Eric Johnson, 28, a Wayne State University student and employee, became one of the first people to apply last week for financial incentives to live in Midtown Detroit.
The engineering student made the move on Monday from Farmington Hills into his new studio apartment that's within walking distance of campus and dozens of restaurants, bars, entertainment venues and Detroit's pro sports stadiums.
Midtown's three largest employers, along with some matching funds from the state and various foundations, will put $1.2 million on the table for employees who decide to rent or own in Detroit's Midtown area. The program is called Live Midtown.
Johnson found his apartment last month, but hadn't signed the lease when he heard about the incentives that would give him $2,500 the first year and $1,000 the second year if he moved. The money for the rent will be paid to the property manager.
"Everyone I talked to couldn't believe it. They thought it was a great deal," Johnson said of the buzz on campus about the program. He does administrative work for the university's housing department and is working on his engineering degree. The rent for his studio is $400 a month.
Midtown, roughly bounded by I-75 to the east, Mack Avenue to the south, Rosa Parks Boulevard to the west and Philadelphia Street to the north, has a rich array of housing choices. It includes neighborhoods such as New Center and Midtown, but not Brush Park.
Housing includes century-old houses, carriage houses, townhomes, loft conversions in historic former commercial buildings and new apartment buildings.
Rentals range from $475 to $1,400 per month. Lofts, condos and homes for sale can run from $99,000 to more than $500,000. There are more than 55 lofts and condos on the market, with more available to build out, said Austin Black II, a Midtown-based broker.
The goal is to increase rooftops to generate more retail and commercial investment in the area, said Susan Mosey, president of the University Cultural Center Association, which is administering the program.
The impact could be huge. The three employers -- Detroit Medical Center, Henry Ford Health System and Wayne State University -- have 30,000 workers and hire thousands each year.
"The goal is to take the economic power of these anchors and use it to develop Midtown," Mosey said.
She expects 500 applicants for the program this year in its pilot phase. The program is modeled on similar programs in Philadelphia and Milwaukee, she said.
Employees who plan to buy would get a $20,000 forgivable loan toward the purchase of a primary residence or $25,000 over five years. Existing homeowners could receive $5,000 in matching funds for exterior home improvements.
Rasheda K. Williams, 31, who works as an information officer in the university's marketing and communications department, lives in Royal Oak and is contemplating a move to Midtown. She had been working near home until joining the university last fall.
"Moving back to the city would be more convenient as far as the commute, and I think it would be good to return and contribute to Detroit's revitalization," said Williams, who grew up on Detroit's east side.
She's already been on the Live Midtown Web site at www.livemidtown.org to look for places to rent. She's thinking of a loft, but might need to find a roommate to share expenses.
"The various lofts look appealing," she said. "Having that incentive gives you more reason to think about it. It would be in my budget."
And there are many options available. For instance, the lofts at Willys would qualify for the incentives. Black, the broker handling sales there, said there are 75 total and 14 have sold. They range from $116,000 for a small unit to $640,000 for a two-story penthouse.
On Ferry Street, Centurion Place has just two open condominium units left for sale out of eight built. The model is a two-bedroom, 2 1/2-bathroom home on three levels. It has 2,000 square feet, a two-car attached garage and an elevator for $225,000.
A one-bedroom, 1.5-bathroom unit with 1,500 square feet is also available at $125,000, Black said.
The model features limestone countertops in the kitchen, Pewabic pottery tiles on the fireplace, silk draperies and neutral décor.
The developer, Joel Lerman of Bloomfield Hills, plans to start on new projects in the area as a result of the incentives, Black said.
"This was his first project in the city. He's normally a high-end builder in Oakland County," Black said. "He wanted to bring some of those high-end touches to this area."
By GRETA GUEST
Detroit Free Press Business Writer
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