601 Forest pulls permits, existing businesses close

A new development in the South University area of Ann Arbor took another step forward last week, which meant the closing of some well-known businesses.

The 601 Forest building, destined to replace the hodgepodge of small buildings at the Village Corner Party Store corner of S. Forest and University streets, has pulled the permits needed to get started. Village Corner closed last week. The stores will be demolished to make way for a 14-story, L-shaped building with ground-floor retail, mixed office and residential on the second floor, and residential on the 12 floors above.

Plans include about 175 apartments -- which is significantly smaller than the original plans from two years ago -- along with parking in a two-story, below-ground garage.

Matt Kowalski, Ann Arbor city planner, says foundation permits have been submitted to the city, indicating that developer Ron Hughes of Hughes Properties in Bingham Farms will start interior demolition of the Village Corner party store and other buildings this month. That will allow for necessary environmental remediation before a complete demolition of the property is taken on.

Kowalski says the city has foundation drawings, soil erosion permits, and other documents that indicate the developer is about to start work.

"I think overall it's a good thing for the area to be moving forward," he says. "I think the city's happy to see some of these projects that have been stagnating going forward."

The new development, he adds, will help relieve some of the pressure on student housing in the city, which is at a premium.

This September, the Michigan Economic Growth Authority granted a two-year extension of $4.7 million in brownfield tax credits to complete redevelopment of the site, but it was stipulated that demolition has to begin by Jan. 12.

The development was billed as a "Green Urban Living Redevelopment Project," and will pursue either gold or silver LEED certification. Soon after the project was approved by the city, the financial crisis soon followed and the project stalled.

Source: Matt Kowalski, Ann Arbor city planner
Writer: Kristin Lukowski
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