City Council on Tuesday, March 28, approved a $167 million Community Benefits Agreement (CBA), among other projects tied to Olympia Development of Michigan and The Related Companies, in a joint endeavor to develop the $1.5 billion District Detroit. The approval came after hours of public comments and discussions that resulted in the Council voting 8-1 to advance the request of the two partnering companies. The solo “no” vote was by Council President Mary Sheffield.
In a statement by Sheffield, she made it clear that she is not “anti-business.”
“I have literally, after fighting for more guarantees for Detroiters, voted for almost every major development deal over my nine plus years on City Council,” the Council President’s statement said. “Standing on principle is not synonymous with stamping down progress. This model of developing our City has been the norm over the last 40 years and we’ve see nothing but the proliferation of poverty, the loss of population, the obliteration of Black businesses and the systematic exclusion of Detroiters with respect to ownership and equity! I, for one, can no longer continue with business as usual.”
City Council also approved a $616 million transformational brownfield redevelopment plan over a 35-year period, which will still need approval by the state.
Local media outlets report “Of the $616 million in tax dollars to be captured by the developers, about $400 million is to come from future state-level taxes, including state income taxes paid by workers and residents in the planned buildings. The balance would come from future property taxes that would otherwise go to the Downtown Development Authority (DDA). In addition, the Ilitch’s Olympia and Related Companies have agreed to make combined payments totaling $350,000 a year for the next decade, to provide affordable housing for Detroiters, including those with Section 8 vouchers.”
City Council’s approval is incredible news for the District Detroit Neighborhood Advisory Committee (NAC). NAC signed “a historic support letter” on Monday, March 6, in favor of the $167 million Community Benefits Agreement (CBA) for the proposed District Detroit development. The letter and CBA were ultimately sent to Council in hopes of its approval.
Chris Jackson, who chaired NAC, felt good about the CBA since it was negotiated, signed, and sent to City Council.
“This is the most extensive and comprehensive CBA that has ever been negotiated in the history of Detroit,” Jackson told the Michigan Chronicle in early March. “It far exceeds any agreement that I’ve seen as a developer that the private sector has committed to. There are negotiated commitments never before included in a Detroit Community Benefits Agreement.”
The 11-page CBA outlining the community benefits obligations associated with the District Detroit project, includes, but is not limited to, spending a minimum of $100 million with disadvantaged businesses in Detroit, creating a physical space to connect Detroiters to the developers for housing, employment, and business opportunities, acceptance of tenants utilizing Section 8 Vouchers in all affordable units with tenants having the Right to Renew, offering 20% of residential units at rates no more than 50% of the Area Median Income, creating a Tenant Improvement Fund for disadvantaged and emerging entrepreneurs renting space in District Detroit properties, and developers’ commitments to partner with local emerging developers on three projects in District Detroit.
In addition, developers made commitments to buy artwork from local Black and Hispanic artists for display in District Detroit, renovate Cass Tech High School’s football field and athletic facilities, redesign Cass Park and Brush Park, and fund $1.5 million for a Fast Track pre-apprenticeship training program for Detroiters in collaboration with Detroit at Work.
The favorable votes by City Council provided excellent news for Olympia Development and The Related Companies. Both organizations issued a joint statement, saying, “We thank the Detroit City Council, Mayor Duggan, the Neighborhood Advisory Council, and all of the Detroiters who support the future of The District Detroit and the inclusive economic impact that this project will have on our city and state, including thousands of jobs and much needed affordable housing. We look forward to continuing our work with the Neighborhood Advisory Council, City of Detroit and the State of Michigan.”
Mayor Duggan said in a statement on Tuesday, “Today, City Council voted for a future where all Detroiters who want a good paying job can find one. Our young talent shouldn’t have to leave Detroit for Atlanta or Chicago or Miami to pursue their dreams. With today’s vote, many more of those dreams will be achieved right here in a growing and vibrant city. Thank you to Detroit City Council and to the members of the Neighborhood Advisory Committee who worked so hard to reach an agreement that will benefit all Detroit.”
While many are cheering the deal, some in the community are not clapping.
“This is a very bad deal and one of the worst Community Benefits Agreements that we’ve seen,” Linda Campbell, Director of Detroit People’s Platform, told the Chronicle weeks ago. “This project could be funded by the likes of Stephen Ross and Olympia Development, who are multi-billionaires, but they are using public tax money.”
Nevertheless, with City Council’s 8-1 vote, District Detroit, with its $1.5 billion price tag, will move forward. The deal includes the planned construction and operation of 10 renovated historic or new projects, including four mixed-income residential buildings, four commercial office buildings, two hotels, open public and green spaces. Among the grand plan is the $250 million construction cost of the Detroit Center for Innovation, a three-building complex for high-tech research, education, and entrepreneurship programs for University of Michigan students and non-students. Ross committed to donating $100 million for the center’s construction.
When the entire District Detroit is completed – estimated in 2028 or 2029 – plans are for it to cover 50 blocks with borders purported to be the John C. Lodge Expressway (west), I-75 (east), Mack Ave./Martin Luther King Jr. Blvd. (north), and Grand Circus Park (south).
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