Detroit/ Real Estate & Development
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Published on February 27, 2024
Detroit City Council Greenlights $3 Billion 'Future of Health' Megaproject with Controversial Tax BreaksSource: Henry Ford Hospital

The Detroit City Council voted to approve a series of development incentives and a comprehensive Community Benefits package for a massive $3 billion New Center development, involving heavy-hitters Henry Ford Health, the Detroit Pistons, and Michigan State University. This collaborative project, dubbed "Future of Health", encompasses several key developments, including a significant expansion of Henry Ford Hospital, mixed-income housing units, and a new medical research center, as reported by the Detroit Free Press.

In a 6-3 vote, council members chose to move forward with what is considered a transformative project for the Detroit area. However, weighing heavily in the decision-making process was the notable request for $296 million in tax breaks and future tax captures over 35 years, aimed predominantly toward the development of three apartment buildings by the Pistons organization, as pointed out by hoodline. Critics of the incentive package, like those from the Sugar Law Center for Economic and Social Justice, argue that diverting tax dollars to the pockets of billionaires does not serve the public interest.

Nevertheless, the Detroit City Council and the developers contend that the long-term benefits of these projects will far exceed the value of the incentives provided. Alongside the tax breaks, the approved Community Benefits package introduces a $1.5 million donation to the city's Affordable Housing Development and Preservation Fund, $1 million towards a new community land trust, and funds for senior transportation services, as Detroit Free Press details.

As a part of the rezoning for the hospital expansion, Detroit Council has laid the foundation for a development, which the developers describe will redefine health and well-being for the city. Articulating a vision of economic opportunity and innovation, the developers stated, "Today’s approvals lay the groundwork to execute the reimagination of our shared campus, creating meaningful economic opportunity and redefining what health and well-being means for the City of Detroit," in a statement recorded by The Detroit News.

Looking ahead, with the council's decision now firmly in place, the transformative brownfield proposal moves to the Michigan Strategic Fund for final approval in April. Should it pass, Detroit can expect to see groundbreakings for the Henry Ford Hospital expansion and a new research collaborative effort with Michigan State University within the year, as per a report by the Detroit Free Press.

Detroit-Real Estate & Development