Work has begun on the loft apartment above the Good Eats Cafe and Grille in downtown Wyandotte.

"We're ploughing ahead with it," says owner Leo Stevenson.

Stevenson also owns the 2-story building at 125 Elm St. and has been restoring it over the last year. He considered the second floor space, which was vacant for years, obsolete even though it once served as a law office.

That changed when the city approved a new Neighborhood Enterprise Zone for the entire downtown. That allows property owners to pay only 17 mills of taxes on new space built on a second floor or higher, instead of the normal 48 mills. There is no new tax assessment for improving existing upper floors.

This came when the market bottom fell out for upper floor commercial space in small downtowns like Wyandotte. At the same time, downtown apartments have become increasingly popular, prompting Stevenson to turn the 1,500 square feet into a two-bedroom apartment.

Source: Leo Stevenson, owner of the Good Eats Cafe and Grill building
Writer: Jon Zemke

Aubree's, a staple of Ypsilanti's Depot Town for decades, is spreading out across Metro Detroit, setting its sights on Northville and Wyandotte.

The hugely successful restaurant/bar has set up a number of satellite locations throughout the Ypsilanti area, but this is its first foray outside of Washtenaw County. Aubree's plans to open a large restaurant in Northville later this month and has put an offer in for another location in Wyandotte.

The Northville location will replace what was once an Uno's Chicago Grill on Haggerty Road, just south of 8 Mile Road. The 6,800-square-foot space will seat up to 270 people and employ about 150. The opening is set for Sept. 21. Aubree's plans to capture the Northville, Farmington, and Plymouth markets with the new location.

"It's a community we think our product and concept will do well in that area," says Andy French, CFO of Aubree's Pizzeria & Tavern and a partner in the Northville location.

Aubree's also recently put an offer in on what used to be a Damon's in Wyandotte. One of its vendors suggested the place and sold the co-owners on the city. The partners are keeping an open mind for future expansions, but haven't singled out any specific communities yet.

"We are looking to continue to grow if we find opportunities that work for us," French says.

Source: Andy French, CFO of Aubree's Pizzeria & Tavern
Writer: Jon Zemke

Sycamore Plaza in downtown Wyandotte has a good problem. The mixed-use building ground floor commercial space is fully leased but its second floor is so vacant it doesn't even have walls.

"Actually, it's just the studs," says Johno Norian, developer of Sycamore Plaza Apartments.

It won't stay that way for long. Norian plans to create three 900-square-foot apartments with two bedrooms each on the second floor of the building. Work should begin in the spring, now that the city has approved a special Neighborhood Enterprise Zone for downtown.

The new NEZ gives a large tax break for construction on the second floor and above in the city's center. New construction is assessed only 17 mills over 12 years. The taxes stay the same if it's a renovation into apartments.

This new policy has already spawned a series of residential development announcements to meet high demand in downtown Wyandotte. It's a way to keep the development ball rolling at a time when gun shy creditors and the tough economy have practically ground private construction projects to a halt.

Sycamore Plaza was originally built in 1932 as a split space for Kresge's and the Wrigley's grocery store. Its ground floor now houses a variety of businesses, including an ice-cream shop and stores for Sprint and UPS.

The 3,000-square-foot second floor was used as an office for a furniture store until Norian bought the building in 2001. He had planned to start construction last year, but the economic tailspin put an end to that.

"We had the full plans ready to go but the economy stopped us," Norian says.

Source: Johno Norian, developer of Sycamore Plaza Apartments
Writer: Jon Zemke

Let the renovations begin. Expect a lot of them in downtown Wyandotte now that the Downriver suburb has created a special Neighborhood Enterprise Zone for its central business district.

The City Council approved a second-story-and-above NEZ for the downtown. It creates a large tax break that city officials expect will encourage property owners to either turn vacant upper stories into residences or to add extra floors to smaller buildings.

"Projects are feasible that otherwise weren't," says Joe Voszatka, owner of Wyandotte-based SMOOTH Development, which helped city officials craft the new NEZ.

Normal property owners have to pay 48 mills of taxes. But those in the new NEZ will pay only 17 mills for improving existing upper floors. Plans for two such developments have already been announced and can be seen here and here.

Source: Joe Voszatka, owner of Wyandotte-based SMOOTH Development
Writer: Jon Zemke

Another building owner in downtown Wyandotte is getting ready for a renovation thanks to a new, innovative tax break.

Leo Stevenson owns the 2-story building that houses Good Eats Cafe and Grille, 125 Elm St. He bought it a year ago and began restoring it. Good Eats came along shortly afterward. The second floor space isn't so easy.

"It was pretty obsolete when we purchased it," Stevenson says.

It had once served as the office for a law firm, but has been vacant for several years. The market for upper-floor commercial space in small downtowns has fallen dramatically, so Stevenson wants to take it in another direction.

He plans to turn the 1,500 square feet into a two-bedroom apartment. The idea is that residential space in the city's center has been and continues to be popular.

"The residential market in downtown Wyandotte is very good," Stevenson says. "Actually, there are no vacancies."

The city is laying the groundwork to drive up this supply with a new Neighborhood Enterprise Zone. The plan, which could go into effect as early as August, would make the entire downtown a special NEZ.

Normal property owners have to pay 48 mills of taxes. But those in this newly proposed NEZ wouldn't have to pay any extra tax assessment for improving existing upper floors. Those who build new floors will pay only 17 mills on the new space. Stevenson plans to begin construction as soon as the NEZ is passed

Source: Leo Stevenson, owner of the Good Eats Cafe and Grill building
Writer: Jon Zemke

Work is well underway at the Masonic Arts Center, which could open during the Holiday Season.

Construction workers are busy creating space for all sorts of artists in the historic Masonic Temple just outside of downtown. At the same time, local artists are lining up for space there.

"We have a lot of people who are interested," says Patt Slack, owner of the River's Edge Gallery and one of the main proponents behind the Masonic Arts Center.

The city plans to turn the 3-story building into an arts incubator of sorts. The original idea was to turn the basement and first floor of the structure into a place for visual artists. The second and third floors, which house a stage, would be renovated to facilitate performance arts. It would serve as a central base for early stage artists in the downriver area. The organizers behind this effort hope to have everything done by the end of the year.

Wyandotte purchased the building at 81 Chestnut St., just outside of downtown, in 2007. It has been creating plans and lining up funding since then. The structure dates backs to the 19th Century and originally served as a Masonic temple. More recently it was home to the Church of Many Miracles.

Source: Patt Slack, owner of Rivers Edge Gallery
Writer: Jon Zemke

Upper story lofts will be appearing soon in downtown Wyandotte, with the Lofts at Willow Tree staking out a place at the front of the line.

Gilbert "Gib" Rose plans to build the four-loft development above his Willow Tree Women's Fashions store at 3000 Biddle. The apartments will go on the 3,800-square-foot second floor, which was occupied by a salon until last year. It has been vacant ever since.

"There is just very little demand for second-floor commercial space in small downtowns," Rose says. "There is significant demand for residential space."

The deal hinges on the city passing a special Neighborhood Enterprise Zone tax break for the downtown. The NEZ would allow landlords like Rose to redevelop vacant second-floor-and-above space in commercial buildings into apartments without seeing their taxes go up.

Rose hopes to build four apartments, including a couple of two-bedroom lofts and two single-room lofts. Work is expected to begin after the NEZ is passed, which could be as soon as August.

Source: Gilbert "Gib" Rose, developer of the Lofts at Willow Tree
Writer: Jon Zemke

The words green demolition would seem mutually exclusive at first glance, but Wayne County will take a stab at making them a reality this year.

It is preparing to start a pilot program that calls for the deconstruction and recycling of abandoned homes instead of the normal process of bulldozing them and dumping what's left into a landfill or the Detroit incinerator. The new program trains people how to deconstruct these homes to their foundations, recycling the details, metal, and wood everywhere from scrap yards to architectural warehouses. The foundations will then be dug up and recycled.

"We hope to hit the ground running within 60 days," says Jill Ferrari, senior executive project manager for Wayne County, who is overseeing the program and supervising its use of federal neighborhood stabilization funds.

The county has been awarded $25.9 million to buy, rehab and demolish foreclosed structures. It recently received the first $3.9 million from the U.S. Department of Housing and Urban Development.

Source: Jill Ferrari, senior executive project manager for Wayne County
Writer: Jon Zemke