Community Benefits deal for District Detroit buildout moves forward

A Community Benefits agreement for the $1.5 billion District Detroit buildout was given a preliminary approval Tuesday night and will go to Detroit City Council for final consideration.

The package of spending pledges and equity commitments was negotiated over several weeks by a nine-member volunteer group, known as a Neighborhood Advisory Council or NAC, and the project's developers — the Ilitch organization's Olympia Development and Stephen Ross' Related Cos.

An office building proposed for 2300 Woodward.
An office building proposed for 2300 Woodward.

The advisory council voted 8-1 in support of the agreement, even as most speakers during the meeting's public comment period urged disapproval or a delay on voting.

The agreement calls for about $12 million in new, direct financial contributions to the community and just over $100 million in specially targeted spending out of the project's budget.

The targeted spending is to go to "disadvantaged" and Detroit-based contractors, with disadvantaged defined as Black- or Hispanic-owned businesses. And the $100 million target is for all goods and services — not just construction costs.

Each speaker during the public comment period of the final Community Benefits meeting on Tuesday, Feb. 21 was given 60 seconds. The meeting was held inside Cass Technical High School in Detroit.
Each speaker during the public comment period of the final Community Benefits meeting on Tuesday, Feb. 21 was given 60 seconds. The meeting was held inside Cass Technical High School in Detroit.

The $100 million target is in addition to the project's compliance with the standard Detroit requirement for at least 51% of its construction workforce to be Detroit residents. Projects that fall short of that requirement must make penalty payments toward workforce training programs.

More:More details emerge for $1.5B District Detroit buildout and incentives

More:Community Benefits deal for District Detroit buildout could be biggest ever

City Council is expected to take up the community benefits deal next month when it considers the developers' requests for state- and local-level development incentives and tax abatements with a combined value of about $800 million over 35 years.

The project calls for the construction or rehab of 10 buildings in and near downtown.

Before casting his vote in support, NAC Chairman Chris Jackson praised the benefits deal the group negotiated and called it a "historic agreement."

"The amount of commitment that has been made to disadvantaged businesses is unparalleled with anything that has been done that I've seen," Jackson said. “It is truly something that can become a template for many of the larger projects that would come behind this one.”

Another NAC member, Steven Hawring, said he had some reservations about the large size of the project's development incentives, but supports the benefits agreement that emerged.

"I’m going to be completely honest. If this was just Olympia, I would not support it," he said. "But I’ve been following Related for years. I’ve always looked forward to the day that they would finally come to Detroit."

NAC member Barbrie Logan was the sole "no" vote. She faulted Olympia for previously falling short of public expectations for development around Little Caesars Arena after it opened in 2017, and said the community doesn't have to simply accept whatever the developers are now willing to offer.

Tuesday marked the ninth and final meeting in the project's Community Benefits process, which is required for large developments in Detroit seeking tax abatements and incentives. The meeting was held in Cass Technical High School and streamed on Zoom.

“We are really excited to have completed it because it’s one step forward for us to be able to deliver on the affordable housing, on the job creation, and on the overall benefits that this transformative project will allow," said Andrew Cantor, Related Cos.' executive vice president of development, who took part in the deal's negotiations.

Provisions in the benefits agreement include:

  • Requiring acceptance of Section 8 vouchers for the 20% of the project's total 695 apartments that would be set aside as "affordable" for lower-income renters.

  • $1 million for renovating the football field at Cass Tech.

  • $3.5 million to subsidize parking fees for those in the 20% affordable apartments.

  • $1 million for a retail tenant improvement fund for disadvantaged Detroit businesses.

  • $1.5 million for a "Fast Track" pre-apprenticeship training program for Detroiters in collaboration with Detroit at Work.

  • $500,000 commitment to buying artwork from local Black and Hispanic artists for display in District Detroit.

  • $2.5 million for year-round "placemaking" and cultural programming along Columbia Street Plaza with performances by local creatives.

  • $625,000 to establish an "On-site Opportunity Connector" to provide residents with construction and post-construction job opportunities.

  • $350,000 for a study to address resident parking needs during LCA events and District Detroit construction and implement a plan to mitigate event-related traffic.

  • $100,000 for a planning study for the redesign and revitalization of Cass Park.

  • $200,000 to work with the city to build a shelter, landscaping and other enhancements for the park at John R and Watson in the city's Brush Park neighborhood.

  • $150,000 to sponsor real estate internships for Detroit high school students and Wayne State University students.

  • $100,000 to implement a "Council on Construction Operations" or similar program to increase retention of diverse employment during construction.

  • $50,000 to commission a study and partner with the city's Office of Arts, Culture and Entrepreneurship to create physical markers for each District Detroit development that celebrate the history of the neighborhood and legacy Detroiters.

  • A pledge to issue a request for proposals for local developers to codevelop at least three sites currently owned by Olympia.

Contact JC Reindl: 313-222-6631 or jcreindl@freepress.com. Follow him on Twitter @jcreindl.

This article originally appeared on Detroit Free Press: Community Benefits deal for District Detroit buildout moves forward

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