RenCen community benefits deal wins approval
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Members of the RenCen Neighborhood Advisory Council defend their work Tuesday amid criticism from residents who argued the proposed community benefits didn't go far enough. Photos: Joe Guillen/Axios
Despite vocal opposition from some Detroiters, a neighborhood council voted 8-1 Tuesday to endorse a community benefits package for the $2.2 billion redevelopment of the Renaissance Center and east riverfront.
Why it matters: The vote marks a major milestone for Dan Gilbert's Bedrock and General Motors, but the project still faces scrutiny over its nearly $548 million request for public incentives.
Zoom in: The package includes $43.5 million in community commitments:
- 🏘️ Housing: $15 million for affordable housing and neighborhood development.
- 🛍️ Small businesses: $10 million for riverfront retail pavilions, neighborhood business support and construction-related assistance.
- 🛠️ Workforce: $6 million for skilled-trades training and education.
- 🚗 Parking: Detroit residents would get 90 minutes free, valued by developers at $4.5 million over 10 years.
Follow the money: Developers also project nearly $90 million in payments to Detroit over 30 years through a separate property-tax agreement, after redirecting $5 million to the city's Affordable Housing Trust Fund.
What they're saying: NAC chair Jamaine Dickens defended the deal.
- "We negotiated in good faith, and we spent a lot of our own time and our own hours doing it, and actually negotiated the largest community benefits agreement in this city's history," Dickens said.
The other side: Teron Haynes Jr., one of two NAC members elected by neighborhood residents, cast the lone dissenting vote.
- "I do not believe that the agreement drafted represents the desires of Detroiters," Haynes said, citing concerns about public ownership, revenue sharing and transparency.
The public reaction: Tuesday's comments reflected sharp divisions. Critics questioned the public incentives and lack of direct city ownership, while supporters praised the proposed investments in jobs, housing and small businesses.
The big picture: The redevelopment calls for demolishing two RenCen office towers and transforming the surrounding riverfront into a destination with housing, entertainment and public spaces.
- Gilbert recently pledged to turn his previously planned $1 billion investment into a gift to a new nonprofit that would own the redevelopment and reinvest any profits in the community.
What's next: The NAC is expected to submit a formal letter of support Nov. 5, followed by a City Council committee discussion of the community benefits agreement Nov. 12.
- City Council and state approvals of the redevelopment's incentives are still required.