Steve Neavling
Protesters called on Detroit City Council to oppose a tax incentive plan for the Ilitch organization and billionaire Stephen Ross earlier this month.
Detroit City Council on Tuesday approved more than $615 million in tax incentives for two white billionaire developers — the Ilitch family and Stephen Ross — to build new residential units, hotel rooms, and office space in areas that should have already been transformed.
Following more than two hours of public comment, the council voted 8 to 1 in favor of the transformational brownfield tax incentives for the $1.5 billion District Detroit proposal. In all, the tax incentive package is worth nearly $800 million.
The total cost of the project is roughly $1.5 billion.
Council President Mary Sheffield, the lone no vote, said there were not enough “clear guarantees” that Detroit-based and Black businesses will sufficiently benefit and pointed to the Ilitch family’s Olympia Development failing to deliver on its promise to hire enough Detroit workers on the construction of Little Caesars Arena.
“I’m not against development,” Sheffield said. “Olympia has a history of making promises. It doesn’t have the best reputation. I have to have strong guarantees in place for Detoiters.”
Sheffield also called for a 2% ticket surcharge on sporting events to fund resources for lower-income Detroiters, but so far, the Ilitch family has not agreed to it.
“We certainly could use it,” David Whitaker, the director of Detroit’s legislative policy division, told council members. “I think a good corporate citizen would give that some serious consideration.”
Councilwoman Mary Waters said she only supported the project because Ross and the University of Michigan were involved and called on Olympia Development to do better in the future.
“No matter what lipstick you put on that pig, it’s still a piggy,” Waters said.
During public comment, dozens of speakers were divided on the incentive plan. Some were in support, saying the city needs the jobs and affordable housing.
The developers say the project will create 12,000 short-term jobs and 6,000 permanent jobs.
“If this passes, I will have more and more Black people on these jobs,” Wade Kovach, business agent with Plumbers Local 98, said. “I represent opportunity. I truly do.”
Others blasted the city for squandering resources on billionaires at a time when neighborhoods are in need and many residents are impoverished.
“Detroiters deserve a better deal for this $800 million,” Roshella Stewart, of the Detroit People’s Platform, said. “Detroiters will be displaced from the area because of the rising cost of rent. You know Detroiters deserve better. … Start investing in our neighborhoods. Please.”
It’s the second mammoth tax incentive plan for the Ilitch family’s Olympia Development, which received roughly $400 million a decade ago to build Little Caesars Arena and a surrounding neighborhood that never came to fruition. The Ilitches pledged to build five new neighborhoods full of retail, residential units, restaurants, and nightlife marketed as District Detroit.
North and west of the arena, abandoned apartment buildings still dot the landscape, despite promises from the Ilitches that they would renovate them.
The Ilitch family’s failures were slammed in an HBO segment in April 2019.
Steve Neavling
The abandoned building at 408 Cass
The new project calls for the construction of six buildings and the renovation of four more controlled by the Ilitch organization. It includes 695 mixed-income residential units, 467 hotel rooms across 10 properties, 1.2 million square feet of commercial office space, and 100,000 square feet of retail.
At least 20% of the residential units would be considered affordable housing for those earning the equivalent of an annual income of $35,800 or less for a two-person household.
Most of the development would take place south of Little Caesars Arena.
If all goes as planned, which doesn’t always happen when the Ilitches are involved, the city would receive $751 million in tax revenue over 35 years, according to Mayor Mike Duggan’s administration.
Construction is expected to begin in July.
Coming soon: Metro Times Daily newsletter. We’ll send you a handful of interesting Detroit stories every morning. Subscribe now to not miss a thing.
Follow us: Google News | NewsBreak | Reddit | Instagram | Facebook | Twitter
