The Ashley, Detroit, Michigan

A local developer was taking on its first complete multifamily conversion on a historic hotel in Detroit, Michigan, and looked to PM Environmental, Inc. to perform environmental consulting services.

The Milner Hotel had a long, vibrant history, but had fallen into disrepair. The $3 million dollar project to transform the historic Milner Hotel into upscale apartments, now called The Ashley, required multiple  service lines to ensure the best possible outcome.

Using hazardous materials was commonplace in the early 1900s, and during the Phase I Environmental Site Assessment (ESA), PM identified asbestos containing materials (ACM) in pipe insulation and fittings as well as floor tiles throughout the building. The light fixtures and thermostat contained mercury, polychlorinated biphenyl (PCB) was found, lead-based paint had been used and the failing plumbing had caused water damage and mold in many of the rooms. All of these hazards had to be abated properly before any remodeling could begin.

Activities & Results

In order to make the extensive abatement plan fall within the project’s budget, PM worked with the client and the Detroit Economic Growth Corporation to secure Tax Increment Financing (TIF). For its work on environmental assessments, demolition, asbestos survey & abatement costs, PM secured nearly a half million dollars through Act 381 Brownfield Tax Increment Financing. Through the Community Revitalization Project, the project was awarded a performance based grant for up to $1,000,000.

The funding helped keep the project moving forward and on budget. The project generated 20 full and part time jobs and $8.2 M in total capital investment. The Ashley will increase the taxable value of the property and promote additional private investment in the neighborhood.