By: Sarah Wright | Troy Times | Published October 21, 2025
TROY — The Troy City Council has approved a new redevelopment plan for a mixed-use project at the site of the former Kmart headquarters in Troy.
The property is at 31000 W. Big Beaver Road and has been vacant since 2006. It was purchased by Forbes/Frankel Troy Ventures in 2009. Demolition began in late 2023 and finished in mid-2024. The developer is planning a mixed-use project that could feature residential units, office space, stores and a hotel at the corner of Coolidge Highway and Big Beaver Road. It may take the next several years to complete.
In addition, University of Michigan Health has purchased 7.28 acres of the 40-acre property for $4.42 million to build a health care center. Another 4 acres were later acquired for $2.5 million.
But first, Forbes/Frankel needed council to approve a new brownfield redevelopment plan, including a reimbursement agreement for costs associated with demolition and abatement, specifically for the 28-acre portion of the property where the original Kmart building once stood.
A previous brownfield redevelopment plan from 2008 had to be terminated in the process. The prior plan was for a $320 million mixed-use project called The Pavilions of Troy, by developer Diamond Troy JV.
The brownfield redevelopment plan allowed for the recapture of incremental local and state taxes to reimburse the developer for certain costs related to the demolition. But Diamond Troy JV never proceeded with the project, so no costs were incurred, and no reimbursement was necessary.
As for the new redevelopment plan, it will reimburse the new developer by $9.2 million. The Troy City Council approved the new plan at its meeting Sept. 29. Officials believe that the arrangement will have long-term benefits for the city.
“If we look at the last 18 years and how much in taxes we’ve received compared to what we will receive, this is definitely going to be a benefit,” said Mark Gunn, mayor pro tem of Troy. “Plus, we get a U of M hospital at the location, so I think that’s a big plus there, too, for all of us people who like going to U of M hospitals.”
City Councilmember Theresa Brooks said the brownfield redevelopment plan is a great incentive for developers to invest in blighted areas.
“We don’t want blighted developments in our city. We want them to be developed into something that is beneficial and that the community can benefit from,” Brook said. “And I do believe that this specific project is very, very beneficial for our city.”
For more information, visit troymi.gov.