Pistons to move HQ to New Center and Build $50-75 M Practice Facility

**Lowell** · February-24-17, 08:51 AM

Announcement coming today according to the Freep.

“We’re not just playing our games there,” Tellem said. “We’re moving our offices. Our practice facility development will wind up being in excess of $50 [[million) approaching $75 or more million dollars development in the city. A lot of that money will be going to Detroit employees and Detroit firms to do the building.

“We’re going to employ hundreds of people downtown, we’re going to be paying city income taxes where the city is going to get dollars every year. When you talk about the players’ [[salaries), that will be significant income. So we’re going to be contributing in a lot of ways and the study we provided that was done by the University of Michigan, the economic impact we will have on the city will be in the hundreds of millions.”

There’s speculation that the Pistons will partner with Henry Ford in the area of sports medicine, a trend in other NBA markets.

**Hypestyles** · February-24-17, 08:54 AM

hmm... Well, kudos. Are there still city tax incentives going into the building of these facilities? Just curious. I'm looking forward to the open [[ongoing) jobs announcements.

**emu steve** · February-24-17, 09:01 AM

This is what I find interesting:

“We’re going to employ hundreds of people downtown, we’re going to be paying city income taxes where the city is going to get dollars every year. When you talk about the players’ [[salaries), that will be significant income. So we’re going to be contributing in a lot of ways and the study we provided that was done by the University of Michigan, the economic impact we will have on the city will be in the hundreds of millions.”

Will a non-resident Piston making 10M / year pay say 100K+ in city income tax?

Will the city collect say 1M / year in taxes from players, coaches, etc.???

It takes a lot of taxpayers making 50K / year to produce 1M in city income taxes.

**emu steve** · February-24-17, 10:07 AM

Curious where? Near HFH or closer to Woodward?

How about NW corner of Woodward/W. Grand?

Or Woodward between W. Milwaukee/W. Baltimore [[is that surface parking now?)?

**Rock N Rye** · February-24-17, 10:09 AM

They announced the location will be in New Center. Hopefully they build on one of the parking lots on W. Grand Blvd and not near the Gilmore Center.

**emu steve** · February-24-17, 03:13 PM

The image of the building is great.

https://twitter.com/LouisAguilar_DN/...19924268236801

John Gallagher has it located:

https://twitter.com/JGallagherFreep/...19434956521472

**Rock N Rye** · February-24-17, 03:31 PM

It looks like it'll be built on the parking lot south of the railroad tracks between 2nd and 3rd. He said it's between Wayne State and the arena but he meant between Wayne State and Henry Ford hospital.

**emu steve** · February-24-17, 03:33 PM

Originally Posted by Rock N Rye

It looks like it'll be built on the parking lot south of the railroad tracks between 2nd and 3rd. He said it's between Wayne State and the arena but he meant between Wayne State and Henry Ford hospital.

Yeah, I'm thinking Amsterdam between 2nd and 3rd.

I believe WSU has a very significant amount of land in that area. Some buildings and some land.

**hybridy** · February-24-17, 03:42 PM

Henry Ford has been expanding their other surface lots to vacate this portion of land for the practice facility

**emu steve** · February-24-17, 03:45 PM

Originally Posted by hybridy

Henry Ford has been expanding their other surface lots to vacate this portion of land for the practice facility

I'm confused who owns the land: WSU or HFH?

WSU owns it and HFH leases it?

**emu steve** · February-24-17, 04:05 PM

Duggan says 'transformational.' I'm not sure.

I see a lot of positives, but I don't see the location as transformational.

Maybe the relationship between the Pistons and HFH, e.g., sports medicine, will be more important than I'm realizing and community involvement [[see below).

EDIT:

"It would have a sports medicine and rehabilitation facility managed by Henry Ford; that facility would be open to the public. As part of the agreement, Henry Ford will be the official health care provider for the Pistons beginning next season.The plan calls for public spaces for the community. Youth basketball clinics and Pistons Academy basketball programs would be held there. Fitness and nutrition programming will be offered, and spaces will be available for events."

**southen** · February-24-17, 04:54 PM

This development as well as the two other big residential projects within several blocks of the location may spur more interest in New Center. There are quite a few surface lots and smaller structures that are prime for the plucking. It would be nice to see more density in the area and see New Center somewhat fulfill its promise decades after it was conceived.

**Jason** · February-24-17, 05:14 PM

Is "transformational" the new "world class"?

**hybridy** · February-24-17, 05:43 PM

Originally Posted by emu steve

I'm confused who owns the land: WSU or HFH?

WSU owns it and HFH leases it?

690 Amsterdam owned by

HENRY FORD HEALTH SYSTEMS

https://makeloveland.com/us/mi/wayne...detroit/364393

6201 Second owned by NEW AMSTERDAM PARKING LLC [[tax status "hospital")

https://makeloveland.com/us/mi/wayne...64408&t=search

**MikeyinBrooklyn** · February-24-17, 10:51 PM

Jason, I loathe the term "world class" as applied to just about anything. I think we in Detroit should have nice things, but how buildings or transit systems or parks or universities or sculptures stack up against their counterparts in Shanghai, Sochi, Sorrento or Sacramento is irrelevant. Using the term "world class" smacks of an inferiority complex. "Transformational" is not yet on that level.

**emu steve** · February-25-17, 05:36 AM

Originally Posted by MikeyinBrooklyn

Jason, I loathe the term "world class" as applied to just about anything. I think we in Detroit should have nice things, but how buildings or transit systems or parks or universities or sculptures stack up against their counterparts in Shanghai, Sochi, Sorrento or Sacramento is irrelevant. Using the term "world class" smacks of an inferiority complex. "Transformational" is not yet on that level.

Maybe there are some transformational elements to the project.

I think we should not use 'transformational' as a synonym for huge, gaudy, 'world class', etc.

Trump Hotel in D.C. is very nice, gaudy, etc. but not transformational. It took an arch beautiful building and put it to good use. Other than the Trump gold lettering on the outside a passerby hardly notices anything 'new' or different. It did not change the neighborhood and heaven forbid one more high end hotel is 'transformational' in D.C.

LCA is transformational because it changes the character of a large area which could extend, in time, to the Motor City Casino and westward toward MLKjr blvd. Creating a new neighborhood, I would think, is transformational.

Transformational could be applied here to mean the functions [[functionality) are much different than simply a NBA practice facility. I'm still a bit skeptical.

Extending Qline to 8 Mile and doing branches down Jefferson, Gratiot, etc. would be transformational as it pertains to transportation and maybe where people choose to live.

Curious if the new Hudsons site building is huge, gaudy, world class, or transformational?

https://en.wikipedia.org/wiki/Transformation_design

**middetres** · February-25-17, 09:10 AM

Originally Posted by emu steve

This is what I find interesting:

“We’re going to employ hundreds of people downtown, we’re going to be paying city income taxes where the city is going to get dollars every year. When you talk about the players’ [[salaries), that will be significant income. So we’re going to be contributing in a lot of ways and the study we provided that was done by the University of Michigan, the economic impact we will have on the city will be in the hundreds of millions.”

Will a non-resident Piston making 10M / year pay say 100K+ in city income tax?

Will the city collect say 1M / year in taxes from players, coaches, etc.???

It takes a lot of taxpayers making 50K / year to produce 1M in city income taxes.

Not quite, but close...

My understanding is they only pay taxes on games played in the city. That would be roughly half their games, so half their pay. But visiting teams pay that tax too when they play here.

Same for Tigers, Lions, Red Wings and their opponents.

Our players pay income tax to other states, provinces and cities that they play their away games in as well.

**dtowncitylover** · February-25-17, 09:29 AM

Originally Posted by middetres

Not quite, but close...

My understanding is they only pay taxes on games played in the city. That would be roughly half their games, so half their pay. But visiting teams pay that tax too when they play here.

Same for Tigers, Lions, Red Wings and their opponents.

Our players pay income tax to other states, provinces and cities that they play their away games in as well.

Damn, I should've been a tax accountant for sports teams...

**emu steve** · February-25-17, 10:41 AM

Originally Posted by middetres

Not quite, but close...

My understanding is they only pay taxes on games played in the city. That would be roughly half their games, so half their pay. But visiting teams pay that tax too when they play here.

Same for Tigers, Lions, Red Wings and their opponents.

Our players pay income tax to other states, provinces and cities that they play their away games in as well.

I kind of thought the taxing of professional athletes was crazy but not THAT crazy.

I always thought that a pro athlete was like you or I: I live where my primary domicile is and I work where my 'usual place' is.

For a Piston: Usual place of work will be LCA, Detroit.

Usual residence can be any where they want, e.g., Detroit or a suburb.

Now the question for tax attorneys: For 207/18, are the Pistons a Detroit or Oakland County corporation?

**archfan** · February-26-17, 03:09 AM

Originally Posted by Jason

Is "transformational" the new "world class"?

Nah, that's old. You want 'big league'.

**313WX** · February-26-17, 08:40 AM

Originally Posted by archfan

Nah, that's old. You want 'big league'.

You mean "bigly."

**Shai_Hulud** · February-27-17, 08:49 AM

I think this is a good location and I'm extremely glad to see one of those enormous parking lots get filled in. That stretch of 2nd between 94 and the Blvd is actually decent looking and this should be a big help.

**drjeff** · February-27-17, 02:12 PM

Originally Posted by middetres

Not quite, but close...

My understanding is they only pay taxes on games played in the city. That would be roughly half their games, so half their pay. But visiting teams pay that tax too when they play here.

Same for Tigers, Lions, Red Wings and their opponents.

Our players pay income tax to other states, provinces and cities that they play their away games in as well.

The amount of tax paid is based on days worked in the city. Since they will now be "working" in the city every day they are not traveling for road games [[i.e. practicing or working out on non game days), I would think the ratio of days in the city to days not in the city will be a lot more than 50%.

**emu steve** · March-06-17, 04:30 AM

If anyone is interested, I'll try to find an article I saw yesterday about plans at 6001 Cass, I believe a building WSU owns.

This building [[Pistons) looks a lot better knowing other buildings are being rehabbed around it.

EDIT: and also 445 York. Both a couple blocks from the Pistons' facility.

http://www.freep.com/story/money/bus...ment/94829954/

http://www.clickondetroit.com/news/w...its-new-center

Wonder what's with 6161 [[?) Woodward? Very nice parking lot on Woodward two blocks east of the Pistons' new facility?

Why isn't that site being developed??? Thought it would been ideal. [[Just don't know who owns it, apparently not HFH, WSU, etc.??).

https://www.google.com/maps/place/60...!4d-83.0699664

**Rock N Rye** · March-06-17, 11:48 AM

It was last reported that that land on Woodward is owned by MDOT, and they were looking to find a developer who would build apartments and possible a new Amtrak station on that land.

http://www.crainsdetroit.com/article...-in-new-center