Detroit City Council Speaker Sets Terms for Dan Gilbert’s Proposed $60 Million Tax Break | Metro Detroit News | Detroit

click to enlarge Bedrock Detroit owner Dan Gilbert.  - JORDAN BUZZY

Jordan Buzzy

Bedrock Detroit owner Dan Gilbert.

Detroit City Council president Mary Sheffield proposed new terms for a controversial $60 million tax break for Dan Gilbert’s real estate company to develop its delayed downtown Hudson’s site project.

The council has postponed the vote on the tax incentives for three weeks in a row amid reactions from residents who question why the cramped city would give tax breaks to a billionaire’s company for a project already underway.

Bedrock is asking for a 10-year local tax credit, on top of the more than $200 million the company has already received in state and local grants and development incentives. Gilbert also received the site in the heart of downtown for $1.

Sheffield proposed the following conditions:

• 30% of Bedrock’s housing portfolio should be spent on affordable housing at 60% of the area’s median income. It is currently at 20%.

• Bedrock must dedicate 20% of its street-level retail space to small business and community programming in Detroit.

• A $1 million commitment to small business development and growth in Detroit.

• An annual transparency report by the Detroit Civil Rights, Inclusion & Opportunity Department to determine whether Bedrock has lived up to its commitments.

It is not clear whether there is an enforcement mechanism in the event that Bedrock does not meet the requirements.

Mayor Mike Duggan’s office says it supports Sheffield’s proposal.

“The mayor has encouraged Bedrock to work with members of the city council to develop a package that addresses their concerns because he feels there is a need and it is necessary for this project and the reduction, which he also supports, to move forward,” said Duggans spokesman John Roach Metro times

A majority of the council’s nine members appeared to have enough votes to approve the tax break unconditionally on June 14, but they postponed the approval of the incentives amid public outcry.

City officials noted that the tax breaks outweigh what the city will receive in income taxes over the life of the building. And the real estate tax from the rebate has to be spent downtown, so it doesn’t affect city services.

Stay connected with Detroit Metro Times. Subscribe to our newsletters and follow us on Google News, Apple News, TwitterFacebook, Instagram, Reddit or TikTok.

Leave a Comment