A town square for Troy?

Developers unveil ambitious plan for former Kmart hub

Catherine Jun / The Detroit News

TROY -- A Virginia-based real estate firm on Monday unveiled details of a $200 million project for a town square at the site of the former Kmart headquarters, which would be one of the state's largest development projects and give this sprawling suburb a downtown.

If all goes well, the project -- a landscaped square with boulevards lined with upscale shops, restaurants, offices and condominiums -- could open by spring 2010.

"We really want the local community to embrace this as theirs," said Hunter Richardson of Richardson Development Group, Inc., lead developer of the project.

Named The Pavilions of Troy, the project was likened to Boston's Faneuil Hall and the Reston Town Center in Virginia. Companies collaborating on the Troy project helped design both.

The detailed plans appear to seal the fate of the 43-acre parcel at Big Beaver and Coolidge, which has been uncertain since the Kmart headquarters was sold in 2005. The square also will include a movie theater and fitness center and an outdoor ice rink that can double as a performance stage.

The project is an ambitious one given the downward trend of Michigan's economy, where the unemployment rate still hovers well above the national average and homes languish on the market for months.

Last year, developers pulled the plug on what was to be Troy's first high-rise residential development after failing to line up enough tenants for luxury condominiums.

Richardson said he was "optimistic" the housing and retail market will change by the time the project is finished. No tenants have yet been signed.

"By the time this comes online he may have the right timing," conceded Donald Grimes, senior research specialist with the University of Michigan's Institute of Labor and Industrial Relations, who recently co-authored a report projecting an uptick in Oakland County's employment starting in 2008.

Depending upon future market conditions, the developers could invest another $100 million for an additional 550 housing units including senior housing, office buildings and a hotel.

Upon completion, The Pavilion is projected to create 1,500 jobs, including 350 construction jobs, and bring in $4 million in yearly tax revenue to the city.

Richardson said he plans to file a rezoning application for the project by next week. The property is now zoned for office use only.

The project would still need review by the Planning Commission and approval by the City Council.

Construction could begin in summer 2008.

You can reach Catherine Jun at (248) 647-7429 or cjun@detnews.com.