EGLE grants $2.9M to demolish vacant buildings, create community establishments

Former Eloise Psychiatric Hospital to transform into haunted attraction, hotel, restaurant
Posted at 6:02 PM, Jan 05, 2023
and last updated 2023-01-05 18:02:43-05

WESTLAND, Mich. (WXYZ) — Three contaminated properties in metro Detroit received funding for redevelopment, bringing new establishments to the cities of Westland, Northville and Ferndale.

The Michigan Department of Environment, Great Lakes and Energy awarded $2.2 million in brownfield grants and loans and approved $730,000 in brownfield tax increment financing. The projects will also remove blighted structures and preserve buildings.

In Westland, the city received a $695,000 grant for the former Eloise Psychiatric Hospital to reuse the building as a new haunted attraction, hotel and restaurant and bar.

“We are very grateful to EGLE, the city of Westland and the State of Michigan for this grant. It will assist us in the redevelopment of this challenging project,” said John G. Hambrick with 30712 Michigan Avenue LLC, which partnered with Westland for the redevelopment.

Leaders expect the $4 million project will create 50 to 100 full-time jobs and 75 to 100 season jobs. It will also increase the property’s taxable value by $2.5 million.

The city of Ferndale was awarded a $700,000 grant to construct an inclusive environment for LGBTQ elders. Full Circle Communities is set to demolish vacant structures and build The Shepard House, a new four-story, multi-tenant, affordable housing apartment complex.

The 53-unit project should be complete by spring of 2024 and save $3.5 million over 40 years through tax incentives. The Ferndale Housing Commission committed to providing eight Section 8 project-based vouchers.

In Northville, a new mixed-use residential and commercial development will be built on a former industrial building at the eastern gateway to the city though an $800,000 grant.

Existing structure will be demolished and a new three-story building will house space for commercial, office and residential use. The $25 million investment is expected to create full-time jobs once complete.

EGLE also approved $730,000 for environmental costs not covered by the grant.