Planning Commission Gives OK to Rezone City Hall for Artspace Project

Plans to convert the current Dearborn City Hall into a living workspace with apartments for low-income artists received a boost of support from the Planning Commission on Monday.

The commission voted 8-0 with one absent to approve a special land use and site plan for city hall, located at 13615 Michigan Ave. The site is zoned Business C (general business district) and within the boundaries of the Business D (downtown business district).

The special land use was approved with the condition that it only apply to the Artspace project. If the project does not go through, the commission said it did not want another low-income housing project to move into city hall.

Barry Murray, director of Economic and Community Development for Dearborn, said the site plan approval is necessary in order for Artspace to apply for a low-income housing grant from the Michigan State Housing Authority on Aug. 15 to fund the renovations of city hall.

The city has verbally agreed to sell the building to Artspace for $1.65 million, but the sale has not been approved by the city council. Murray said the council is waiting on the status of Artspace's grant application to the state before moving forward.

Artspace plans to keep the building's historic outer architecture, and will spend $18 million to renovate the building’s interior, which will include studio lofts, an art gallery and lecture area.

Murray said Artspace has a successful track record of obtaining low income housing grants in the past, however if its application in August is not approved, it can reapply to the state in February.

"Artspace has been able to successfully develop their projects in 30 communities across the United States over the past 30 years. They have been able to work with the federal Department of Housing and Urban Development to qualify artist housing as low income housing. Preferential treatment, in this case, would go to artists," Murray explained.

Murray said Artspace is also scheduled to appear before the Zoning Board of Appeals on June 12 to request a variance for parking spaces at the building.

If Artspace decides to keep the parking deck at city hall as part of its renovations, it will have enough parking spaces for building tenants. If the deck is demolished, the structure will be short roughly 28 spaces, Murray said.

In response to a question from Commissioner Gary Errigo as to whether or not the city planned to move the veterans’ memorials at City Hall Park to the Dearborn Administrative Center, Murray said a decision has not been finalized. He said the city plans to keep the park, which will be run by the East Dearborn Downtown Development Authority.

Marium Wilke, a member of the Eastborn Neighborhood Association, said several of her neighbors are concerned about the plans to move city hall.

"They don't want to see it moved and they certainly don't want to see the name changed," Wilke told the commission. "I appreciate that there was a contingency placed on the site plan approval because it could take a year for Artspace to receive funding, if they receive it at all."

The Planning Commission's decision does not have to go before the city council for approval. The council has scheduled a study session open to the public for 6 p.m. June 20 in the council chambers to discuss the project in further detail.