(The Center Square) – The $1.5 billion District Detroit is advancing, fueled by about $800 million of taxpayer subsidies.
Concerns persist, however, the project will benefit developers more than Detroiters.
The Detroit City Council unanimously approved a $167 million community benefits agreement and additionally approved by a 8-1 vote a $616 million transformational brownfield redevelopment plan.
The developers are the Related Companies and Olympia Development of Michigan, which aim to renovate the area near Little Caesars Arena, Comerica Park, Ford Field, the historic Fox Theatre, Cass Park, and the Masonic Temple.
The development would include the construction of 10 renovated historic or new projects, including four mixed-income residential buildings, four commercial office buildings and two hotels, and additional green space.
The proposed projects include a 1.2 million square feet of commercial office space, 146,000 square feet of retail space, 467 hotel rooms and 695 residential units.
At least 20% of the residential units would be available to rent at rates affordable to those earning no more than 50% of area median income, equivalent to an annual salary of $35,800 or less for a two-person household.
City Council President Mary Sheffield voted against the brownfield redevelopment plan.
“This project has some merit, but is not the panacea that is described,” Sheffield said in a statement. “This project, promised only 140 units of affordable housing, when tens of thousands are needed. It promises 1.2 million square feet of office space at a time when we are begging people to come back to work, businesses are downsizing and office buildings remain largely unoccupied.”
Sheffield said the strategy of giving away large amounts of taxpayer money to developers has failed Detroiters.
“The model of developing our City has been the norm over the last 40 years and we’ve seen nothing but the proliferation of poverty, the loss of population, the obliteration of Black businesses and the systematic exclusion of Detroiters with respect to ownership and equity,” Sheffield wrote.
The Council meeting agenda stretched 2,954 pages, many of which were filled with opposition to giving away taxpayer money to two billionaire families.
Detroit resident Jane Slaughter wrote in an email comment: “There is no justification for giving the wealthy Illitch family even one cent of the tax dollars that we Detroiters so badly need for our own services.”
“I urge City Council to reject any more ‘rob from the poor, give to the rich’ schemes,” Slaughter wrote.
The developers say the project would provide 12,450 construction jobs.
A Detroit Economic Growth Corporation press release says that the 10 projects are expected to generate $751 million in new city tax revenue over 35 years and another $1 billion for the state. Other taxing authorities would receive $394 million.
Related Companies and Olympia Development of Michigan thanked the state in in a joint statement:
“We thank the Detroit City Council, Mayor Duggan, the Neighborhood Advisory Council, and all of the Detroiters who support the future of The District Detroit and the inclusive economic impact that this project will have on our city and state, including thousands of jobs and much needed affordable housing. We look forward to continuing our work with the Neighborhood Advisory Council, City of Detroit and the State of Michigan.”
The plan moves to the state for further consideration.
