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above the cut

a place to live and work in the community


created and presented by: deVELup Detroit vince mattina elizabeth kreska lin liu university of detroit mercy school of architecture development practicum professors dave schervish+virginia stanard winter 2012

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table of contents topic pages detroit amenities

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vision+concept

8-11

urban design+planning

13-19

market feasibility

21-33

development/ financial concept

35-59

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above the cut

a place to live and work in the community

Detroit is full of hidden treasures just waiting for you to discover. One of those treasures is the Bloody Run Creek than runs underneath much of the City. As it is unearthed, we ask for you to be a part of the fantastic changes that the City will undergo. We invite you to enjoy this informational booklet on our development, Above the Cut. You are sure to be amazed at the impact our development and the other in the Eastern Market area will have on the City of Detroit. Let us begin by reminding you of what a day of living in Detroit would be like... Good Girls Go to Paris Crepes for breakfast... Walk around the Detroit Institute of Arts... Pick up dinner in Eastern Market... Finish the day by walking to the Riverfront along the Dequindre Cut and watching the sun set....

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Detroit Amenities

detroit amenities

above the cut

urban design

market feasibility

development concept

a place to live and work in the community

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above the cut

a place to live and work in the community

detroit context project location-overall map of Detroit

above the cut

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above the cut

urban design

market feasibility

development concept


development teamw development team Owner/Developer Kresge Foundation Eastern Market Corporation Jim Pellerito

Legal Cousel

Project Director deVELup Detroit

Financing

Design/Engineering

Vince Mattina

Urban Design and Planning:

Lin Liu

Marketing+Economic Feasibility Elizabeth Kreska

Architectural Engineering:

Vince Mattina Elizabeth Kreska

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urban design

market feasibility

development concept

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above the cut

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Vision/Concept vision+concept

Above the Cut means to compliment the existing Eastern Market Community while contributing to the growth of the Bloody Run Project.

live work play 10

urban design

market feasibility

development concept


Above the Cut will be a place for people to live and work in the community of Eastern Market. As the Bloody Run Creek Community grows with the Eastern Market Community, Above the Cut will continue to be a vessel for creative minds and any who share in a dream for Detroit. Above the Cut especially welcomes all those who pass by the Dequindre Cut level to engage in our excitement for the community and to be a part of it. This project will utilize sustainable opportunities through green technologies provided by the Bloody Run Master Plan.

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urban design+planning

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above the cut

a place to live and work in the community The Bloody Run Creek Greenway Redevelopment Project Context and Linkages Project Boundary Mixed Use District Residential District Energy and Production District

Vision and Urban Design

Linkages

HAMTRAMCK

I-75

M-10

WOODWARD

BOSTON EDISON

he n E. GRAND BLVD.

HENRY FORD

I-94 INDUSTRIAL PARK/ RENAISSANCE ZONE

GM ASSEMBLY PLANT

NORTH END

NEW CENTER

OT

I AT

GR

I-94 I-94

TECH TOWN AUTO TECH RESEARCH & DESIGN

I-94

FARNSWORTH

WAYNE STATE UNIVERSITY

MIDTOWN MEDICAL CENTER

OT

GREEKTOWN GM

ELMWOOD CEMETERY

VILLAGES

GOLD COAST

JEFFERSON

SON

JEFFER

LAYFAYETTE

EAST RIVERFRONT RIVERWALK

HARBOR TOWN

AMBASSADOR BRIDGE

ape,

WINDSOR CBD

Detroit Collaborative Design Center Urban Resource Alliance Adi Shamir NTH Consultants, Ltd. The Mannik & Smith Group, Inc. Zachary and Associates Prepared for Kresge Foundation & McCormack Baron Salazar

LAFAYETTE PARK

CADILLAC

DOWNTOWN

14

ELMWOOD

E. GRAND BLVD.

VERNOR

ENTERTAINMENT DISTRICT

WEST RIVERFRONT

MCDOUGALL HUNT

MT. ELLIOT

CORKTOWN

GR

GRATIOT HUB

EASTERN MARKET

DEQUINDRE CUT

ive

CANFIELD

WILKINS

Woodward Light Rail

I-75

FOREST

I AT

MACK

NORTH CORKTOWN

KETTERING

WARREN

I-75

MIDTOWN LOOP

ity,

MEDICAL RESEARCH/ TECH. CHENE

WOODBRIDGE

CULTURAL CENTER

The Bloody Run Creek Greenway is envisioned as a new kind of public ecological landscape: a productive landscape that offers a generous and beautiful large-scale public landscape for recreation, culture, education, and ecology, creating a unique place of interaction with the creek and land. By using a new storm sewer system, storm water is collected, stored, cleaned, and released into the creek. The development team envisioned a three mile green energy corridor from Detroit River to I-94, a creek cascade at Gratiot crossing, meandering neighborhood assets, ecological destinations converted from abandoned buildings, wetlands combined with urban life, self-producing neighborhood, and so on.

BELLE ISLE BELLE ISLE

Context and Linkages Analysis Diagram

diagram rendered by: detroit collaborative design center


ll sse Ru

e

Demonstration Project (D1 & D2) Creek Engineering and Construction Costs

$1,000,000 $1,000,000 $6,950,000 $500,000 — $4,755,000 $345,000 — $25,000 $250,000 — $2,965,000 $17,790,000

$15,421,200

$17,790,000

Total

kins

Wil

H

1

2

M 3

F

s

$1,000,000 Creek $4,860,000 Dequindre Cut $1,800,000 Sewer Separation $2,072,500 Landscape — Bridges $2,436,000 Streetscape $127,500 Trails — Public Amenities/Landscape Features $500,000 Energy $55,000 Transportation diagram rendered by: — Land Assembly detroitFees collaborative design center $2,570,200 Professional Subtotal $15,421,200

an rle

D2 Cost

O

D1 Cost

Design & Engineering Elements

1. Private Development/Adaptive Reuse 2. Private Development/Adaptive Reuse 3. Private Development/Adaptive Reuse 4. Private Development/Adaptive Reuse A. B. C. D. E. F. G. H. I. J. K. L. M. N. O.

Market Pond at Dequindre Cut Waterfall Creek Channel (Gratiot to Wilkins) Division Sewer Separation (Orleans to St. Aubin) Landscape at Dequindre Cut (Gratiot to Wilkins) Landscape at Market Pond Landscape Clean-up at adjacent properties Bridge Rehabilitations Division St. Streetscape (Orleans to St. Aubin) St. Aubin Streetscape & Entry (Gratiot to Division) Trails at Market Pond Trails at Dequindre Cut (Gratiot to Wilkins) Geothermal Field at Dequindre Cut Solar Lighting and Signalization Bike Corrals & Racks (Multiple Locations)

ed Alfr

L

4

K

A B

G

Future Development Site

D

H

n

isio Div

I

G C

G

E O

H

ide

la Ade

der

Win

Phasing

Demonstration Project Implementation In order to launch thezones, project, its over feasibility, andof ten It is proposed that the project be divided into five phases coincides with five andtest build a period excite the fifteen stakeholders it is proposed a small years. The private development is assumed to continue another years. Phase one startsthat in 2011 and phase demonstration project be built. The Demonstration five starts in 2016.The Demonstration project which is broken down into two phases-D1 and D2- will be completed Project within five years. This is phase 2. Above the Cut is Building I. is broken down into two phases, identified as DI, a $15 million project shown above, and D2.

Implementation Strategy: Demonstration 15


above the cut

a place to live and work in the community

intuitions

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community

schools

churches


The Bloody Run Creek Greenway Redevelopment Project is about daylighting the long-buried Bloody Run Creek, redeveloping the area to become a major ecological public landscape and, thus, enhancing the attractiveness of Detroit for businesses, families, and i ndividuals.

Timeline It is proposed that the project be divided into five phases coincides with five zones, and build over a period of ten years. The private development is assumed to continue another fifteen years. Phase one starts in 2011 and phase five starts in 2016.The Demonstration project which is broken down into two phases-D1 and D2will be completed within five years.

Market Feasibility

Site

According to national, state, and local level of trends in various employment sectors, the development team forms a site strategy map illustrating a possible land use scenario for the Bloody Run development. In addition to renewal energy and food production system that are inherent to the concept of Bloody Run there is proposed Medical Center and General Motors Volt Assembly Plant related research, technology and manufacturing facilities, eco-housing development, retail development, and the infill and revitalization of existing viable neighborhoods such as McDougall-Hunt and Farnsworth. It is estimated that $ 1 billion in public investment generates approximately $ 3 billion in private investment.

In spite of the dilapidation of Detroit’s Near East Side nowadays, it is still home to the cultural, natural, and community assets of Eastern Market, the Dequindre Cut, and the riverfront as well as strong neighborhoods such as Lafayette Park, McDougallHunt, and Farnsworth. Located east of Detroit’s Central Business District and Midtown, the project site is connected to major assets and districts through its interstate and nonmotorized linkages, and its future connectivity to a potential privately-funded Woodward Avenue Light Rail line and the proposed Detroit Bus Rapid Transit (BRT) service.

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above the cut

a place to live and work in the community

site circulation Circulation for Above the Cut is designed in a way that automobiles, pedestrians, and cyclers are compatible with each other. People can enter stores, restaurants, and offices from each level. Residents can take elevators to their lofts through indoor parking. In addition, activities and flow of users can create natural surveillance for this area and contribute to the reduction of incidents and fear of crime in the neighborhood.

urban design 18

market feasability


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market feasibility

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above the cut

a place to live and work in the community

comparable projects-residential comparables-residential E&B Brewery Lofts 1551 Winder Detroit, Michigan 48207 On the Corner of Winder & Orleans

$800 - $1450 per month for 860 to 2760 square feet -skyline views of Downtown Detroit -security buzzing system -secured indoor and fenced outdoor parking -security cameras, possible future guards -upper level quality fixtures and finishes -12 to 16 foot ceilings -individual unit thermostat -individual meters for gas and electric

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urban design

market feasibility

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comparable projects-residential comparables-residential FD Lofts 3434 Russell Detroit, Michigan Corner of Russell and Erskine

$1050-1500 per month for 860 to 2760 square feet -walking distance to a variety of restaurants -historic charm -industrial character

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above the cut

a place to live and work in the community

comparable projects-institutional/retail comparables-institutional Axis Music Academy 283 Hamilton Row Birmingham, Michigan

1400 square feet -front open to a main street -back open to parking garage -private classrooms for music lessons

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urban design

market feasibility

development concept


comparable projects-candy shop comparables-candy store Woodward Avenue Candy Shop Ferndale, Michigan 1800 square feet

-working place for outside orders “candy buffet�

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above the cut

a place to live and work in the community

comparables-restaurant comparable projects-restaurant Rosie O’Grady’s Irish Pub Ferndale, Michigan 2600 square feet

-relaxed -kid-friendly during day -club/bar at night -open doors to let fresh air in and interest passersby. -bike parking

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urban design

market feasibility

development concept


market trends market trends market trends national

urban living city skyline views

regional

suburban life-single family housing

local

raw, industrial character urban living wages compared to cost of living young professionals/young artists moving into Detroit 14.6% of Detroit residents are between the ages of 20-29* 15.2% of Detroit residents are between the ages of 30-39* median age of Detroit residents is 24.9 years* *according to zipskinny.com

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above the cut

a place to live and work in the community

user market

market user groups

starting families

hipsters

college students young professionals

empty nesters

How can we use these user markets in our plan for Above the Cut? Let us tell you the story of how their lives are affected by the amenities of living in Above the Cut. 28

above the cut

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user market Work Play Live

Lin’s lovely map

starting families

The Brown family is just starting out. Daryl is working as head chef at Cut and Served Bar and Grill. Diamond is a homemaker with her two children, one who is starting kindergarten next year at Detroit Edison Charter School across the street from Above the Cut. Above the Cut is a great place for the Browns to live, because it is central to all of their needs as young parents. They enjoy the urban living and having college student neighbor, Becky, babysit for them whenever they need to have a night out.

above the cut

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a place to live and work in the community

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above the cut

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user market

Work Play Live

hipsters Stacy and Jim are young artists living in ‘Above the Cut’. Jim is an adjunct professor at the College of Creative Studies while Stacy owns ‘Cutting Edge Music’ which is on the first floor of ‘Above the Cut’. Jim and Stacy love walking around Eastern Market on the weekends and they spend their evenings at Foran’s Pub in Downtown.

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urban design

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user market Work Play Live

young professionals Katie is a young professional working in the Renaissance Center in Downtown. She loves living in ‘Above the Cut’ because her commute is so short. After work, she meets her friends at Greektown Casino for a fun night out or sees a show at the Fox Theater. Katie loves her proximity to I-75, so she can visit her parents who live in Troy on the weekends.

above the cut

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above the cut

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user market Work/Learn Play Live

college students

Travis and Becky share a flat in Above the Cut. They love that they can just ride their bikes and be on the Wayne State Campus in minutes. After classes, they visit the many museums that Midtown has to offer, like the Science Center, and spend their weekends working in Above the Cut’s newest bar and grill in Eastern Market, Cut and Served.

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urban design

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1923

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development/ financial concept

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above the cut

a place to live and work in the community

architectural program architectural program Floor 1

6000 sqft Music Studio 6700 sqft Restaurant 6300 sqft Office Space

Floor 2

5400 sqft Residential Parking 7000 sqft Retail (800, 1800, 1100, 1100, 2200 sqft) 5400 sqft Office Space

Floor 3

1800 sqft loft x2 1600 sqft loft x2 1100 sqft loft x5 950 sqft loft x5

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urban design

In an area of town that the urban fabric is sightly ripped, damaged, worn, and neglected, the possibilities for reinvestment, reassociation, and revitalization are created. Above the Cut is a design intervention that aims to facilitate those acts of the (re). This site, an important part of the D1 in the Bloody Run Creek Redevelopment Project, can show the possibilities that are conceived through the reestablishment of neighborhood anchors. This building, Above the Cut, can take a role in a neighborhood whose identity can become one of the cities largest assets.

part of the Bloody Run Creek Redevelopment it will contain part of the water integration as much of the East Side will. There is a large retention pond and waterfall located to the southern part of the site. With this natural feature within in such close proximity to Above the Cut, it is desirable and walkable. The plot is located between Wilkins and Brewster Street. Currently occupied by Kaps Meats, the space will be transformed to better fit the communities needs. The plot itself is programmed for housing, work, and the third place. Wether that third place is dining, shopping, or broadening ones music ability, Above the Cut has it. This project The primary location is to act as a neighbor catalyst. of the of the site is adjacent It will become an integral part of to the future expansion of the community. It will act as a the Dequinder This vessel for creative minds and market feasibility Cut. development concept expansion will also include a any who share in a 4dream for hydrological intervention. As Detroit.


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above the cut

a place to live and work in the community

Above the Cut was first programmed as a large slaughter house. Since that, the building has gone under a variety of architectural program changes. This project is programed in a fashion to accommodate the three places a person needs, housing, working, and the third place. current dequindre cut photos

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With program on all three floors the build offers fourteen loft apartments what range in price and size for many different lifestyles and income levels. Each of the apartments has first priority to covered secure parking located on the second level. Additionally on the second level there is


approximately 7000 square feet total of retail space. Currently broken down in to a series of smaller spaces however, the space can be transformed into smaller or larger spaces based on the need of the chain, boutique, or shop that chooses to rent the space. The store fronts face the Dequinder Cut, to enter the store front there is a large cantilevered catwalk that allows people to overlook the Cut and shop all in the same breath. Furthermore, on the second floor is a medium size office. These offices are designed in a similar method to the retail space; where they my be broken up into smaller spaces to meet the needs of the business to enter. The

lowest level’s front door is on the beautiful Dequinder Cut. On this floor the aim is to host an office that is related to this master plan for the area. Wether this program is a non-profit group or community organization, we want the community to have the ability to access the space easily from the Cut. Creating a space for conversation about the neighborhood. Directly next to this space is room for a restaurant. This restaurant can appease anyone who is transversing the Cut or the D1 of the Bloody Run Creek Redevelopment. Lastly, the building will be home to a music studio. This space will give a place for the school children across the street to participate

in music. Even more this state of the art center will also have the ability to host professional musicians to use the facility as a recording studio. This studio can be home to the new future of up and coming talent in Motown, or the past idols of this city. With its location on the Cut, the vision is that on fair weathered days the space will open up and become a space for people to collect and listen to performances. Even further, this could become a place for the collaboration of the arts. With music and food a strolling gallery could be set up in the Cut and this space becomes more than just a bike path, but a collection of talent. This space can begin to facilitate

community engagement, collaboration, and interaction. The Cut what was something that implied and exemplified separation, now is in juxtaposition, where it brings life and togetherness. Above the Cut is a project that can create many opportunities and assets in the neighborhood. The building was designed in a manor that the spaces begin to separate from public on the level of the Dequinder Cut to private on the most top level. Above the Cut is located above the cut. As sort of a phoenix from the ashes. This project will exemplify the up and coming neighborhood that Eastern Market is turning into.

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above the cut

a place to live and work in the community

current conditions

This site: 1900 Wilikins is currently home to the Kaps Meats headquarters. This 60,000 square feet warehouse, which at its time of occupancy was a slaughter house is currently only occupied in less that 2,000 square feet. The building has a lot of potential and promise. Plans to refacilitate the surrounding plots of land would make this property one of high value in as an anchor. The plan for this building would be to rehab the building to a state that could act as an anchor to the neighborhood and become a destination space for the up and coming Bloody Run Creek Redevelopment

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above the cut

a place to live and work in the community

proposed lease/rent proposed lease/rent rates rates residential 2 units x 1800 square feet 2 units x 1600 square feet 5 units x 1100 square feet 5 units x 950 square feet

$1.00/s.f./month $1.00/s.f./month $1.00/s.f./month $1.00/s.f./month

$1800/month $1600/month $1100/month $ 950/month

1 year rent 1 year rent 1 year rent 1 year rent

parking 14 spots (one for each residential unit)

$125/spot/month

1 year rent w/ housing unit

office 1 space x 6300 1 space x 5400

retail

1 space x 800 2 spaces x 1100 1 space x 1800 1 space x 2200 1 space x 6000

restaurant

1 space x 6700 square feet

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above the cut

a place to live and work in the community

$18/s.f./month $18/s.f./month

$113,400/month $97,200/month

5 year lease 5 year lease

$10/s.f./month $10/s.f./month $10/s.f./month $10/s.f./month $12/s.f./month

$ 8000/month $11,000/month $18,000/month $22,000/month $72,000/month

5 year lease 5 year lease 5 year lease 5 year lease 5 year lease

$15/s.f./month

$100,500/month

5 year lease

urban design

market feasibility

development concept


first floor plan

music academy 6000 s.f.

restaurant 6700 s.f.

office 6000 s.f.

brewster street

wilkins street

first floor plan

institutional commercial residential parking

Scale: 1:40

dequinder cut

above the cut

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above the cut

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second floor plan second floor plan

parking 5400 s.f. institutional commercial residential

office 5400 s.f. retail retail retail retail 800 s.f. 1800 s.f. 1100 s.f. 1100 s.f.

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parking

Scale: 1:40

retail 2200 s.f.

urban design

market feasibility

development concept


third floor plan

third floor plan

residential 1800 s.f.

residential residential residential residential residential 950 s.f. 950 s.f. 950 s.f. 950 s.f. 950 s.f.

residential 1600 s.f. institutional commercial residential parking

residential 1600 s.f.

residential 1800 s.f.

Scale: 1:40

residential residential residential residential residential 1100 s.f. 1100 s.f. 1100 s.f. 1100 s.f. 1100 s.f.

above the cut

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above the cut

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back of the envelope 1. Value Assessment

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Housing S.F. (gross) Non-leasable S.F. Usable/Leasable S.F. (net) Operating Income per S.F. Operating Expenses per S.F. Revenue/Net Income per S.F. Total Revenue/Net Income

20000 2000 18000 $12.00 $5.00 $7.00 $140,000.00

Restaurant S.F. (gross) Non-leasable S.F. Usable/Leasable S.F. (net) Operating Income per S.F. Operating Expenses per S.F. Revenue/Net Income per S.F. Total Revenue/Net Income

6700 0 6700 $15.00 $3.00 $12.00 $80,400.00

Office Space S.F. (gross) Non-leasable S.F. Usable/Leasable S.F. (net) Operating Income per S.F. Operating Expenses per S.F. Revenue/Net Income per S.F. Total Revenue/Net Income

11700 0 4500 $18.00 $5.00 $13.00 $152,100.00

Parking S.F. (gross) Non-leasable S.F. Usable/Leasable S.F. (net) Operating Income per S.F. Operating Expenses per S.F. Revenue/Net Income per S.F. Total Revenue/Net Income

5400 0 9000 $0.32 $0.00 $0.32 $1,728.00

Music Studio S.F. (gross) Non-leasable S.F. Usable/Leasable S.F. (net) Operating Income per S.F. Operating Expenses per S.F. Revenue/Net Income per S.F. Total Revenue/Net Income

6000 0 6000 $12.00 $5.00 $7.00 $42,000.00

Retail Space S.F. (gross) Non-leasable S.F. Usable/Leasable S.F. (net) Operating Income per S.F. Operating Expenses per S.F. Revenue/Net Income per S.F. Total Revenue/Net Income

7000 500 7000 $10.00 $5.00 $5.00 $35,000.00

Value Summary Gross Revenue Cap Rate Estimated Value

$451,228.00 10.00% $4,512,280.00

2. Cost Assessment Land Acquistion Cost Building Acqusition Cost Construction Costs Housing ($125.00) Office Space ($90.00) Music Studio ($90.00) Resturant ($125.00) Parking ($75.00) Retail Space ($90.00) Total Tenant Improvements Site Work Estimated Cost

$0.00 $400,000.00 $2,500,000.00 $1,053,000.00 $540,000.00 $837,500.00 $405,000.00 $630,000.00 $5,965,500.00 $100,000.00 $300,000.00 $6,765,500.00

3. Feasibility Estimated Value Estimated Cost Total Value Ratio

$4,512,280.00 $6,765,500.00 ($2,253,220.00) -0.33


economic impact We won’t just take any businesses into our prime commercial spaces. We are passionate about Detroit and want businesses that are too. That is why we asked Detroit-based and independently owned businesses to open a new set of doors in Above the Cut. Retail establishments: Candy Store, DuAll Art Supplies, Regeneration Thift Store, Allinosi’s Ice Cream Shop Restaurant establishment: Cut and Served Bar and Grill Music Academy: Cutting Edge Music Non-profit office: New Detroit Additionally, special consideration for the current owner and occupier of this property, KAPS Meats: Renovated office space with attached retail space for selling product to general public.

We propose that Above the Cut will generate at least 114 new permanent jobs. Rehabilitation of Above the Cut will create 146 temporary construction jobs. Based on the total hard building cost ($7,300,000) and an average years wage of $50,000.

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above the cut

a place to live and work in the community

sources and uses Assumptions: Sources: 1. Urban Retail Loan Fund, is based on their Preferred range of $100,000–$200,000 contribution 2. Tax Deduction for Commercial building projects, is based on a deduction of $1.80 per square foot, 31,400 square feet of commercial space including (retail, office, and music studio). 3. Foundation contributions are based on (9.0%) 4. Section 108 contribution is based on (~10%) 5. TIF funding is based on (8.5%) 6. State Development Fund is equated from the dissolved Brownfield Credits and the state historic tax credit. Which at the time could account for more that 20% of the total project cost. Based on the current holdings we could assume that they would fund less that half of the federal historic tax credits. Uses: 1. The property acquisition will be given to the development as a soft loan by the owner /city for the greater good of the project. The loan will be a paid back in small increments over the course of a series of years. 2. The site work budget will cover, the direct construction adjacent to the building, i.e access to the cat walk, paver parking adjacent to Wilkins, and some of the outdoor patios for the tenants. Much of the other site work will be absorbed under the Bloody Run Creek Redevelopment Project. 3. The construction costs were totaled based on the back of the envelope, the aim was a total combined cost of building was based roughly on $100.00 a square feet. 4. The tenant improvements are strictly for the commercial space, and restaurant, totaling roughly 20,000 square feet, which is roughly $13.00 per square foot. 5. The FF&E budget will account of the mechanical system in the kitchen and some of the specialty equipment in the music studio, totaling roughly 14,000 square feet, which is roughly $11.00 per square foot. 6. The construction contingency is an additional 10% for any unforeseen problems within the building.

Revenue: 1. 2. 3. 4.

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Parking revenue is included with the housing revenue since the parking is for the residents. The vacancy rate of 10% is considering that the variety of uses in the building, at any time an apartment, office, or retail space may not be filled. The expense us up ~54% of the building’s expenses ($378,000) , so to counter that the tenants are being billed back ~20% of the total expenses ($75,600). The debt service coverage is based on a ratio of 1.5


Development:

Operating:

Sources: (liability)

Uses: (costs/asset)

Basis:

Income Expense and Cash Flow (pro-forma) Date: For the year ending 2014

Date: December 31, 2013 Equity:

Federal Historic TC Enhanced Credits

Historic Tax Credit Cash Deferred Development Fee Sub Total

$1,854,900.00 $500,000.00 $1,000,000.00 $3,354,900.00

Debt: Loan A Loan B - Property (EDC) Sub Total

$3,500,000.00 $500,000.00 $4,000,000.00

Property Acquisition Site Work Total Property/Site

$400,000.00 $100,000.00 $500,000.00

NO NO NO

Building Hard Costs: Construction Substructure Shell Interiros Services

$5,965,500.00 $894,825.00 $1,193,100.00 $1,789,650.00 $2,087,925.00

$5,965,500.00

Tenant Improvements FF&E Construction Contingince Total Hard Building Costs:

$250,000.00 $150,000.00 $650,000.00 $7,300,000.00

$250,000.00 $150,000.00 $650,000.00 $7,300,000.00

Revenue:

Square Footing

Housing Parking Office Space Restaurant Music Studio Retail

$260,000

Total Rent: Less Vacancy (10%) Effect Rent

$732,000 $73,200 $658,800

$210,000 $120,000 $72,000 $70,000

20,000 5,400 11,700 6,700 6,000 7,000

Rate $12.00 $125.00 $18.00 $15.00 $12.00 $10.00

sqft/yearly Space sqft/yearly sqft/yearly sqft/yearly sqft/yearly

Other Smartbuilding Detroit Program Urban Retail Loan Fund Foundation (8.5%) Section 108 TIF (8.5%) State Development Fund Sub Total

$100,000.00 $200,000.00 $1,056,520.00 $1,200,000.00 $1,000,000.00 $804,580.00 $4,361,100.00

Building Soft Costs: Development Fee A/E Fee

$1,500,000.00 $730,000.00

$1,500,000.00 $730,000.00

Taxes/ Insurance Prof. Legal Fees/ Accountants Appraisal/title Economic Dev. Cons.

$40,000.00 $400,000.00 $70,000.00 $200,000.00

$40,000.00 $200,000.00 $35,000.00 $200,000.00

Construction Interest Finance Fees Operating Reserves Market Fees

$250,000.00 $150,000.00 $120,000.00 $100,000.00

$250,000.00 $50,000.00 NO NO

Total Building Soft Costs: Soft Costs Cont (10%)

$3,560,000.00 $356,000.00

$3,560,000.00 $178,000.00

Sub Total

$3,916,000.00

$10,305,000.00 20.00% $2,061,000.00

Reimbursed Revenue

$70,600

Total Revenue

$729,400

Expenses: Real Estate Taxes Payroll Utilities Repair/Maint. Insurance Mgt. Fee Total Expenses

$60,000 $50,000 $120,000 $60,000 $30,000 $33,000 $353,000

Net Operating Income (NOI)

$376,400

Debt Service Payment: $237600.00 Loan A: $35,000,000 @ 6% for 20 Years N/A Loan B Debt Service Coverag Escrow

1.50 $376,400

$0.90 $1,854,900.00

Total Sources: $

11,716,000

Total Uses of Funds:

$

11,716,000

49


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construction cost breakdown Major Group Elements

A. Substructure

15%

5%

$

298,275.00

B. Shell

25%

16%

$

954,480.00

C. Interiors

30%

27%

$

1,610,685.00

D. Services

35%

32%

$

1,908,960.00

E Equipment and Furnishings

FFE

FFE

$

150,000.00

F Special Construction and Demo

0%

20%

$

1,193,100.00

105%

100%

$

5,965,500.00

TOTAL

50

Suggested Values Project Specific Values Percentage Cost of Construction


Major Group Elements

A. Substructure

Level 2 Group Elements

Percentage of Element Usage

Price Brakedown

119,310.00

A1010 Standard Foundations A1020 Special Foundations A1030 Slab on Grade

0.00% $ 2.00% $ 0.00% $

119,310.00 -

A20 Basement Construction

3% $

178,965.00

A2010 Basement Excavations A2020 Basement Walls

0.50% $ 2.50% $

29,827.50 149,137.50

5% $

298,275.00

5.00% $

298,275.00

2% $

119,310.00

B1010 Floor Construction B1020 Roof Construction

1.00% $ 1.00% $

59,655.00 59,655.00

12% $

715,860.00

B2010 Exterior Walls B2020 Exterior Windows B2030 Exterior Doors

5.00% $ 5.00% $ 2.00%

298,275.00 289,275.00

1% $

59,655.00

B3010 Roof Coverings B3020 Roof Openings

0.50% $ 0.50% $

29,827.50 29,827.50

15% $

894,825.00

15.00% $

766,515.00

12% $

715,860.00

C1010 Partitions C1020 Interior Doors C1030 Fittings

8.00% $ 3.00% $ 1.00% $

477,240.00 178,965.00 59,655.00

11% $

656,205.00 C2010 Stair Construction C2020 Stair Finishes

8.00% $ 3.00% $

477,240.00 178,965.00

C3010 Wall Finishes C3020 Floor Finishes C3030 Ceiling Finishes

1.00% $ 1.00% $ 1.00% $

59,655.00 59,655.00 59,655.00

26.00% $

1,551,030.00

B10 Superstructure

B30 Roofing

Total

C10 Interior Construction

C20 Stairs

C30 Interior Finishes

Total

Level 3 Elements

2% $

B20 Exterior Enclosure

C. Interiors

Price Breakdown

A10 Foundations

Total

B. Shell

Percentge of Group Eements

3% $

178,965.00

26% $

1,551,030.00

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Major Group Elements

D. Services

Level 2 Group Elements

Eements

Price Breakdown

Level 3 Elements

Element Usage

Price Brakedown

D10 Conveying

8% $

477,240.00

D1010 Elevation & Lifts D1020 Escalators & Moving Walks D1090 Other Conveying Systems

8.00% $ 0.00% $ 0.00% $

477,240.00 -

D20 Plumbing

5% $

298,275.00

D2010 Plumbing Fixtures D2020 Domestic Water Distribution D2030 Sanitary Waste D2040 Rain Water Drainage D2090 Other Plumbing Systems

2.00% 1.00% 1.00% 0.50% 0.50%

$ $ $ $ $

119,310.00 59,655.00 59,655.00 29,827.50 29,827.50

10% $

596,550.00

D3010 Energy Supply D3020 Heat Generating Systems D3030 Cooling Generating Systems D3040 Distribution Systems D3050 Terminal & Package Units D3060 Controls and Instrumentations D3070 System Testing and Balancing D3090 Other HVAC Systems and Equipment

2.00% 2.00% 2.00% 2.00% 0.50% 0.75% 0.25% 0.50%

$ $ $ $

$119,310.00 $119,310.00 $119,310.00 $119,310.00 29,827.50 44,741.25 14,913.75 29,827.50

D30 HVAC

D40 Fire Protection

5% $

298,275.00

D4010 Sprinklers D4020 Standpipes D4030 Fire Protection Specialties D4090 Other Fire Protection Systems

2.00% 2.00% 0.50% $ 0.50% $

$119,310.00 $119,310.00 29,827.50 29,827.50

D50 Electrical

4% $

238,620.00

D5010 Electrical Service & Distribution D5020 Lighting & Branch Wiring D5030 Communication & Security D5090 Other Electrical Systems

0.50% $ 2.00% 1.00% 0.50% $

29,827.50 $119,310.00 1.00% 29,827.50

32% $

1,908,960.00

E10 Equipment

80% $

120,000.00

E20 Furnishings

20% $

30,000.00

100% $

150,000.00

Total

32.00% $

1,849,305.01

E1010 Commercial Equipment E1020 Institutional Equipment E1030 Vehicular Equipment E10 90 Other Equipment

30.00% $ 20.00% $ 20.00% 10.00%

45,000.00 30,000.00 $30,000 $15,000

E2010 Fixed Furnishings E2020 Movable Furnishings

10.00% 10.00%

E Equipment and Furnishings

Total

52

100.00% $

$10,000 $10,000

140,000.00


Major Group Elements

Level 2 Group Elements

F Special Construction and Demolition F10 Special Construction

F20 Selective Building Demolition

Total

Eements

Price Breakdown

15% $

894,825.00

5% $

298,275.00

20% $

1,193,100.00

Level 3 Elements

F1010 Special Structures F1020 Integrated Constructions F1030 Special Construction Systems F1040 Special Facilities F1050 Special Controls and Insturmention F2010 Building Elements Demolition F2020 Hazardous Component Abatement

Element Usage

10.00% 1.00% 2.00% 1.00% 1.00%

Price Brakedown

$ $ $ $

596,550.00 59,655.00 $119,310.00 59,655.00 59,655.00

3.50% $ 1.50% $

208,792.50 89,482.50

20.00% $

1,193,100.00

This construction cost breakdown was based on the estimated values provided to us and as we evaluated out project hand-in-hand we developed this schedule. Through our project we were able to make assumptions about the cost the project and how it would be breakdown into further levels according to the UniFormat constructing schedule. We based these numbers largely on the fact that our project is an existing structure so for instance, much of the funds spent in creating a basement could used to build our suspended walkway over the Dequindre Cut. Furthermore, there may need to be some abetment of hazardous materials, ie. Asbestos in some parts of the building that would need to be paid for during this process. We also felt as that some of these systems in the building would need more or less an update to current standards, codes, and retrofitting. The electrical system could use some additional circuits, zones, and meters for the building that could facilitate the completion of the project. In addition the building as inspected during our site visit has a fire suppression system that similar to the electrical system would just need to be expanded to fit the current needs and uses of the building. These adjust a rough estimated guess on the construction cost estimate using some critical thinking and justification behind some of the choices we made.

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elevations

54


elevations B+C C B N

elevation elevation B

candy mania

elevation c elevation C

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a place to live and work in the community

urban design

market feasibility

development concept 55


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a place to live and work in the community

sections sections A+B A N B

section a

section A

section bB section 56

above the cut

urban design

market feasibility

development concept


57


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58


59


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Above the Cut