The Dearborn City Council approved the application of Willowbrook L.L.C. for an Obsolete Property Rehabilitation Act exemption and authorized a Brownfield plan and reimbursement agreement for the former site of the Hyatt Regency and Edward Hotel & Convention Center.
By SUE SUCHYTA
Times-Herald Newspapers
DEARBORN – The City Council approved a Brownfield plan and an Obsolete Property Rehabilitation Act exemption for the former Hyatt Regency and Edward Hotel & Convention Center during its Dec. 9 meeting.
The application for the hotel, 600 Town Center Drive, was made by Willowbrook L.L.C.
The OPRA exemption will authorize a tax exemption for the hotel’s rehabilitation.
The revitalization and reactivation of the long-vacant building will result in approximately 216 hotel rooms and 258 apartments, as well as 82,000 square feet of convention space and 135 well-paying jobs.
The OPRA exemption will help preserve and reactivate the property, making it more viable in the long term.
Improperly winterized water infrastructure had caused leaks in the building, and vandalism had occurred throughout the property.
The developer has paid approximately $600,000 in the property’s back taxes, and is expected to invest $45 million on the project in addition to the $7 million acquisition costs.
Willowbrook L.L.C. must have the approval of the city council if it seeks to sell or transfer the property and the incentive benefit, or reduce the event and convention space square footage.
The company will be required to maintain its facility as a full-service, luxury hotel for the incentive period, and will provide free and discounted rooms and event space for city events during the incentive period, which is 12 years for the OPRA tax abatement and 30 years of tax increment financing for the Brownfield Plan, with the local capture occurring in years 13 through 30, after the expiration of the OPRA abatement.
The city will receive five free suite rooms plus 30 percent off additional rooms per year, plus 50 percent off event and convention space use for up to two events per year for city-led events for the life of the incentive, which, with local taxes and incentive administrative fees, will equal about $3.2 million in revenue during the abatement period. The estimated value of the exemption is $6.9 million over 12 years.
The State Treasury Department must approve the OPRA next.
The property, which has been vacant since 2018, was in the past well known for its events as well as its contribution to the vibrancy of the Fairlane Town Center.
The investment may also help catalyze the rejuvenation of midtown Dearborn while signaling the overall city’s economic strength and vitality, business-friendly policies and overall potential for investment.
The rehabilitation is estimated to be completed in 2027, with the Economic Development Department monitoring compliance.
The Brownfield request is based on the 50-year-old building not being operational for many years, with obsolete electrical, plumbing and mechanical systems, as well as poor wall, ceiling and floor conditions, which has led the assessor to deem the property in excessive of 50 percent functional obsolescence.