District Detroit Development Plans Summary

**Lowell** · January-31-23, 09:47 AM

Todays Free Press has an excellent summary detailing plans by District Detroit's plans by reporter JC Reindl. Of course a lot of this is contingent on tax abatements and more and the Iltich-Ross team clearly have put their hats out.

Nonetheless this would, if carried out, be a very positive development, particularly as it includes renovation of four existing and beautiful abandoned ruins, most dramatically the long-derelict former Fort Wayne/American Hotel. The following is a summary of the ten new and old properties involved.

6 new buildings in the buildout:

2250 Woodward: A 20-story building to go next to Comerica Park and contain 287 apartments [[20% set aside as “affordable”), 27,000-square feet of ground-floor retail space and a new underground parking garage with 206 spaces. Development cost: 217 million.
2205 Cass: An 18-story residential building with 261 apartments [[20% affordable) and 8,750 square-feet of retail space that would be part of the Detroit Center for Innovation campus. Development cost: $148 million.
2200 Woodward: A newly constructed 17-story office building with ground-floor retail next to Comerica Park, plus a new underground parking garage with 298 spaces. [[It would share the same parking garage 2250 Woodward). Development cost: $321 million.
2305 Woodward or 2300 Cass: Two locations under consideration for an all-new, 22-story office building with ground-floor retail. Development cost: $283 million.
2300 Woodward: A new five-story office building with ground-floor retail. Development cost: $82 million.
Hotel next to Little Caesars Arena: A newly constructed 14-story, 290-room hotel next to Little Caesars Arena at 2455 Woodward. Although the building was originally announced last June as an Equinox Hotel, the actual brand of hotel has yet to be determined. Development cost: $192 million.

4 rehabs in the buildout:

408 Temple St.: The long-empty Fort Wayne/American hotel near the Masonic Temple would be redeveloped as an 11-story apartment complex with ground-floor retail. There would be 131 apartments, with 20% affordable. Development cost: $69 million.
2210 Park Ave.: Redevelopment of the old 10-story Detroit Life Building into 16 apartments with ground-floor retail. Development cost: $24 million
2115 Cass: Adaptive reuse of the former Moose Lodge building into a four-story business incubator as part of the Detroit Center for Innovation campus. Development cost: $55 million
Fox Hotel: Adaptive reuse of the 10-story Fox Theatre office building at 2211 Woodward to become a 177-room Fox Hotel. The project will not alter the Fox Theatre. Development cost: $123 million.

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**Lowell** · January-31-23, 10:14 AM

From the same article, here is what District Detroit wants under its Christmas tree.

$616 million in Transformational Brownfield reimbursements of state-level taxes over 35 years
$133 million in city tax breaks. Those tax revenues would otherwise be captured by the Downtown Development Authority, or DDA.
$25 million cash reimbursement to the developers from the DDA for the cost of “infrastructure improvements” for the buildout, specifically road and utility upgrades and creating public spaces. This money does not need to be paid back.
$24 million loan from the DDA to be repaid with 1% interest over 34 years to support the construction of deeply affordable housing, so that 20% of the planned 695 apartments would be set aside at below-market “affordable” rates for those whose incomes are no higher than 50% of the area median income, about $31,000 per year for an individual and $45,000 for a family of four.

**hybridy** · January-31-23, 10:28 AM

Originally Posted by Lowell

From the same article, here is what District Detroit wants under its Christmas tree.

$616 million in Transformational Brownfield reimbursements of state-level taxes over 35 years
$133 million in city tax breaks. Those tax revenues would otherwise be captured by the Downtown Development Authority, or DDA.
$25 million cash reimbursement to the developers from the DDA for the cost of “infrastructure improvements” for the buildout, specifically road and utility upgrades and creating public spaces. This money does not need to be paid back.
$24 million loan from the DDA to be repaid with 1% interest over 34 years to support the construction of deeply affordable housing, so that 20% of the planned 695 apartments would be set aside at below-market “affordable” rates for those whose incomes are no higher than 50% of the area median income, about $31,000 per year for an individual and $45,000 for a family of four.

So.... $182 MILLION DOLLARS from city of Detroit taxpayers and in return they get 139 affordable apartments and some infrastructure improvements. Do I have that right?

**401don** · January-31-23, 10:28 AM

I agree with others who have said this is much more likely given Ross' involvement but just how many times have they said they were doing the Detroit Life Building?

**DetroiterOnTheWestCoast** · January-31-23, 12:39 PM

Originally Posted by 401don

I agree with others who have said this is much more likely given Ross' involvement but just how many times have they said they were doing the Detroit Life Building?

Lucy Van Pelt announces impending restoration of the Detroit Life Building….

Charlie Brown is excited about the news.

**JonWylie** · January-31-23, 01:52 PM

I'm not sure why we keep starting a new thread on this stuff, but as for the viability of it, Related makes the odds that anything happens much greater. At the first CBO meeting, there were a half dozen or so employees of Related that flew in from NY, which I don't think they would just for the heck of it.

I've seen a few trucks taking soil samples out from of Comerica, so it seems like they are doing prep work already there.

**Richard** · January-31-23, 03:45 PM

Double edged sword,while it helps building the city,it also puts the burden on the taxpayers for the next 30 years,look at what is proposed,and what has been completed,all of those properties and the future profits are being removed from the tax base,so they only way for the city to collect revenue will be by in return taxes on the all ready tax stressed public.

There has to be a happy medium in there somewhere some how,so along with the expansion and rebuilding there remains the ability to lower the taxes on the existing residents.

Its removing all of the prime properties from the tax rolls.

Unless the goal is to encourage 10s of thousands more residents to move there in order to offset.

**Gistok** · January-31-23, 07:08 PM

Originally Posted by 401don

I agree with others who have said this is much more likely given Ross' involvement but just how many times have they said they were doing the Detroit Life Building?

The Detroit Life Building has been a work in progress, off and on, for 20 years. It is beyond being a joke and embarrassment. Ditto for the metal truss covered Fine Arts Building facade on W. Grand Circus Park and the Blenheim Apartments on Park Ave. behind the new Little Caesars HQ, which has been shuttered for going on 1/3 of a century.

**Lowell** · February-07-23, 11:10 AM

Not surprising blowback to District Detroit's passing their hat...

Board hears comments, will vote Wednesday on incentive
JC Reindl
Detroit Free Press | USA TODAY NETWORK

Development incentives for the proposed $1.5 billion District Detroit buildout came under heavy criticism Monday night during the first public hearing for a Transformational Brownfield valued at $616 million over 35 years. For instance...

“We shouldn't be giving Olympia any money because five to six years ago you came to us, promising a thriving neighborhood already, and you failed to deliver on those promises,” said Detroit resident Landis Spencer.

“The Ilitches have proven time and time again, especially from the last time the city gave them money, that they will not keep to their promises and only build to help their own self interests,” he said, “like when they built Little Caesars Arena and left all buildings surrounding it completely unused and barren.”

**royce** · April-11-23, 02:51 PM

Well, now that Miggie is retiring, the Illitches will have some money of their own to put toward some of these developments. All jokes aside, why build new office buildings when the climate is demonstrating that office workers are staying home? And did the company that built an office next to the Mike Illitch School of Business ever move in?

**hybridy** · April-11-23, 05:18 PM

Originally Posted by royce

Well, now that Miggie is retiring, the Illitches will have some money of their own to put toward some of these developments. All jokes aside, why build new office buildings when the climate is demonstrating that office workers are staying home? And did the company that built an office next to the Mike Illitch School of Business ever move in?

RTO is back with a vengeance. As soon as the worker shortage shows a hint of subsiding employers will put screws to the WFH holdouts. It's happening nationally. My national employer went from 1-2 in office to 2-3. Only a matter of time before we'll be required to be back in office 4 days/wk min.

First came the return-to-office policies. Now comes the discipline: How companies are punishing work-from-home holdouts

**Gistok** · April-11-23, 07:45 PM

^ I agree... anyone who thinks that they can 100% work from home because they are too valuable of an asset to be let go, is deluding themselves. When it comes to downsizing... many times the "out of sight" employees are the first to be let go.

**Danny** · April-12-23, 05:50 AM

The big problem is these proposed District Detroit projects is will the Illitches fulfill on their promises?

**401don** · April-12-23, 06:48 AM

Originally Posted by Danny

The big problem is these proposed District Detroit projects is will the Illitches fulfill on their promises?

Well, Chris said the Tigers rebuild was over last year and they've never let us down before so you have nothing to worry about.

**mwilbert** · April-12-23, 10:00 PM

Originally Posted by Gistok

^ I agree... anyone who thinks that they can 100% work from home because they are too valuable of an asset to be let go, is deluding themselves. When it comes to downsizing... many times the "out of sight" employees are the first to be let go.

It's a rare employee who is so valuable that there's nothing they could do that could cost them their job, but there are many people who are too valuable to be let go for insisting on working remotely. Hopefully they know who they are.

**Gistok** · April-13-23, 03:17 AM

Originally Posted by mwilbert

It's a rare employee who is so valuable that there's nothing they could do that could cost them their job, but there are many people who are too valuable to be let go for insisting on working remotely. Hopefully they know who they are.

Oh I agree... there are those gifted ones who a company would want to definitely keep. But I bet that there are more folks out there who think they are among that group... than actually are.

**Gistok** · April-13-23, 03:55 PM

An interesting article about remote jobs...

Get a remote job while you still can: More and more companies are calling workers back to the office — or outsourcing to cheaper workers overseas [[msn.com)

**Gistok** · April-16-23, 02:11 AM

Getting back on track... one of the things about District Detroit 2.0 is that there is no discussion about the many boarded up and decaying old buildings in the plans. They talk about a lot of new builds... but what about the Blenheim Apartments behind Little Caesar's new HQ? Or how about the Henry Street apartment row of buildings... that were originally destined for demolition, but was denied by the city? Or of course the Fine Arts facade on GCP west that has been held up by steel girders for 14 years? Or all the smallish apartment buildings around the Masonic Temple.

All that is being developed as part of District Detroit 2.0 is the Detroit Life Building on Park Ave., a building that has been a work in progress for 20 years!! And the Royal Order of the Moose lodge building on Cass is finally getting repurposed.

Also, should the conversion of the Fox Theatre Building into a hotel be considered for part of the "public monies" that is being asked for towards the district? It doesn't seem that it should be included, since it really is not improving the area so much as a great condition building finding a new use.

**southen** · April-16-23, 08:32 AM

Originally Posted by Gistok

Getting back on track... one of the things about District Detroit 2.0 is that there is no discussion about the many boarded up and decaying old buildings in the plans. They talk about a lot of new builds... but what about the Blenheim Apartments behind Little Caesar's new HQ? Or how about the Henry Street apartment row of buildings... that were originally destined for demolition, but was denied by the city? Or of course the Fine Arts facade on GCP west that has been held up by steel girders for 14 years? Or all the smallish apartment buildings around the Masonic Temple.

All that is being developed as part of District Detroit 2.0 is the Detroit Life Building on Park Ave., a building that has been a work in progress for 20 years!! And the Royal Order of the Moose lodge building on Cass is finally getting repurposed.

Also, should the conversion of the Fox Theatre Building into a hotel be considered for part of the "public monies" that is being asked for towards the district? It doesn't seem that it should be included, since it really is not improving the area so much as a great condition building finding a new use.

Henry Street is included and the only thing they could use to tout their dedication to historic preservation. I brought up the issue of their other decaying buildings in the first public meeting over zoom and they sidestepped the question entirely.

Including the Fox is a joke. Even the occupied buildings they own need to be propped up by the taxpayers.

**Burnsie** · August-09-23, 05:24 PM

Shocker! Construction start delayed!

https://www.freep.com/story/money/bu...e/70557063007/

**stasu1213** · August-09-23, 05:40 PM

Originally Posted by hybridy

So.... $182 MILLION DOLLARS from city of Detroit taxpayers and in return they get 139 affordable apartments and some infrastructure improvements. Do I have that right?

Take those taxpayers dollars and Hite more police and fire personnel

**Gistok** · August-09-23, 06:39 PM

Originally Posted by stasu1213

Take those taxpayers dollars and Hire more police and fire personnel

It's not that kind of tax money. I'm sure that someone will correct me if I'm wrong [never been a problem before

] but isn't the money "future property tax capture", and Michigan Strategic Fund [state land gas leases, etc.]?

**Richard** · August-09-23, 07:32 PM

Originally Posted by Gistok

It's not that kind of tax money. I'm sure that someone will correct me if I'm wrong [never been a problem before

] but isn't the money "future property tax capture", and Michigan Strategic Fund [state land gas leases, etc.]?

Sense it has never been a problem before

I want to live in a world where when you pull $100 out of your pocket it magically appears to replenish the pot.

It does not matter how creative you get in bookkeeping,at the end of the day the money has to come from somewhere,it does not just magically appear,that somewhere is someone and that someone is the taxpayers.

At any rate it has been approved although light on details of what happens if it does not come to fruition,because the argument of there is a small pot and if it is not used correctly and timely everybody suffers.

Michigan’s economic development board on Tuesday approved a nearly $615 million transformational brownfield plan for the $1.5 billion District Detroit development by Olympia Development and The Related Cos.The Michigan Strategic Fund board approved the plan that includes the following state and local property tax captures: the local and school property tax capture of $213 million, with state tax capture limited to $167 million; a maximum of $11.4 million in construction period tax capture revenues; a maximum of $38.1 million in construction period sales and use tax exemptions and a maximum of $352.3 million in income tax capture revenues and withholding tax capture revenues post-construction.

https://www.detroitnews.com/story/bu...-construction.

I think the bigger concern is not with the amount but what guarantees and protections the taxpayers have in this investment?

Because that is what you are doing,investing in your future,it is your money and you do have a right to know what performance guarantees you have and the ramifications of non performance.

If you are just giving out free money on hopes and dreams willy nilly,I am packing my trunk and coming up their to get me some.

Remember the history and do not repeat it.

Thats like telling somebody that you are giving them a free bridge,then after they agree to it coming back with - about that $3.5 billion we lent you to cover your half.

Think of the interest rate alone,I bet nobody knows what rate of interest you are paying or the terms or if they have the ability to call the entire note if you miss a payment and what happens if you do not happen to have $3.5 billion in change laying on the coffee table when they do.

The point is do not get caught up in the total figure,it’s the details that can trip you up,without some form of protection,you are just sitting ducks.

As taxpayers every financial agreement you enter into you have to have some kind of guarantee,you or I cannot just walk into a bank or buy a house without providing the lender some type of collateral or way of them to protect their interests.

This is hundreds of millions even billions of your money that is being played with.You have a right to expectations.

The city,state and county has a responsibility to be accountable to the taxpayers when it comes to non performance,there is hesitation based on past history and rightly so because it seems to be a common and re-occurring theme.

I would say if it repeats itself with this,it may be time to get mad and start firing those who say they are looking out for your best interests,people seem to forget,these people work for you,not the other way around.

**Danny** · August-10-23, 08:52 PM

Originally Posted by Burnsie

Shocker! Construction start delayed!

https://www.freep.com/story/money/bu...e/70557063007/

See what I mean folks! The 'Illeetches' are not fulfilling on their promises. The entertainment performers not real estate developers.

**Danny** · August-10-23, 08:58 PM

Olympia Development President Keith Bradford sez...

'There is no confirmed date for when groundbreaking for the initial building will happen, but they are working on it. He did not give specific reasons for the holdup.'

It means we need more investors to full up their building projects before we can start constructing.

A bunch of knuckleheads!

Cutting the construction ribbon doesn't means that the construction company is going to start building.

Dan Gilbert can take charge of the District Detroit Project much better than Chris Illitch.