning and Development Department to review and comment on the Milwaukee Junction Brownfield Redevelopment Plan (the “Plan”).

Method Development is the project developer (“Developer”). The property in the Plan is located on eight parcels bounded by East Grant Boulevard to the north, Oakland Street to the east, East Milwaukee Avenue to the south, and St. Antoine Street to the west in Detroit’s Milwaukee Junction neighborhood.

The project will include the rehabilitation of 3 existing commercial buildings into 14 market rate apartments, 4 affordable rate apartments, over 58,000 s.f. of office space, and over 11,000 s.f. of retail space. Five currently vacant lots will be paved and landscaped for a new parking lot to serve the apartments and commercial office & retail space

The development will redevelop a significant number of vacant buildings and lots in the Milwaukee Junction neighborhood of Detroit. Total investment is estimated at $14 million.

The review for this brownfield plan is complete and all comments have been forwarded to the developer. No adverse comments were received. The Planning and Development Department recommends approval of the brownfield plan as submitted.

Sincerely,

Russell Baltimore Assistant Director Design Review Planning and Development Department c: B. Vosburg C. Capler

March 31, 2020

Detroit City Council Coleman A. Young Municipal Center 2 Woodward Avenue, Suite 1340 Detroit, Michigan 48226

Dear Honorable City of Detroit Council Members:

On behalf of Midtown Detroit, Inc. (MDI), I would like to express support of Method MJ LLC’s redevelopment project located within the Milwaukee Junction District of Detroit. The redevelopment of 2857-2863 East Grand Boulevard and 6540 St. Antoine Street will assist in making the community and immediate surrounding area more attractive to individuals who may consider shopping, working and living within the Milwaukee Junction District.

As the community and economic development organization adjacent to Milwaukee Junction, I believe that as a result of the project, New Center and the entire City will benefit. This project will help spur the local economy and in turn improve quality of life with new businesses and a healthier environment.

Midtown Detroit, Inc appreciates the Council’s efforts to assist in the redevelopment and reuse of brownfield and obsolete properties and looks forward to the continuation Detroit’s economic growth.

Sincerely,

Susan T. Mosey Executive Director

MIDTOWN DETROIT, INC. | www.midtowndetroitinc.org 3939 Woodward, Ste. 100 | Detroit | MI | 48201 | p: 313.420.6000

June 3rd, 2020

Detroit City Council Coleman A. Young Municipal Center 2 Woodward Avenue, Suite 1340 Detroit, Michigan 48226

Dear Council Members: On behalf of KNR Properties, we would like to express support of Method MJ LLC’s redevelopment project that is located within the Milwaukee Junction District of Detroit. The redevelopment of 2857-2863 East Grand Boulevard and 6540 St. Antoine Street will assist in making the community and immediate surrounding area more attractive to individuals who may consider shopping, working and living within the Milwaukee Junction District. As a result of the project, the entire City will benefit as the local economy and quality of life improves with new businesses and a healthier environment.

As we discussed with Mr. Lala of Method MJ LLC, we express support within the conditions that during developments, the interests of the local community are considered of great importance, and that the development project follows through with efforts such as offering some affordable housing, community meeting spaces and engagement, and any other initiatives that benefit and uplift the current local community. Resulting from our conversation with Mr. Lala, we feel confident that Method MJ LLC will uphold these efforts and wholly support their development.

KNR Properties appreciates the Council’s efforts to assist in the redevelopment and reuse of brownfield and obsolete properties and looks forward to the continuation of Detroit's economic growth.

Sincerely,

Nicholas Stachurski, KNR Properties

March 13, 2020

Detroit City Council Coleman A. Young Municipal Center 2 Woodward Avenue, Suite 1340 Detroit, Michigan 48226

Dear Council Members: On behalf of Kiesling LLC, we would like to express support of Method MJ LLC’s redevelopment project that is located within the Milwaukee Junction District of Detroit. The redevelopment of 2857-2863 East Grand Boulevard and 6540 St. Antoine Street will assist in making the community and immediate surrounding area more attractive to individuals who may consider shopping, working and living within the Milwaukee Junction District. As a result of the project, the entire City will benefit as the local economy and quality of life improves with new businesses and a healthier environment.

Kiesling LLC appreciates the Council’s efforts to assist in the redevelopment and reuse of brownfield and obsolete properties and looks forward to the continuation Detroit’s economic growth.

Sincerely,

Carlo Liburdi Owner; Kiesling

June 9, 2020

Detroit City Council Coleman A. Young Municipal Center 2 Woodward Avenue, Suite 1340 Detroit, Michigan 48226

Dear Council Members:

On behalf of Town Partners, we would like to express support of Method MJ LLC’s development project that is located within the Milwaukee Junction District of Detroit. The redevelopment of 2857-2863 East Grand Boulevard and 6540 St. Antoine Street will be a catalytic investment for the area. I believe the development Method is proposing will not only benefit the local economy, but it will induce additional investment in the neighborhood and contribute towards improving the quality of life for local residents and businesses.

Town Partners appreciates the Council’s efforts to assist in the redevelopment and reuse of brownfield and obsolete properties and believe this incentive is integral in allowing Method to honor and redevelop these historically significant buildings.

Best,

Jordan Wolfe Principal, Town Partners

PO Box 9249, Detroit, MI 48209 1

June 9th, 2020

Detroit City Council Coleman A. Young Municipal Center 2 Woodward Avenue, Suite 1340 Detroit, Michigan 48226

Dear Council Members: On behalf of Rebuild Group we would like to express support of Method MJ LLC’s redevelopment project that is located within the Milwaukee Junction District of Detroit. The redevelopment of 2857-2863 East Grand Boulevard and 6540 St. Antoine Street will assist in making the community and immediate surrounding area more attractive to individuals who may consider shopping, working and living within the Milwaukee Junction District. As a result of the project, the entire City will benefit as the local economy and quality of life improves with new businesses and a healthier environment.

Rebuild Group appreciates the Council’s efforts to assist in the redevelopment and reuse of brownfield and obsolete properties and looks forward to the continuation Detroit’s economic growth.

Sincerely,

Josh Gershonowicz President, CEO (855) 725-3628 Ext. 710 2921 E. Grand Blvd. Ste. 200 Detroit, MI 48202

Exhibit A The Junction Brownfield Redevelopment Plan

ATTACHMENT E

Estimated Cost of Eligible Activities Table

The Junction Table 1: Eligible Activities Cost Estimates 2857-2863 East Grand Boulevard, 6540 St. Antoine Street 6545, 6539, 6535, and 6527 Oakland Avenue, and 627 Milwaukee Street Detroit, Michigan MSF Act 381 Eligible EGLE Act 381 Eligible Table 1: Eligible Activities Cost Estimates Total Request Activities Activities Pre-Approved Activities Phase I ESA $ 2,800 $ 2,800 Phase II ESA/BEA/DDCC $ 2,000 $ 2,000 Pre-Approved Activities Sub-Total $ 4,800 $ - $ 4,800

Demolition Building Demolition Activities $ 209,780 $ 209,780 $ - Parking Lot Demolition $ 30,150 $ 30,150 $ - Alley Demolition $ 19,790 $ 19,790 $ - Demolition Sub-Total $ 259,720 $ 259,720 $ -

Asbestos, Lead and Mold Activities

Lead and Asbestos Abatement $ 135,000 $ 135,000 $ - Asbestos, Lead and Mold Activities Sub-Total $ 135,000 $ 135,000 $ -

Infrastructure Improvements Curbs and Gutters $ 4,663 $ 4,663 $ - Side Walk Improvements $ 42,520 $ 42,520 $ - Public Lighting $ 53,327 $ 53,327 $ - Landscaping in ROW $ 27,650 $ 27,650 $ - Paving Public Alley $ 83,700 $ 83,700 $ - Infrastructure Sub-Total $ 211,860 $ 211,860 $ -

Site Preparation Temporary Erosion Control $ 4,800 $ 4,800 $ - Temporary Site Control (fencing, gates, signage and/or lighting) $ 11,700 $ 11,700 $ - Grading (including reasonable mass grading of entire project site) $ 154,680 $ 154,680 $ - Grading/compaction/backfill for alleys (preparation for paving) $ 13,800 $ 13,800 $ - Site Preparation Sub-Total $ 184,980 $ 184,980 $ -

Brownfield Plan and Act 381 Workplan Brownfield Plan Preparation $ 30,000 $ 30,000 $ - Brownfield Plan Implementation $ 30,000 $ 30,000 $ - Brownfield Plan and Act 381 Workplan Sub-Total $ 60,000 $ 60,000 $ -

Eligible Activities Sub-Total $ 856,360 $ 851,560 $ 4,800 15% Contingency* $ 118,734 $ 118,734 $ - Developer Eligible Reimbursement Total $ 975,094 $ 970,294 $ 4,800 TIF Capture for Local Site Remediation Revolving Fund $ 357,151 Administrative Fee $ 253,677 State Brownfield Fund $ 91,144 Total $ 1,677,066 $ 970,294 $ 4,800 *15% Contingency excludes preparation of Brownfield Plan/381 Work Plan and Pre-Approved Activities Exhibit A The Junction Brownfield Redevelopment Plan

ATTACHMENT F

TIF Tables

Table 2a: Tax Increment Revenue Capture Estimates Table With PA 210 The Junction 6540 St. Antoine Street 6545, 6539, 6535, and 6527 Oakland Avenue, and 627 Milwaukee Street, Detroit

Estimated Taxable Value (TV) Increase Rate: 1% per year Plan Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TOTAL Calendar Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 *Base Taxable Value $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 $ 301,300 Estimated New TV $ 301,300 $ 1,400,000 $ 1,414,000 $ 1,428,140 $ 1,442,421 $ 1,456,846 $ 1,471,414 $ 1,486,128 $ 1,500,989 $ 1,515,999 $ 1,531,159 $ 1,546,471 $ 1,561,936 $ 1,577,555 $ 1,593,331 $ 1,609,264 $ 1,625,357 $ 1,641,610 $ 1,658,026 $ 1,674,606 Incremental Difference (New TV - Base TV) $ - $ 1,098,700 $ 1,112,700 $ 1,126,840 $ 1,141,121 $ 1,155,546 $ 1,170,114 $ 1,184,828 $ 1,199,689 $ 1,214,699 $ 1,229,859 $ 1,245,171 $ 1,260,636 $ 1,276,255 $ 1,292,031 $ 1,307,964 $ 1,324,057 $ 1,340,310 $ 1,356,726 $ 1,373,306

School Capture Millage Rate State Education 6.0000 $ 1,808 $ - $ 6,592 $ 6,676 $ 6,761 $ 6,847 $ 6,933 $ 7,021 $ 7,109 $ 7,198 $ 7,288 $ 7,379 $ 7,471 $ 7,564 $ 7,658 $ 7,752 $ 7,848 $ 7,944 $ 8,042 $ 8,140 $ 8,240 $ 140,463 School Operating 18.0000 $ 5,423 $ - $ 19,777 $ 20,029 $ 20,283 $ 20,540 $ 20,800 $ 21,062 $ 21,327 $ 21,594 $ 21,865 $ 22,137 $ 22,413 $ 22,691 $ 22,973 $ 23,257 $ 23,543 $ 23,833 $ 24,126 $ 24,421 $ 24,720 $ 421,390 School Total 24.0000 $ 7,231 $ - $ 26,369 $ 26,705 $ 27,044 $ 27,387 $ 27,733 $ 28,083 $ 28,436 $ 28,793 $ 29,153 $ 29,517 $ 29,884 $ 30,255 $ 30,630 $ 31,009 $ 31,391 $ 31,777 $ 32,167 $ 32,561 $ 32,959 $ 561,853

Local Capture Millage Rate PA210 Tax Abatement Wayne County 6.6380 $ 2,000 $ - $ - $ - $ - $ - $ - $ - $ 7,865 $ 7,964 $ 8,063 $ 8,164 $ 8,265 $ 8,368 $ 8,472 $ 8,576 $ 8,682 $ 8,789 $ 8,897 $ 9,006 $ 9,116 $ 110,228 Wayne County Jails 0.9381 $ 283 $ - $ - $ - $ - $ - $ - $ - $ 1,111 $ 1,125 $ 1,140 $ 1,154 $ 1,168 $ 1,183 $ 1,197 $ 1,212 $ 1,227 $ 1,242 $ 1,257 $ 1,273 $ 1,288 $ 15,578 Wayne County Parks 0.2459 $ 74 $ - $ - $ - $ - $ - $ - $ - $ 291 $ 295 $ 299 $ 302 $ 306 $ 310 $ 314 $ 318 $ 322 $ 326 $ 330 $ 334 $ 338 $ 4,083 Wayne County HCMA 0.2117 $ 64 $ - $ - $ - $ - $ - $ - $ - $ 251 $ 254 $ 257 $ 260 $ 264 $ 267 $ 270 $ 274 $ 277 $ 280 $ 284 $ 287 $ 291 $ 3,515 Wayne County RESA 0.0965 $ 29 $ - $ - $ - $ - $ - $ - $ - $ 114 $ 116 $ 117 $ 119 $ 120 $ 122 $ 123 $ 125 $ 126 $ 128 $ 129 $ 131 $ 133 $ 1,602 Wayne County RESA Sp. 3.3678 $ 1,015 $ - $ - $ - $ - $ - $ - $ - $ 3,990 $ 4,040 $ 4,091 $ 4,142 $ 4,193 $ 4,246 $ 4,298 $ 4,351 $ 4,405 $ 4,459 $ 4,514 $ 4,569 $ 4,625 $ 55,924 Wayne County RESA Enh. 2.0000 $ 603 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Wayne County Comm. College 3.2408 $ 976 $ - $ - $ - $ - $ - $ - $ - $ 3,840 $ 3,888 $ 3,937 $ 3,986 $ 4,035 $ 4,085 $ 4,136 $ 4,187 $ 4,239 $ 4,291 $ 4,344 $ 4,397 $ 4,451 $ 53,815 General City 19.9520 $ 6,012 $ - $ - $ - $ - $ - $ - $ - $ 23,640 $ 23,936 $ 24,236 $ 24,538 $ 24,844 $ 25,152 $ 25,464 $ 25,779 $ 26,096 $ 26,418 $ 26,742 $ 27,069 $ 27,400 $ 331,314 Library 4.6307 $ 1,395 $ - $ - $ - $ - $ - $ - $ - $ 5,487 $ 5,555 $ 5,625 $ 5,695 $ 5,766 $ 5,838 $ 5,910 $ 5,983 $ 6,057 $ 6,131 $ 6,207 $ 6,283 $ 6,359 $ 76,895 Local Total 41.3215 $ 12,450 $ - $ - $ - $ - $ - $ - $ - $ 46,589 $ 47,174 $ 47,764 $ 48,360 $ 48,962 $ 49,570 $ 50,184 $ 50,805 $ 51,431 $ 52,064 $ 52,703 $ 53,349 $ 54,000 $ 652,954

Non-Capturable Millages Millage Rate Debt Service 9.0000 $ 2,712 $ - $ - $ - $ - $ - $ - $ - $ 10,663 $ 10,797 $ 10,932 $ 11,069 $ 11,207 $ 11,346 $ 11,486 $ 11,628 $ 11,772 $ 11,917 $ 12,063 $ 12,211 $ 12,360 $ 149,450 School Debt 13.0000 $ 3,917 $ - $ - $ - $ - $ - $ - $ - $ 15,403 $ 15,596 $ 15,791 $ 15,988 $ 16,187 $ 16,388 $ 16,591 $ 16,796 $ 17,004 $ 17,213 $ 17,424 $ 17,637 $ 17,853 $ 215,872 Wayne County DIA 0.1000 $ 30 $ - $ - $ - $ - $ - $ - $ - $ 118 $ 120 $ 121 $ 123 $ 125 $ 126 $ 128 $ 129 $ 131 $ 132 $ 134 $ 136 $ 137 $ 1,661 Wayne County Zoo 0.2000 $ 60 $ - $ - $ - $ - $ - $ - $ - $ 237 $ 240 $ 243 $ 246 $ 249 $ 252 $ 255 $ 258 $ 262 $ 265 $ 268 $ 271 $ 275 $ 3,321 Total Non-Capturable Taxes 22.3000 $ 6,719 $ - $ - $ - $ - $ - $ - $ - $ 26,422 $ 26,753 $ 27,088 $ 27,426 $ 27,767 $ 28,112 $ 28,460 $ 28,812 $ 29,168 $ 29,526 $ 29,889 $ 30,255 $ 30,625 $ 370,303

Total Capturable Millages 65.3215 Total Capturable & Non-Capturable Millages 87.6215

Total Tax Increment Revenue (TIR) Available for Capture $ - $ 26,369 $ 26,705 $ 27,044 $ 27,387 $ 27,733 $ 28,083 $ 75,025 $ 75,966 $ 76,917 $ 77,877 $ 78,846 $ 79,825 $ 80,814 $ 81,813 $ 82,822 $ 83,841 $ 84,870 $ 85,910 $ 86,960

PA210 Expiration

5/1/2020 Page 1 of 1 Table 2b: Tax Increment Revenue Capture Estimates Table With OPRA The Junction 2857-2863 East Grand Boulevard, Detroit

Estimated Taxable Value (TV) Increase Rate: 1% per year Plan Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TOTAL Calendar Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 *Base Taxable Value $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 $ 179,100 Estimated New TV $ 900,000 $ 909,000 $ 918,090 $ 927,271 $ 936,544 $ 945,909 $ 955,368 $ 964,922 $ 974,571 $ 984,317 $ 994,160 $ 1,004,102 $ 1,014,143 $ 1,024,284 $ 1,034,527 $ 1,044,872 $ 1,055,321 $ 1,065,874 $ 1,076,533 $ 1,087,298 Incremental Difference (New TV - Base TV) $ 720,900 $ 729,900 $ 738,990 $ 748,171 $ 757,444 $ 766,809 $ 776,268 $ 785,822 $ 795,471 $ 805,217 $ 815,060 $ 825,002 $ 835,043 $ 845,184 $ 855,427 $ 865,772 $ 876,221 $ 886,774 $ 897,433 $ 908,198

School Capture Millage Rate State Education 6.0000 $ 1,075 $ 4,325 $ 4,379 $ 4,434 $ 4,489 $ 4,545 $ 4,601 $ 4,658 $ 4,715 $ 4,773 $ 4,831 $ 4,890 $ 4,950 $ 5,010 $ 5,071 $ 5,133 $ 5,195 $ 5,257 $ 5,321 $ 5,385 $ 5,449 $ 97,411 School Operating 18.0000 $ 3,224 $ 12,976 $ 13,138 $ 13,302 $ 13,467 $ 13,634 $ 13,803 $ 13,973 $ 14,145 $ 14,318 $ 14,494 $ 14,671 $ 14,850 $ 15,031 $ 15,213 $ 15,398 $ 15,584 $ 15,772 $ 15,962 $ 16,154 $ 16,348 $ 292,232 School Total 24.0000 $ 4,298 $ 17,302 $ 17,518 $ 17,736 $ 17,956 $ 18,179 $ 18,403 $ 18,630 $ 18,860 $ 19,091 $ 19,325 $ 19,561 $ 19,800 $ 20,041 $ 20,284 $ 20,530 $ 20,779 $ 21,029 $ 21,283 $ 21,538 $ 21,797 $ 389,642

Local Capture Millage Rate OPRA Tax Abatement Wayne County 6.6380 $ 1,189 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 5,543 $ 5,610 $ 5,678 $ 5,747 $ 5,816 $ 5,886 $ 5,957 $ 6,029 $ 46,267 Wayne County Jails 0.9381 $ 168 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 783 $ 793 $ 802 $ 812 $ 822 $ 832 $ 842 $ 852 $ 6,539 Wayne County Parks 0.2459 $ 44 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 205 $ 208 $ 210 $ 213 $ 215 $ 218 $ 221 $ 223 $ 1,714 Wayne County HCMA 0.2117 $ 38 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 177 $ 179 $ 181 $ 183 $ 185 $ 188 $ 190 $ 192 $ 1,476 Wayne County RESA 0.0965 $ 17 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 81 $ 82 $ 83 $ 84 $ 85 $ 86 $ 87 $ 88 $ 673 Wayne County RESA Sp. 3.3678 $ 603 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,812 $ 2,846 $ 2,881 $ 2,916 $ 2,951 $ 2,986 $ 3,022 $ 3,059 $ 23,474 Wayne County RESA Enh. 2.0000 $ 358 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Wayne County Comm. College 3.2408 $ 580 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 2,706 $ 2,739 $ 2,772 $ 2,806 $ 2,840 $ 2,874 $ 2,908 $ 2,943 $ 22,589 General City 19.9520 $ 3,573 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 16,661 $ 16,863 $ 17,067 $ 17,274 $ 17,482 $ 17,693 $ 17,906 $ 18,120 $ 139,066 Library 4.6307 $ 829 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 3,867 $ 3,914 $ 3,961 $ 4,009 $ 4,058 $ 4,106 $ 4,156 $ 4,206 $ 32,276 Local Total 41.3215 $ 7,401 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 32,835 $ 33,234 $ 33,637 $ 34,043 $ 34,454 $ 34,869 $ 35,288 $ 35,712 $ 274,073

Non-Capturable Millages Millage Rate Debt Service 9.0000 $ 1,612 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 7,515 $ 7,607 $ 7,699 $ 7,792 $ 7,886 $ 7,981 $ 8,077 $ 8,174 $ 62,730 School Debt 13.0000 $ 2,328 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 10,856 $ 10,987 $ 11,121 $ 11,255 $ 11,391 $ 11,528 $ 11,667 $ 11,807 $ 90,611 Wayne County DIA 0.1000 $ 18 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 84 $ 85 $ 86 $ 87 $ 88 $ 89 $ 90 $ 91 $ 697 Wayne County Zoo 0.2000 $ 36 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 167 $ 169 $ 171 $ 173 $ 175 $ 177 $ 179 $ 182 $ 1,394 Total Non-Capturable Taxes 22.3000 $ 3,994 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 18,621 $ 18,848 $ 19,076 $ 19,307 $ 19,540 $ 19,775 $ 20,013 $ 20,253 $ 155,432

Total Capturable Millages 65.3215 Total Capturable & Non-Capturable Millages 87.6215

Total Tax Increment Revenue (TIR) Available for Capture $ 17,302 $ 17,518 $ 17,736 $ 17,956 $ 18,179 $ 18,403 $ 18,630 $ 18,860 $ 19,091 $ 19,325 $ 19,561 $ 19,800 $ 52,876 $ 53,518 $ 54,167 $ 54,822 $ 55,484 $ 56,152 $ 56,827 $ 57,508

OPRA Expiration

5/1/2020 Page 1 of 1 Table 2c: Combined Tax Increment Revenue Capture Estimates Table w/ OPRA and PA 210 Abatements The Junction 2857-2863 East Grand Boulevard 6540 St. Antoine Street Detroit, Michigan

Estimated Taxable Value (TV) Increase Rate: 1% per year Plan Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 TOTAL Calendar Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 *Base Taxable Value $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 $ 480,400 Estimated New TV $ 900,000 $ 2,309,000 $ 2,332,090 $ 2,355,411 $ 2,378,965 $ 2,402,755 $ 2,426,782 $ 2,451,050 $ 2,475,561 $ 2,500,316 $ 2,525,319 $ 2,550,572 $ 2,576,078 $ 2,601,839 $ 2,627,857 $ 2,654,136 $ 2,680,677 $ 2,707,484 $ 2,734,559 $ 2,761,905 Incremental Difference (New TV - Base TV) $ 419,600 $ 1,828,600 $ 1,851,690 $ 1,875,011 $ 1,898,565 $ 1,922,355 $ 1,946,382 $ 1,970,650 $ 1,995,161 $ 2,019,916 $ 2,044,919 $ 2,070,172 $ 2,095,678 $ 2,121,439 $ 2,147,457 $ 2,173,736 $ 2,200,277 $ 2,227,084 $ 2,254,159 $ 2,281,505 * Base Taxable Value is reflective of the latest tax information available. Updating will be needed when the 2020 tax assessment figures become available.

School Capture Millage Rate State Education 6.0000 $ 2,882 $ 2,518 $ 10,972 $ 11,110 $ 11,250 $ 11,391 $ 11,534 $ 11,678 $ 11,824 $ 11,971 $ 12,119 $ 12,270 $ 12,421 $ 12,574 $ 12,729 $ 12,885 $ 13,042 $ - $ - $ - $ - $ 182,288 School Operating 18.0000 $ 8,647 $ 7,553 $ 32,915 $ 33,330 $ 33,750 $ 34,174 $ 34,602 $ 35,035 $ 35,472 $ 35,913 $ 36,358 $ 36,809 $ 37,263 $ 37,722 $ 38,186 $ 38,654 $ 39,127 $ - $ - $ - $ - $ 546,864 School Total 24.0000 $ 11,530 $ 10,070 $ 43,886 $ 44,441 $ 45,000 $ 45,566 $ 46,137 $ 46,713 $ 47,296 $ 47,884 $ 48,478 $ 49,078 $ 49,684 $ 50,296 $ 50,915 $ 51,539 $ 52,170 $ - $ - $ - $ - $ 729,152

East Grand OPRA Abatement & 6540 St. Antoine PA210 Tax Abatements East Grand OPRA Abatement Only Local Capture Millage Rate Wayne County 6.6380 $ 3,189 $ - $ - $ - $ - $ - $ - $ - $ 7,865 $ 7,964 $ 8,063 $ 8,164 $ 8,265 $ 13,911 $ 14,082 $ 14,255 $ 14,429 $ 14,605 $ 14,783 $ 14,963 $ 15,145 $ 156,495 Wayne County Jails 0.9381 $ 451 $ - $ - $ - $ - $ - $ - $ - $ 1,111 $ 1,125 $ 1,140 $ 1,154 $ 1,168 $ 1,966 $ 1,990 $ 2,015 $ 2,039 $ 2,064 $ 2,089 $ 2,115 $ 2,140 $ 22,116 Wayne County Parks 0.2459 $ 118 $ - $ - $ - $ - $ - $ - $ - $ 291 $ 295 $ 299 $ 302 $ 306 $ 515 $ 522 $ 528 $ 535 $ 541 $ 548 $ 554 $ 561 $ 5,797 Wayne County HCMA 0.2117 $ 102 $ - $ - $ - $ - $ - $ - $ - $ 251 $ 254 $ 257 $ 260 $ 264 $ 444 $ 449 $ 455 $ 460 $ 466 $ 471 $ 477 $ 483 $ 4,991 Wayne County RESA 0.0965 $ 46 $ - $ - $ - $ - $ - $ - $ - $ 114 $ 116 $ 117 $ 119 $ 120 $ 202 $ 205 $ 207 $ 210 $ 212 $ 215 $ 218 $ 220 $ 2,275 Wayne County RESA Sp. 3.3678 $ 1,618 $ - $ - $ - $ - $ - $ - $ - $ 3,990 $ 4,040 $ 4,091 $ 4,142 $ 4,193 $ 7,058 $ 7,145 $ 7,232 $ 7,321 $ 7,410 $ 7,500 $ 7,592 $ 7,684 $ 79,398 Wayne County RESA Enh. 2.0000 $ 961 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Wayne County Comm. College 3.2408 $ 1,557 $ - $ - $ - $ - $ - $ - $ - $ 3,840 $ 3,888 $ 3,937 $ 3,986 $ 4,035 $ 6,792 $ 6,875 $ 6,959 $ 7,045 $ 7,131 $ 7,218 $ 7,305 $ 7,394 $ 76,404 General City 19.9520 $ 9,585 $ - $ - $ - $ - $ - $ - $ - $ 23,640 $ 23,936 $ 24,236 $ 24,538 $ 24,844 $ 41,813 $ 42,327 $ 42,846 $ 43,370 $ 43,900 $ 44,435 $ 44,975 $ 45,521 $ 470,380 Library 4.6307 $ 2,225 $ - $ - $ - $ - $ - $ - $ - $ 5,487 $ 5,555 $ 5,625 $ 5,695 $ 5,766 $ 9,704 $ 9,824 $ 9,944 $ 10,066 $ 10,189 $ 10,313 $ 10,438 $ 10,565 $ 109,171 Local Total 41.3215 $ 19,851 $ - $ - $ - $ - $ - $ - $ - $ 46,589 $ 47,174 $ 47,764 $ 48,360 $ 48,962 $ 86,597 $ 87,661 $ 88,736 $ 89,822 $ 90,919 $ 92,026 $ 93,145 $ 94,275 $ 962,030

Non-Capturable Millages Millage Rate Debt Service 9.0000 $ 4,324 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 18,861 $ 19,093 $ 19,327 $ 19,564 $ 19,802 $ 20,044 $ 20,287 $ 20,534 $ 157,512 School Debt 13.0000 $ 6,245 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 27,244 $ 27,579 $ 27,917 $ 28,259 $ 28,604 $ 28,952 $ 29,304 $ 29,660 $ 227,517 Wayne County DIA 0.1000 $ 48 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 210 $ 212 $ 215 $ 217 $ 220 $ 223 $ 225 $ 228 $ 1,750 Wayne County Zoo 0.2000 $ 96 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 419 $ 424 $ 429 $ 435 $ 440 $ 445 $ 451 $ 456 $ 3,500 0 0.0000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Non-Capturable Taxes 22.3000 $ 10,713 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 46,734 $ 47,308 $ 47,888 $ 48,474 $ 49,066 $ 49,664 $ 50,268 $ 50,878 $ 390,280

Total Capturable Millages 65.3215 Total Capturable & Non-Capturable Millages 87.6215

Total Tax Increment Revenue (TIR) Available for Capture $ 10,070 $ 43,886 $ 44,441 $ 45,000 $ 45,566 $ 46,137 $ 46,713 $ 93,885 $ 95,057 $ 96,242 $ 97,438 $ 98,646 $ 136,893 $ 138,576 $ 140,275 $ 141,992 $ 90,919 $ 92,026 $ 93,145 $ 94,275

5/19/2020 Page 1 of 1 Exhibit A The Junction Brownfield Redevelopment Plan

ATTACHMENT G

BSEED Acknowledgement and Other Environmental Documents

Ryan Higuchi

From: Ryan Higuchi Sent: Tuesday, March 10, 2020 10:59 AM To: [email protected] Cc: [email protected]; Amelia Patt; Rocky Lala; Brian Vosburg; Elizabeth Masserang Subject: Milwaukee Junction Redevelopment Project

Hi Anita, Method Development is currently in the process of preparing a brownfield plan for the Milwaukee Junction project that is located 2857-2863 East Grand Boulevard and 6540 St. Antoine. We are submitting the Phase I and Phase II ESAs, BEA, and Due Care plans for these sites as part of that process. Please access the following links to download the documents. https://pmenvironmentalinc- my.sharepoint.com/:b:/g/personal/higuchi_pmenv_com/EbCGjt4N0YdKkB8tt3UHpHcBDgVe3j1-Vi_l0wdkt- 506w?e=1tXpmn https://pmenvironmentalinc-my.sharepoint.com/:b:/g/personal/higuchi_pmenv_com/EX_GQb- ktc5Pt21U1c6vO24BIfVqU_Gs_iJQbZbXy2c1Gw?e=Seoknx https://pmenvironmentalinc- my.sharepoint.com/:b:/g/personal/higuchi_pmenv_com/EfW6XmbWlI9PvycV1Fg8r9QBKQLbbO6eojmPZELYmp86NQ?e= kCQBrH

Feel free to reach out to me if you have any questions, or need additional information. Thanks!

1 Exhibit A The Junction Brownfield Redevelopment Plan

ATTACHMENT H

Functional Obsolescence Letter

Exhibit A The Junction Brownfield Redevelopment Plan

ATTACHMENT I

Incentive Chart

INCENTIVE INFORMATION CHART:

Project Type Incentive Type Investment Amount District PA 210 (Transfer) Office/Retail/Residential OPRA Approx. $12.9 Million Milwaukee Junction Brownfield Plan

Jobs Available Construction Post Construction Professional Non- Skilled Non-Skilled Professional Non- Skilled Non-Skilled Professional Labor Labor Professional Labor Labor

10 0 110 0 150 new jobs 0 0 135 new jobs

1. What is the plan for hiring Detroiters?

The development team is committed to the City of Detroit. As such, the development team has retained Rok Construction Services as the general contractor for the project, who is Detroit based. Rok Construction Services operates within the City and is committed pursuing local workforce trades.

2. Please give a detailed description of the jobs available as listed in the above chart, i.e: job type, job qualifications, etc.

In the short-term, approximately 120 construction jobs are anticipated to be created. An additional 150 office jobs and 135 retail and property maintenance related jobs are anticipated to be indirectly created by future commercial tenants as a result of the proposed redevelopment. The development team intends to solicit bidders and garner opportunities to employ Detroit residents.

The Construction jobs will consist of;

 Abatement – Asbestos workers  Demolition - Laborers  Civil Work – Teamsters, Operators, Laborers  Architectural/Interior Buildouts – Laborers, Carpenters, Cement Masons, Bricklayers, Glaziers, Iron Workers, Roofers, Painters, Tile Setters  Elevators – Elevator Constructors  Fire Protection – Pipe Fitters  Mechanical – Pipe Fitters, Sheet Metal Workers  Plumbing - Plumbers  Electrical – Electricians

3. Will this development cause any relocation that will create new Detroit residents?

The project site is currently vacant, therefore no relocation from the property is anticipated. This development of 18 apartment units will potentially cause the relocation of new residents into the City of Detroit.

4. Has the developer reached out to any community groups to discuss the project and/or any potential jobs?

Yes. The retail component, which will include a restaurant/bar and retail shops was incorporated into the development plan as a result of a collaborative decision with the local community and will be featured on the ground floor.

5. When is construction slated to begin?

Spring 2020

6. What is the expected completion date of construction?

December 2021

*Please contact Linda Wesley at (313) 628-2993 or [email protected] to schedule a date to attend the Skilled Trades Task Force.