A plan to reshape Detroit’s skyline and East Riverfront is heading to the Detroit City Council for a final vote after being cleared by the city’s Planning and Economic Development Committee. The redevelopment project would demolish two towers of the Renaissance Center to make way for new housing and a riverfront park.
The City of Detroit, Detroit Economic Growth Corporation, Bedrock and GM are planning on investing $2.2 billion dollars to the project that will occur in 3 phases and is projected to be completed by 2026. $548 million of that investment will be from tax subsidies.
For many residents and local advocacy groups, the allocation of public funds to private developers is a misuse of city wealth, even though developers are pledging to give a total of $133 million dollars back to the city in exchange for the tax subsidies.
$43.5 million of the money will go towards actual cash spent on community programs, affordable housing, and neighborhood initiatives:
- $15M in housing for neighborhoods outside of downtown and towards the city’s trust fund that supports affordable housing.
- $10M towards small businesses and to provide business relief.
- $8M to fund a community hub including $1.5 million for youth programs.
- $6M towards job training programs for skilled trades and STEAM (Science, Technology, Engineering, Arts, Mathematics) careers.
- $4.5M for resident parking that’ll allow Detroit residents to park for free for 1.5 hours at the site.
Theo Pride, an organizer with the Detroit People’s Platform, condemned the proposed subsidy as “corporate welfare” and a “land grab” by the state’s wealthiest interests…