2006 Brought Economic Development Successes

Despite tough times for Michigan in 2006, Dearborn achieved numerous success stories in the area of economic development.

Major new retail and residential projects were completed, and planning or construction moved forward on others. Dearborn was named one of Michigan’s “Cool Cities.” Property values remained stable. Tens of millions worth of new residential construction took place, and Ford Motor Company announced more than $240 million of additional investment in its Dearborn plants.

“The past year was a challenging one for our state. But the positive strides that Dearborn was able to make send a clear signal that this city remains a great place to live and work in, to own a business in and to visit,” said Mayor Pro Tem John B. O’Reilly, Jr. “The mix of private sector interest and the city’s commitment to fostering quality development is helping keep Dearborn’s economy strong.”

Here are some examples of development successes in 2006.

WEST VILLAGE COMMONS –

The first two phases of West Village Commons opened. The total project represents more than $65 million of reinvestment in Dearborn, with the City realizing over $2 in private money for each public dollar put in.

Phase I included these retail businesses: Caribou Coffee, Coldstone Creamery, a UPS Store, Sattva Yoga Center, Moe’s Southwestern Grill, Au Bon Pain, Rocky Mountain Chocolates, Le Cigar, Supercuts Salon and American Home Fitness. Phase II included 48 new condominiums on Abbey Lane south of the railroad tracks. The final phase of West Village Commons will be a 104-unit condominium development located between the two City parking decks.
The new residential development created by West Village Commons is expected to pump more than $4 million per year in additional personal discretionary spending into the city’s economy.

PROPERTY VALUES MAINTAIN STABILITY –

Total property value remained stable: the total State Equalized Value (SEV) in Dearborn stands at more than $5 billion. Residential and industrial property values maintained their value, and commercial property values increased by more than two percent.

DEARBORN ONE OF MICHIGAN’S “COOL CITIES” –

Governor Jennifer Granholm named Dearborn as one of Michigan’s “Cool Cities,” as the result of a partnership formed by the City, the Chamber of Commerce, the West and East Downtown Development Authorities and related business associations.

The designation gives the city priority access to more than 100 “tool box” resources provided by state agencies to help cities and neighborhoods achieve revitalization and redevelopment projects.

Plans for a Cool Cities project is now underway: a community welcome and visitor center at Bryant Library, expected to be completed in 2007.

NEW CONSTRUCTION –

The Building & Safety Department issued more than 8,700 construction permits for projects totaling more than $146 million. The value of new construction has topped $100 million in 20 of the last 21 years.

Of construction permits issued, 1,375 were for residential projects totaling more than $47 million – everything from new single-family homes to additions, decks, fences, garages, porches and sheds. The reinvestment by homeowners in their properties is an indicator of the confidence they have in Dearborn’s future.

NEW INVESTMENT BY FORD AND SEVERSTAL –

Despite tough times, Ford Motor Company announced plans earlier this month for $240 million in new investment at its Dearborn facilities, in support of the 2009 Ford F-150 pickup. Severstal Steel also continued its $600 million reinvestment in its Rouge operation.

PARKING ENHANCEMENTS –

The second of two west downtown public parking decks opened in January, 2006. In September, a user-paid parking system was launched. The system shifts parking costs away from general tax revenues and toward the businesses and drivers who are actually using public lots and decks. User paid parking also allows the creation of parking facilities that support the kinds of needed new downtown development.

DEARBORN VILLAGE PARTNERS –

The first phase of the Dearborn Village Partners project is a four-story building at the corner of Michigan and Howard that includes three retail spaces and 24 loft apartments. Two new restaurants – Panera Bread and Buffalo Wild Wings - opened earlier this month. The remainder of this nearly $10 million phase will be completed in 2007.

The remaining phases represent $150 million of private investment that will recreate two entire blocks over the next five years. They will offer about 400 new housing and live-work units, retail businesses, a movie theater complex, and a 120-room hotel.

MONTGOMERY WARD’S SITE –

The City solicited and received proposals from developers for the former Montgomery Ward site. The facility’s repair and garden center were demolished in February. Development proposals for the entire site are being reviewed now. It is expected that a developer will be selected this year, and that redevelopment will be complete by 2008. Estimates suggest up to $50 million of investment in the project.

MICHIGAN AVENUE STREETSCAPE –

The completion of a multi-year Michigan Avenue streetscape project in east downtown has meant a major improvement in the look and traffic flow of the area. The project included street reconstruction, new sidewalks, planters, lighting and amenities.
In a related development, the East Dearborn Downtown Development Authority began its Main Street program in 2006, to help the east downtown district to formulate a strategy for continuing downtown revitalization.

GOLDEN GATEWAY PROJECT –

The mixed-use redevelopment in west downtown is creating new restaurants, shops and apartments. The project also adds a series of outdoor patios to the street frontage and improved parking. Expected to be completed in 2007, it represents about $5 million in investment.

NEW “POCKET PARK” –

A new west downtown “pocket park” was dedicated in September, located on the former site of the DOC/Beltone building. The park is a pedestrian through-way connecting the Garrison/Monroe parking lot with Michigan Avenue. It has lighting, plantings, brick pavers and a fountain, and is part of a comprehensive streetscape plan for west downtown.

OTHER NEW PROJECTS –

A McDonald’s “Restaurant of the Future” was built at Michigan and Gulley. The $2 million facility is the only one of its kind in southeastern Michigan. Les Stanford Cadillac moved from Michigan and Telegraph to a site near their west downtown Chevrolet dealership. A Holiday Inn Express and restaurants will occupy the former site – a $4.5 million project.

Fairlane Meadows, at Ford Road and Mercury Drive, brought in Burlington Coat Factory to replace the closed Mervyn’s store, and built a new $3 million structure to house new retailers. Also completed were two new retail buildings on Schaefer Road, and a new two-story office building on Warren Avenue.
Planning was completed for the second phase of the Warren Avenue streetscape project. Work will begin later this year, from Schaefer to the city’s eastern border. Half of the estimated $1.5 million cost is paid for via a state grant. Along with the streetscape project, Wayne County will resurface Warren Avenue. City crews will replace water and sewer mains.

Work was begun, or continued on: a new office near the intersection of Warren Avenue and Ternes, a new strip mall on Wyoming south of Warren, a new medical office building across from Oakwood Hospital, a major expansion of a medical building at 6050 Greenfield, an office/retail building on Ford Road, an office/retail building on Road, and a new industrial building on Wyoming.