Detroit mayor, Magic Johnson firm eye business, transit hub at Michigan State Fairgrounds

The historic former Michigan State Fairgrounds along Woodward could become a regional transportation hub and home to a sizable employer in the future, Detroit Mayor Mike Duggan said Wednesday, after the city announced a plan to purchase 142 acres of the site.

The announcement came after the Michigan Land Bank Fast Track Authority board of directors on Wednesday approved proposals to sell the property to the City of Detroit and Magic Plus LLC, a development company affiliated with former basketball star Earvin (Magic) Johnson.

“I felt for a while the city ought to drive the development,” Duggan said while standing in front of the shuttered Coliseum arena, adding the site could become home to one or more businesses. “I’ve been through here with a couple of big employers and they love these buildings.”

Although there are no firm plans on the table for the site yet, Duggan said the vision is for the site to house at least one business that could employ anywhere from 1,000 to 2,000 Detroiters.

“You can draw a lot of people at this site,” Duggan said. “...I’m more interested in landing a major employer or a group of employers.”

The site hosted the Michigan State Fair from 1905 until 2009. Gov. Rick Snyder, in April 2012, signed legislation allowing the site to be transferred to the Michigan Land Bank. Since that time, the Land Bank has been working with Detroit and Magic Plus LLC to bring redevelopment to the site.

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A small park maintained by the Michigan Department of Natural Resources and a small Detroit Department of Transportation bus depot will remain on the site, with the latter potentially becoming part of something greater.

Duggan, who in recent weeks has been vocal about the need for regional transportation, said the site’s promising future of being a transit hub is a draw for potential businesses.

“It’s the centerpiece,” Duggan said. “This next generation of kids doesn’t want to be in the car for 30 minutes.”

The city will purchase about 142 acres of the property for $7 million and Magic Plus LLC will purchase about 16 acres — primarily along Woodward Avenue, according to a news release, which said the city will lead the redevelopment process.

The Free Press reported in 2015 that Magic Plus LLC had submitted preliminary plans to the city and hoped to redevelop the fairgrounds with stores, hundreds of new apartments, a movie theater and possibly a specialty grocery store.

But development plans for the site have been stalled.

The State Fairgrounds Development Coalition, a group formed in 2012 to advocate for a "grassroots vision" for the future of the site, said last month that “Detroiters can and should have a significant impact” on the fate of the fairgrounds.

Cochair Frank Hammer said Wednesday at the site that he believes the city purchasing the land is a “step forward for Detroit.”

“I think it’s a very positive development and I think we’re going to get over the delays we’ve had the past six years,” he said.

Hammer and his wife, Karen, have both been actively fighting for years for the surrounding neighborhoods and city residents to have a say in what happens at the site.

Hammer said the coalition would like to see a transit hub, as well as a focus on job creation to help stimulate the surrounding neighborhoods. He said the site is also home to distinctive, historic buildings that could be used for something else.

“We’re very happy to see the mayor speak about a transit center here and it’s very good to hear Mayor Duggan talk about job creation,” Hammer said.

Despite the Michigan Land Bank approval, the Detroit City Council must approve the purchase. When council approved Detroit's 2018-19 budget, it included $4 million from the general fund to cover $3.5 million of up-front costs toward the total $7 million purchase price.

According to the release, the rest of the purchase price will be paid once the land is developed. City Council will vote on the purchase after environmental reviews slated for this spring.

If approved by the council, the city would take ownership of the land this summer. Magic Plus LLC would take ownership of its approximately 16 acres by May.

“The historic State Fairgrounds is an important site for residents, the City of Detroit and the entire region,” Josh Burgett, director of the Michigan Land Bank Fast Track Authority said in a statement. “All parties involved have worked hard to bring redevelopment to the site and this public/private agreement is marrying two visions for the State Fairgrounds to create jobs and provide commercial destinations for those new employees and current residents.”

The city said it plans to explore different development options for the site.

Joel Ferguson, principal of Magic Plus, LLC in a statement: “We are excited about developing the Woodward Avenue frontage at the State Fairgrounds site and we look forward to working with the City of Detroit.”

Contact Katrease Stafford: kstafford@freepress.com or 313-223-4759.