LANSING, MI – The state is supporting a project that will restore a river currently covered in concrete and create a new public park at Michigan’s last horse racing track.
The Michigan Strategic Fund approved a $2 million brownfield tax abatement to support the redevelopment of 7.85 acres of the former Northville Downs racetrack in Wayne County during its board meeting on Tuesday, August 27. Hunter Pasteur, a developer from southeast Michigan, is leading the initiative.
The $17.7 million project includes the restoration of a quarter-mile stretch of the River Rouge and the creation of a new park. It goes hand in hand with a larger $248 million redevelopment of the racetrack that will create 446 new homes, 18,000 square feet of commercial space and three parks.
“Uncovering the Rouge River and creating River Park is one of the most important green infrastructure projects in the state of Michigan and will bring generational benefits to the City of Northville, Wayne County, the Southeast Michigan region and the State of Michigan,” said Seth Herkowitz, Chief Operating Officer of Hunter Pasteur.
Related: Michigan’s last horse racing track is being converted into homes and parks
Hunter Pasteur began demolishing the Northville Downs racetrack after it hosted its last harness race on February 3. Before that, it had been in operation for 80 years and was the only remaining racetrack in Michigan for six years.
A cornerstone of The Downs project is the creation of a nearly 11-acre river park that will run along the east side of the property. This includes exposing the Walled Lake arm of the River Rouge after it was diverted and buried in a concrete culvert in the 1960s.
“The key public benefits of the future river park include floodplain management, stormwater management, plant and habitat restoration, and recreation,” Herkowitz said.
The state tax increase for Brownfield approved Tuesday will reimburse the developer for infrastructure costs to clear the river and create a riverfront park. The $17.7 million development cost includes $14 million for Brownfield-related activities.
Brownfield tax credits, which are granted for projects to remediate contaminated or dilapidated land, enable governments to generate higher property tax revenues from a remediation project.
To be eligible for the $2 million in state tax revenue, the City of Northville’s Brownfield Redevelopment Authority must transfer the property to the Wayne County Land Bank. The state board also granted a special permit Tuesday to transfer the property to the land bank’s control.
The Michigan Department of Environment and Great Lakes has already awarded the project a $1 million Brownfield grant to fund the demolition of the racetrack and sewer line and the removal of contaminated soil.
Wayne County has also provided $2.5 million in federal American Rescue Plan Act funding for the entire Downs development, and the City of Northville is contributing nearly $12 million in local tax revenue.
“It’s a transformational project,” said George Lahanas, Northville’s city manager. “It will breathe new life into a major city by creating a cohesive neighborhood and business district adjacent to downtown.”
Related: After the demolition of the race track in Northville Downs, oil leaks into the river
But the state’s approval of the brownfield tax break came just months after an oil spill at the construction site and pending litigation over environmental concerns.
On Friday, June 21, barrels and storage containers containing motor oil and kerosene were punctured during the destruction of the race track. A cleanup company has completed the removal of the contaminated materials and a boom has been installed in the river.
But a group of residents filed suit in mid-July accusing the developers of failing to protect them from harmful construction dust, the oil slick and other contaminants. In early August, Wayne County District Court Judge Muriel Hughes denied the plaintiffs’ request for a temporary restraining order that would have halted construction of the project.
Next, the lawsuit will enter the discovery phase.
The city of Northville stressed in a public statement that the health and safety of residents is its top priority in its oversight of the project. Michele Wildman, chief place officer for the Michigan Economic Development Corp., said the state considered residents’ concerns before approving the brownfield grant.
“We have communicated with EGLE and know that they are reviewing and monitoring the various requests they have received from residents. We know that EGLE is satisfied with what is happening at this time,” she said.
According to Herkowitz, Hunter Pasteur plans to begin construction on the new park this week, which will be completed by fall 2025. The entire facility is scheduled to be completed in 2026.
The Michigan Strategic Fund also approved $252 million in brownfield incentives on Tuesday for two major projects in downtown Grand Rapids: a $184 million riverfront amphitheater and a planned 8,500-seat soccer stadium.
