Saline Development Wins $1.5 Million State Grant

A downtown Saline redevelopment project has landed a $1.5 million state grant to support new housing, commercial space and a public gathering area near Murphy’s Crossing.

The funding, announced March 31 by Gov. Gretchen Whitmer’s office, comes through the state’s Revitalization and Placemaking program, which helps support redevelopment projects. State officials said the Saline project will redevelop a three-story historic building and adjacent parcel into four two-story apartments, a renovated lower-level commercial space and about 10,000 square feet of outdoor public space with seating, lighting and trees.

The state said the project is expected to generate about $7.5 million in total investment. The governor’s office also said the City of Saline has committed $500,000 toward the public space portion of the project.

City records show Saline had already been laying the groundwork for the project before the state announcement. In a Feb. 9 memo to City Council, City Manager Dan Swallow wrote that the city had spent several years working on plans for a downtown gathering space. He said the proposal centered on a square near the East Henry Street public parking lot and that Praxis Properties had committed more than $4 million in improvements. The memo also said the project was expected to add four housing units while helping bring more activity to downtown.

That same memo said City Council had previously approved a $500,000 commitment for public improvements tied to the project. Swallow also wrote that Praxis had received a letter of intent for a $1.5 million grant from the Michigan Economic Development Corporation, the state’s economic development agency, though the amount was lower than originally expected and left the project needing additional support to move forward.

A Feb. 23 city Capital Improvement Plan packet, a long-range planning document for major projects, listed Downtown Greenspace as a $500,000 community improvement project in fiscal year 2027. City budget documents broke that amount into $250,000 from the general fund and $250,000 from TIFA, the city’s downtown tax capture authority.

The state announcement identified the developers as William “Bill” Kinley and Mary Kinley, owners of Phoenix South, L.C. and Praxis Properties, with Tyler Kinley managing both companies. The release said this would be the first development for Phoenix South, while the team has previous experience redeveloping historic buildings in Saline, including Merchant Square.

Swallow, quoted in the release, said the project will create a space for events, gatherings and everyday use in downtown Saline.

Featured photo: A rendering shows the planned Murphy’s Crossing redevelopment in downtown Saline, including housing, commercial space and a public gathering area. The project has received a $1.5 million state grant. Rendering from City of Saline documents