Farmington Hills city council members agreed on Monday to provide up to $262,418 in clean-up assistance to the developer of a gas station/convenience story/drive-through restaurant at 10 Mile and Orchard Lake Roads.
The Brownfield Plan for 24205 Orchard Lake Road will help developer Jay Hammoud cover costs associated with demolishing a small building and remediating “significant underground storage tank contamination that’s been discovered,” Mayor Vicki Barnett said.
“Brownfield lets us collect the same taxes as now, but any increase in taxable value from that baseline would go to the proponent, who is spending significant dollars cleaning up the site… to help pay them back for that extra expense, which is quite significant in this case,” she said.
$1.27 million project
Samantha Seimer, Economic Development Director, said the city will still collect about $4,000 a year, the current taxes on the site. Over a specified time, increased taxes will cover the cost of eligible activities, such as environmental assessments, transporting contaminated soils, and demolition.
The $1.27 million project includes renovation of an adjacent 3,615-square-foot building to house the convenience store and Tim Horton’s drive-through restaurant. The combination is similar to a Shell gas station and Jimmy John’s drive through just across Orchard Lake Road.
The project is expected to create 15 construction jobs and 12 permanent jobs.
Barnett stressed that there will be no capture from any other taxing jurisdiction, and City Manager Dave Boyer said the school district will see more money as property taxes rise.
“It’s a win for the school system if you look at the property value today and what it will be when the project is complete,” he said.