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Oakland County moves forward with Pontiac property purchase

The paperwork transferring ownership of the Ottawa Towers and Phoenix Center is done.

Now, Oakland County Executive David Coulter is reminding people to be patient. Demolishing the Phoenix Center and building a new parking garage will take time, as will some of the other changes needed to prepare the site for as many as 600 county workers.

The $19.2 million real estate deal is one way the county is re-investing in Pontiac, the county seat, and a way Coulter, Mayor Tim Greimel and others said Thursday to right a historic wrong.

The transaction includes 10 to 12 acres of property, including Ottawa Tower I at 51111 Woodward Ave., and Ottawa Tower II, the former General Motors Building at 31 E. Judson St., four adjacent parcels of land and the current lease for the Phoenix Center parking garage.

The Rev. Doug Jones, pastor at Welcome Missionary Baptist Church, said he felt proud, happy and upbeat about the move.

The agreement with the city includes plans for a two-acre downtown park with an event space.

Coulter’s call for patience is rooted in a process that he said will include transparency in the pursuit of public-private partnerships, requests for proposals and a competitive bidding process for demolition and construction to community events where residents, business owners and others interested in the project can share their opinions and ideas and ask questions.

City and county officials gathered on the eighth floor of the Ottawa Tower, 5111 Woodward Ave. to talk about the news on Thursday morning.

Signs promoted the theme of the day and project: “Redevelop, revitalize, and reconnect downtown Pontiac.”

Coulter called it a historic opportunity to re-invest in the city and one part of an overall strategy to redevelop downtown areas dating back to 2000.

The deal allows Pontiac to extract itself from a $6 million court-ordered debt, on which the city has already paid $1 million. State officials approved a $5 million grant to alleviate the city’s debt.

Renovating and maintaining the Phoenix Center would cost an estimated $61 million and still not resolve its role as an effective roadblock on Saginaw Street, bisecting a key part of the city’s downtown. Removing the parking garage will re-open Saginaw Street to the south end of the Woodward Loop. This supports plans to transform Pontiac’s downtown to a walkable space.

Coulter said the Michigan Department of Transportation’s plans to reconfigure the Woodward Loop to create safer spaces for pedestrians and bicyclists and make it easier for vehicle traffic to get downtown is another promising development. That project will be finished in late 2025 or early 2026, shortly after the county starts moving employees to Tower II.

The county will build a new parking garage close to the two office buildings that can be used by county workers, residents and anyone visiting the downtown area.

At least two acres of land will be returned to Pontiac, with city officials planning to create a park with a performance space to replace the Phoenix Center’s rooftop venue.

The city and county have plans to host multiple community meetings so Pontiac residents and business owners can get more information and share their property development ideas.

Greimel said he hopes the changes revitalize the downtown area and “restore Pontiac’s rightful place as the heart of Oakland County.”

The project will cost an estimated $120 to $130 million, with $50 million coming from Michigan. State Sen. Jeremy Moss said the state is also guilty of neglecting Pontiac and the $50 million is the largest single project allocation from the state budget. He noted the state also approved $10 million for replacing the Martin Luther King Jr. bridge in the city, which has been closed for safety reasons since last year. He credited state Rep. Brenda Carter and Gov. Gretchen Whitmer for supporting the allocations.

Pontiac City Council President and Executive Director of Oakland County’s Historical Society Mike McGuiness said the state is also granting $5 million so the city can pay off the court-ordered Phoenix Center bill.

Oakland County will add $10 million in American Rescue Plan money to the project. Along with that, the state will support brownfield redevelopment credits and community revitalization grants and credits, with more money coming from the bipartisan Infrastructure Law and the Inflation Reduction Act, including the Reconnecting Communities and Neighborhoods Program.

Whitmer said this county project is one example of the state’s mission “to help anyone ‘make it’ in Michigan. Let’s keep revitalizing places, investing in our communities, and building a brighter future.”

Another reason the county is investing in downtown Pontiac is to avoid an estimated $550 million in critical repairs needed at buildings on the county campus, which sits at 1200 N. Telegraph in Pontiac and across the street in Waterford. The county is faced with an estimated $54 million to make safety improvements in at least three buildings that don’t meet current building codes.

State Rep. Brenda Carter said the project is another sign that the city is “clearing out the blight and putting the fight back into making Pontiac an economic hub again.”

Oakland County Board of Commissioners Chairman David Woodward said the excitement while planning the purchase was palpable.

Oakland County Commissioner Angela Powell, a Pontiac native, recalled the days when the Phoenix Center was a place to see concerts and have fun. The changes ahead are a good deal, she said, adding a message for the people she called the naysayers: “We’re gonna prove you all wrong.”

Pontiac City Councilwoman Melanie Rutherford, a Grammy nominated singer who represents the district that includes the Ottawa Towers and the vacant parcels the county will redevelop, sang a few bars from Curtis Mayfield’s 1965 hit, “People Get Ready,” before talking about what she called a true partnership between city and county, “where we have gotten past our fears and used our faith to give hope for a bright tomorrow.” Like several others, she used the city’s reclaimed nickname, but she got those present to join a call and response, saying the future “happens in Yaktown.”

Rutherford said she plans to hold both city and county officials accountable for their promise to include residents in the planning process.

Karen Buscemi, president and CEO of the Pontiac-based Detroit Sewn, Inc. said while her eight-year-old business does not depend on foot traffic, she urged those present to avoid putting all possible amenities inside the Ottawa Towers, to encourage people working in the buildings to get into the downtown area and support the small businesses there.

Commissioner William Miller III said he’s happy with the county’s commitment to hire unionized skilled trades workers.

Follow project progress and share ideas at OakGov.com/DowntownPontiac.