Royal Oak OKs site plan for apartment complex at Main and I-696

Posted on March 21, 2017

After decades of deals that went south, Royal Oak is well on its way to completing a deal for a developer to build a $40 million apartment complex on Main Street at the I-696 service drive.

“This is good,” said Jay Dunstan, chairman of the city’s Downtown Development Authority which owns the land. “This is happening and they are full speed ahead.”

This rendering shows a $40 million four-story apartment building that Singh Development is planning for the vacant four-acre property in Royal Oak at South Main Street and I-696, though some details, including parking, are expected to change.

This rendering shows a $40 million four-story apartment building that Singh Development is planning for the vacant four-acre property in Royal Oak at South Main Street and I-696, though some details, including parking, are expected to change. Rendering courtesy of Krieger Klatt architects

Royal Oak’s Planning Commission approved a special land use and site plan for the project Wednesday night. Singh Development, LLC of West Bloomfield is set to pay $2.5 million for the four-acre site between South Main Street and Washington Avenue.

“They have 180 days to submit construction plans to the city, but I think they’ll beat that timeline,” Dunstan said. “The market is right and I feel fortunate to have been part of this.”

Transfer of the land and payment will happen when building permits are approved, he added.

Mayor Michael Founier, who sits on the Planning Commission, said the apartment building proposal is better and more aesthetically pleasing than other proposals that failed in the past.

“They will have to move some parking and there will be other tweaks to their original plan,” he said. “I think we’ve found something that is creative and an asset to the community.”

Singh has developed 20 luxury multi-family projects in southeastern Michigan, including nine projects similar in size to what is being proposed in Royal Oak, a project manager for the company told city officials when the development was first proposed 10 months ago.

Some residents raised concerns about residential rental property drawing crime and creating traffic problems in the area.

Fournier, however, said there is no strong correlation between rentals and criminal activity, especially with a new high-end complex like the one Singh has proposed.

“A traffic study is coming,” he said. “Anything you put there is going to draw traffic, but the residential nature of this project is going to draw less traffic than an office building or other (proposed commercial uses). I think this is the lowest impact use for the land.”

Though some details of the apartment complex site will be changed, it will remain much the same as it was originally proposed with about 225 units. They will include townhouses, one- and two-bedroom apartments and studio apartments ranging from 550 to 1,800 square feet.

Rents would be between $1,000 and $2,500 per month.

The four-story, four-sided structure would be built around a courtyard with a large swimming pool and patio area and have retail spaces on the first floor.

Krieger Klat architects in Royal Oak designed the project like a high-end luxury hotel with a lobby area, amenities and a club area, officials said.

“It’s been close to 30 years that we’ve been trying to find a project for this awkwardly shaped (parcel of) land in the downtown,” Fournier said.

The most recent failed proposal for the land was from Schostak Bros. to build an office building but that project died on the vine more than a year ago.

A $50 million outpatient facility was proposed by Detroit Medical Center but the deal fell apart in 2013.

Other failed proposals for the site were for a casino, offices, fitness center and a hotel.