A development group has received approval for a $131.8 million transformational brownfield program incentive package for a large mixed-use project in Southfield.

The $209.5 million development proposal is for an eight-acre parcel of vacant land off of Evergreen Road across from Southfield’s city hall and municipal complex. 

It would bring five new buildings with 577 apartments, 42,700 square feet of retail and commercial space, with one of those buildings being a six-story, 826-space parking deck. Ninety of the residential units would be affordable at 80% of the Area Median Income.

In Oakland County, AMI is $80,800 for a two-person household and $101,000 for a four-person household. Eighty percent of that is $64,640 and $80,800, respectively. At 80% AMI, a one-bedroom apartment should rent for $1,515 and a two-bedroom for $1,818.

The incentive award, approved by the Michigan Strategic Fund board of the Michigan Economic Development Corp. on Tuesday morning, amounts to 63% of the total project cost. The development team is contributing approximately 21.7% equity.

According to an MSF briefing memo, the components include:

• State and local property tax capture of $61.2 million, with the state capture capped at $22.8 million; 
• $2.6 million in construction period withholding tax capture revenue; 
• $4.3 million in construction period sales and use tax exemptions; 
• $63.7 million in income tax capture, withholding tax capture and post-construction sales and use tax revenue over 20 years.

Construction on Middlepointe Investment Group LLC’s development would begin in the fall and take three years to complete on three parcels at 26011 Evergreen Road, 26111 Evergreen Road and 20100 Civic Center Drive totaling about 8.15 acres. A spokesperson for the city said the site has been vacant for many years but at one point consisted of one- and two-story office buildings.