Saline City Council Takes a Step Toward Downtown Square Partnership

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Plans to partner with Praxis Properties for a downtown square took another step forward at Monday's Saline City Council meeting.

The council voted 4-1 to approve a resolution of support for the downtown square that would include part of the Praxis Properties and city land on the 100 block of South Ann Arbor Street.

The city and Praxis Properties began discussing a downtown square adjacent to the East Henry Parking Lot and Murphy's Crossing in 2024. Tyler Kinley, of Praxis Property, had planned to develop an outdoor area behind his building as part of his plan to build apartments and commercial space in his building. At the time, the city had been exploring a public gathering place in the West Henry Parking Lot that hosts the farmers market, summer concert series and other festival events, but as that plan involved using customer parking, it didn't have the support of business owners.

Kinley had applied to the Michigan Economic Development Corporation for a $4 million grant for a public square project adjacent to the East Henry Street parking lot. The City of Saline voiced support for the project, announcing $500,000 of support for the project and committing to help activate the space with public activities.

Kinley recently learned the state was supportive of the project, but that it would be approved for a $1.5 million grant. To make up for the difference, Kinley said he would personally commit more funds to the $4 million he'd already committed to the project. Last week, Kinley told the council he was seeking a tax abatement from the city.

"The challenge on our end has been the reduction of $2.5 million. It's a challenge to work with. On our end, we have put in more money. But it's a cash flow issue. Basically, the bank says, in order to give you a loan, you have to make enough money for us for the risk to be mitigated," Kinley told council. "In order to make the project financially feasible, we are requesting a tax freeze."

City Manager Dan Swallow had estimated the tax abatement would be worth about $250,000 over the 10-year abatement.

The resolution affirms the city's $500,000 contribution to the project and support for a tax break on the property.

The council voted 4-1 to approve the resolution. Mayor Brian Marl was absent. Councilor Dean Girbach, who holds a reverter clause that could grant him ownership of the city's property that would be used as part of the square, abstained due to conflict of interest. Councilors Nicole Rice, Jenn Harmount, Tramane Halsch and Jim Dell'Orco voted in favor of passing the resolution. Councilor Janet Dillon voted against the resolution.

Dillon said she supports the project and the process, but she said she feels that asking for this kind of support "puts the cart before the horse." In general, she said the city hasn't received enough details about the project and its role in the project.

Among her concerns:

  • Kinley's drawings are still conceptual and subject to change.
  • The city does not know what the property will be.
  • The city does not have a plan for what it's part of the property will be.
  • The city does not have a cost estimate for improving Kinley's part of the square or the city's part of the square.
  • The city has committed $500,000, and improving the infrastructure could cost that much.
  • There's no information about how much the city would have to pay the Girbach family to buy out the reverter clause.

"So I feel a lot of things have not yet been answered. So putting out a resolution, I want to understand clearly what we are committed to," Dillon said, adding that she thought the city would be further along in the process.

Dillon was also concerned that the city does not yet have an agreement with Praxis Properties on the property. It's generally understood that the city would work with Main Street, for example, to provide programming or events for the space.

"I feel as though we are constantly working on Mr. Kinley's timeline. When does the city's timeline come into effect?" she asked. "We're negotiating in good faith, and we have for a year now. But at some point, we need the details of what exactly we are agreeing to."

Swallow answered some of those questions. He said the city was reaffirming the previous commitment of $500,000 and its willingness to participate in the public-private partnership now that it has the MEDC's support. In addition, the resolution simply states the city will consider a property tax abatement.

He also said the process has been time-consuming. The city jumped through hoops to apply for the MEDC grant before a deadline early in 2025. Swallow noted MEDC didn't approve the letter of intent to support the project until late 2025.

Councilor Dell'Orco sought to clarify what the city was agreeing to with the resolution.

"I just wanted to clarify all we're agreeing to tonight is that we agree to consider the possibility of an abatement?" he asked.

Swallow confirmed.

"Correct. This body has to act separately on that application," he said.

Councilor Jenn Harmount said she supported the resolution.

"I fully support this downtown square project. The partnership with Praxis Properties represents a major step forward, creating a vibrant social space in our downtown, and I'm concerned that by not moving forward with this resolution, we're going to set the project back," Harmount said.

Councilor Dell'Orco asked about tax legislation that would potentially succeed the current tax abatement rules. Swallow said the legislation has passed the Senate and it has moved out of the House finance committee.

The project has the support of Saline Main Street, the private nonprofit downtown revitalization organization.

"I just want to say how incredibly excited we are about the town square project coming to downtown Saline. We can't wait to see this happen," said Mary Dettling, executive director of Saline Main Street. "Honestly, we're already thinking about the possibilities."

She said Saline Main Street is already thinking about the best scenarios for seating, stages and other elements for the concerts and other activities.

"This space is going to give us new opportunities to bring people together in the heart of our city," Dettling said.

Kinley last week provided a timeline that suggested work could begin in May and a grand opening could happen in the spring or summer of 2027.

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