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Detroit City Council approves OPRA District for Livernois-McNichols retail area – the first broad-scale commercial incentive district for a Detroit neighborhood

Jul 31, 2019

From Kaci Jackson

Manager of Development Services

The DEGC is focused on creating opportunities to facilitate neighborhood economic development throughout the City of Detroit. On July 23, Detroit City Council approved the Livernois-McNichols retail area as an Obsolete Property Rehabilitation Act District (OPRA), representing the first broad-scale commercial incentive district created specifically for a Detroit neighborhood. OPRA, Public Act 146 of 2000, provides a tax incentive to encourage the redevelopment of obsolete buildings.

OPRA is designed to provide real opportunity for buildings in areas that are not currently experiencing the full effects of the city’s economic resurgence. Buildings in Detroit’s neighborhoods have greater potential for rehabilitation by utilizing this incentive to reduce future operating expenses. By reducing operating expenses, the project has increased cash flow to support debt payments for the renovation costs.

DEGC is partnering with the City of Detroit to leverage economic development tools to support implementation of the Strategic Neighborhood Fund (SNF) initiative such as establishing Livernois-McNichols OPRA District. The district boundaries were informed by the SBS’ landmark Neighborhood Retail Opportunity Study commissioned by the DEGC. The Study estimated the full demand for retail space and identified priority nodes for retail activation. The DEGC will be looking to replicate this strategy for other SNF areas of the of the City.

The Incentive District will immediately support the $9.7M redevelopment of four properties slated to begin construction by Spring 2020 within the Livernois-McNichols area. Covering 22.2 acres and inclusive of 103 properties, the Livernois-McNichols OPRA District allows all existing buildings the opportunity to participate. Please contact your District Business Liaison, Ammie Woodruff, with any inquiries, or to begin the process of taking part in advantages of the District.

For more information on the DEGC, visit www.degc.org.

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