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
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