A developer who is creating a mixed-use project on the site of the former Kmart Corp. headquarters in Troy will be reimbursed $9.2 million, plus interest, for demolition of the long-vacant building and asbestos cleanup.

But, city officials said, Forbes/Frankel Ventures will essentially receive its own tax dollars back.

The Troy City Council voted unanimously Monday, Sept. 29, to approve a plan that will set up the reimbursement under the Brownfield Redevelopment Financing Act, a state law designed to encourage reuse of blighted or obsolete properties.

The reimbursement will come from increased taxes generated by improved property values that will result from the development, Mayor Ethan Baker said.

Last year, the property at Big Beaver Road and Coolidge Highway was worth $7.2 million.

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