The $1.5 billion development plan for the District Detroit is taking a leap forward after Detroit City Council approved a $616 million Brownfield Redevelopment subsidy on Tuesday.
Olympia Development, owned by the Ilitch family, and Related Cos., which is owned by billionaire developer Stephen Ross, announced the $1.5 billion investment for 10 buildings surrounding The District Detroit in November. It came as several buildings that were announced in 2017 sit unfinished.
In all, it's expected to bring more than 100,000 square feet of retail space, more than 460 hotel rooms and nearly 700 residential units that the developers say will bring thousands of jobs and a lot of money into the city.
Council voted 8-1 to approve the plan, with Council President Mary Sheffield being the lone vote against it.
"Listen you're talking about 20,000 jobs, $548 million in labor income, $865 million in wages, so this is a big deal," Councilman Coleman A. Young, Jr. said.
However, many people were angry over the proposed tax breaks, with more than 100 people speaking at the city council meeting on Tuesday, many against the proposal.
"It's taking money directly away from Detroiters to give it to the district project. This makes no sense," Resident Elena Herrata said.
Others encouraged the council to approve the plan.
"We have to develop and the city has to build which creates jobs, creates revenue," Pastor Mo said.
"When you develop anything you're going to get jobs. People need to build stuff. you're going to have some economic stimulation. That's not the issue, the issue is who does it benefit?" Theo Pride added.
"For a local person like me who goes to Wayne State and dorming at Wayne State, I. think it's important to see the city grow," one person said.
Detroit Mayor Mike Duggan released a statement saying, "“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.”
Olympia Development and Related Cos. released a statement that said, “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."
Sheffield said the plan doesn't guarantee enough investment in disadvantaged businesses and post-construction work for Detroiters.
Before the District Detroit can officially break ground, they have to get approval from the Michigan Strategic Fund next April.
