RenCen project seeks $548M in public support
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A rendering of the Renaissance Center redevelopment. Image: Courtesy of Bedrock
Dan Gilbert's Bedrock and General Motors are seeking nearly $548 million in public support for their Renaissance Center and east riverfront redevelopment, officials revealed Tuesday.
Why it matters: The size of taxpayer support has been one of the biggest unanswered questions surrounding the project, with key state and local approvals still ahead.
Driving the news: The Detroit Economic Growth Corporation, which helps the city evaluate and structure development deals, outlined a complex package of state and local incentives during Tuesday's community benefits meeting.
- The nearly $548 million total includes $300 million through Michigan's Transformational Brownfield program, about $173 million worth of property-tax incentives and a previously authorized $75 million DDA contribution.
- The project's estimated total investment is now $2.24 billion, including about $1.66 billion from GM and Bedrock and another $505 million in debt.
Between the lines: The incentives aren't all upfront government payments. The $300 million brownfield portion would reimburse developers over time using new state tax revenue generated by the project.
Worth noting: Schools and libraries would be reimbursed by the state for revenue lost through the incentives, per the DEGC, while a proposed tax agreement with the developers would direct about $95 million to Detroit over 30 years.
State of play: DEGC says its financial analysis found the project wouldn't be financially viable without incentives.
- The agency projects the redevelopment would generate about $301.5 million in net benefits for Detroit over 30 years, compared with $21.3 million if the RenCen remains largely as-is.
What's next: The Neighborhood Advisory Council will continue reviewing the incentive package as it negotiates community benefits with the developers.