KircoManix Cardinal Health Development


6000 Rosa Parks Bouevard, Detroit, Michigan

1. Project overview


Goal of the project
The goal of the project was to develop a state of the art medical warehouse for occupancy by Cardinal Health as its sole tenant to service the Henry Ford Health System under a 15 year supply contract. This development was intended by Henry Ford Health System to be the inaugural project for its area wide redevelopment plan to help transform the hundreds of blighted, contaminated and obsolete properties in the area of the hospital into a thriving mixed-use neighborhood of residential commercial and medical/high-tech businesses. The Cardinal Health project consists of a 273,930 square foot distribution facility on 17.5 acres of the 28 acres assembled for the project and represents new investment of approximately $32,000,000 for site preparation activities, remediation activities, site development and vertical construction.

The location and size of the site (in acres)
The entire site was assembled from 118 individual city lots and properties and totals 28 acres in size. The Cardinal Health project consists of a 273,930 square foot distribution facility on 17.5 acres of the 28 acres and represents an investment of approximately $32,000,000. The assemblage was undertaken by Henry Ford Health System over a number of years and comprised properties owned by private individuals, businesses and numerous tax reverted properties owned by the City of Detroit. A number of the properties required processing through the Land Bank to quiet title in order to provided insurable title.

Acquisition of the final parcels included in the project occurred while the project was going through the final site plan, building design and municipal approval process as well as the concurrent Brownfield Incentive approval process.

Former use of the site
The property assemblage contained eighteen (18) associated structures that had to be demolished as part of the site development process. This included vacant residential lots, vacant residential homes, commercial parcels, and a variety of industrial buildings/properties located in the City of Detroit in the area bounded by Marquette Street to the north, Commonwealth Street to the east, railroad tracks to the south, and Rosa Parks Boulevard to the West. In addition to the heavy blight in the area, the project site also contained over 4,000 abandoned tires.

Former legal uses of the properties included in the final assembled project site included a rail yard, Socony Vacuum Oil Company, White Star Refining Company, paint and coatings manufacturing, metal plating and other industrial uses as well as current and former residential uses. Former illegal uses of the property included waste disposal and dumping, junkyards, metals striping from structures (pipes, electrical components, structural elements, etc.).

The site contained a variety of subsurface challenges including basements, tunnels, underground storage tanks, pits, railroad tracks, septic systems, corridors, containers, vaults, safes, piping etc. These issues had to be incorporated into the initial Kirco project cost model that also included managing all of the contaminated areas and their associated mitigation costs.

Actual end use of the site
The intended end use of the project site was construction and occupancy of a 273,930 square foot state of the art medical supplies warehousing operation. The building and property incorporate many state of the art design and redevelopment elements including a footprint wide passive soil vapor mitigation system.

Date the project was completed
The project was initiated in June 2011 with final municipal approvals received in 2014. Construction was initiated in early 2014 completed with the project completed occupied by Cardinal Health the week of May 4, 2015.

Company:
Associated Environmental Services, LLC,
6001 North Adams Road, Suite 205, Bloomfield Hills, Michigan

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