Feb 16, 2024 - News

Drilling down on dollars

Illustration of a hundred dollar being built by construction vehicles. 

Illustration: Aïda Amer/Axios

Here are some examples of benefits under the $604 million total being put forth by the city and developers, a huge figure compared with other CBAs:

$90 million to operate one of the proposed projects, a medical research center.

Up to $55 million in infrastructure improvements, which are required for the development, per the agreement.

Making "reasonable efforts" to spend $100 million of its project costs on local and minority-owned businesses.

  • Getting developers to contract more with businesses owned by longtime Detroiters is a big deal for many City Council members.
  • Sugar Law's concern here, per its analysis, is that the spend is a goal, not mandatory.

$300 million in uncompensated care costs for HFH over 30 years after the hospital expands.

  • Sugar Law considers this an activity that HFH already needs to do under its status as a nonprofit.
  • HFH said in its statement that the list of benefits it's offering "builds on [its] history of going above and beyond the IRS requirements for nonprofit hospital status."

More benefits


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