DETROIT, MI

5.6.20

LA JOYA GARDENS

2 PROJECT DESCRIPTION

The La Joya Gardens project is located in Southwest Detroit at 4000 – 4060 W. Vernor Hwy., on the northern block of W. Vernor in-between Palms and Hubbard, within the historic Hubbard Farms neighborhood. The project site is also near the area traditionally referred to as Mexicantown.

La Joya Gardens, formerly named the Hubbard Vernor project, is a proposed mixed-use, mixed-income new construction development that will have residential units and neighborhood-scale commercial space. The development will provide a total of 53 residential units and will be financed using both 4% LIHTC and 9% LIHTC.

The West Vernor Corridor is one of the longest, contiguous commercial corridors in the City of Detroit. The City of Detroit Planning & Development Department recently completed the West Vernor Corridor Neighborhood Framework Plan after a nearly two-year community engagement process. Through extensive research and feedback, they found that: “The neighborhoods of the West Vernor Corridor in Southwest Detroit are remarkably resilient. While population loss has severely challenged neighborhoods across Detroit, West Vernor Corridor neighborhoods have managed to retain and attract more residents. Between 2010 and 2015, West Vernor Corridor study area population reversed its previous decline and grew 8%, even as the city lost 3% of its overall population. The study area’s many inherent assets, as well as its traditional role as a destination for Latino immigrants, all contribute to this population gain. As a result, the study area has a relatively high density of residents—about 10,000 people per square mile on average, or more than twice the citywide average of 4,700. The investment and growth of West Vernor corridor residents have helped maintain and expand community life, availability of neighborhood services, and street and park infrastructure.”

The La Joya Gardens project site is also located within a Traditional Main Street Overlay (TMSO) Area and is also located in the locally designated historic district of Hubbard Farms. TMSO Areas are intended to improve Detroit’s commercial main streets by addressing various

GOALS AND ALIGNMENTdesign standards and guidelines such as: building site relationship, placement and orientation, style, massing, scale and form, entryways, among others. Hubbard Farms is a historic district bounded by West Vernor Highway, West Grand Boulevard, West Lafayette and Clark Street. The housing stock is composed of Beaux Arts, Colonial Revival, Romanesque and Victorian aesthetics. Row houses can also be found in the neighborhood. Due to the TMSO Area and Historic District it’s located within, the project has gone through extensive design iterations, city vetting and community engagement processes to ensure it adheres to the standards and guidelines governing it’s site plan approval. Outreach to the residents was conducted in multiple languages to make sure the project team captured the diverse voices in the neighborhood. In addition, the La Joya Gardens project will be the first new mixed-use building of its size seen in decades along Vernor Highway.

Southwest Detroit is home to many of Detroit’s Latin American residents and many Latin American and Mexican restaurants and establishments. The area’s many attributes include neighborhood retail, destination restaurants, Detroit Public Schools educational campuses, diverse historic housing, and a thriving arts and culture ecosystem. In addition to its significant single-family housing stock, Southwest Detroit features higher density residential townhomes, rowhouses and multi-story apartments, alongwith independent retail and walkable streets and blocks. As stated earlier, Hubbard Farms is a historic district within Southwest Detroit. Many of the houses were built in the late 1800’s and early 20th century contributing to an architectural design deeply valued by the residents. The district is also home to row houses and apartments built just before World War II. Hubbard Farms also features Clark Park, which brings visitors from the neighborhoods as well as the Detroit area.

The La Joya Gardens project will activate vacant lots in the community, fill in missing retail activity, and offer more affordable housing options in Southwest Detroit.

S I T I O architecture + urbanism 9

H U B B A R D V E R N O R | B O A R D O F Z O N I N G A P P E A L S

GENERAL ENVIRONMENTAL

CHARACTER

Rooted in Mexican culture, modern Mexicantown is an extremely diverse neighborhood with an active community presence. Due to the consequence of Detroit’s economic decline, that historic context along the corridor has suffered, with many structure’s falling into disrepair. As the first new major development in the area, the project aspires to provide a safe and welcoming space for the community, retain the pedestrian-oriented scale of the commercial corridor, and to integrate modern amenities and design within the transitioning urban context.

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VERNOR HWY

HUBBARD FARMS HISTORIC DISTRICT

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BAGLEY/VERNOR TRADITIONAL MAIN STREET OVERLAYBAGLEY/VERNOR TRADITIONAL MAIN STREET OVERLAY

SITE STRATEGY

HUBBARD FARMS HISTORIC DISTRICT

PROJECT SITE

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3

Southwest Detroit Business Association

The Southwest Detroit Business Association (SDBA) is a place-based Community Development Organization in Southwest Detroit. Founded and incorporated in 1957 by local business owners, staff was hired in 1981 and the organization became a 501(c)(3) nonprofit organization. We have been involved in working with commercial property and business owners to improve their facades since the early 1980s. The City of Detroit’s and the Detroit Economic Growth Corporation’s façade programs are based on our successful model. SDBA has renovated historic buildings and worked with the City of Detroit, MDOT and SEMCOG to make streestscape improvements along 2.3 miles of West Vernor. We work with investors, entrepreneurs, customers, and neighbors to capitalize on Southwest Detroit’s competitive advantage. SDBA supports the community’s vision for a healthy, vibrant neighborhood. SDBA is a coalition of businesses and community interests committed to facilitating the continuation and enhancement of a stable, economically healthy Southwest Detroit. Our programming includes: small business technical assistance and advocacy, façade improvement, real estate development management, business corridor management, green infrastructure development and marketing of the business district.

Cinnaire Solutions

Cinnaire Solutions is the development division at Cinnaire. We are a skilled and trusted partner that brings to the table the experience and capabilities to address the most challenging housing and economic development opportunities. Our team of experienced professionals merge exceptional capacity, knowledge, and resources — including the full range of Cinnaire services, technical expertise, and financial tools— with our partners’ vision and human context to bring transformative development projects to life. Whether it’s design and planning, deal structuring, site selection, or any other aspect of the financing and development process, Cinnaire Solutions has the people and tools to solve the problems and surmount

Invest Detroit

Invest Detroit is a mission-driven lender, investor and partner that supports business and real estate projects that will ignite economic growth in Detroit. Our goal is to increase density and job opportunities in a way that is strategic and inclusive. Invest Detroit was created to catalyze revitalization efforts in Detroit by providing support to real estate and business projects that struggle to find traditional financing. With strategic lending and investing, we partner on projects that bring people and resources to the region, while supporting those who have stayed. We want an improved quality of life for all Detroiters- inclusive housing, safe and livable neighborhoods and equal opportunities for jobs and business growth. Invest Detroit’s neighborhood work is a strategic approach to thoughtfully focus our real estate and small business programs with a commitment to community engagement, inclusivity and partnership with other agencies.

PARTNERS

challenges. Cinnaire Solutions’ areas of expertise include historic adaptive reuse; acquisition and rehabilitation; mixed-use development; non-profit facilities; technical consultation; market-rate development serving targeted populations; and others. Cinnaire Solutions presence in Detroit revolves around co-partnerships with neighborhood organizations and other non-profits involving various development projects, ranging from single-family infill housing to mixed-use, mixed-income projects. Cinnaire’s work in Detroit includes the rehab of River Crest Apartments (formerly known as Colony and Fisher Arms). Cinnaire Solutions is also in partnership with Ethos Development Partners to develop Transfiguration Place Apartments into a 19-unit affordable housing development.

4 ENGAGEMENT RECAP

COMMUNITY ENGAGEMENTThe project’s partners used a variety of outreach methods to include the Southwest Detroit neighborhoods in the project’s planning process. First, meetings were offered in both Spanish and English, with translators and/or translation equipment available at every meeting. The project went to various locations in the neighborhoods to facilitate access for residents. The project partners also addressed barriers related to childcare and food, offering both at every meeting. To obtain even more community feedback and participation, the project sent out a link to an online survey and went door to door in the community. Invitations were sent through the Hubbard Farms Neighborhood Association (HFNA) listserv.

The following outreach methods occurred between September 2018 to January 2019: 4 community meetings, 4 affinity group meetings, door-to-door canvassing, and online polling. Project partners also met with the HFNA housing committee twice, each time 3 HFNA members were present.

The demographics of community meetings and door-to-door canvassing include:

• 91% of those surveyed (200 surveys completed) live in the project impact area. • Almost half (46%) of those surveyed have lived in the area for more than 7 years. • Most participants (28%) are in their 30’s. • More than half (54%) are female. • 39% are Hispanic / Latino and 35% are African American. • 46% own their home versus 54% who rent.

5PROJECT TEAM

511 DESIGN

SITIO Antonio Fiol-Silva

DREAM DET

O’DONNELL & NACCARATO, INC.

HOUSING & REVITALIZATION DEPARTMENT

PLANNING & DEVELOPMENT DEPARTMENT

MANNIK SMITH GROUP

MISSION LIFT

CINNAIRE SOLUTIONS

Edward PotasReal Estate Development Manager

Representative: Luis Antonio Uribegan Local architecture firm with offices in Detroit and Mexico City, Mexico.

Representative: Antonio Fiol-Silva Philadelphia firm offering architectural, planning and urban design services.

Representative: Chris McTaggartLocal energy consultant helping team achieve Enterprise Green Communities Certification.

Representative: Jim Behler A Philadelphia consulting structural engineering firm operating nationally to support the entire building lifecycle.

Representative: Ashley McLeod

Representative: Maria Mastej

Representative: David Ryzyi Local civil engineering firm offering a full array of consulting services for both the public and private sectors.

Representative: Janet Ray

Robert DewaelschePresident

Keona CowanSenior Vice President and Chief Lending Officer

SOUTHWEST DETROIT BUSINESS ASSOCIATION

INVEST DETROIT

DEVELOPMENT TEAM ORGANIZATIONAL CHART

DESIGN TEAM

SUSTAINABILITY CONSULTANT

STRUCTURAL ENGINEER

CITY OF DETROIT

CIVIL ENGINEER

COMMUNITY ENGAGEMENT

O’BRIEN CONSTRUCTION

ALDERSON ENGINEERING, INC.

Representative: David Vivio Full service construction company based in Troy, MI with 55 years of experience.

Representative: Drew McFaddenA Philadelphia full-service MEP consulting engineering firm serving core clients on the East Coast of the United States since 1990.

GENERAL CONTRACTOR

MEP

WARNER NORCROSS + JUDD LLPRepresentative: Tracey Lackman

LEGAL

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Exhibit 20Neighborhood Revitalization Plan/Investment Activity Area

Future Investment

Public Investment

Private Investment

Key

1 M

ILE

28

8081

74

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8283

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Neighborhood FrameworkPlanning and Development Department

ENGLISH LANGUAGE

City of Detroit May 2018

VERSION EN ESPAÑOL DISPONIBLE ENWWW.DETROITMI.GOV/WEST-VERNOR

WEST VERNOR CORRIDOR/CARRETERA DE WEST VERNOR

6 NEIGHBORHOOD INVESTMENT

Private Investment$148,254,125Public Investment$25,839,831Future Investment$390,661,000

The Strategic Neighborhood Fund (SNF) is a funding source drawing from philanthropic contributions and public subsidies designed to improve Detroit neighborhoods. The SNF began in three neighborhoods in 2014: Southwest/Vernor, Livernois/McNichols and Islandview/Greater Villages. SNF started with $42 million in contributions. In late 2018, SNF expanded to another seven neighborhoods with an additional $130 million in financial support.

The Strategic Neighborhood Fund is a partnership between the City of Detroit, Invest Detroit, neighborhood residents and corporate donors. SNF funds community-driven projects in four specific areas – park improvements, streetscape improvements, commercial corridor development, and affordable single-family home stabilization.

In 2018, the City of Detroit engaged residents and stakeholders to create The West Vernor Corridor Neighborhood Framework which explores housing options, public space, streetscape improvements and small business improvements which contributes to the 20-minute neighborhood model. La Joya Gardens is situated along the corridor and aligns with the goals of the West Vernor Corridor Neighborhood Framework.

SNF OVERVIEW

PROJECT SITE

4% 9% TotalPerm Mortgage 1,471,433 900,976 2,372,409

Equity Contribution LIHTC

2,048,508 7,466,283 9,514,791

State HOME 300,000 - 300,000

Local HOME 1,250,000 1,250,000 2,500,000

Strategic Neighborhood Fund

1,500,000 - 1,500,000

GAP STILL TO BE RAISED

1,500,000 - 1,500,000

Deferred Developer Fee

134,032 35,056 169,088

Sponsor Loan - 373,629 373,629

Commercial Loan

680,050

Total: 8,203,973 10,025,944 18,909,967

7PROJECT FINANCINGSOURCES