A new state law is expected to open the door for more private investment along Detroit’s waterfront by expanding the financing options available through the Detroit/Wayne County Port Authority.
Gov. Gretchen Whitmer signed Senate Bill 52 into law, authorizing the Port Authority to issue conduit, or “pass-through,” bonds for qualified economic development projects throughout southeast Michigan. The legislation allows the agency to help finance a broad range of waterfront developments, including manufacturing facilities, housing, entertainment venues, recreational projects, and other commercial investments.
The financing mechanism does not commit public dollars. Instead, private developers receiving the bond proceeds are responsible for repaying the loans, while the Port Authority serves as the conduit issuer.
Port Authority leaders say the new authority will help advance redevelopment projects on vacant and underutilized waterfront properties while creating opportunities for long-term economic growth.
“This legislation will give the Port Authority an important tool to accelerate the redevelopment of vacant industrial sites on the waterfront and encourage manufacturing, shipbuilding, large-scale entertainment and tourism,” said Jonathan C. Kinloch, chairman of the Detroit/Wayne County Port Authority Board. “This will create jobs in our region and increase the economy for our entire state. As we increase tourism and manufacturing here in southeast Michigan, the entire state benefits.”
The legislation was sponsored by state Sen. Erika Geiss, whose district includes communities along the Detroit River. She said the law modernizes the Port Authority’s governing statute and expands its ability to facilitate investment in waterfront communities.
“With the signing of Senate Bill 52 into law, Michigan is giving the Detroit/Wayne County Port Authority the modern toolkit needed to compete on a global scale,” Geiss said. “This legislation is a gamechanger for how we invest in our Detroit River and waterfront communities. I look forward to seeing the redevelopment, job creation, and boosted property values to come.”
Conduit bonds are commonly used to help private entities secure lower-cost financing for projects that serve a public purpose. Under Senate Bill 52, neither the State of Michigan nor the Detroit/Wayne County Port Authority is financially responsible for the debt. Bondholders are repaid solely by the private borrower, meaning taxpayers are not liable if a project fails.
That distinction has been a central point for Port Authority officials as they explain how the new financing authority will operate.
According to the agency, the law is intended to encourage private investment in strategic waterfront properties by reducing financing costs for eligible developments. Officials say those investments could support industrial expansion, business growth, new housing, entertainment destinations, and public access improvements along the region’s waterways.
Kinloch said the legislation also strengthens the Port Authority’s role in supporting redevelopment across southeast Michigan.
“Senate Bill 52 positions the Port Authority to play an even greater role in supporting economic growth along our waterways,” Kinloch said. “This financing tool will help unlock projects that create lasting economic value while protecting taxpayers and advancing the long-term vitality of our waterfront communities.”
The Detroit/Wayne County Port Authority oversees shipping and maritime economic development in Wayne County and along the Detroit River, one of North America’s busiest commercial waterways. In addition to supporting freight movement, the agency works with public and private partners on projects involving waterfront access, redevelopment, and maritime infrastructure.
With Senate Bill 52 now in effect, the Port Authority has added another financing option that officials say can help move eligible development projects from planning to construction without placing financial risk on taxpayers.
The agency also thanked Geiss and members of the Michigan Legislature for supporting the measure, saying the new authority will strengthen maritime infrastructure and help advance economic development opportunities across southeast Michigan.
